REG - GCP Infra Inv Ltd - Company update and net asset value(s)

GCP Infrastructure InvestmentsAnnouncement

03/02/2025 07:15

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RNS Number : 5406V  GCP Infrastructure Investments Ltd  03 February 2025

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
(http://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  +44 (0)20 3405 8500

 Philip Kent

 Max Gilbert

 Cameron Gardner

 RBC Capital Markets                +44 (0)20 7653 4000

 Matthew Coakes

 Elizabeth Evans

 Stifel Nicolaus Europe Limited     +44 (0)20 7710 7600

 Edward Gibson-Watt

 Jonathan Wilkes-Green

 Burson Buchanan                    +44 (0)20 7466 5000

 Helen Tarbet

 Henry Wilson

 Samuel Adams

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.

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