GCP Infrastructure’s interim figures for the six months ended 31 March 2025 show a fall in NAV of 5.3p. This was driven largely by a reassessment of the long-term availability of its anaerobic digestion portfolio (biomethane to grid anaerobic digestion projects and a waste wood power station), which took off 2.87p, and lower than forecast renewables generation, which took off 1.49p. Against that, inflation forecast adjustments added 0.81p.
This fed through into a NAV return of 0.5% for the period. The share price return was -5.3%. With no new investments being made, loan repayments outweighed advances to existing borrowers.
Disposals, including the wind farm sales announced in January, now total £57.1m versus the company’s target of £150m.
Debt has been reduced by £63m to £43m, and £13.7m has been returned to shareholders.
Tariff-related uncertainty, a weakening UK growth outlook, and “several listed peers seeking to execute on disposal programmes” are blamed for a delay in asset realisations.
There is a big focus in the statement on tackling the discount (now 28.3%) and the attractions of the dividend yield (which currently stands at 9.6%). [More progress on disposals, especially in the area of social housing, could transform the company’s balance sheet. We would also like to see equity and equity-like investments such as the waste wood power station sold or refinanced. However, in the meantime, the yield is attractive.]
GCP : GCP Infrastructure NAV slips again
