REG - GCP Infra Inv Ltd - Company Update, NAV and Dividend Declaration

GCP Infrastructure InvestmentsAnnouncement

29/01/2024 07:00

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RNS Number : 1144B  GCP Infrastructure Investments Ltd  29 January 2024

GCP Infrastructure Investments Limited

("GCP Infra" or the "Company")

LEI: 213800W64MNATSIV5Z47

 

Company update, net asset value(s) and Dividend Declaration

 

29 January 2024

Net Asset Value

GCP Infra announces that at close of business on 31 December 2023, the
unaudited net asset value per ordinary share of the Company was 109.84 pence
(30 September 2023: 109.79 pence), an increase of 0.05 pence per ordinary
share. The net asset value takes into account cash, other assets, accrued
liabilities and expenses and leverage of the Company attributable to the
ordinary share class.

The primary driver of the Company's NAV movement in the quarter was the
updated OBR inflation forecast, following the Autumn Statement in November
2023, that contributed c. 1.0 pence per ordinary share. This was offset by
further reductions in forecast electricity prices, primarily decreases in
short-term power prices, decreasing forecast cash distributions to the Company
from certain renewable energy investments. This power price volatility is
partially offset by the positive performance of the Company's hedging
arrangements. The overall net power price movements negatively contributed c.
0.7 pence per ordinary share.

Increases to discount rates led to a reduction of c. 0.5 pence per ordinary
share, resulting in the weighted average discount rate used by the Company to
value its investment portfolio of 7.76% at 31 December 2023. This was offset
by increased actual cash distributions to the Company from its renewable
energy investments that contributed c. 0.1 pence per ordinary share. A summary
of the constituent movements in the quarterly net asset value per ordinary
share is shown below.

 

 Net asset value analysis (pence per share)                         NAV     Change
 30 September 2023 NAV                                              109.79
 November 2023 OBR inflation forecast                                       0.98
 Q4 2023 power price forecast (inclusive of hedging value changes)          (0.72)
 Discount rate increases                                                    (0.48)
 Actual generation across the renewable energy portfolio                    0.08
 Share buyback accretion                                                    0.18
 Other valuation changes                                                    0.01
 31 December 2023 NAV                                               109.84

Portfolio

Notwithstanding the lower electricity price forecasts, the portfolio continues
to perform materially in line with the Company's expectations. The Company's
mature, diverse and operational portfolio provides defensive access to income
against a backdrop of market volatility and uncertainty. It is the view of the
Company 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 non-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
will be updated by the Company periodically.

Buybacks

On 14 March 2023 the Company announced a proactive programme of share buybacks
in response to the persistent discount at which the Company's share price is
trading relative to the published net asset value. The Company remains
committed to pursue buyback opportunities in line with the capital allocation
strategy that has been set out in the annual report, and to benefit from the
investment opportunity that the Company's shares offer at the current price.
At 31 December 2023, the Company had bought back 16,985,019 shares.

Updates

The Board, and Gravis, are available to meet with the Company's shareholders.
For the release of the 31 December 2023 NAV, Gravis will be holding a webinar
on 1 February 2024 at 11.00am. For further details and to book a place please
contact daniela.santos@graviscapital.com
(mailto:daniela.santos@graviscapital.com) , cameron.gardner@graviscapital.com
(mailto:cameron.gardner@graviscapital.com) or your usual Gravis contact.

Dividend

GCP Infra is pleased to announce a dividend of 1.75 pence per ordinary share,
for the period from 1 October 2023 to 31 December 2023. The dividend will be
paid on 8 March 2024 to holders of ordinary shares recorded on the register as
at the close of business on 9 February 2024.

Scrip dividend suspension

The Board, in its discretion, has determined that the offer of a scrip
dividend will remain suspended for the period from 1 October 2023 to 31
December 2023. The suspension is as a result of the discount between the
likely scrip dividend reference price of the shares and the current net asset
value per share of the Company. The Board will keep the payment of future
scrip dividends under review.

Expected timetable:

 Shares quoted ex-dividend  8 February 2024
 Record date for dividend   9 February 2024
 Dividend payment date      8 March 2024

 

For further information please contact:

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

 Philip Kent

 Ed Simpson

 Max Gilbert

 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

 Buchanan/Quill                     +44 (0)20 7466 5000

 Helen Tarbet

 Sarah Gibbons-Cook

 Henry Wilson

Notes to the Editor

About GCP Infra

GCP Infra is a closed-ended investment company and FTSE-250 constituent whose
shares are traded on the main market of the London Stock Exchange. Its
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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