GCP INFRASTRUCTURE INVESTMENTS LIMITED - Q2 NAV update

GCP Infrastructure Investments delivered an investor update highlighting its resilient company performance, disciplined capital allocation strategy and continued focus on generating reliable long-term income from a diversified portfolio of UK infrastructure debt investments. The FTSE 250 investment company reported a portfolio valued at approximately £810 million across 47 operational assets, with exposure to renewables, PFI/PPP and supported social housing, generating an average portfolio yield of around 8% and benefiting from inflation-linked cash flows. Management emphasised the strength of its 15-year track record of paying a stable dividend, maintaining its 7.0p per share annual dividend target, supported by strong cash flow visibility and approximately £200 million of expected loan repayments over the next four years. The company also outlined significant progress on its capital recycling programme, exceeding its £150 million disposal target with £181 million of asset sales completed at or around NAV, alongside £74 million of share buybacks and the elimination of fund-level debt. Looking ahead, GCP Infrastructure expects to continue asset disposals, with a further £130 million pipeline supporting additional capital returns while maintaining a disciplined approach to portfolio optimisation. Management believes the current c.16-17% discount to NAV and dividend yield approaching 9% represent an attractive entry point, underpinned by defensive infrastructure assets, strong capital preservation, diversified public sector-backed revenue streams and a long-term growth strategy focused on delivering sustainable shareholder returns.