RCS - GCP Infra Inv Ltd - Annual Overview from QuotedData

GCP Infrastructure InvestmentsAnnouncement

31/01/2024 13:00

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RNS Number : 5697B  GCP Infrastructure Investments Ltd  31 January 2024

 

GCP Infrastructure - Annual Overview from QuotedData

31(st) January 2024

Don't look back in anger

There is no doubt that 2023 was a challenging year for GCP and the broader
infrastructure sector as a confluence of factors weighed on performance,
particularly the rapid increase in interest rates. Despite this, the company
was still able to generate positive NAV returns thanks to inflation linkages
and contracted earnings, which helped offset the impact of rising discount
rates. Disappointingly, negative sentiment continued to weigh on the company's
shares, with the share price discount to net asset value (NAV) widening to a
record low, despite the stability of the underlying portfolio.

Promisingly, we have seen a decisive change in sentiment for the better as
inflation has begun to moderate, with the headline rate falling from 11.1% to
4.0% in the UK over the past year.

In the short term, the trust's fortunes may be heavily influenced by the
direction of interest rates and inflation. However, we believe that it is time
that the stability of GCP's cash flows and a bumper dividend yield of almost
10% attracted attention once again.

Full Research:

https://quoteddata.com/research/gcp-infrastructure-dont-anger-qd/
(https://quoteddata.com/research/gcp-infrastructure-dont-anger-qd/)

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NB: Marten & Co was paid to produce this note on GCP Infrastructure
Investments Limited, and it is for information purposes only. It is not
intended to encourage the reader to deal in the security or securities
mentioned in this report. Please read the important information at the back of
this note. QuotedData is a trading name of Marten & Co Limited which is
authorised and regulated by the Financial Conduct Authority. Marten & Co
is not permitted to provide investment advice to individual investors
categorised as Retail Clients under the rules of the Financial Conduct
Authority.

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