International Public Partnerships (INPP) H2 2024 earnings summary

Executive summary

• Maintains a diversified portfolio of low-risk, essential infrastructure assets with predictable, inflation-linked, long-term contracted or regulated revenues, primarily from government or government-backed entities, across over 140 investments in eight OECD countries.

• Demonstrated resilience and consistent operational performance through various macroeconomic cycles, with 17 consecutive years of dividend growth and a strong track record of portfolio optimisation and positive SDG contributions.

• Focused on active asset management, portfolio optimization, and alignment with UN Sustainable Development Goals, with Article 8 SFDR classification and ongoing ESG integration.

Financial highlights

• Projected net returns of 10.7% and a dividend yield of 7.6%, with FY2024 dividend per share at 8.37p and cash dividend cover at 1.1x.

• NAV per share at 31 December 2024 was 144.7p, down from 152.6p at end-2023, with NAV decreasing from £1.526bn to £1.447bn due to higher discount rates, not asset performance.

• Ongoing charges reduced from 1.17% to 1.14%, expected to decline further with new fee structure.

• Cash from investments rose to £359.9m, with closing cash balance at £128.6m.

Outlook and guidance

• Enhanced divestment program aims to return up to £200m to shareholders by March 2026, with next divestment scheduled for Q2 2025.

• Dividend growth targets of 2.5% per annum for 2025 and 2026, with quarterly payments starting June 2025.

• Portfolio expected to generate sufficient cash flows to support growing dividends for at least 20 years, with no need for additional investments to deliver current projected returns.