BBGI Global Infrastructure (BBGI) has published its annual results for the year ended 31 December 2024, delivering a NAV total return of 2.1% in a year marked by solid portfolio performance but constrained capital deployment. Despite macroeconomic headwinds and continued discount-related challenges, BBGI’s globally diversified portfolio of 56 availability-style social infrastructure assets maintained a high degree of stability, with 99.9% asset availability and cash generation ahead of projections.
The dividend for the 2024 financial year was increased by 6% to 8.40p per share, and management has reaffirmed a 2% target increase for 2025, taking the projected payout to 8.57pps. Dividend cover remained healthy at 1.37x, underlining the robustness of the trust’s cash flow profile.
However, the company’s shares have consistently traded at a discount to NAV since April 2023, limiting access to new capital and thereby constraining growth opportunities. As a result, BBGI has been unable to capitalise on new investments despite identifying accretive prospects. The disconnect between public and private market valuations remains a key challenge for listed infrastructure vehicles.
In response, the board has recommended a cash offer from British Columbia Investment Management Corporation (BCI), via Bidco, at 147.5pps, reduced to 143.3pps to reflect the second interim dividend. The offer represents a premium to the share price and NAV, and the board believes it offers compelling value in light of limited near-term upside under current market conditions. A shareholder vote is scheduled for 10 April 2025. Duncan Ball, CEO of BBGI, says “The Offer from BCI presents an opportunity for shareholders to realise in cash the value of their holdings at a level that may not be achievable in the medium term under current market conditions”.
BBGI has no structural gearing, a net cash position of £27.4m, and a competitive ongoing charge ratio of 0.92%. BBGI says that its portfolio continued to generate high-quality, inflation-linked income streams (with 0.5% average inflation linkage), underpinned by public-sector counterparties in jurisdictions with strong credit ratings.
On the sustainability front, BBGI advanced its ESG initiatives, strengthened governance, and maintained high client satisfaction with a Net Promoter Score of 56.
While the trust’s long-term fundamentals remain sound, the recommended offer from BCI provides shareholders with a clear liquidity event at attractive terms, particularly given the amortising nature of BBGI’s concession-based assets and the constraints on future growth.
