John Laing Infrastructure Share Discussion Threads

[skinny] 21/12/2016 07:15

JLIF, the FTSE 250 listed infrastructure investment company, is pleased to announce that it has signed a Sale and Purchase Agreement with respect to an indirect 6% minority shareholding in the Intercity Express Programme Phase 1 ("IEP") project, from John Laing Investments Limited (a wholly-owned subsidiary of John Laing Group plc ("John Laing")). The total consideration for the acquisition will be approximately £42.4 million, which will be financed by drawing on JLIF's revolving credit facility. Completion of the transaction is subject to completion of certain formalities and expected to be in early 2017.

The IEP project, which is still in the construction phase, involves the provision of 57 new high speed intercity trains to be deployed on the Great Western Mainline ("GWML"). The contract with the Department for Transport ("DfT") benefits from a 27.5-year concession from acceptance of the first train (scheduled 2017). Payments are on an availability-basis, whereby revenues are received in return for the trains being made available for use and for certain performance and reliability criteria being met. Hitachi are contracted as both manufacturer and maintainer of the trains for the duration of the concession period, with typical pass-down of delivery and operational risk. They are also a 70% shareholder in Agility Trains West Ltd, the project company.

The first trainset is scheduled for delivery in 2017 with the remainder delivered over the subsequent 15-month period. The design life of the trains is 35 years and Agility Trains West Ltd retains ownership of the trains at the end of the concession period, providing a residual design life of 7.5 years. Current and projected demand for these types of modern trains is strong and around 10% of the consideration is due to that expected residual value of the trains.

The discount rate applied to the forecast cash flows to establish the valuation is well above the equivalent discount rate for a fully-operational UK availability-based project, and a higher discount rate has been applied to the residual value elements to allow for the additional uncertainty of those cash flows.

JLIF retains the right of first offer with respect to John Laing's remaining interest in the project.

[par555] 09/8/2016 19:59

Profit taking after significant recent rise ? Possibly encouraged by a little shake by the MM's ?

[fardistanthills] 09/8/2016 11:30

Anyone - why the sudden drop in this and HICL? Thx

[jonwig] 05/8/2016 06:51

No news expected: performance in line with HICL, 3IN.

Lower interest rates = lower discount rate in valuing assets.
Actual transactions up to 30% above formal valuations.
Probable increase in inflation improves indexing of passed-on costs and a degree of indexing in dividend.
Both political parties want greater infrastructure spending - same abroad.

[badtime] 04/8/2016 19:02

Nice rise at the end there..news expected?

[jonwig] 27/7/2016 06:40

Some discussion of JLIF in here:

[jonwig] 22/6/2016 16:06

Two disposals at uplift of 36% to carrying value. Total proceeds are only £43.3m against a NAV of £883m, but optimists will apply that to the whole portfolio, making the shares cheap.

Music still playing, after nearly six years (more with HICL).

[jonwig] 20/5/2016 06:56

Questor (a long-term fam of infra funds says 'hold':

[skinny] 19/5/2016 07:23

JLIF, the FTSE 250 listed infrastructure investment company, is pleased to announce that it has entered into an agreement to acquire a 100% interest in Project Service LLC (the 'Operator'), the provider of 23 highway service areas in the State of Connecticut (USA), between New York and Boston.

JLIF has purchased the interest from Carlyle Infrastructure Service Plazas, L.P. (an affiliate of The Carlyle Group), Doctor's Associates Inc. (the parent company of Subway Restaurants) and Subcon, Inc. (a major Subway franchisee and developer). The acquisition is JLIF's first entry into the US P3 market and will take the total number of assets within JLIF's portfolio to 61. The equity value is the US Dollar equivalent of approximately £72 million and will be funded using JLIF's multi-currency revolving credit facility. JLIF expects the acquisition to complete in the coming weeks subject to the satisfaction of the conditions as agreed between the parties.

The project involves the operation and maintenance of 23 highway service areas along Interstate 95, Interstate 395 and Route 15, under a 35-year exclusive concession signed in 2009 with the State of Connecticut acting through the Connecticut Department of Transport. The planned renovation of all 23 facilities, as agreed under the concession signed in 2009, was completed in August 2015 and all 23 highway service areas are now fully operational. The Operator is the exclusive provider of Connecticut's on-highway fuel and food facilities along one of the main artery routes between New York and Boston. The Operator has long term tenant agreements in place (15-35 years) with major food and fuel providers including four key anchor tenants including McDonalds, Dunkin' Donuts, Subway Restaurants and Alliance Energy (Mobil brand). The majority of the revenues from the concession are generated from these anchor tenants. Further, as part of the concession agreements, the Operator pays the Connecticut Department of Transport a share of the Revenues over the life of the concession which ensures strong public-sector alignment.

The discount rate applied for the valuation of the project was within the range used for the valuation of JLIF's portfolio as at 31 December 2015.

Andrew Charlesworth from John Laing Capital Management ("JLCM"), Investment Adviser to JLIF, said:

"We are pleased to secure our first investment in the US market, which we anticipate may represent a significant source of growth for JLIF over the medium and long term. It represents the third transaction since December 2015 in which JLIF has secured an exclusive bilateral position. We look forward to working with the experienced management team at the Operator and the Connecticut Department of Transport."

[skinny] 17/5/2016 07:14

HIGHLIGHTS
· Underlying growth in Portfolio value for the three months to 31 March 2016 of 1.7% to £973.5 million on a rebased value of £957.2 million[1]

· Announced a 1.04% increase in the dividend from 3.375pps to 3.41pps, in respect of the six- month period to 31 December 2015, in line with UK inflation

· Net Asset Value[2] ("NAV") of £1,000.6 million as at 31 March 2016, including £27.8 million allocated to the dividend to be paid in May 2016

· NAV per share as at 31 March 2016 of 108.3 pence ex-div (111.7 pence cum-div), due to underlying portfolio growth over the period, positive unrealised exchange rate movements and the NAV accretive equity issuance in March 2016

· Acquisitions of approximately £90 million in the first quarter of 2016, including JLIF's first investment in the Spanish secondary PPP market

· Strong pipeline of assets at advanced stage, expected to complete in coming months

[mad foetus] 10/5/2016 10:35

They reduced their fair price from 119 to 117 on the justification that there were likely to be further share issues.

But as you rightly say, what premium do you want to pay for safety? And unless you are going to jump between vehicles it is all just swings and roundabouts.

[jonwig] 10/5/2016 10:29

A common complaint! Premium for safety?
Presumably 'sell' HICL and 3IN, too?

JLIF nav 108.4p at 31/12 ... share price 124.0p ... pm 14%
HICL nav 139.1p at 30/09 ... share price 161.5p ... pm 16%
3IN. nav 153.8p at 30/09 ... share price 180.5p ... pm 17%

Allowing for different base dates, premiums are probably about same.

Differences: JLIF is potentially geared (a proposal) probably a permanent feature; HICL lower (and probably transient) gearing; 3IN net cash.

Also: JLIF first-in-line as buyer of JLG developed assets; HICL expanding faster overseas (mainly Europe); 3IN different asset types, both UK and abroad.

[mad foetus] 10/5/2016 09:55

Stifel issued a sell note this morning, btw. Gist was that the company is sound but premium too high.

[jonwig] 25/4/2016 13:11

127.9p on March 6 2015 is all-time high.

[zcaprd7] 25/4/2016 12:29

What's the 3 year high?

[nimbo1] 25/4/2016 12:08

HICL pays quarterly... some may prefer that.

[nimbo1] 25/4/2016 12:08

I don't know...I hold both but changed the weighting in favour of jlif last week for that reason.

[jonwig] 25/4/2016 07:37

HICL made an all time high last week, JLIF still some way to go.
And HICL yielding 4.4%, JLIF 5.5%.

Why the lower rating here? Possibly the relative gearing? Possibly HICL's overseas expansion.

[zcaprd7] 19/4/2016 11:30

Nearly a 52 week

[jonwig] 16/3/2016 07:27

FY results:



I see that almost all the asset growth came from discount rate unwind which, I'd think, is down to zero inflation.

I see also that they want to increase gearing limit from 25% to 35% of gross assets. presumably most of this would be bridging finance ahead of equity issues?

[8w] 09/3/2016 09:43

Unfortunate that small shareholders don't get a chance to subscribe to an attractively priced placing.

[bigmike100] 03/3/2016 10:27

Doh cheers Shauney my brain not in gear this morning.

[shauney2] 03/3/2016 10:06

Ex dividend.

[bigmike100] 03/3/2016 10:04

SP drop thoughts?

[bigmike100] 29/2/2016 19:15

Nice one jonwig