|HICL Infrastructure Company
||EPS - Basic
||Market Cap (m)
|Equity Investment Instruments
HICL Infrastructure Company Share Discussion Threads
Showing 451 to 475 of 475 messages
|Yes that's starting to look attractive at that entry point. Watching and waiting|
|You might get 10p off, yes.
Last stated NAV was about 146p (30 Sept) and they'll publish a revised one with the circular. Halve the difference between nav and share price would be my guess. Suggests 150 - 155.|
|With £200m or more to raise, it could come at an attractive price.
Is it to much to hope for a 10p discount? This would mean a 5% yield, similar to JLIF.|
|well spotted jonwig|
|Fundraising as expected. Placing and open offer. Details in due course.|
|Two Dutch acquisitions:
But the intriguing bit comes at the end:
The Company currently has a funding surplus of approximately £6m but also has commitments of approximately £200m in aggregate ... which are expected to occur during the first half of 2017.
So what? Does this suggest a fundraising? If so have they reached the non-preemptive issue ceiling? (I haven't checked.) £200m would be about 10% of their current MCap so we might be presented with an open offer.|
|What we were talking about in the last posts (Citywire) -
The decline in bond markets has knocked HICL Infrastructure’;s premium rating but its outlook is good if inflation rises, Winterflood Securities says.
HICL has been very popular in recent years. This is down to its attractive dividend yield of 4.7% andthe fact that infrastructure investing provides inflation-linked returns that are uncorrelated to the stock market.
In July the investment trust’s shares reached a peak of 30% above net asset value as investors sought defensive investments amid the Brexit uncertainty. Since then the premium has dropped back to 10% as confidence has returned and bond prices have fallen. This has pushed up the yield or the proportion of income that it pays to investors. This is important as bond yields affect the discount rate used to value the present value of future cash flows HICL expects to make from operating roads, bridges and hospitals for the government. Rising yields cause discount rates to rise, which by themselves can lower the trust’s net asset value (NAV).
However, Winterflood Securities Kieran Drake was not concerned about a hit to NAV, explaining the trust’s income stream was protected against a rise in inflation up to 2.75%. Inflation is currently 0.9%. ‘The link to inflation for the portfolio is a 0.7% change in return for a 1% change in inflation. An increase in inflation to 2.75% would therefore be positive for performance and contractual inflation linkages in the portfolio would soften the impact of inflation above this level,’ Drake added.|
|Thanks for post Jonwig|
|mad - most of the cashflows are indexed, so the dividend should be stable in real terms.
Higher interest rates would increase the discount rate used in calculating NAV, hence reducing the NAV.
I suspect the second effect would become apparent before the first - not sure.|
|Not missing out, I don't have a penny sat in a deposit account. But agree I am waiting and hoping, this is a great fund. I do think it's a bit enthusiastically priced, but the market decides that not me, and I don't expect my post to have zip effect. The comment about inflation proof. Is it really though? I wonder if during the initial phases of a pick up of inflation money would flow in or out of here? The yield might be safe yes, but would the yield look as appealing?|
|Director bought a few|
|Nothing wrong with wishful thinking and dreaming out loud. In the meantime you are missing out on an inflation proof investment paying circa 4.5%. You must have a very good savings a count to beat that.|
|Good to see diversification over the pond, just a shame pound is on the floor at present. Hopefully lots more potential in US in future years but still think this is heading further south to near NAV. Happy to buy then|
|Nice reaction to the rns|
|NAV is my reentry point for some funds. 5.5% yield at that point is reasonable|
|Thanks Jowig. The demand for infrastructure is certainly there, and exceeds the supply of 'shovel-ready' projects. Just awaiting the arrival of future government investment, which now seems to be more copious in the US than here. HICL may need to look across the pond.|
|Shavian - agreed. This is an article which you might find interesting:
|Jon, i take your point. FWIW an article in this weeks Investment Adviser (trade mag) on HICL says that it's an increasingly competitive environment out there for infrastructure funds, with funk money pouring into the sector and more funds chasing few projects. HICL Reports being outbid on 5 projects (toll roads and gas distribution) in the last reporting period. They may need to look further up the risk scale for new targets. Panmure Gordon are warning of a sharp repricing back to NAV across the sector. Maybe that's what we are seeing happen right now.However, we have some increased government spending in the sector to look forward to so maybe the current repricing may throw up a good entry point, but maybe not quite yet.|
|shavian - the problem might be that HICL and similar invest almost exclusively in completed, cash generating, lower risk projects. The people who want early-stage projects with more risk are thinner on the ground (JLG, I know). Even pension funds don't want the initial risk. It looks as though the gov't will need to offer guarantees at the start, eg. Hinckley. And gilts issuance.
Of course, HICL will have more to invest in further on in time, and might be persuaded to invest early with the right guarantees.|
|Premium down to 12.2%. HICL almost looking buyable again with all this promised infrastructure funding!|
|You're right it's the safer end of a very uncertain outlook! The 27% premium in August was excessive.|
|Based on todays price I reckon the premium is currently at 14%. I am currently back in fully invested for the longhaul. There are a lot of uncertainties and unknowns in the markets and the world in general at the moment and at least in HICL there are plenty of knowns.|
|NAV of 145.7p at 30/09 would be premium of 19% at that date. The 3.5p increase is down to the reduction of the discount rate from 7.5% to 7.3%. At some point the discount rate will need to rise and a fall in NAV is not unlikely. share price has begun to adjust for that, probably.
They can raise a further 56m shares (say £90m) from next month in tap issues, but they are sitting on a £11m surplus left over from previous issues. Will they try to raise the cash with nothing particular to spend it on? Chance might not last much longer.
I'm just a bit wary of seeing more progress here.|
|INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016
The Directors of HICL Infrastructure Company Limited announce the results for the six months ended 30 September 2016.
For the six months ended 30 September 2016
· Net asset value ("NAV") per share at 30 September 2016 of 145.7p; up 3.5p (2.5%) from NAV per share of 142.2p at 31 March 2016.
· Total shareholder return for the period of 10.4% (annualised), based on interim dividends declared plus uplift in NAV per share in the six month period.
· Aggregate quarterly dividends declared for the first half were 3.82p per share (2015: 3.72p); on track to achieve the Company's aggregate dividend target of 7.65p per share for the full year1.
· Value of the Company's investment portfolio up 7.9% in the six months, based on the 30 September 2016 Directors' valuation of £2,189.9m (31 March 2016: £2,030.3m).
· Four investments and one follow-on investment completed in the period and a contract signed for a further four new investments and two follow-on investments, for a combined total commitment of £102.5m.
· Over-subscribed tap issuance in September 2016 raised £113.4m to fund investments and pipeline.
· Pipeline of further attractive investment opportunities across all segments of the Company's investment strategy.
|HOLTS - that sounds more plausible! Equity markets are confusing me more than I can remember ... fortunately I'm well into cash.|