REG - GCP Infra Inv Ltd - Company update and Net Asset Value

GCP Infrastructure InvestmentsAnnouncement

06/11/2025 08:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251106:nRSF4685Ga&default-theme=true

RNS Number : 4685G  GCP Infrastructure Investments Ltd  06 November 2025

GCP Infrastructure Investments Limited

("GCP Infra" or the "Company")

LEI: 213800W64MNATSIV5Z47

 

Company update and Net Asset Value

 

6 November 2025

Net Asset Value

GCP Infra announces that at close of business on 30 September 2025, the
unaudited net asset value ("NAV") per ordinary share of the Company was 101.40
pence (30 June 2025: 102.14 pence), a decrease of 0.74 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.

Forvis Mazars, the Company's independent valuation agent, applied a
sector-wide increase of 25 bps to the discount rates applicable to the
Company's renewables portfolio to reflect their view of market conditions for
this asset class, including as a result of the expectation of delays to
interest rate reductions and persistently high yields for benchmark long
duration UK fixed income exposures. This has resulted in a negative movement
of 0.38 pence per ordinary share.

Updates to forecast electricity prices, driven by higher futures forecast in
the short-term, led to an increase of 0.08 pence per ordinary share, net of
hedging. Actual generation across the renewable energy portfolio, net of the
valuation effect of unwinding discount rates and project specific updates
across the whole portfolio led to a net decrease of 0.31 pence per ordinary
share.

During the period the Company has, following independent advice, updated its
assessment of the level of curtailment and constraint for two onshore wind
projects in Northern Ireland that participate in the Irish Single Electricity
Market. This has resulted in a negative movement of 0.41 pence per ordinary
share.

A summary of the constituent movements in the quarterly NAV per ordinary share
is shown below.

 NAV analysis (pence per share)                                              NAV     Change
 30 June 2025                                                                102.14
 Q3 2025 power price forecasts (net of hedging)                                      0.08
 Actual generation net of discount rate unwind and project specific updates          (0.31)
 Northern Irish wind asset curtailment forecast                                      (0.41)
 Sector-wide discount rate changes                                                   (0.38)
 Share buyback accretion to NAV                                                      0.28
 30 September 2025                                                           101.40

Capital allocation

The Board reconfirms its commitment to the Company's capital allocation policy
set out in the 2024 Annual Report and Accounts, continuing to prioritise
repayment of 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 30 September 2025, the Company had £20 million
(30 June 2025: £43 million) outstanding under its revolving credit
arrangements, representing a net debt position of c. £8 million (30 June
2025: c. £36 million) which compares to the Company's unaudited NAV of £849
million (30 June 2025: £864 million).

Further supporting the capital allocation policy, the Company bought back
8,937,270 ordinary shares in the quarter, contributing a 0.28 pence per
ordinary share increase to NAV. In aggregate, the Company has purchased c.
£23 million of shares since announcing the capital allocation policy.

The Company continues to progress transactions to dispose of assets in those
sectors targeted in the capital allocation policy. If completed, such
transactions would enable the Company to complete the capital allocation
policy objectives of returning at least £50 million to shareholders and
reducing the Company's outstanding debt to nil. Further announcements will be
made in due course, including as part of the Company's annual report and
financial statements, which are due to be published in December 2025.

Renewable Subsidy Indexation

The Company notes the recent publication by The Department for Energy Security
and Net Zero of a consultation regarding potential changes to the indexation
methodology applied to feed-in-tariffs and the buy-out price under the
renewables obligation (the "Proposals"). The Company intends to respond to the
consultation setting out objections to the Proposals: long-term investors rely
on a stable policy environment and the Proposals, if implemented, would either
deter future investment or increase the risk premium of future investment in
projects that rely on long-term policy support. If implemented, under options
one and two of the Proposals, the impact on the Company's NAV would be a
decrease of 0.46 and 1.19 pence per ordinary share respectively.

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.

For further information please contact:

 Gravis Capital Management Limited  +44 (0)20 3405 8500

 Philip Kent

 Robyn MacHugh

 Cameron Gardner

 RBC Capital Markets                +44 (0)20 7653 4000

 Matthew Coakes

 Elizabeth Evans

 Sahil Suleman

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

 Edward Gibson-Watt

 Jonathan Wilkes-Green

 Burson Buchanan                    +44 (0)20 7466 5000

 Helen Tarbet

 Nick Croysdill

 Henry Wilson

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 dividends 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NAVUNSBRVOUARRA



            Copyright 2019 Regulatory News Service, all rights reserved