Gcp Infrastructure Inves... Share Discussion Threads

[ec2] 14/4/2022 08:54

Today's 5.2% NAV increase gives a very positive early heads up of what's to come across the whole renewable energy infrastructure space as funds get ready to put out their Q1 numbers. As a result have topped up my NESF today who have come out with an inflation busting proposed div increase this morning.

[speedsgh] 14/4/2022 08:44

Net Asset Value(s) -

GCP Infra, the only UK listed fund focused primarily on investments in UK infrastructure debt, announces that as at close of business on 31 March 2022, the unaudited net asset value per ordinary share of the Company was 112.75 pence (31 December 2021: 107.18 pence), an increase of 5.57 pence per ordinary share. The net asset value takes into account cash, other assets, accrued liabilities and expenses and leverage (if any) of the Company attributable to the ordinary share class.

The continued rise in market electricity prices has resulted in increased actual and forecast cash distributions to the Company from its renewables investment portfolio, contributing c. 4.0 pence per ordinary share to the movement (net of the impact of the Company's hedging arrangements). Higher outturn inflation and updated OBR inflation forecasts have similarly contributed c. 2.0 pence per ordinary share, and a reduction in discount rates has contributed c. 0.4 pence per ordinary share. These movements were partially offset by other downward movements across the portfolio totalling c. 0.9 pence per ordinary share, including a provision for reduced future availability on one of the Company's biomass assets.

The Company is also pleased to announce that it has extended its revolving credit facility ("RCF") commitments as part of diversifying the RCF lending group. The Company has increased the total RCF commitments to GBP190m, from GBP165m previously, and has acceded Mizuho Bank, Ltd. as a lender. The Company expects to benefit from the additional commitment for the purposes of managing the timing of new investments and portfolio repayments and welcomes the addition of another relationship bank to the Company's credit providers. The interest and commitment fees payable under the RCF remain unchanged. At 31 March 2022, GBP156m of the RCF was drawn.

[tonytyke2] 14/4/2022 08:30

500,000 buys in 2 transactions, just gone through.

[tonytyke2] 14/4/2022 08:24

Ok, topped up with the first buy this morning. IMO undervalued compared to other infrastructure funds. Now easily my top holding in this sector. Good luck to all with your investments here.

[donald pond] 14/4/2022 07:22

Thats fantastic news. I used to be a director on GCP and still hold lots of shares. It is really showing its all weather credentials at the moment.

[tonytyke2] 14/4/2022 07:18

Cracking, NAV up to 112.75p, will be looking to add more.

[panshanger1] 13/4/2022 13:32

Been here 6 years !!Just about level But as you say keep drawing the dividend and hold for the diversification I also hold HICL JLEN BSIF and TRIG for the same reason - generally they have performed better in terms of capital application

[apparition1] 13/4/2022 11:04

Hi Panshanger1 I've been in here over 4 years - still 6p under water. But I keep taking that 6% yield and sleep soundly. Relatively safe hold for an old guy especially held in an ISA

[panshanger1] 13/4/2022 09:13

Ditto @113 40

[panshanger1] 01/4/2022 10:11

New 52 week high

[luckymouse] 13/3/2022 15:34

The rising lower indicators suggest a flight to safety & perhaps a gradual return to the 120 area.
Very low volatility relative to the mkt - a positive at the moment. Some headwinds may be holding it back however:

1) Since Jan the main rush of flows were into Energy, Comods & Mining - described here by BERI. So its out of the flows.
2) Junk eft JNK shows the inverse force on NAV in a rising interest enviro. High yield multiplies rates sensitivity.
3) 3IN is an infra leader at a lower yield & less debt orientated

Some factors to consider perhaps - ATB LM


free stock charts from uk.advfn.com

[panshanger1] 11/3/2022 15:01

Another good day - so far !!Does feel that this wants to move higher - close to 52 week high

[williamcooper104] 02/3/2022 19:51

Well falling energy prices aren't exactly a worry now

[badtime] 02/3/2022 17:32

Nice bit of strength

[donald pond] 16/2/2022 12:10

No, I don't understand that. IR has been in his role for longer than some of the voting bodies like but SW is relatively new and is very good. He is also on the board of HVPE and a Blackstone fund I think, but he's not overboarded imo. Quite odd

[ec2] 16/2/2022 10:02

I see from the AGM voting that there was an 11pct vote against the re-election of Ian Reeves as a director, which is a fairly strong signal.What stood out even more however was the 26pct vote against re-election of Steven Wilderspin. This is a massive show of dissatisfaction. Not sure what he has done to upset shareholders so much in only a year of joining the board. Perhaps he was behind the approval of the poorly timed hedge in his role as chair of the Audit and Risk Committee.

[panshanger1] 15/2/2022 15:37

Good to see some buyers coming in today though

[apollocreed1] 15/2/2022 00:10

I think inflation is an issue with GCPI, SEQI, FSFL and other similar income funds. They ony have part of their portfolio with inflation protection and sometimes the protection is a CPI link rather than the higher RPI link. The RPI uplift may only be applied at the end of the year while inflation is eating away at the income during the year. Also, these inflation links often have a "cap" and "collar" so that the maximum rise can be about 4% and the lowest 2.5%.

Compare this to British American Tobacco, which is a high dividend payer but there is no cap on how much they can increase prices and profits. Hence, their dividend is really inflation linked, and its share price has now begun a good run.

[cocopah] 14/2/2022 17:49

SEQI down too, although their foray into the British energy sector (Bulb) and problems with a couple of their other investments are also to blame. I see that Green Energy 1 constituted 3.8% of their NAV in December (is this the green energy company that went bust like Bulb?). I’m not familiar with the underlying investments here and would appreciate what people’s thoughts are?

[donald pond] 14/2/2022 16:47

No, but FSFL and EBOX are similarly weak. Makes little sense to me, I'd have thought asset backed income plays would be very attractive right now

[rogerramjett] 14/2/2022 16:19

Any ideas why this is hitting lows ?

[ec2] 07/2/2022 11:18

Yes. Not impressed by the hedge. It could not have been more badly timed if they had tried. Gets back to comments I've made in the past about poor strategic decision making.

[donald pond] 07/2/2022 10:48

That is correct though there was a hedge entered into last year over some power output that was, with hindsight, ill timed. But higher power prices are good. Also, the valuation assumptions here are very conservative. For example, they assume that when offshore leases end, the site will be decommissioned, whereas in reality most will have their life extended. That will make a material difference to how you value the loan.

[ec2] 07/2/2022 08:55

As I see it, changes in forward power prices have credit risk implications owing to the impact on interest rate cover which in turn flows through to the NAV. Rising power prices should therefore have a positive impact.

[ec2] 04/2/2022 17:45

Many thanks.