REG - GCP Infra Inv Ltd - Net asset value and dividend declaration

GCP Infrastructure InvestmentsAnnouncement

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RNS Number : 6667G  GCP Infrastructure Investments Ltd  30 April 2025

GCP Infrastructure Investments Limited

("GCP Infra" or the "Company")

LEI: 213800W64MNATSIV5Z47

 

Net asset value and dividend declaration

 

30 April 2025

Net Asset Value

GCP Infra announces that at close of business on 31 March 2025, the unaudited
net asset value ("NAV") per ordinary share of the Company was 102.28 pence (31
December 2024: 105.18 pence), a decrease of 2.90 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.

The movement in the NAV was driven by an increase in discount rates, asset
specific revaluations and updated long-term electricity price forecasts.

Mazars, the Company's independent valuation agent, applied an increase of 25
bps to the discount rates applicable to the Company's PFI / PPP portfolio to
reflect their view of market conditions for this asset class. This has
resulted in a negative movement of (0.41) pence per ordinary share.

The Company revised the long-term availability forecasts for a gas-to-grid
anaerobic digestion portfolio and waste wood biomass project, both of which
are owned by the Company following past enforcement.  Together with other
asset specific valuation updates, this resulted in a net negative revaluation
of (2.46) pence per ordinary share.

The weighted average discount rate used by the Company to value its investment
portfolio increased to 8.36% at 31 March 2025 (31 December 2024: 7.98%), which
includes the impact of the asset specific revaluations set out above.

Decreases in forecast electricity prices, driven both by lower futures
forecast in the short-term and the latest forecast from the Company's
third-party power price consultant resulting in reduction of (0.63) pence per
ordinary share.

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
 31 December 2024                                105.18
 Q1 2025 power price forecasts (net of hedging)          (0.63)
 Actual generation net of discount rate unwind           0.11
 Discount rate changes                                   (0.41)
 Asset specific revaluations                             (2.46)
 Share buyback accretion to NAV                          0.49
 31 March 2025                                   102.28

Capital allocation

The Company's Board of Directors ("the Board") reconfirms their commitment to
the Company's capital allocation policy set out in the 2024 Annual Report and
Accounts, continuing to prioritise further 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
March 2025, the Company had £41 million (31 December 2024: £61 million)
outstanding under its revolving credit arrangements, representing a net debt
position of £29 million (31 December 2024: £43 million) which compares to
the Company's unaudited NAV of £872 million (31 December 2024: £911
million).

As announced on 30 January 2025 and in line with the Company's capital
allocation policy, during the period the Company disposed of its interest in
two operational onshore wind farms, generating day one cash proceeds of £16.5
million.

Further supporting the capital allocation policy, the Company bought back
13,610,093 ordinary shares in the quarter, contributing a 0.49 pence per
ordinary share increase to NAV.

Dividend

GCP Infra is pleased to announce a dividend of 1.75 pence per ordinary share
for the period from 1 January 2025 to 31 March 2025. This is in line with the
Company's annual dividend target of 7.00 pence per ordinary share. The
dividend will be paid on 4 June 2025 to holders of ordinary shares recorded on
the register as at the close of business on 9 May 2025.

Expected timetable:

 Shares quoted ex-dividend  8 May 2025
 Record date for dividend   9 May 2025
 Dividend payment date      4 June 2025

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

 George Beale

 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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