Buy
Sell
Share Name Share Symbol Market Type Share ISIN Share Description
Digital 9 Infrastructure Plc LSE:DGI9 London Ordinary Share JE00BMDKH437 ORD NPV
  Price Change % Change Share Price Shares Traded Last Trade
  -0.20 -0.23% 86.60 520,553 12:00:42
Bid Price Offer Price High Price Low Price Open Price
86.50 86.90 87.00 86.60 87.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 2.94 -0.29 -0.07 749
Last Trade Time Trade Type Trade Size Trade Price Currency
12:00:42 AT 2,618 86.60 GBX

Digital 9 Infrastructure (DGI9) Latest News

More Digital 9 Infrastructure News
Digital 9 Infrastructure Investors    Digital 9 Infrastructure Takeover Rumours

Digital 9 Infrastructure (DGI9) Discussions and Chat

Digital 9 Infrastructure Forums and Chat

Date Time Title Posts
22/1/202319:54Set your fibres a tingling with DGI9416

Add a New Thread

Digital 9 Infrastructure (DGI9) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
12:00:4286.602,6182,267.19AT
12:00:4286.609,6158,326.59AT
11:49:1886.6026,00022,517.07O
11:45:2486.6016,28814,106.08O
11:38:1087.001,7151,492.05AT
View all Digital 9 Infrastructure trades in real-time

Digital 9 Infrastructure (DGI9) Top Chat Posts

Top Posts
Posted at 07/2/2023 08:20 by Digital 9 Infrastructure Daily Update
Digital 9 Infrastructure Plc is listed in the Equity Investment Instruments sector of the London Stock Exchange with ticker DGI9. The last closing price for Digital 9 Infrastructure was 86.80p.
Digital 9 Infrastructure Plc has a 4 week average price of 85.50p and a 12 week average price of 82.80p.
The 1 year high share price is 118p while the 1 year low share price is currently 82.80p.
There are currently 865,174,954 shares in issue and the average daily traded volume is 1,957,983 shares. The market capitalisation of Digital 9 Infrastructure Plc is £749,241,510.16.
Posted at 22/1/2023 16:30 by retail_rights_research
Having reviewed this stock closely, in my view, there are several red flags with D9. I would not touch these shares (obviously this is not a recommendation.. you should do your own research ..)

1. Dividend does not appear to be covered, at all. as a start up, the company most likely implemented a 6p dividend not because it can pay it from free cash flow, but because a high dividend yield appeals to retail investors, enabling it to raise more capital. A high dividend yield looks great to income seekers.. In reality, from what I can see, it is basically paying the dividend out of money raised.. this is not sustainable, particularly with the amount of debt and capex in the portfolio. I would expect a forced asset sale or cut to the dividend to appear soon.

2. The company has too much leverage in my view, also concentrated veyr much on one asset with a questionable longevitty of revenue. For example, Arqiva, its largest asset, has many layers of debt including senior debt, junior debt (priced at 10%+), vendor loan note and the equity consideration was financed with an RCF which is short term debt which i think needs to be repaid within a few months. I understand it is well known that Arqiva will not be paying any meaningful dividends in the near term - just have a look at the accounts! Also, D9 is a co-shareholder of Arqiva, and does not own all the shares. It does not have full control over this troubled asset.. which has been described by research analysts as a 'melting ice cube'...

3. The company's RCF of £300m+, whilst 3 years, i would expect needs to be repaid every year (like any other RCF)- that is why it is called 'revolving' and is considered short term debt - <1 year... Where do they find the cash to repay the RCF in a few months? In the current market environment, I would not bank on a material equity raise. I expect a forced asset sale here ..

4. Share price is significantly below net asset value, so the trust cannot raise more equity to fund requirements of the dividend, capex and financing costs in the near term

5. The main investment managers (the individuals appear to have quit with immediate effect and no proper transition) have left to probably start up another digital fund.. shows how much confidence they have in this one! The asset base is complex and requires a lot of work, these are not straight forward assets or companies. The current managers do not have the appropriate experience.

I would also look at how Triple Point's (the investment manager) other funds have been doing.. not fantastic!!

I would always do your due diligence on new funds with retail investment managers ..

Posted at 17/1/2023 12:56 by gonsan
Thank you for sharing all your views and links to news in regards to DGI9.
I took a fair chunk of DGI9 shares on the 30th of November. This might be silly, but I did it on gut feeling, although this forum insights were very helpful me to make my mind up and buy it.
So thanks again to all.

Posted at 11/1/2023 09:46 by adamb1978
SpectoAcc

"RNS reads like they're quietly hoping it goes back above NAV, and they can raise more before the money's due."

Yes, that was my conclusion too. Rarely happens that way though! Companies which put off raising capital then find their share price drifts down, and suddenly more share needs to be issued etc etc etc

Posted at 11/1/2023 07:39 by jonwig
Trading statement:

https://www.investegate.co.uk/digital-9-infrastr.--dgi9-/rns/trading-update/202301110700083290M/

This reads very well in terms of asset performance, and they intend developing the existing portfolio rather than making new acquisitions, which makes sense after the key people leaving.

But I see a funding gap ahead (£900m over the next five years), as the share price is a lot below the expected NAV. And they had an equity fundraising only six months ago.

Posted at 01/1/2023 15:19 by drectly
So, just before Christmas, I invested in Digital 9 Infrastructure (DGI9), another investment trust, which focuses on the “plumbing of the internet”, such as data centres and subsea fibre optic cables. This £909 million fund, launched at £1 per share in March 2021, has fallen out with two of its managers and now trades 17 per cent below its net asset value (NAV), despite yielding 6.9 per cent income.

I suspect a nervous Mr Market is overdoing the drama about managerial departures and am relaxed about paying 87p a share to gain access to a growing sector.

Ticking both the boxes on my wish list, DGI9 offers prospects of capital gains and dividend income. That’s a comforting combination, whatever stock market shocks there might be in 2023.
FromTimes 1/1/2023

thanks CWA above from the Times

Posted at 09/12/2022 08:15 by donald pond
Due to the formatting its not easy - it is a 240 page document covering virtually everything in the sector and is heavy on graphs.
The best I can do is...

"Given the quality of Digital 9 Infrastructure’;s portfolio and several NAV catalysts, a 15% discount presents as a compelling opportunity. The departure of the lead managers should not materially impact the fund as the desired portfolio is in place and no further acquisitions are likely for some time. The shares now significantly under-price how cash-generative the assets are, a clear organic growth trajectory, and terminal values in what are in some cases unique assets in a dynamic industry where valuations are not compressing. The recent Arqiva acquisition underpins the 6p dividend, increasing DGI9’s recurring revenues fourfold to c.£410m (47p). We do not believe the dividend is under threat nor do we think the strategy needs amending. We rate the shares as BUY with a 134p TP.

Given the quality of Digital 9 Infrastructure’;s portfolio and several NAV catalysts, a 15% discount presents as a compelling opportunity. The departure of the lead managers should not materially impact the fund as the desired portfolio is in place and no further acquisitions are likely for some time. The shares now significantly under-price how cash-generative the assets are, a clear organic growth trajectory, and terminal values in what are in some cases unique assets in a dynamic industry where valuations are not compressing. The recent Arqiva acquisition underpins the 6p dividend, increasing DGI9’s recurring revenues fourfold to c.£410m (47p). We do not believe the dividend is under threat nor do we think the strategy needs amending. We rate the shares as BUY with a 134p TP.

Bull case
Portfolio acquired at an attractive 13x EV/EBITDA; good prospects for NAV growth from trading and multiple expansion
Highly-cash generative portfolio - FY22 look-through recurring revenue of more than 45p and EBITDA of more than 25p. Platform level free cash yielding c.14% to DGI9's market cap
58% of pro-forma recurring revenues are RPI/CPI linked with no cap
Highly significant terminal values across the portfolio. Verne Global could be worth at least twice the Jun- 22 valuation
Significant room to expand capacity at Verne Global and Ficolo, from 63MW to 190MW, at attractive levered yield of 33%

Bear case
Departure of lead managers has significantly impacted sentiment
Future Arqiva broadcast contracts may not be as favourably linked to inflation
FX risk
Will need to raise additional equity to repay RCF attributable to Arqiva investment

Key share price drivers and catalysts
 Capital appreciation potential of the portfolio is underestimated. Using DGI9’s conservative cost of equity ranges and a 18x terminal value exit multiple in 2027, we find more than 40p of additional value in Verne Global, Aqua Comms, and Ficolo. These are reasonable based on asset positioning, sector capital flows, and comparables.
 13.7% portfolio cost of equity (ex-Arqiva) appears conservative compared to listed peers, providing a strong NAV catalyst. A 100bps decrease in the cost of equity would have a +8.6% impact on NAV.
 We do not believe that the 6p dividend (£52m distribution in FY23) is under threat. The RCF was agreed in March 2022 on a three-year term, extendable twice by 12 months. The interest rate is 3.25%-3.75% over SONIA. The facility includes a £200m uncommitted accordion.
What is priced in and do we differ?
 Risk associated with Arqiva is inflated, in our view. It refinanced a £625m junior bond that was due to mature in Sep-23. It expects to recognise c.£4bn in revenues over the next 10 years, and the IoT platform provides growth.
 We see considerable value in the Nordic data centres. DGI9 owns 15% of the most attractive DC market and has
long-term secured grid access, cost advantage (100% baseload renewable power), and room-to-scale sites.
How the target price is generated
Forecast period valuation 2023 Forecast NAV per share (p) 127.4p Premium / discount (%) assumption 5% Target Price (p) 134p
Current Share Price (p) 89.0p Forecast FY1 DPS (p) 6.0p Forecast TSR 56.7%

Target Price (p) 134p
Rating BUY

Posted at 27/11/2022 08:29 by speedsgh
HTTPS://citywire.com/investment-trust-insider/news/trust-watch-manager-exit-creates-black-friday-bargain/a2403483

Is DGI9 a bargain?

Digital 9 Infrastructure&rsquo;s slump has almost trebled the gap between its share price and NAV from 8% to 22%. The scale of the de-rating is shown by comparing the current 22% discount to the average 2.9% premium above NAV that the shares have stood at in the past year. As you can see from the table that generates a low -3.6 Z-score and puts the £946m portfolio of wireless platforms, data centre networks and subsea internet cables straight in at second place in our list of ‘cheap’ trusts.

That’s provoked a spate of share-buying by insiders. Yesterday the company announced that three of the board’s non-executive directors each bought £25,000 of the 7%-yielding shares at under 90p. Staff at Triple Point bought 566,893 shares at 88.2p through a group company, which means senior members of its digital infrastructure team and Triple Point partners now own over 1.9 million shares, or 0.22% of the total.

DGI9 would clearly like other investors to follow. The shares have slipped to 84.4p so that doesn’t appear to be happening yet, though Liberum, which is not one of the company’s two brokers, issued a ‘buy’ note for what analyst Shonil Chande called a ‘compelling opportunity’ and lifted his target price to 134p.

Chande argues the departure of lead managers Thor Johnsen and Andre Karihaloo is not as bad as it looks as the portfolio needs to bed down the acquisitions that have been made so far, including this summer’s giant deal when it took a £459m stake in UK TV and radio network provider Arqiva, rather than make new investments.

‘The shares now significantly underprice how cash-generative the assets are,’ said the analyst, claiming the market missed the fact that 58% of its revenues have an uncapped link to inflation.

‘The recent Arqiva acquisition underpins the 6p dividend, increasing DGI9’s recurring revenues fourfold to about £410m (47p). We do not believe the dividend is under threat nor do we think the strategy needs amending,’ said Chande.

Other analysts are waiting for the capital markets day to be rescheduled so they can meet Ben Beaton, Triple Point’s new head of digital infrastructure, before taking a view. There are also questions about the increased level of debt the fund took on to complete the Arqiva transaction.

Posted at 25/11/2022 11:09 by jonwig
Maybe clearer: it's an investment trust.

If an IT invests in Tesco shares, the inner workings of Tesco's accounts don't show, only the change in value (ie. share price). But if Tesco pays a dividend, that does show as cashflow.

It's a lot simpler for DGI9 to do it this way!

Posted at 24/11/2022 10:47 by cwa1
Update: Digital 9 Infrastructure
We tipped this trust only in July, but unfortunately it has managed to lose 25pc of its value in that time. Two things are to blame in this column’s view: the difficulty faced by all income funds in competing with the appeal of gilts, whose yields rose dramatically in the wake of the mini‑Budget in September, and the unexpected departure this week of two of the trust’s managers.

Such a big change in the management of a new trust (it listed last year) was bound to unnerve investors. Fortunately, in view of the fund’s youth, we advised readers to commit only small sums and on that basis we will hold.

Questor says: hold
Ticker: DGI9
Share price at close: 84.2p

Posted at 19/10/2022 10:48 by donald pond
Liberum viewThis is a significant milestone for DGI9 with Arqiva increasing DGI9's recurring revenue by c.4x and likely resulting in the 6p dividend target being substantially covered on a platform-level operating cash flow basis. We estimate an increase in annual recurring revenues from c.£102m to c.£410m, based on DGI9's share of Arqiva's FY 2021 revenues and run-rate revenues for the other platforms.DGI9's portfolio now includes 58% of recurring revenues that are RPI/CPI linked and uncapped (69% of Arqiva's recurring revenue are uncapped). The c.8.4x EV/EBITDA multiple appears attractive compared to transactions in wider digital infrastructure. DGI9 has acquired its portfolio at a weighted average EV/EBITDA multiple of c.13x. In an earlier sector note, we calculated an average multiple of 23x YTD for deals below EVs of $1bn.Arqiva's core media distribution business generated revenue of £520m in 2021, at an EBITDA margin of 63%. This segment provides long-term sterling cash flows with high visibility that should support DGI9's dividend, with some of its other platforms providing scope for capital growth. Arqiva expects to recognise £4.1bn in revenues in the next 10 years, which should provide good visibility in terms of meeting its debt obligations. Arqiva generated operating cash flow net of capex and financing costs of £313m in FY 2021. Arqiva increases DGI9's operating cash flow cover of the 6p target dividend to nearly 2x from 0.5x at 30 June 2022, largely led by a +6.16p impact attributable to Arqiva (and Ficolo to a lesser extent). Look-through metrics such as platform level implied free cash flow as a percentage of DGI9's market cap appears attractive to us. Arqiva has been repositioning as a lower-debt company following the sale of its tower business in 2019, which significantly reduced its ongoing capital expenditure requirements. In the period since the DGI9 transaction was agreed, Arqiva has refinanced a £625m junior bond that was due to mature in September 2023, using existing cash and a new £450m term loan. Following this, 13% of Arqiva's debt (BBB-rated) will require refinancing in the next 5 years. DGI9's look-through net debt in Arqiva and the impact of the acquisition financing represents c.6.5x net debt/EBITDA, based on disclosures in the most recent interim results. This was comparable to c.6.3x seen in the wider sector.Since June, we believe that the exposure Arqiva provides to the Internet of Things through its smart meter business has probably increased in value a result of the surge in energy prices. About 20%of the water supply in the UK is lost through leaks and smart meters help identify where/when this wastage occurs. This sustainability trend is also manifesting at an accelerated rate elsewhere in DGI9's portfolio, particularly with respect to the Nordic data centre platforms (Verne Global and Ficolo), where energy is cheaper and renewably sourced. Moving meaningful levels of Europe's latency-insensitivity data centre capacity to the Nordics will increase, in our view. Given the strong secular drivers in digital infrastructure, the attractive valuation the portfolio has been acquired at, strong inflation linkage and cash flow visiblity, and tailwinds from recent geopolitical events, we believe that the shares are attractively valued at a 9% discount to NAV.
Digital 9 Infrastructure share price data is direct from the London Stock Exchange
Your Recent History
LSE
DGI9
Digital 9 ..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

Log in to ADVFN
Register Now

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20230207 12:29:32