Digital 9 Infrastructure Share Discussion Threads

[prokartace] 04/4/2023 06:48

Fair enough statement but no mention of the dividend. Let's see what the market thinks

[aspringo] 03/4/2023 19:29

Recent response to email i sent last weekThank you for your email, and patience whilst we liaised with the appropriate team internally. We can understand your frustration at the recent performance of the share price for DGI9 and appreciate you getting in touch. We will also be passing on your feedback to the Board of DGI9. We have recently released our annual report, which I am sure you have seen, but for completeness I have attached this above. We hope that this will help assure shareholders in the holding given the strength of the underlying portfolio. The Board and Investment Manager closely monitor the share price and are focused on narrowing the discount to NAV. We have confidence in the actions the Company is taking to enhance shareholder value that we believe will, in turn, support a recovery of the share price. Whilst D9 can't raise additional equity and dividend cover is increasing, there is a need to raise a substantial amount of capital to take advantage of the portfolio growth opportunities, which is being done through a debt raise at Investee Company level and a syndication of a minority stake in existing Investee Companies to a strategic capital partner. Regarding Arqiva, as a result of the current higher inflationary environment, operating cash flow generated by Arqiva in 2022, was negatively impacted by the June 2022 cash settlement of inflation linked swap accretion payment. Inflation continues to be high, which has a positive impact on the long-term value of the business, and a negative impact on short-term cash flows. However, if inflation falls back to more typical levels, as is expected at the end of 2023, we expect a material positive cash flow impact. The relationship between the Board of DGI9 and shareholders is hugely important, we want all investors to be fully updated on the Company's performance both from a valuation and operational perspective. The Board release regular updates to the market and any material changes to the expected performance or returns of DGI9 would of course be published via a Regulatory Information Service and published on our website. If you haven't done so already, you can sign up to those alerts via the LSE. Thank you for getting in touch and passing your feedback onto us. If you have any further questions, please do not hesitate to come back to me. Yours Sincerely,

[spoole5] 03/4/2023 15:37

THRL up almost 10% since they cut the dividend

[brwo349] 03/4/2023 10:01

WTF has HOME got to do with investing digital infrastructure?

[wskill] 01/4/2023 10:14

The speed at which the capital was invested looks the problem same thing at HOME and with management departing so fast after investing ,I wonder how much of the £1.2 billion invested will really be worth hopefully more than at HOME.

[donald pond] 01/4/2023 08:48

I got a reply back from them yesterday which was very pro forma. Suspect there has been some selling for CGT loss harvesting purposes, but they need a new manager and a clear strategy.

[spoole5] 01/4/2023 08:39

The only thing being disrupted here is the share price!

[hindsight] 31/3/2023 17:20

For what its worth

[spectoacc] 31/3/2023 15:01

Some director buying wouldn't come amiss.

[donald pond] 31/3/2023 14:52

I think in any event they know they have to do something. A new manager, sale of some assets, merger, change to dividend policy. It seems rudderless at the moment. I wrote to them over a week ago and got an acknowledgement but no substantive reply.

[prokartace] 31/3/2023 14:49

pob69 I have bought based on that article, rightly or wrongly, we will see

[cc2014] 31/3/2023 13:33

very well informed maybe but when he suggests that a P/E of 60 may be appropriate based on other invstors stupidity my eyes start rolling backwards.

It's a helpful article though - thanks for posting.


I think he fails to mention that the revenue from these data centres is not based on a square footage area but depends dramatically on a mark-up of the electricity... The growing revenues may in fact be shrinking revenues going forward...

[spoole5] 31/3/2023 13:07

We'll be in the low 50s by then!

[donald pond] 31/3/2023 12:22

In my experience DS is very well informed and connected and wouldn't write a piece like that without speaking to DGI9 and/or its brokers. So I suspect we get news on the management appointment very soon.

[bagpuss67] 31/3/2023 12:20

yes thanks for posting that..interesting..

[alan pt] 31/3/2023 12:18

Nice piece, making the point that others have on this thread, that valuations on larger listed vehicles are much, much higher

[pob69] 31/3/2023 11:36

Coverage from long term holder.

[spoole5] 31/3/2023 08:23

They declined at 90!

[rat attack] 31/3/2023 08:22

3i already declined, so maybe no takers?

[spoole5] 31/3/2023 08:18

Needs to be put up for sale now.

[williamcooper104] 31/3/2023 06:46

I'm very happy with INPP/BBGI/HICL - doing exactly what said on tin Of course values fall when yields rise, inflation linkage does blunt that, more so than for commerical property and obviously fixed income and long linkers (less obviously but also) Also most infra (though clearly not DGI) is funded with long term amortising debt with no/minimal interest rate and refinance risk

[apollocreed1] 31/3/2023 03:51

Ruffer Investments did warn against "alternatives" like infrastructure a few times in early 2022, such as at this link, but nobody took it seriously because there was this belief in the inflation links compensating for the damage from rising yields:

hxxps://www.ruffer.co.uk/en/thinking/articles/the-green-line/2022-04-the-green-line

"Unsurprisingly, investors are beginning to shun their bond allocation in favour of ‘alternatives’. Often in the form of private equity, property and infrastructure. The question now is are these the right replacements for increasingly fragile bond allocations?

In recent years such assets have delivered consistent, inflation protected cashflows. But that was when inflation was low and predictable. Will they really continue to deliver when inflation is high and threatening a cost-of-living crisis? Will governments allow infrastructure and similar projects to raise prices by up to 10% or more?

Such ‘alternative’ assets are also often at risk from deteriorating economic conditions (more like equities than bonds). Meanwhile the widespread, and perhaps excessive, use of borrowing to boost returns leaves them vulnerable to rising interest rates."

[apollocreed1] 31/3/2023 03:34

I can't actually think of a single fund or Trust that Triple Point has run succesfully. Coincidentally, I wrote an email to them today regarding TENT (Triple Point Energy Efficiency Trust). I took a very large position in them on the basis that they had fully invested their funds, were on something like a 10% discount and renewable trusts were benefiting from rising power prices.

Unfortunately that was just before the Truss budget. TENT has fallen like a rock from a very high place and doesn't even have the high power prices to help it.

My email was just to give them a nudge to sell off the assets or come up with some other plan to wind down because a low market cap, huge discount non-existent track record in a very bad macro environment means there is no hope for TENT, despite the decent yield.

[apollocreed1] 31/3/2023 03:23

Just to add to my comment yesterday about Jim Chanos shorting data centre shares, I took a look at Digital Realty and they are trading on 5.05 times book value, whereas DGI9 is trading at a significantly lower valuation for better assets, so I don't think you can actually compare the US sector with anything listed in the UK. If we were on five times book value I guess the shares would be about £5.50 - if only!