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GCP Infrastructure notes demand for dependable and predictable income – GCP Infrastructure has announced results for the year ended 30 September 2017. The highlights are:
The investment portfolio has performed materially in line with expectations, accruing an average yield of c.8.5%. During the period, the operational and construction performance of most of the projects that support the company’s investments was substantially as forecast with two exceptions. Two biomass projects, representing 5.6% of NAV at 30 September 2017, continued to encounter operational challenges, which have been reflected in further valuation reductions representing 0.7% of NAV. In both cases the Board is establishing detailed rehabilitation plans to improve performance. At 30 September 2017, the portfolio was 23% exposed to PFI projects, 59% to renewable energy assets, 16% to social housing transactions with the remainder in energy efficiency and asset finance schemes. Approximately 60% of loans in the portfolio benefit from some form of exposure to inflation protection characteristics.
The chairman said that “The sustained period of low interest rates in the UK continues to drive demand for infrastructure assets from investors seeking dependable and predictable income. Despite the scarcity of new infrastructure projects within the company’s target markets and the ongoing competition for existing assets, the board is encouraged by the success enjoyed by the company in securing £227.1 million of new investments during the year.”
GCP : GCP Infrastructure notes demand for dependable and predictable income