GCP Infrastructure
Investments Limited
("GCP Infra" or the
"Company")
LEI:
213800W64MNATSIV5Z47
Company update and net asset
value(s)
3 February 2025
Net Asset Value
GCP Infra announces that at
close of business on 31 December 2024, the unaudited net asset
value ("NAV") per ordinary share of the Company was 105.18 pence
(30 September 2024: 105.22 pence), a decrease of 0.05 pence per
ordinary share. The NAV takes into account cash, other assets,
accrued liabilities and expenses and leverage of the Company
attributable to the ordinary share class.
As announced in the Company's Annual
Report and Accounts, published in December, it completed the
disposal of a portfolio of rooftop solar assets installed on
domestic properties in the UK at the prevailing valuation during
the quarter, generating proceeds of £6.8 million. On 30 January
2025, the company also announced it has disposed of its interest in
two operational onshore wind farms, generating day one cash
proceeds of c. £16.5 million, with a further c. £1.3 million of
deferred proceeds, and c. £1.0 million of tax benefits
released.
The Board of Directors of the
Company reconfirmed its commitment to the Capital Allocation Policy
in its 2024 Annual Report and Accounts, continuing to prioritise a
material reduction in leverage, as well as reducing equity-like
exposures and exposures in certain sectors, whilst also
facilitating the return of £50 million of capital to shareholders.
At 31 December 2024, the Company had £61 million
(30 September 2024: £57 million) outstanding under
its revolving credit arrangements, representing a net debt position
of c. £43 million (30 September 2024: c. £45 million) which
compares to the Company's unaudited NAV of £911 million (30
September 2024: £913 million).
An uplift in forecast electricity
prices, driven both by higher futures forecast in the short-term
and the latest forecast from the Company's third-party power price
consultant, led to increasing forecast cash distributions to the
Company from certain renewable energy investments, contributing c.
0.60 pence per ordinary share. This was offset by actual generation
across the renewable energy portfolio that was materially below
budget, as the UK suffered from poor solar irradiance and low wind
speeds, which led to a reduction of c. 0.76 pence per ordinary
share. Short-term inflation forecasts were updated for the Office
for Budget Responsibility's (OBR) latest projections, released with
the government's Autumn Budget, these saw a much softer landing
than had been assumed in the Spring Budget analysis, and resulted
in a 0.78 pence per ordinary share uplift. No changes to discount
rates were recommended by the Company's independent valuation
agent, Forvis Mazars, during the quarter. The weighted average
discount rate used by the Company to value its investment portfolio
increased to 7.98% at 31 December 2024, as a result of changing
valuations within the portfolio (30 September 2024:
7.95%).
A summary of the constituent
movements in the quarterly net asset value per ordinary share is
shown below.
|
NAV analysis (pence per
share)
|
NAV
|
Change
|
|
30 September 2024
|
105.22
|
|
|
Q4 2024 power price forecasts (net
of hedging)
|
|
0.60
|
|
Actual generation across the
renewable energy portfolio
|
|
(0.76)
|
|
Updates for OBR Autumn Budget
Inflation forecast
|
|
0.78
|
|
Other valuation changes
|
|
(0.66)
|
|
31 December 2024
|
105.18
|
|
Portfolio
The Company's portfolio continues to
perform materially in line with the Company's expectations. The
Company's mature, diverse and operational portfolio provides
defensive access to stable and predictable income. It is the view
of the Investment Adviser that the long-term and structural demand
for infrastructure, and particularly infrastructure debt, offers
investors an attractive exposure to an asset class whose
performance is not correlated to wider markets and benefits from
long-term and partially inflation protected income. Further
portfolio information is available at: www.graviscapital.com/funds/gcp-infra/literature,
including a line-by-line breakdown of the investment portfolio and
underlying assets that is updated by the Company
periodically.
For further information please
contact:
|
Gravis Capital Management
Limited
Philip Kent
Max Gilbert
Cameron Gardner
|
+44 (0)20 3405 8500
|
|
RBC Capital Markets
Matthew Coakes
Elizabeth Evans
|
+44 (0)20 7653 4000
|
|
Stifel Nicolaus Europe
Limited
Edward Gibson-Watt
Jonathan Wilkes-Green
|
+44 (0)20 7710 7600
|
|
Burson Buchanan
Helen Tarbet
Henry Wilson
Samuel Adams
|
+44 (0)20 7466 5000
|
Notes to the Editor
About GCP Infra
GCP Infra is a closed-ended
investment company and FTSE-250 constituent. Its shares are traded
on the main market of the London Stock Exchange. The Company's
objective is to provide shareholders with regular, sustained,
long-term distributions and to preserve capital over the long term
by generating exposure to UK infrastructure debt and related and/or
similar assets.
The Company primarily targets
investments in infrastructure projects with long term, public
sector-backed, availability-based revenues. Where possible,
investments are structured to benefit from partial inflation
protection. GCP Infra is advised by Gravis Capital Management
Limited.
GCP Infra has been
awarded with the London Stock
Exchange's Green Economy Mark in recognition of its contribution to
positive environmental outcomes.
