Gcp Infrastructure Inves... Share Discussion Threads

[speedsgh] 20/3/2020 07:36

Covid-19 update -

GCP Infra, the only UK listed fund focused primarily on investments in UK infrastructure debt, seeks to provide investors with exposure to a diversified portfolio of UK infrastructure projects, which are by their nature long-term investments.

The Directors and the Company's Investment Adviser, Gravis, believe such investments are well placed to weather the uncertainty driven by Covid-19 over the long term. Substantially all of the Company's investments are availability-based infrastructure assets and therefore are not currently expected to be materially impacted by the reduced demand for goods and services that is occurring as a result of restrictions on the movement of people.

Any potential impact is likely to be limited to: (i) short-term reductions in asset performance which may result from the reduced availability of personnel responsible for operating, managing or maintaining assets, or spare parts; and (ii) the impact of any short-term reductions to electricity prices. The Investment Adviser does not currently consider these to be material risks to the Company's ability to continue to meet its key long-term objective of providing shareholders with regular, sustained, long-term dividends and the preservation of capital over the long term.

At the date of this announcement the Company's investments continue to perform in-line with the Investment Adviser's expectations.

A further announcement will be made in due course, if appropriate.

[stewart64] 12/2/2020 19:04

If Renewables exposure is the issue here, it's odd that the Renewables shares are close to highs. This one has a lower premium now than those renewable investment trusts, when traditionally it commanded a higher premium. Odd also that we are trading close to annual lows when we have just got the Jeremy Corbyn problem and his successor out of the way for the next five years. The panic looks overdone here, but we will see.

[ec2] 12/2/2020 11:08

Some weakness in the share price of late. Don't think there is going to be an imminent cash raise and think the current electricity price concerns are already reflected. There appear to be buyers around the 124p level so I've gone in as well.

[williamcooper104] 30/1/2020 19:00

Premium isn't so much of a problem with an average loan life of 14 years - it's a problem if all the loans repay early Premium also means that they can raise equity accretively The issue is that 63 percent is renewables and what level of power price falls would cause credit losses When they floated the loans were mainly PFI sub-debt which was virtually risk free - they've climbed the risk curve a lot since then Still it's a very strong management team so happy to hold - but just more cautious whereas before this was a hold and forget stock

[panshanger1] 30/1/2020 18:34

Thanks for posting - a solid hold for me although not adding ( with this premium )

[williamcooper104] 30/1/2020 11:35

Have held this since IPO Will read - have had concerns about renewable exposure and extent of power price risk

[rik shaw] 30/1/2020 11:15

A long research note commissioned by the company, may be of interest:

[stewart64] 02/11/2018 14:06

Topped up here today at 124.76 in spite of my thoughts back in September. Has been a steady player since the rout back in the spring.

[stewart64] 23/9/2018 20:41

I'm fearing for Sterling investment trusts tomorrow. Already trimmed on Friday. Almost tempted to lock in gains.

[chucko1] 30/7/2018 18:33

Absent of write downs, that is what is to be expected of a debt fund specialising in underlying assets which would be expected to have inflation uplifts.

This is a good sort of boring.

[stewart64] 26/7/2018 08:25

Well being pessimistic and taking the entire dividend accrued off the nav that's 1055m-17m=1038m against a Market cap of just 1062m. Unless I am miscalculating that's a nav premium of just 2%, vastly different from the broker's figures.

[speedsgh] 26/7/2018 07:59

Investor Report as at 29 June 2018 -

[stewart64] 24/7/2018 10:49

Speedsgh..regarding the change of manager, does seem to be the Market's perception of GCP as opposed to the results that have wrecked the performance of GCP these last 12 months.

Looking at the nav there has not been a single reversal since 2014 (other than the usual dividend adjustment). If anything the pace of nav growth has increased in the last 12 month to 113 from 105 back in 2014.

Almost seems to imply the previous Management were doing something wrong. You can't really improve on a 6% dividend and a nav rising in line with inflation investing in debt.

[stewart64] 17/7/2018 13:29

Just noticed off Hargreaves, a 26th July ex div and 24th August pay day. Springing it early.

[stewart64] 08/6/2018 12:21

Seems to be a bit of a rerating on these Proxy bond type trusts just now. Not just here UKW and Trig also with regard to other holdings.

Probably put the mockers on this run now.

[speedsgh] 30/5/2018 16:36

GCP switches manager and looks to secondary market -

The past six months has taken its toll on UK infrastructure and GCP Infrastructure Investments (GCP) is now looking to the secondary market for opportunities under a new lead manager.

Philip Kent is taking over as lead manager as existing managers Stephen Ellis and Rollo Wright step back, the trust announced in half-year results.

With investors having suffered a 3.8% loss over the six months to the end of March, trust chairman Ian Reeves said the sector had faced a ‘number of headwinds’, with concerns about a Labour-led government nationalising UK public finance initiative (PFI) projects, the collapse of services group Carillion, and rising interest rates.

On top of these well-publicised problems, the trust has also had to deal with the regulator of social housing ‘querying the financial visibility of First Priority Housing Association’ to which the trust has 4% of assets exposed.

The regulator found the housing association based in Kent lacked ‘sufficient working capital’, although interest on loans made by GCP are up to date.

Reeves said the trust had ‘significantly progressed discussions with a number of potential replacement registered providers and in light of these negotiations, do not anticipate that there will be a material impact on the company’s net asset value’.

However, investors are still confident on the outlook as the trust raised £100 million in an oversubscribed share issue, well above its £60 million target.

The issue for the trust now is how to invest the money in a sector which is slowing, particularly in GCP’s specialist area of renewable energy debt. With a dearth of projects available, the trust is looking to the secondary loan market for investment opportunities.

‘The pipeline of primary UK infrastructure projects requiring finance remains subdued,’ said Reeves.

‘Although competition remains strong, there does appear to be more activity in secondary market deals. In this context, the experience of the investment adviser in transacting across a range of infrastructure sectors ensures that the company has access to the majority of opportunities that do emerge.’

He added that the secondary activity was fuelled by borrowers seeking to refinance and lenders looking to sell loans, and since 31 March the trust has used the market to invest in solar and wind projects.

The trust, which currently trades at a premium of 8.5%, has 46 investments worth around £1 billion and Reeves said the majority of the portfolio was ‘performing materially in line with expectations’.

[speedsgh] 29/5/2018 12:40

Half-yearly report and financial statements 2018 -

Direct link to Interim Report download...

[warrior boy] 29/5/2018 12:21

You are perfectly correct in your observation of the poor share price recently.Whilst there may be a Corby effect I thing there is a huge mistrust of the BoD here. We've had 2 Institutional placing with a discount of 3p (ish) immediately prior to the dividend issue of 1.9p, effectively giving a 4.9p discount. That had a knock on effect of dropping the share price marginally in theory, but larger in practice. I don't think shareholders like the Board's approach and have walked away a little.

[stewart64] 01/5/2018 11:04

Not performed very well has it in the run up to the dividend and in view of the present bull run. Really had a poor time since the June election. I did raise the Corbyn issue earlier this year with no replies, I found this Spectator article that takes a counterintuitive position on Corbyn......

hxxps://blogs.spectator.co.uk/2017/11/an-investors-guide-to-surviving-corbyn/

[speedsgh] 18/4/2018 13:35

Net Asset Value(s) -

GCP Infra, the only UK listed fund focused primarily on investments in UK infrastructure debt, today announces that as at close of business on 29 March 2018, the unaudited net asset value per Ordinary Share of the Company was 112.35 pence. 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.

[stewart64] 25/1/2018 12:00

Bothdavis...not that far off the nav, wouldn't have thought it would go much below nav if Comrade Corbyn starts requisitioning the assets, though open to thoughts on that. Would be more worried about outsourcing companies most of whom have zilch on the balance sheet once you disregard intangibles.

At times like these you wish you had the security of McDonnel's and Corbyn's gold plated 7 figure final salary pension packages. Pretty immune to what destruction they do to everybody else.

[bothdavis] 25/1/2018 10:34

The 'Corbyn effect' really taking hold. Down some 8% now - time to bale or hope he is seen without his clothes soon!!