International Public Partnerships (INPP) H1 2024 earnings summary

Executive summary

• Delivered consistent and resilient financial returns in H1 2024, maintaining robust operational performance and a diversified portfolio of over 140 infrastructure assets across developed geographies and sectors, despite volatile macroeconomic conditions.

• Maintained high inflation linkage (0.7%) and projected net total returns of 9.3% per annum as of June 30, 2024, supported by disciplined capital allocation and strong liquidity.

• Continued commitment to responsible investment, ESG integration, and alignment with global sustainability frameworks, with progress on net zero objectives and detailed ESG reporting.

• Continued to trade at a discount to NAV, prompting capital allocation measures including share buybacks and asset recycling.

• Board reconfirms ability to meet progressive dividend policy for at least the next 20 years, even without further investments.

Financial highlights

• NAV per share at June 30, 2024 was 149.5p, down from 152.6p at December 31, 2023, mainly due to increased discount rates and currency movements.

• H1 2024 dividend per share: 4.18p (3.0% growth year-over-year), with a 6.6% yield and 1.1x cash dividend cover.

• H1 2024 profit before tax: £16.7m; earnings per share: 0.87p.

• £85.3m invested in H1 2024, including the acquisition of Moray East OFTO.

• Ongoing charges ratio was 1.17%, broadly stable compared to H1 2023.

Outlook and guidance

• 2024 full-year dividend target: 8.37p per share (3.0% growth); 2025 target: 8.58p per share (2.5% growth), with payments moving to quarterly in 2025.

• Confident in ability to deliver sustainable dividend growth for over 20 years, supported by predictable, long-term cash flows.

• No need for further investments to deliver current projected returns; future opportunities assessed against strict capital allocation criteria.