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Matthew Read from Quoted Data this morning-: FGEN’s results reinforce the value of its diversified, income-focused strategy during what remains a difficult time for listed infrastructure funds. While the NAV total return of just 0.6% reflects sector-wide headwinds and specific portfolio challenges – including the HH2E write-down – the company’s ability to deliver record cashflows and sustain dividend growth stands out.

Importantly, FGEN has listened to shareholder feedback: the strategy reset signals a pivot towards core, lower-risk assets, and the revised fee structure is a welcome step towards better alignment. With a well-covered dividend yielding around 10% and a credible plan to exit growth assets over time, FGEN looks well-positioned to rebuild investor confidence – particularly if sentiment improves and it can begin to narrow its wide discount.

Could well be right olbutnotwisa although HICL has been moving up in tandem with INPP for the past 2/3 weeks.

Not out of the question that these two look at merging before it’s forced upon them similar to the situation at AGR/PHP.

Infrastructure IT with £5billion in assets would certainly draw in more institutional investors and analysts/brokers.

Unusually large number of buys gone thru in the last half hour including one buy for over a million shares, interesting.

Surely institutional buying at this sort of volume.

181,000 shares

372,000 shares

499,000 shares

1,097,379 shares

500,000 share buy gone thru at 08.38 at 121p

See below comments from James Carthew at Quoted Date who knows more than most when it comes to ITs and Renewables….

“Simplifying Foresight Environmental Infrastructure’s portfolio should make the investment proposition easier to understand and we can see how that could help narrow the discount. Hopefully, as projects mature, we will see positive NAV progress again too. The new dividend target puts the trust on a 10.5% prospective dividend yield. Given the high dividend cover, that feels very attractive”

From James Carthew on the Citywire site, posted yesterday………

https://citywire.com/investment-trust-insider/news/james-carthew-cost-disclosure-confusion-stalls-m-and-a-activity/a2466642

Infrastructure targets

In the case of the infrastructure funds, British Columbia Investment Management Corporation, which is acquiring BBGI, has gone for the most conservative option available. However, that doesn’t mean that another large pension fund wouldn’t be interested in one of BBGI’s peers.

PINT and 3IN focus on generating strong total returns by taking on more risk. That might make them less of a target. The closer comparators to BBGI’s approach would be International Public Partnerships (INPP) and HICL Infrastructure (HICL). The discounts on these two are wider again, 21.6% and 26.5%, respectively. However, BBGI does have a better track record than those two funds.

I have never been a fan of HICL’s investment in Affinity Water, which was its largest position at the end of September and one of the reasons that its returns have lagged peers. However, the outlook for that investment does seem to have improved a bit, with a positive regulatory outcome. This is good news, as HICL has committed to investing another £50m in the business. To an acquiror, INPP might be the more palatable of the two.

From James Carthew at Quoted Data re the current 12% dividend yield, imho he knows more than most when it comes to renewables…….

QD comment – JC: We think that this makes perfect sense in the current environment. New investors are seemingly not being attracted to the shares by the outsized dividend yield, which implies that there would be no benefit to the rating from an even higher yield. Given that, why not divert cash flow to buying back stock instead.

Looking at the 3i Infrastructure numbers this morning it does make me think INPP is seriously undervalued. 3IN have just increased their dividend for FY25/26 by 6.3%. The shares are yielding approx 4% and the discount to NAV is around 12%. Thus a total return 10.1% from opening nav. Meanwhile INPP total return is similar, yield is 7.5%, discount to nav is approx 22% with RPI increases this year and next. Any idea why we trade at such a low discount compared to 3IN?, is it the continued share sale by a large shareholder, ie, Rathbones or the quality of the assets in the respective portfolios?

Ps………The Knowledge Project episode 221 features a very interesting and informative interview with Bruce Flatt CEO from Brookfield, the alternative and infrastructure investor.

We’ll worth a listen.

Given the shares go ex-d soon subtracting the dividend provides 8% based on 8.58p for 2025 and 8.2% for 2026. Throw in a 25% discount to nav, the increased £140 million buyback, potential corporate activity and this paragraph from their recent full year results……

“These increased capital returns will be funded by a combination of divestments and surplus operating cash flow generated by the Company. While it is expected that the programme may be delivered through share buybacks, other forms of capital returns may also be considered”

Not sure what else an equity share can offer so happy to keep adding, at some point there will be some sort of denouement.

144,000 shares purchased yesterday by CFO = £738,720………

Peterg40, it’s a done deal, KKR and Assura board have reached agreement, see this mornings RNS at 7.27am……….

Combination would allow shareholders continued investment in the GP property sector which provides quarterly dividends, inflation linked rents paid by government, full occupancy and potential re-rating of the shares in due course. If still in doubt ask yourself why PE are all over the REIT sector…….because it’s historically cheap and if you accept KKR’s offer the above benefits/diversification will no longer be available on the London market.

Agreed oldbutnotwisa………

Thanks Pedrobull, appreciate your kind words………….

Giles Frost Director buys £220k of INPP at £1.10

Northwest Healthcare Properties Real Estate Investment Trust Announces Sale of 33% of Its Investment in Assura PLC

Toronto, Ontario--(Newsfile Corp. - April 1, 2025) - Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (the ‘REIT’ or ‘Northwest’), a leading owner and operator of healthcare real estate infrastructure in North America, Brazil, Europe and Australasia, announces the sale of 33% of its interest in Assura PLC(1) (“Assura”) (LSE: AGR), representing 82.0 million shares, through an on-market trade for gross proceeds of approximately $70.0 million (£37.9 million). The selling price of £0.462 per share represents a gain of over 20% to the REIT’s December 31, 2024, IFRS book value. The proceeds will be used to repay debt and for general trust purposes. Following the sale, the REIT will continue to hold 163.3 million Assura shares, or approximately 5% of Assura’s public float. 


EoB, think you’ve hit the proverbial nail on the head although it’s a pity the buyback is accommodating one very large seller of INPP stock. Given the INPP board know who the seller is, would it not be more beneficial to approach Rathbones and buy a chunk of their holding. That way the sells might stop and the buyback can do its job for the benefit of all shareholders.

Further to INPP’s RNS on 28th March it certainly looks like Rathbones are using the additional £140 million buyback to reduce their shareholding. I did comment on the 400k/500k per day share buybacks that went on a few weeks ago due to its scale and I asked the question, “who is selling”. Looks like we now know. However given the shares are at now at a 5 year low, why would they decide to sell now? Dividend guidance for the next two years and progressive dividend without further investment covering the next 20 years which in this crazy world takes some balls. The only other company board I’ve heard mention their dividend spanning the next 20 years is Phoenix Group without any further investments due to the run off nature of their business.

In line with the pre-close update provided by the company, the portfolio delivered strong operational performance and this is expected to continue. FY24 DPS of 8.37p (+3%) was 1.1x covered by net operational cash flow. DPS has increased every year since the IPO in 2006 and the company is guiding for 2.5% pa growth in FY25 (8.58p) and FY26 (8.79p). The share buyback programme has been increased from £60m to £200m, to be undertaken over the period to March 2026 and funded by a combination of continuing divestments and surplus operational cash flow. Repurchases to date amount to c £55m, adding c 0.5p to NAV per share. Over the 18 months to endFY24, INPP realised £260m of assets, all at prices in line with the most recently published valuations, providing evidence of the robustness of the valuation process. In addition to accelerated dividend growth, share repurchases and the full repayment of borrowings, the proceeds have also been used for selective accretive reinvestment and, like divestment, this too is expected to continue. New and strategic follow-on investment amounted to £92m, with projected returns greater than those currently implied by share repurchases. With effect from 1 July, investment advisory fees will be based on an equal weighting of market cap and NAV. Based on the current share price discount to the NAV, INPP expects this to reduce the ongoing management fee by approximately 10% pa. As well as providing additional value for shareholders, the change will increase the alignment of interests between the company and the investment adviser, Amber Infrastructure. Amber’s demonstration of its confidence and commitment to the future success of INPP is welcome. Its ability to actively and responsibly source and manage INPP’s investments, and enhance their performance, is one of the company’s core strengths, and its responsible approach to investment is demonstrated in the latest sustainability report . The prospective FY25e yield is 7.7% and the company believes the projected portfolio cash flow is sufficient to cover targeted dividends for at least the next 20 years without any need for further investment. With shares trading at a 23% discount to end-FY24 NAV per share pf 144.7p, the implied total return to an investor, based on projected future portfolio cash flows, is 10.7% pa, more than 500bp above the UK 30-year gilt yield. Though not directly comparable to INPP, the recommended cash offer for BBGI Global Infrastructure, at a c 20% premium to the pre-bid price and a c 3% premium to the last reported NAV, is an indication of undervaluation in the sector.