Pantheon Infrastructure Share Discussion Threads

[jonwig] 14/9/2023 08:07

Sponsored research fom QD, dated 11/09:



Note the blended discount rate of 13.7%. FSFL has just reported and has raised its UK discount rate to 7.5%.
I can see why there must be a discrepancy, but this looks a bit extreme! (On a rough calculation, if the DR was 10%, the NAV would be 30% higher!)

[jonwig] 07/9/2023 08:03

New investment:



In Zenobe, with senior partner Infracapital.

[dickiehh] 01/9/2023 17:46

Thanks for circulating this Jonwig. However, I don't really see any red flags here. Yes, PINT aren't the major sponsor but the investments are very diversified across different (established) sponsors and also geographies. Actually looks less risky than say HICL which is more concentrated What am I missing? looks like an opportunity to me at 25 percent discount

[jonwig] 01/9/2023 14:30

Possibly this?

The Company is targeting an annual NAV total return of 8-10% and a dividend yield of 4% once fully invested.
The 4% based on IPO of 100p.

A feature is that they are minority investors in projects owned by larger groups. (Look for "sponsor" in the portfolio list.)

[dickiehhh] 01/9/2023 13:22

Can anyone shed any light on why this is on such a big discount compared to other Infra plays like HICL, BBGI, INPP etc. thanks!

[mrscruff] 30/8/2023 16:56

"....inflation gets down to say 1% and if it does get there that probably implies the economy is in trouble as that's a significant change in wage expectations. If the economy is in trouble then asset prices will be in trouble." Naaaa, not all asset prices will be in trouble. This environment is where infrastructure will play a key role growing the value of your portfolio greater than that of bonds. Bonds in return will perform better than money market funds and the risk free rate. If inflation persists and we maintain higher rates then infrastructure has inflation protection that will help though there is a lag for this to show.

In many ways Infrastructure should behave like geared bond proxies.

This is storming buy today and must have an IRR of over 10% and a 5.35% dividend at 74.75p. As long as you know its purpose in your portfolio.

[gopher] 30/8/2023 15:40

The sector as a whole has seen some significant falls in the last month so the share repurchasing will have mitigated this. I don't think the dividend is high enough for PINT to lead a rebound

[cruelladeville] 29/8/2023 13:37

A miserable performance here today despite another share purchase by the company.

[cruelladeville] 24/8/2023 15:06

Frequent share repurchase doesn't seem to be having any effect on share price. PINT remains dirt cheap.

[cc2014] 11/8/2023 15:07

Thanks. I found that very helpful

[cruelladeville] 11/8/2023 14:12

A daily interesting piece from Kepler comparing returns from beaten up infrastructure trusts with gilts. Wirth a read, I think- https://www.trustintelligence.co.uk/investor/articles/strategy-investor-should-i-stay-or-should-i-go-retail-aug-2023

[cruelladeville] 10/8/2023 16:15

Thanks for those thoughts, appreciated sharing them. You make very sound points.For certain here in the UK we seem particularly badly placed to escape from a significant period of stagflation. The UK economy the last hundred years has always been apparently prone to higher inflation than it's peers.Most of our very unbalanced economy now relies on people going out and spending money on imported goods and feeling good about unaffordable houses. It's long overdue but we're perhaps at the beginning of the end game now. Without falling interest rates the economy is going to continue to contract. The other half of that equation is of course inflation. As we're seeing, periods of stagflation are very difficult to escape from.Given the very low quality of politicians in the major parties, possibly the worst in living memory on all sides. It's going to be a long hard grind. We're all going to be worse off for the foreseeable future.But at some point, interest rates will have to drop. And infrastructure assets like PINT will be worth more. I am patient and waiting.

[cc2014] 10/8/2023 11:03

I note CDeV from a number of posts across various threads you have a strong view that interest rates are going to turn down.

Whilst I'm not in significant disagreement I'm not especially in agreement either.

The question for me is kind of threefold:

1. Regardless of interest rates PINT and any number of other Trusts have bought most of their assets at what I see as the top of a credit inflated bubble. 80p seems not a non unreasonable price regardless of what the published NAV is as the bubble pops.

2. I'm not sure how the central banks reduce interest rates. This is going to cause more inflation, so that's going to be pretty hard to do unless inflation gets down to say 1% and if it does get there that probably implies the ecomony is in trouble as that's a significant change in wage expectations. If the economy is in trouble then asset prices will be in trouble.

3. QE. Everything is overpriced even now due to QE. As the unwind occurs asset prices will be under pressure.


That's my take anyway. I am finding it very difficult to position my portfolio as the market seems far too optimistic to me on future corporate profits and appears to be almost desperate for interest rates to fall.

[cruelladeville] 10/8/2023 09:54

Doing nothing to support the share price. Probably not going to see share price making any headway here until the interest cycle turns.

[cruelladeville] 30/6/2023 08:23

Another share buy back by the company announced this morning.

[jonwig] 27/6/2023 07:59

But it does improve dividend cover, which is a potential problem for asset-backed funds.

[cruelladeville] 27/6/2023 07:51

After denying any share buy back was onbthe agenda only last week, company as bought back shares. Makes sense at such a wide discount to NAV. But my own opinion is that this seldom does much for the share price.

[jonwig] 22/6/2023 08:15

Acquisition:



"GlobalConnect is a digital infrastructure company with the most extensive fibre network across the Nordics."

€23.1m invested but no indication of stake size or value metrics.

[riverman77] 21/6/2023 13:24

Yes PIN is a private equity fund of funds, although both managed by Pantheon.

[ali47fish] 21/6/2023 13:12

is this different from pin iternational

[jonwig] 21/6/2023 07:56

Reasonable progress on asset values, I think:



18% discount!

[cruelladeville] 07/6/2023 09:26

Thanks for that. There's little to no upto date information on PINTs own website. So, at today's depressed share price, looking forward to a 4p dividend or around 5%. Thanks again.

[jonwig] 07/6/2023 09:04

The research note from Quoted Data in March said:

For its first accounting period, ending 31 December 2022, PINT was targeting a dividend of 2p per share, payable in two instalments. The first of these, a 1p dividend, was paid in October 2022 and a second 1p dividend has been declared and is payable on 31 March 2023.
For its 2023 financial year the target is 4p per share and then the board will target a progressive dividend policy thereafter.
Although at the end of December 2022 the company’s revenue account was in deficit (the revenue return for its first accounting period was -0.58p per share), shortly after listing the share premium account was cancelled and became a capital redemption reserve, from which dividends can be paid. As the portfolio matures, we would expect that all dividends will be covered from revenue after expenses.

Their investments are intended for growth rather than steady income.

It's worth subscribing (free) to Quoted Data and Kepler Trust Intelligence. Between them you get a lot of research on these kind of companies.

[cruelladeville] 07/6/2023 08:49

Does anyone know of forecast dividend for 23/24? I am thinking of buying more PINT at the depressed share price, mainly for income. But at the company webcast a few weeks ago, the management were pretty opaque in my opinion. Is there anything up to date regarding forecast yield per share? I don't even know if the company is planning a 2x or 4x per year distribution. It's not easy to find any information. Thanks.

[riverman77] 31/5/2023 21:41

That's Pantheon International (PIN) - a private equity fund also run by Pantheon.