Consistently and responsibly delivering
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Edison Investment Research Limited
London, UK, 24 April 2024
Edison issues initiation on International Public Partnerships (INPP): Consistently and responsibly delivering International Public Partnerships’ (INPP’s) FY23 results show that it continues to deliver consistent and predictable returns for investors, while delivering environmental and social benefits for the individuals and communities that are served by its assets. Despite this strong performance and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. Regardless, attractive returns are available from the existing portfolio with opportunities for further enhancement. INPP’s assets continue to perform well, it is a beneficiary of higher inflation and has a strong level of protection against higher interest rates, yet its shares have de-rated in line with the sector as interest rates rose. INPP’s 18% discount to NAV is in line with its peer group average, but we do not believe this is the appropriate comparison, given the characteristics of INPP’s portfolio and its long track record of performance. The company’s FY24 target DPS of 8.37p represents a yield of 6.7%, and INPP predicts that the cash flows from the existing portfolio alone, even without any new investment, are sufficient to meet progressive dividends for at least the next 20 years. Versus the expected NAV 8.4% return and reflecting the discount rate of 8.4%, the share price implies a net return of 9.4%. Click here to view the full report. All reports published by Edison are available to download free of charge from its website About Edison: As a content-led investor-relations business, Edison helps companies stand out and meet the right shareholders. Edison’s integrated investor relations solution combines expert analyst content, digital targeting and active investor engagement. This drives liquidity and valuations by building bigger, better informed and more engaged investor audiences globally. Edison has a proven history of increasing liquidity and valuations for its clients. Edison’s content can be viewed by all investors, anywhere in the world. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Martyn King +44 (0)20 3681 2519 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ X www.twitter.com/Edison_Inv_Res YouTube http://www.youtube.com/edisonitv
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1888583 24-Apr-2024
