RCS - GCP Infra Inv Ltd - Update from QuotedData

GCP Infrastructure InvestmentsAnnouncement

08/08/2024 09:00

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RNS Number : 7210Z  GCP Infrastructure Investments Ltd  08 August 2024

 

GCP Infrastructure - Update from QuotedData

8(th) August 2024

Crystallising unrealised value

So far, this programme has allowed the company to significantly reduce
leverage and begin returning capital to shareholders. It has also enabled GCP
to start the process of restructuring the portfolio to take advantage of an
increasingly attractive investment environment, reduce its exposure to
merchant power prices (electricity sold into wholesale markets rather than at
fixed prices), and exit some of its legacy positions.

GCP Infrastructure Investments Ltd (GCP) had a difficult 2023, as the
infrastructure sector dealt with rising interest rates and stubborn inflation.
However, 2024 brought an improving economic outlook, the prospect of a
reversal in interest rate policy, and - for GCP's shareholders - a highly
attractive dividend yield, solid portfolio execution, and the introduction of
a capital recycling programme (where the adviser looks to realise existing
assets to fund capital returns and new investment).

GCP remains well positioned to capitalise on this opportunity thanks to the
ongoing resilience of its cash flows over the last few years. This has
provided the foundation for the current capital programme and leaves the
adviser in a strong position to rebalance the portfolio. Whilst the company's
shares continue to trade at a stubborn discount to net asset value (NAV) of
26%, its fortunes look much more promising.

Full Research:

https://quoteddata.com/research/gcp-infrastructure-crystallising-unrealised-value-qd/
(https://quoteddata.com/research/gcp-infrastructure-crystallising-unrealised-value-qd/)

This research is also available free on our website www.quoteddata.com
(http://www.quoteddata.com) where you will also find news, performance data
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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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