International Public Partnerships (INPP) H1 2025 earnings summary

Executive summary

• NAV per share rose 2.8% to 148.7p for H1 2025, marking the first increase in nearly three years, driven by strong portfolio performance and asset realisations at a premium to NAV.

• Portfolio comprises 141-140 investments across nine OECD countries, diversified into regulated assets, PPP projects, and operating businesses.

• Dividend growth of at least 2.5% per annum since inception, with targets of 8.58p for 2025 and 8.79p for 2026, and fully cash-covered dividends expected to continue for at least 20 years.

• Share buybacks and selective divestments have returned capital to shareholders, with up to £200m targeted by March 2026 and £90m repurchased to date.

• Strong ESG integration, with significant contributions to SDGs, net zero initiatives, and robust sustainability reporting.

Financial highlights

• NAV per share increased by 2.8% to 148.7p as of 30 June 2025, with NAV at £2.7bn and profit before tax of £142.6m for H1 2025.

• Dividend yield exceeds 7% with a 1.1x cash dividend cover and ongoing charges ratio reduced to 1.12%.

• Total return for H1 2025 was 5.7%, including dividends paid of 4.19p per share.

• Portfolio return supported by £6.7m in new investments and £106.7m in distributions.

• Annualised NAV total return since IPO: 7.0%.

Outlook and guidance

• Dividend targets set at 8.58p per share for 2025 and 8.79p for 2026, maintaining a 2.5% annual growth rate, with projected cash receipts supporting the policy for at least 20 years.

• Dividend payments transitioned from semiannual to quarterly, providing smoother income streams.

• Enhanced capital return programme with up to £200m in buybacks by March 2026.

• Pipeline includes a £250m commitment to Sizewell C and preferred bidder status on Moray West OFTO.

• No need for additional investments to meet current return projections; disciplined reinvestment only for strategic opportunities.