Gcp Infrastructure Inves... Share Discussion Threads

[apollocreed1] 23/2/2021 18:24

Re GCP Infrastructure, it's a very secure 7% dividend yield at about 1% premium to its 102p NAV. They provide secured loans for renewables (60%) social housing (25%) and Infrastructure like roads (15%). A lot of their income streams are government backed and nearly all inflation linked. They do not have the risk of managing the infrastructure assets-they just collect payments as a secured creditor. They have traded in the past at 120-130p so I think this is a very good price. Price weakness is because they had some loan repayments in December and reinvesting the money is a challenge because so much money is competing for renewables so yields have been pushed down. However GCP is one of the best companies in the sector and the team has more experience than all the new upstarts. Including dividends they've returned 110% over 10 years with very low volatility.

[panshanger1] 12/2/2021 16:36

Thanks for that Very informative

[williamcooper104] 12/2/2021 14:13

https://www.google.co.uk/amp/s/www.itinvestor.co.uk/2020/12/hicl-infrastructure-dividend-growth-on-hold/amp/Decent article on HICL

[stewart64] 12/2/2021 12:27

Nav at 102.71 (31/12/20) another 1.2p trim may explain some of the weakness today.
Looking like value at this level when other ITs attract a large premium on similar assets.

[panshanger1] 12/2/2021 11:36

HICL and a lot of the energy ( solar wind etc ) trusts have been following a similar pattern Happy to have the diversification myself GLA

[ec2] 12/2/2021 11:34

I can't see any obvious reason for the current weakness and so topped up yesterday at 104.1p.

[apollocreed1] 12/2/2021 11:08

So what's happening?! - the price is still going down and I'm surprised to see an even bigger fall over the last 2 days in the similar trust, Sequoia Economic Infrastructure.

[stewart64] 10/2/2021 18:05

Indeed post coronavirus spike low this afternoon as previously mentioned( 103.8) matching the low on 21st December 2020.
Background to that 21st December close was No Deal Brexit suddenly became the likely outcome and Markets were in turmoil.
I bought into GCP back then and have done so again today.
Brexit has gone surprisingly well and power prices have firmed strongly. Post ex dividend blues looks like the chief culprit this time.

[chucko1] 10/2/2021 15:57

I'm 16 minutes in and I need a break - it's pretty dry!

Worthwhile, nevertheless.

[rambutan2] 10/2/2021 15:09

From end of Jan, worth a listen:

[donald pond] 10/2/2021 14:30

sent you a private message speeds

[speedsgh] 10/2/2021 14:08

Premium to NAV also getting pretty narrow by historical standards (ignoring initial Covid spike down).

[chucko1] 10/2/2021 14:03

No idea. The only issue I see here to pressure the share price is a fear of continuing low (or lower) electricity prices. That was the reason stated for cutting the dividend, although with the lower long term rates it should not be quite so detrimental to the price. It's not as though the price is swinging wildy, though, but this is now at the recent non-spike low.

[speedsgh] 10/2/2021 13:00

Just under 9% have voted against the re-election of Ian Reeves (Chairman) at the AGM. Anyone have any ideas as to why?

Result of AGM -

[williamcooper104] 10/2/2021 12:35

Prefer SEQI

[panshanger1] 10/2/2021 11:43

Continuing weakness and getting closer to NAV

[stewart64] 22/1/2021 14:30

Thanks for the dividend info speedsgh...in line with their new 7.0p annual target. A bit of a relief after yesterday's price correction at the death, I was concerned the Market knew something different. Hopefully it will retrack back towards 108p.

Gives a nice 6.6% yield at these depressed levels, both a sector high and one of the lowest nav premiums on a particularly well diversified portfolio. Now it's a majority Renewables player ( 60%) (and the remaining historic pfi debt etc ought to be a bonus at zero interest rates) I really worry about the 15% nav premiums elsewhere in the Renewables sector when this is pushed to almost nav.

I note they claim to have a particularly conservative approach to nav compared to standard accounting too. This looks like the bargain investment trust out there just now unless you are prepared to gamble on REITs. No particular bias to GCP, as I'm also a poster on several other IT forums such as Trig, Greencoat, Regional Reit etc.
Edit. Somebody agrees, 400k trade at 108.6 after hours.

[speedsgh] 22/1/2021 13:19

Dividend Declaration & Scrip Dividend Alternative -

GCP Infra, the only UK listed fund focused primarily on investments in UK infrastructure debt is pleased to announce a dividend of 1.75 pence per ordinary share, for the period from 1 October 2020 to 31 December 2020. The dividend will be paid on 9 March 2021 to holders of ordinary shares recorded on the register as at the close of business on 5 February 2021...

[stewart64] 21/1/2021 17:04

Any news that caused the closing auction to bomb to 106p?

I also note that after 5pm 13,000 shares changed hands almost 2p higher.

Seems very erratic as we approach the ( presumably 1.75p) ex divi on the 4th.

[speedsgh] 19/1/2021 11:40

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 December 2020, the unaudited net asset value per Ordinary Share of the Company was 102.71 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.

[speedsgh] 22/12/2020 14:42

High-yielding GCP Infrastructure looks for net-zero ideas after dividend cut -

[chucko1] 21/12/2020 18:27

Myself - 2 tranches averaging 104.34. This is a good one to trade - in particular on panic days.

[stewart64] 21/12/2020 17:34

Closing auction at sub nav. Raises a couple of interesting points.

( 1) Renewable investment trusts have maintained a healthy nav premium elsewhere.
( 2) The additional public partnership debt contracts ought to be attractive at zero base rates. Hardly a Bond Proxy when the price movement is inverse to the ditection of Bonds.

Disclosure: I added three tranches averaging 104.5 today. Will probably add one more if it trades below nav tomorrow.

[williamcooper104] 17/12/2020 15:22

Have reduced my position - prefer SEQI

[speedsgh] 17/12/2020 13:27

A few paras that stood out for me...

On the dividend...

"As well as reflecting on past achievements, this milestone is an opportune time to consider the future. As part of the publication of the interim results in 2020, the Company announced a dividend target2 for the financial year commencing on 1 October 2020 of 7.0 pence per share. The dividend target2 is reconfirmed as part of this annual report. Establishing a dividend target2 at a lower level than the historic dividend is a reflection of the very different environment in which the Company now finds itself, and is borne from a desire not to increase the risk profile of the investment portfolio by changing, or stretching, the Company's existing investment policy."

"The dividend of 7.6 pence per share for the year was -0.1 times covered on an earnings cover1 basis (under IFRS) and 1.0 times covered on an adjusted net earnings cover1 basis, calculated on the Investment Adviser's assessment of adjusted net earnings1 in the period. The third and fourth interim dividends were paid out of capital, as a result of significant downward revaluation movements on investments, which under IFRS are recognised through the statement of comprehensive income..."

On financing...

"The Company made a net repayment of £27 million under its revolving credit arrangements in the period. These facilities are due to expire in March 2021. The Company, through its Investment Adviser, is well progressed in a process to refresh its financing arrangements through replacement with flexible, short-term (three year) credit facilities that may include some existing and new lenders. These arrangements are anticipated to continue to provide the Company with continued access to flexible debt finance, enabling it to take advantage of investment opportunities as they arise, and may also be used to manage the Company's working capital requirements from time to time."

On investment outlook...

"... The Company has a significant investment pipeline which is stronger than that seen in recent years. A number of attractive opportunities have been identified in new and existing sectors..."

On the general outlook...

"Looking forward to the medium to long term, infrastructure investment is likely to be a key fiscal tool that is used by the UK Government to support the economic recovery. The UK recently published its first Infrastructure Strategy, setting out ambitious plans to support economic recovery, levelling up regions of the UK and achieving net zero. These plans are likely to support future opportunities for private sector capital and the Company is well placed to benefit from these opportunities."