BBGI Global Infrastructure (BBGI) H1 2024 earnings summary

Executive summary

• Focused on low-risk, internally managed, globally diversified core infrastructure assets with strong ESG integration and stable, inflation-linked cash flows; all 56 assets are fully operational across seven investment-grade countries.

• All investments are aligned to at least one UN Sustainable Development Goal, with robust climate resilience and external GHG emissions verification.

• Management and board members are significant shareholders, ensuring strong alignment with investors.

• Achieved 99.9% asset availability and joined AIC's 'Next Generation Dividend Heroes' for 10 years of dividend growth.

• Share price traded at an average 11.7% discount to NAV, reflecting sector sentiment rather than fundamentals.

Financial highlights

• Delivered a 2.4% NAV total return for H1 2024; annualized NAV total return since IPO is 8.5%.

• Dividend yield stands at 6.2%–6.3% for 2024, with a 6% dividend increase to 8.40p per share and a planned 2% increase for 2025.

• Dividend cover improved to 1.47x (FY 2023: 1.40x); ongoing charges reduced to 0.90%, the lowest in the sector.

• NAV per share declined slightly by 0.3% to 147.4p, mainly due to dividend payments and FX headwinds.

• Portfolio value at 30 June 2024 was £1,030.0m–£1,053.4m, reflecting strong performance offset by distributions and FX impacts.

Outlook and guidance

• Progressive dividend policy expected to be sustained for at least 15 years without further investment, supported by long-term contracted cash flows.

• Dividend cover for FY 2024 expected in the range of 1.3x to 1.4x, with a 2% increase targeted for 2025.

• Market outlook remains positive, driven by digitalisation, decarbonisation, demographics, and asset renewal.

• Management remains disciplined in capital allocation, prioritising shareholder value and portfolio quality over size.