John Laing Infrastructure Share Discussion Threads

[jonwig] 28/8/2012 07:22

Performance of these funds is seemingly all to predictable, and all are on a premium of about 6% to net assets.

I've added GCP Infrastructure to my holdings, which concentrates on loan (and mezzanine) rather than equity, so can offer a higher yield.

Trouble is, diversification among four funds won't be a help if just one stumbles!

[skinny] 28/8/2012 07:08

Robust performance over the reported period

· Portfolio Value increased 4.5% on an underlying basis to £449.4 million including acquisitions and investments
· NAV increased 7.7% to £475.7 million including equity raised
· NAV per share (post dividend) up 0.2% to 104.8 pence
· Continued strong cash flows
· Interim dividend of 3.0 pence per share, in line with stated target dividend yield
· Profit after tax of £13.8 million on an investment basis
· Increase in IFRS Net Assets of 2.2% to £456.4 million including equity raised

Continued growth of the portfolio

· Placing of 29.4 million new shares, raising an additional £31.0 million in April 2012
· Acquisition of five new assets and an incremental stake in an existing asset, totalling £53.5 million
· An estimated pipeline in excess of £350 million of John Laing assets available to JLIF over the next three years.

[jonwig] 14/6/2012 17:00

I suppose they could - mortgage rates at 8% and unsecured personal loans at 12% would do the trick.

[seekerofvalue] 14/6/2012 13:52

jonwig, if the banks incentivise us to invest or save with them for at least 5% yield. They will have nothing to worry about. Instead they rely on apathy rather than best practise to keep customers. Paying most 0.5% on their savings.

[jonwig] 14/6/2012 13:30

Yup - and I'd probably invest.
But the banks, etc. don't like it... transfer money held in bank accounts, building societies and investment funds

[seekerofvalue] 14/6/2012 09:55

jonwig, did you see this little snippet?

Govt may look to tempt private investors with 'growth bonds'
6 June 2012
Savers could be offered tax breaks to transfer money held in bank accounts, building societies and investment funds into new Government "growth bonds" which would be invested in infrastructure projects.

According to The Independent, Chancellor George Osborne has asked Treasury officials to draw up the plans which could offer similar tax breaks to Isas.
The report suggests ministers are also looking at how the Government could underwrite the risk to small investors. They are considering proposals for the Government to underwrite a given percentage of any potential losses by the projects. This would mean that the Government took the first risk with the schemes, losing its money before any investors.

The report quotes a senior Government source as saying: "While a lot of families are struggling and have no disposable income, there are others who are quite cash rich but have nowhere secure to put their money where they can be guaranteed a decent return. Because interest rates are as low as they are, there is the potential to tap into this money and get it invested in infrastructure which will have a dramatic effect on Britain's long-term growth."

It comes after the Government has been repeatedly criticised by Labour for having no plan to boost economic growth and more than a year after the Chancellor delivered his "Budget for Growth" last March.

The Treasury was unavailable for comment.

[northernlass] 31/5/2012 15:07

Thames River Tips

MUST-HAVE FUNDS FOR A FLAT MARKET

John Laing Infrastructure

Rob Burdett, co-head of multi-manager at Thames River, has gone for something a bit different: "I would choose an infrastructure fund such as John Laing Infrastructure," he said.

"This company owns the contracts to manage various Government assets including things such as the M40."

"The fund pays a 5 per cent-plus dividend, has its income effectively backed by Government cash flows and there is also an element of inflation-linking too."

"Unsurprisingly it proved very low Beta through the testing market conditions of last summer and is proving to be so again right now. It is a classic "get rich slowly but relatively surely" type of investment."

Source:



P.S.
Here's a couple of links about SCLP, one of the hottest stocks at the moment:

[northernlass] 31/5/2012 15:06

Eyes New Acquistions

JOHN LAING INFRASTRUCTURE FUND EYES NEW ACQUISTIONS

The portfolio of John Laing Infrastructure Fund grew in value during the first quarter, while cash flows remained in line with expectations.

The value of the group's investments by the end of March was £413.3m, up 2.1% over the first three months of the year, while the net asset value (NAV) had reached £435.2m, excluding £12.7m set aside for dividend payments. That dividend, of 3p per share, will be paid out on May 11th.

NAV per share at the end of March on an ex-dividend basis eased to 104.6p (106.1p cum-div) from 104.6p at the end of 2011.

Over the the first three months of 2012 John Laing Infrastructure Fund (JLIF), which invests in public private partnership (PPP) projects, paid out £30.5m for stakes in three social housing private finance initiative (PFI) projects while also scooping up the remaining stake in the North East Fire and Rescue (NEFRA) PPP project from Shepherd Construction for £1.2m, taking its total holding to 100%.

In April JLIF issued £31m worth of new shares to replace debt and provide ammunition for further acquisitions. The group has drawn down £7.4m of its banking facility, which represents 1.7% of the value of JLIF's total assets as at the end of March.

The company does not hedge the balance sheet value of its portfolio, but the board has decided to hedge its portfolio income to mitigate exchange rate volatility; accordingly, it has hedged 80% of the Canadian dollar income during 2012.

Chairman, Paul Lester noted that the UK government has announced a fat pipeline of future infrastructure projects, of which it expects almost two-thirds to be privately financed.

"The fast moving secondary market continues to present many opportunities to JLIF and following the recent placing of additional shares, we are in a strong position to be able to take advantage of these opportunities as they arise," Lester said.

The UK government continues to focus on economic infrastructure, which naturally promotes an environment of recycling of equity from primary market participants as they engage in the new programmes the government is procuring, the company statement observed. The UK's international counterparts generally continue to favour social focussed infrastructure, for example, healthcare and education, which JLIF said gives the fund the opportunity to continue to grow its overseas portfolio.

Source:

[jonwig] 09/5/2012 12:41

Questor still positive after the IMS:

[jonwig] 26/4/2012 16:29

About 7% of existing share capital placed without general rights - such as mine.

All infrastructure funds now trading at above-average premium to NAV (say 5% over). In particular, 3IN has had a good run this month.

[skinny] 26/4/2012 07:45

-- JLIF today announces a Placing of up to 29,376,270 new ordinary shares (the "Placing Shares").

-- Part of the proceeds will be used to repay GBP13 million of net debt drawn, or to be drawn, in connection with the successful acquisition of Roseberry Park Hospital on 25 April 2012 and the acquisition of a 15% interest in the Newcastle Hospital project, which is expected to complete (subject to customary conditions) in Q2 2012. The capital raised in 2011 for these assets was instead utilised in relation to the acquisition of three social housing assets of GBP30.5 million in January 2012, whilst consents were awaited.1

-- The remainder of the proceeds are anticipated to be used for future secondary market purchases. JLIF sees a buoyant secondary market for operational PFI/PPP projects and has a number of opportunities which it is currently evaluating.

-- JLIF also has a strong pipeline of acquisition opportunities including acquisition opportunities in excess of GBP355 million from members of the John Laing group (John Laing plc and its subsidiaries), in addition to other vendors.

-- JLIF has access to bank facilities totalling GBP60 million and the Placing will allow JLIF to pay down existing debt and enable it to use its bank facilities to take advantage of acquisition opportunities.

-- Separately, JLIF also announces the completion of the acquisition of a 100% stake in Roseberry Park Hospital from John Laing for GBP13 million.

-- Since the start of 2011, JLIF has successfully completed the acquisition of stakes in a further 15 projects and made investments in existing projects, totalling, in aggregate, GBP154.3 million, with one further (a 15% stake in the Newcastle Hospital project for GBP10 million) expected to close in Q2 2012.

-- JLIF has a diverse, low risk portfolio, comprised of 34 operational, availability based, PFI/PPP global infrastructure projects with an estimated value of GBP425.1 million.2 The majority of projects have been

acquired from the John Laing Group, and seven investments, being four new projects and three additional stakes, have been acquired from third party vendors.

-- The Company estimates a net asset value per ordinary share of 103.7p as at 26 April 2012.

[jonwig] 15/3/2012 08:14

Not easy to compare performance here with that of HICL.

Using Return on Average capital employed HICL scores 6.2% for its latest full year, JLIF 3.5%.
But that's misleading, as JLIF was a very small fund when it floated.

JLIF will need to raise that above HICL's level if it wants to maintain a dividend return of 6% on net assets. But I don't think they've promised that.

Otherwise I don't see any obvious thing here to distinguish JLIF from HICL in the profile of their portfolios.

[skinny] 15/3/2012 07:30

Financial Performance

-- Portfolio valuation of GBP380.4m up GBP115.7 million over the year buoyed by acquisitions of GBP109.5m (up GBP117.5 million excluding exchange rate movements)

-- Underlying portfolio value growth of 9.2% * which is ahead of expectations due to value enhancements achieved and positive impact of inflation

-- NAV per share increased 3.8% to 104.6 pence after dividend payments of 3.5 pence
-- Cash Flow in line with expectations, with cash of GBP48.6 million at 31 December 2011
-- Dividend for H2 announced at 3.0 pence, which with the interim dividend paid in October 2011, is in line with target dividend yield of 6.0p per annum

-- Profit before tax of GBP23.4 million, GBP35.0 million on an IFRS basis
-- Remain in line to achieve an IRR target of 7-8% over the long term
Operational Highlights

-- Acquisitions totalled GBP109.5m during the year
o 10 new projects and 2 additional stakes acquired from John Laing over the year

o Third party acquisitions of stake in Forth Valley Royal Hospital and incremental stakes in 2 other projects

o Subsequent acquisitions of GBP31.6m announced in January 2012 to purchase 3 social housing projects in North London, and a further stake in an existing project.

-- Successful capital raises of GBP130.7m in October 2011 and tap issue of GBP27.4m in April 2011

-- Revolving Credit Facility increased to GBP60m in September - currently undrawn
-- Entry into the FTSE 250 in December 2011
-- Strong pipeline of investment opportunities, from John Laing with suitable projects identified of around GBP355 million over the next three years, as well as opportunities in the wider secondary market

-- Share price has consistently traded at a premium and was 108.5 pence as at 31 December 2011, representing a Total Shareholder Return of 12.1% since launch on 29 November 2010

[skinny] 01/3/2012 07:12

Notice of Results

John Laing Infrastructure Fund Limited, the FTSE 250 international PPP/PFI infrastructure investment company, advises that it will announce its preliminary results for the twelve months to 31 December 2011 on Thursday 15 March 2012. A presentation for analysts will take place at 9.30am at the offices of J.P. Morgan Cazenove, 10 Aldermanbury, London, EC2V 7RF.

[skinny] 19/1/2012 07:06

RNS Number : 8235V

19 January 2012

John Laing Infrastructure Fund

Acquisition of Three PFI/PPP Projects for GBP30. 5 million

John Laing Infrastructure Fund, the international PPP/PFI infrastructure investment company, is pleased to announce it has completed the acquisition of stakes in three social housing PFI/PPP projects from United House Group, the social housing specialist, for GBP30.5 million.

These projects add to JLIF's existing portfolio of social housing assets, fit well within the overall portfolio and meet the Group's criteria for acquisitions. The three projects are availability-based projects that have contracted government-backed revenue streams, linked to inflation, and provide JLIF with a low risk, stable income. Two of the projects have been operational for over 3 years and the other project is 95% operational with the balance due for early completion in January 2012. The assets have been valued using a discount rate in line with the valuation of other similar assets already within the portfolio, and have a projected net return, in line with JLIF's stated target.

The acquisitions are being funded by cash.

The Projects are:

-- 50% stake in Camden - a round 1 Housing PFI Pathfinder Project;
-- 45% stake in Islington I - a refurbishment and 30-year management and maintenance contract for 2,348 properties;

-- 45% stake in Islington II - a refurbishment and 16-year management and maintenance contract of 4,124 properties.

Andrew Charlesworth, JLIF Investment Adviser, commenting on today's announcement:

"This is a rare opportunity to acquire one of the largest housing portfolios in the UK PFI market. We are an experienced operator of social housing projects, and these three high quality projects, located in the heart of London's prime real estate market, are operationally mature, with minimal retained risk and stable cash flows and match our appetite for low risk, high yielding assets." David Marshall, JLIF Investment Adviser, commenting on today's announcement:

"We are delighted that today JLIF has completed a further third party acquisition, which, together with our right of first offer agreement with John Laing Group, reinforces our confidence in the strength of our pipeline and our ability to benefit from the many opportunities we see in our markets.

[skinny] 19/12/2011 07:53

RNS Number : 1908U

John Laing Infrastructure Fund

19 December 2011

19(th) December 2011

John Laing Infrastructure Fund Limited (the "Company" or "JLIF")

JLIF announces completed acquisition of new PFI/PPP infrastructure asset

Following the successful raising of GBP130.7 million, JLIF today announces the completed acquisition of North Swindon Schools PFI project from John Laing Group for a total consideration of GBP10.6 million. This is as outlined in the prospectus issued on 29th September 2011, and there remains only one more project to acquire - a 15% stake in the Newcastle Hospital PFI Project[i].

[skinny] 08/12/2011 07:18

RNS Number : 5666T

John Laing Infrastructure Fund

08 December 2011

8 December 2011

John Laing Infrastructure Fund Limited to Enter FTSE 250

John Laing Infrastructure Fund Limited ("JLIF"), the Guernsey registered closed-ended investment company, today welcomes the announcement that following the quarterly review of the FTSE's UK Index Series on 7 December 2011, its shares would be included in the FTSE 250 index. This will be effective following the close of the market 16 December 2011, with trading commencing on 19 December 2011.

Commenting on this development, Paul Lester, Chairman of JLIF, said:

"Today's announcement concludes a successful debut full year for JLIF and constitutes another major milestone for the Company. Since ipo last November, investors have been consistently attracted to our proven, low risk model, which seeks to provide a high, predictable dividend yield.

Inclusion in the FTSE 250 Index is likely to enhance our exposure to investors, develop greater UK and international investor awareness of JLIF and provide increased long-term access to capital."

[skinny] 21/11/2011 15:40

RNS Number : 4707S

John Laing Infrastructure Fund

21 November 2011

21 November 2011

John Laing Infrastructure Fund Limited (the "Company" or "JLIF")

JLIF announces completed acquisition of new PFI/PPP infrastructure asset

Following its successful capital raise of GBP130.7 million, JLIF today announces the completed acquisition of an 80.1% stake in PFI/PPP infrastructure asset North East Fire and Rescue (NEFRA) for GBP4.7 million. This is as outlined in the prospectus issued on 29(th) September 2011.

As planned, the remaining uninvested proceeds are being used to acquire four further assets, already identified, as well as to repay debt incurred by the Fund in acquiring a 50% stake in Forth Valley Royal Hospital.

[jonwig] 09/11/2011 09:12

Very positive, as was the 3IN one earlier this week.

Whilst HMGov does appear to be committed to PFI (off balance sheet and generates employment) I'd imagine the contracts will be more tightly drawn up than those of past years.

[skinny] 28/10/2011 16:37

It seems its not available to SIPP - so of no use to me.

[skinny] 28/10/2011 15:52

Ok thanks Jon - that looks like a Sevenoaks number - so at least I'll know where to find them!

[jonwig] 28/10/2011 15:39

This is all I know so far, but solar will no doubt be part:



£30m Infrastructure Share Offer with planned exit option. Retail offering to private investors, fund investing in UK Infrastructure – Onsite Power, Energy Efficiency and PFI projects. For further information or to register for a prospectus please contact our sales team on 01732 471 812

[skinny] 28/10/2011 15:34

I'm sure I read something about them recently - "environmental infrastructure" and the like? I've taken a bit of a hit in the solar industry recently, so personally may be hesitant. Perhaps its worth a revisit - let me know what you think/discover.

[jonwig] 28/10/2011 15:12

Yes, I need to update the holdings and adjust the percentages.

By the way, I've got a mailshot for Foresight Infrastructure VCT, which might be a worthwhile addition, but only with the will to hold a full five years!