BBGI Global Infrastructure (BBGI) H2 2023 earnings summary

Executive summary

• Resilient, globally diversified portfolio of 56 operational, availability-style social infrastructure investments; asset availability was 99.9%, with cash receipts ahead of expectations and no material lock-ups or defaults reported.

• FY 2023 NAV per share was 147.8p, down 1.4% from 149.9p; reported total NAV return since IPO was 170.8%, or 8.6% annualised.

Financial highlights

• NAV fell 1.2% in 2023 to £1,056.6m; portfolio return added £93.7m, offset by a £41.0m discount-rate impact and £23.3m from macroeconomic assumptions.

• 2023 target dividend was 8.40p per share for 2024 (+6%) and 8.57p for 2025 (+2%); targets are not profit forecasts.

• Cash dividend cover was 1.40x in FY 2023 vs 1.47x in FY 2022; ongoing charges were 0.93% vs 0.87%.

• Dividend yield was 6.7% as of 25 March 2024; high-quality contracted inflation linkage was 0.5%.

Outlook and guidance

• Current portfolio cash flows are projected to sustain a progressive dividend for 15 years from 2025, assuming no further acquisitions; this is illustrative, not a profit forecast.

• Capital deployment will remain selective and disciplined, with investments assessed for accretion to shareholder value and portfolio construction.

• Less than 1% of portfolio value is subject to hand-back within five years; contractual planning and funding reviews are in place.