IFT - Infratil

[Left Field]

Exciting times for holders......nice to have an ever strengthening renewable energy holding in your portfolio. Here's the latest update from IFT.

Across our portfolio

One New Zealand has officially launched its new brand and announced a new collaboration with SpaceX. One New Zealand's mobile network will work in conjunction with SpaceX's constellation of Starlink satellites in low Earth orbit to deliver mobile coverage to One New Zealand customers across the entire country and out to its territorial limit. A key rationale for the Company's rebrand was to invest more in New Zealand, which is demonstrated by the collaboration.

Currently, its mobile network covers 98 percent of the New Zealand population, however, due to the length and geography of the country, almost 50 percent of the landmass still has no coverage. When the service goes live, there will be coverage across the country whether you're out on your boat, climbing a mountain, fixing a remote road or on your farm.

"This means the immediate communication issues experienced after Cyclone Gabrielle will be consigned to history. It will give our customers more freedom with 100 percent coverage across the country and means New Zealanders and New Zealand businesses are safer with us," says One New Zealand CEO Jason Paris.



U.S. based renewables developer Longroad Energy has achieved financial close and commencement of construction of Sun Streams 3, its 285MWdc PV (215MWac) and 860MWh storage project located in Maricopa County, Arizona. Sun Streams 3 is expected to begin commercial operations in 2024 and will be the largest solar and storage project in Longroad's operational portfolio.

Sun Streams 3 will enhance electrical capacity and system reliability in Arizona; the project's total output, enough to power 90,000 homes, will be purchased by Arizona Public Service via a long-term Power Purchase Agreement.



Following the announcement of Sun Streams 3, Longroad Energy has also announced that the Umbriel Solar project - its 202MWdc (150MWac) PV project located in Polk County Texas - had achieved financial close and has begun construction.

Umbriel is Longroad's sixth greenfield renewable energy project in Texas to reach financial close and is the Company's first project in Texas' MISO footprint. Umbriel's total output, enough to power more than 30,000 homes, will be purchased by Entergy Texas Inc. via a long-term PPA.



Our European renewable energy platform Galileo is moving forward with the development of a second offshore floating project in Italy – Barium Bay. The scheme has an installed capacity of 1.1GW and will be located more than 40km from the coastline. Once operational, the project will generate enough green electricity to supply the equivalent of more than 1 million Italian households. This is Galileo's second joint venture with its Lupiae Maris development partners, Hope Group.



Qscan has announced the reopening of its newly rebuilt Windsor clinic, featuring state-of-the-art equipment, including the most advanced clinical MRI in the Southern Hemisphere, the Philips MR7700 3T with Ambient Experience.

Qscan Windsor is a comprehensive imaging clinic, offering x-ray, CT, ultrasound, MRI, nuclear medicine, BMD, DXA, dental imaging, and interventional procedures. Qscan is also pleased to bring its patients and referrers a dedicated women's imaging area including the latest 3D digital mammography technology.

Wellington Airport has converted $100 million of existing bank facilities into sustainability linked loans, creating direct financial incentives by aligning lower interest rates with meeting agreed sustainability targets.

The four main sustainability target areas for Wellington Airport are addressing greenhouse gas emissions, supporting and enabling low-emission commercial flights, internationally recognised Airport Carbon Accreditation and reducing the level of waste ending up in landfills.



At a portfolio level we were delighted to be among the first financial institutions in New Zealand to commit to establishing science-based emission reduction targets. We have registered with the Science Based Targets initiative (SBTi), which enables businesses to set ambitious emissions reductions targets in line with the latest climate science.

We want to give our shareholders confidence that our emissions reduction targets will be credible, comprehensive and in alignment with the science to support meeting the goals of the Paris Agreement, adopted at the United Nations Climate Change Conference in 2015

[Left Field]

Interesting to hear strong hints from Auckland city Finance Committee Chair Morris Williamson in a NZ radio interview today that Auckland city may sell its stake in Auckland Airport in order to avoid excessive rate hikes ( ie over 20%)  as it struggles to juggle budget priorities.

IFT 'well positioned.'

https://www.scoop.co.nz/stories/BU2305/S00181/strong-continued-recovery-for-wellington-airport.htm

Pure speculation of course.

[BlackPeter]

Interesting to hear strong hints from Auckland city Finance Committee Chair Morris Williamson in a NZ radio interview today that Auckland city may sell its stake in Auckland Airport in order to avoid excessive rate hikes ( ie over 20%)  as it struggles to juggle budget priorities.

IFT 'well positioned.'

https://www.scoop.co.nz/stories/BU2305/S00181/strong-continued-recovery-for-wellington-airport.htm

Pure speculation of course.

Interesting idea ... however - long term have airports not been IFT's best earners and some of them lost IFT a lot of money, i.e. shareholders might see this idea with some concern.

[Henry Filth]

From memory, Infratil's foray into airports was in "second-tier" European/UK airports - more or less the equivalent of Wellington in the New Zealand context.

I think that that's quite a different proposition to the position of Auckland in the New Zealand aviation space.

[BlackPeter]

From memory, Infratil's foray into airports was in "second-tier" European/UK airports - more or less the equivalent of Wellington in the New Zealand context.

I think that that's quite a different proposition to the position of Auckland in the New Zealand aviation space.

Maybe, though I still would see in the current climate (punt intended) not a lot of growth chances for overpriced airports ... but hey, given I don't hold either (neither AKL nor IFT), do I have very little heart blood in this discussion ...

[Left Field]

I posted the Auckland airport possibility merely as an interesting option.

However I agree the subsequent posts. I suspect IFT has much better options in renewable energy and data centres. Another IFT airport would seem a low priority unless IFT see some economies of scale in conjunction with Wellington.

[Left Field]

IFT 5 year chart v NZX50 a chart of great beauty IMO

(Try comparing HLG to NZX50.......just saying.... and yes I appreciate HLG a dividend play.)

[Swala]

A thing of beauty indeed and I am pretty confident it will continue. Great company!

[Crackity]

 Fund Manager Favourite
Infratil Limited
ASX: IFT | Utilities
Jai Mirchandani, Founder and Portfolio Manager at Environmental, Sustainability and Governance-focused ELM Responsible Investments appeared on The Insider: Meet the Fund Manager in March 2023. He chose Infratil Ltd (ASX: IFT) as one of his three favourite stocks citing the company's complexity, strong management and knack for efficient capital management.

I know I know - he's a fund manager for an ESG focused fund - probably wears a cardy as they are pretty trendy right now

[Left Field]

IFT SP reached all time highs last week.

Will Monday's results see it climb further?

[Swala]

I would expect results to be pretty consistent with most recent guidance (EBITDAF $520 - $535M). I'm confident any surprise would be on the upside.

Disclosure, my biggest holding and plan to keep forever!

[Left Field]

I would expect results to be pretty consistent with most recent guidance (EBITDAF $520 - $535M). I'm confident any surprise would be on the upside.

Disclosure, my biggest holding and plan to keep forever!

Good to see you well positioned Swala.

IFT SP growth consistently outperforming NZX50 makes it a great cornerstone in any well balanced NZ portfolio.

I agree re your FY23 expectations, however the key to further short term SP growth will be IFT's statements re FY24 expectations.....and hopefully these statements satisfy the CEO who not so long ago purchased over 1.3mill shares on market at av SP of around $9.05.

Onwards and upwards. Roll on Monday.

[Left Field]

I'm happy....result right in Swala's mid point.... plus increased divvy and good prospects for growth in FY24

https://www.nzx.com/announcements/411757

Looking ahead, the FY2024 Proportionate EBITDAF guidance range has been set at $570 million to $610 million, up 11.0% at the midpoint FY2023 result strong result – reflecting the momentum that has been building across the portfolio.

"In terms of our returns to shareholders, we will pay a fully imputed final dividend of 12.50 cents per share, to go with the 6.75 cents per share interim dividend, a 4% increase from the prior year. Infratil's share price also rose from $8.25 to $9.20 during the year, with an after-tax return to shareholders over the six months of 14.2%, and a return over the last ten years of 19.4% per annum," Mr Boyes said. "Infratil's portfolio continues to deliver outstanding returns to shareholders, and the investments we have made this year should support future returns in line with our stated target return of 11 to 15 % per annum to shareholders over a 10 year period."

[Swala]

Very pleasing.

[teabag]

Can anyone explain the big drop in SP given a pretty decent result?  Perhaps Morrison taking a big tranche of their fee in shares, but this should already be factored in?