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NAV per Share: Increased 1.9 pence to 153.4 pence at 30 June 2026; growth of ~1.3% over six months.
Total NAV Return per Share: 8.2% on an annualized basis (including dividends paid).
Total NAV: GBP2.7 billion (headline figure unchanged once rounded).
Dividend per Share: 2026 target reconfirmed at 8.79 pence (+2.5% YoY); first quarterly interim dividend of 2.19 pence declared, payable 15 September; 2027 target 9.01 pence.
Dividend Cover: 1.3 times over six months (up from 1.1 times last year), on operating cash alone; expected to ease toward normal level over full year.
Dividend Yield: ~6.4% at current share price.
Inflation Linkage: Strengthened from 0.7% to 0.8%; 1% higher long-term inflation expected to lift returns 0.8% (~12 pence NAV per share).
Ongoing Charges: Broadly consistent at 1.11%.
Weighted Average Discount Rate: Unchanged at 9.1% (up from 8% in June 2023).
Capital Realizations: Over GBP440 million realized or committed to realize since mid-2023 (~17% of portfolio); all at or above published valuations.
Capital Reinvestment: Over GBP480 million reinvested or committed since mid-2023 at average projected return above 11%.
Share Buyback: Program of up to GBP225 million extended to 30 September 2027; ~GBP150 million bought back to date, generating ~1.9 pence NAV accretion (GBP27.7 million during half-year).
Corporate Debt Facility: GBP350 million, recently upsized on existing terms.
Portfolio Revenue Security: 99% of revenues long-term and secure (government-backed or independently regulated), up from 98% in June 2023.
Portfolio Composition: 135 investments across nine countries; weighted average life ~41 years (up from 37 years).
Regulated Investments: Just over half of portfolio; OFTOs delivered 99.4% availability.
PPP Availability: 99.8% against target of over 98%.
Operating Businesses: 12% of portfolio; BeNEX won two further concessions, with EUR46 million committed at expected low-teens returns.
Digital Infrastructure: Equity investment in toob reduced to nil (less than 1% of NAV); INPP retains GBP2.6 million investment ranking equivalent to senior debt; ~1% of portfolio remains in digital infrastructure, principally Community Fibre.
Asset Sales: Minority stake in Moray East Transmission sold for ~GBP40 million (retaining 51% and control); nine school projects agreed for ~GBP58 million post-period, completion expected Q4.
Renewable Energy Output: Assets can power equivalent of 3.7 million homes, up from 2.7 million.
Rail Passenger Journeys: More than 244 million passenger journeys through rail transport investments.
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Release Date: September 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
NAV per share increased by 1.9 pence to 153.4 pence, delivering an annualized total NAV return of 8.2%.
Dividend target for 2026 reconfirmed at 8.79 pence per share, a 2.5% increase, with dividends well covered at 1.3 times.
Inflation protection strengthened from 0.7% to 0.8%, meaning a 1% rise in inflation could increase NAV by around 12 pence per share.
Capital recycling strategy realized over GBP440 million at or above published valuations and reinvested over GBP480 million at projected returns above 11%.
Portfolio quality improved: 99% of revenues are long-term and secure, weighted average life extended to 41 years, and dividend growth projected for at least 25 years without new investments.
The investment in toob was reduced to nil due to structural headwinds in the UK AltNet market, representing a disappointing outcome.
Dividend cover is expected to normalize towards the typical 1.1-1.2 times range over the full year, down from the 1.3 times reported for the half-year.
Ongoing charges remained at 1.11%, which could be a concern for cost-conscious investors.
The share price continues to trade at a discount to NAV, which management considers a mispricing but persists.
Macroeconomic volatility, including rising government bond yields, could potentially impact infrastructure asset pricing if sustained, though no material impact has been observed yet.
Q: Jamie, we've got a few questions on the buyback programme initially. Would you mind providing an update on what has been done to date and what the future plans are please?A: Jamie Hossain (Lead Portfolio Manager) stated that INPP was an early adopter of share buybacks in response to the 2022 interest rate shift. The program has been increased to a total size of GBP225 million, with the deployment period recently extended to 30 September 2027. To date, approximately GBP150 million has been bought back, adding about 1.9 pence per share to the NAV. As the share price has improved and the discount to NAV has narrowed, the use of the buyback mechanism is being reduced in favor of deploying capital into more accretive new investments with double-digit returns. The buyback remains an important part of the toolkit.
Q: We have a couple of questions on the divvy cover being up. Mohammed, I think this has been touched on in the presentation, but would you mind just confirming if that's expected to increase further?A: Mohammed Anwar (CFO and Head of Valuations) confirmed that the dividend cover of 1.3 times reported for 30 June is higher than the long-term historical range of 1.1 to 1.2 times. He explained this was primarily due to the timing of cash flows in the first half. For the full year, the dividend cover is expected to normalize back towards the typical 1.1 to 1.2 times range.
Q: We've got quite a few questions on the volatility in the macro environment at the moment and how that might impact INPP. Jamie, would you mind touching on that please?A: Jamie Hossain (Lead Portfolio Manager) acknowledged the volatility in government bond yields but noted that this does not immediately translate to lower pricing for infrastructure assets. He emphasized that the private infrastructure market is much larger than the listed market, creating a deep pool of buyers and competitive pricing, as evidenced by INPP's track record of selling assets at or above NAV. Mohammed Anwar (CFO) added that the portfolio's 0.8% inflation protection provides a natural hedge, as a 1% sustained increase in inflation would result in a 12 pence per share increase in NAV, helping to mitigate the impact of rising bond yields.
Q: Jamie, could you please provide a reminder on the fee structure, whether we are purely NAV or NAV and market cap please?A: Jamie Hossain (Lead Portfolio Manager) explained that the investment advisor fee is weighted 50% on the NAV (or portfolio valuation) and 50% on the company's market capitalization. This 50/50 weighting, which was implemented in the middle of last year, is designed to align the investment advisor's interests closely with those of the company and its shareholders.
Q: And could you please touch on whether the change in government will have any impact on INPP and the future pipeline?A: Jamie Hossain (Lead Portfolio Manager) stated it is too early to see clear implications from a change in government. He noted that many of INPP's existing assets have strong protections, such as financial compensation for changes in law. While a new government can change the prospective pipeline, he highlighted that the UK's regulated model continues to offer significant opportunities, citing Sizewell C, the Lower Thames Crossing, and water reservoir projects as examples. He added that INPP will continue to monitor the situation.
Q: Are we expecting any implications on our investment into Sizewell C as a result?A: Jamie Hossain (Lead Portfolio Manager) stated "in short, no." He explained that Sizewell C benefits from cross-party support due to its importance for energy security and delivering low-carbon baseload electricity. He emphasized that the case for Sizewell remains essential and does not see any issues or implications arising from a change in government.
Q: What do you see as the key points of differentiation for INPP against the wider infrastructure and renewables peer group?A: Jamie Hossain (Lead Portfolio Manager) identified INPP's access to its investment advisor, Amber, as the key differentiator. Amber's skill set and capabilities allow INPP to access attractive, lower-risk investments in the primary market, such as Sizewell C, which offers a real return of 10.8% through construction and into early operations. He also highlighted INPP's history as a first mover into new sectors like offshore transmission (OFTOs), which has led to it becoming a market leader. He concluded that this, combined with its leading dividend growth among peers, creates a compelling proposition.
Q: Could you please confirm how you're planning to fund your pipeline and whether you would consider using the revolving credit facility?A: Jamie Hossain (Lead Portfolio Manager) confirmed that new investments will be fundamentally funded through asset realizations and disposals. He stated that the investment advisor is actively working on both new investment opportunities and asset disposals. However, he noted that it might not always be possible to perfectly time divestments to fund investments, and therefore, the company would consider using its corporate debt facility (revolving credit facility) as an efficient short-term bridge to make new investments before refilling the facility with disposal proceeds.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.