GCP Infrastructure Investments (GCP) H1 2025 earnings summary

Executive summary

• Net assets declined to £871.7m at 31 March 2025 from £933.9m a year earlier, reflecting repayments and portfolio revaluations.

• Profit for the period was £0.4m, down from £9.9m year-over-year, mainly due to reduced loan interest from solar assets.

• Dividends of 3.5p per share were paid for the six months, in line with the annual 7.0p target, representing a 9.8% yield on period-end share price.

• No new loans were advanced; £13.1m was provided to existing borrowers, and £44.4m was received in repayments, including from two renewable asset disposals.

• Shares traded at a 30.3% discount to NAV, with total shareholder return at -5.3% for the period.

Financial highlights

• Total income was £8.5m, down from £19.9m year-over-year; operating income included £34.4m loan interest and £25.8m net valuation losses.

• NAV per share fell to 102.28p from 107.62p year-over-year.

• Cash and cash equivalents were stable at £11.8m.

• Adjusted earnings cover was 0.9x, and IFRS earnings cover was 0.01x for the period.

• Aggregate downward revaluations since IPO (annualised) increased to 0.46%.

Outlook and guidance

• The company remains committed to £150m of disposals, aiming to return £50m to shareholders and reduce leverage.

• Board expects UK interest rate cuts in 2025 to support share price re-rating.

• Dividend target of 7.0p per share for the year ending 30 September 2025 is maintained.

• Further asset realisations are planned, with a pipeline of up to £200m in disposals under consideration.