Times uses a paywall |
BUY in The Telegraoh (Questor) |
Corbyn shied away from blowing up PPPs Stammer isn't going to; not least as he needs investors for renewables |
Unlikely to be significant impact except for potential changes in tax rates. Bear in mind a lot of the PPPs were put in place under the previous labour government. |
Any thoughts on how a labour government will impact the ppp assets |
I've added a few more. 9% implied market return is very attractive in my view given the lower risk. I'm moving alternatives from 10% to a 15% weighting over time. |
2% of market cap. Statistically irrelevant |
It's more symbolic in size but still accretive by virtue of the NAV discount |
50m buyback, they're a 2.5bn company, bit pointless really |
Fair enough but £50m over 12 months should have been in the buyback announcement. And it won’t touch the sides in any case… |
And the buyback starts today. If my memory serves me correctly the stock also goes ex-dividend tomorrow. |
It's in the results release and inline with what they said previously at 50 million pounds! |
Results in line. Totally useless buy back announcement. Do they not realise that for these things to work, they need to be specific in terms of amount and timing - see Pantheon International last year… |
Falling inflation weighs on ‘excellent’ value HICL Infrastructure -
The inflation-linked income fund reports a small fall in net asset value, prompting analysts to debate how good value shares in the 6.8% yielder are on a 21% discount... |
 The Company's Annual Results are scheduled for release on 22 May 2024.
The Board expects to announce a decrease in the Company's unaudited Net Asset Value ("NAV") per share of approximately 1.2 pence to 158.2 pence as at 31 March 2024 (30 September 2023: 159.4 pence). This statement explains the Company's approach to determining the NAV as at 31 March 2024.
The expected NAV decrease is mainly driven by the following macroeconomic factors:
· Actual inflation for the year to March 2024 being lower than the assumptions used in the portfolio valuation as at 30 September 2023;
· A reduction in UK inflation assumptions for FY2025 and FY2026, aligning with market consensus;
· A reduction in deposit rate assumptions for all jurisdictions except the USA, aligning with market consensus; and
· Adverse foreign exchange movements as sterling strengthened in the period, net of hedging.
Operational performance of the portfolio was broadly in line with expectations. During the second half of its financial year, the Company disposed of its remaining interest in the Northwest Parkway toll road project in the USA. The proceeds received represented a premium to the Company's September 2023 valuation of 30% / 2.1 pence. The acquisition of a 3.1% incremental interest in the A63 Motorway concession generated 0.7 pence as it was revalued to HICL's existing holding. These two items partially offset the reduction caused by the macroeconomic factors outlined above. |
Yep I dumped a considerable amount into BBGI close to the all time high, and while I'm sitting on a large £ amount of capital loss by income has grown considerably It's part of the forever portfolio so really all that matters is the income |
Thanks for that. The forward yield for BBGI is significantly more than I expected given that it paid out 7.93p in total for over the past 12 months. Agree in general and INPP is my highest weighted holding in the entire portfolio and HICL my lowest of the 3. |
And on forward divi yield I'm at INPP - 6.91%HICL - 6.63% BBGI - 6.53% Interesting that BBGI doesn't yield much less than HICL So not sacrificing much in way of short/medium term income If/when HICL are able to get their water company paying dividends it's likely they'll restart growing their divi |
Just looking at my spreadsheet for the three I take their valuation discount rates, take away managembt fees and then adjust for the discount to NAV as best measure of long term returns Getting to 8.83 for INPP8.52 for HICL 7.45 for BBGI BBGI is more conservative on future inflation so on a like for like basis can probably add c30bps to their return All of these are attractive returns for the risk but I prefer INPP as slightly higher return and BBGI for lower risk |
FYI There is a bot that automatically votes all our posts down. |
Hi William (I am not the one who voted you down btw).
The trio have all "re-set" to more of a bond proxy by removing the leverage...at least while the normal/nominal rate of interest in years to come is unknown. If your after that growth edge using leverage then only have 3IN and PIN in the generalist space.
With that rather simplistic view in mind HICL is probably the best value for now at these prices.... tomorrow could be another day though. |
It is alas the largest and it's not paying a dividend IIRC The forward yields on INPP and BBGI aren't a lot lower given they've got divi growth pencilled in Hold a lot more of them but still hold a little HICL - have been in it to a greater or lesser amount since its IPO |
Affinity Water is the largest holding at 7 percent however they seem OK and the rest is well diverfide into high quality defensive sectors. Yes I marginally prefer those other two but HICL has come down in price and so the yield for new investors is very attractive nearly 7 percent and that's higher than high quality bonds or gov bonds. It's a buy at these levels to diversify ones portfolio and provide more quarterly dividends that smooth out INPP twice yearly distributions. |
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