IFT - Infratil

[Stoploss]

When was the CR ?

[LoungeLizard]

Back to 5 year trend line, really ?
Coincidentally I was looking on their website last evening and they boast of a 23% CAGR in the last 5 years. That has turned every $1.50 of capital pre covid into $4.20 now. That fantastic result given 5 years of turmoil from Covid and the almost endless recession post Covid no doubt leaves Morrison and Co executives with a very contented feeling about their investment efforts as well as IFT shareholders. Feels marvellous especially if you can do that without paying egregiously high fees, ask me how I know lol

However, I note the share price was $10.95 at the start of April 2024 so despite booming tech markets worldwide  last year, the share price in the last 10 and a bit months is up only 2%.

Bump in the road or the start of an era of lower returns?...only time will tell but I'd be absolutly gutted with myself if all I could have done so far this financial year was 2% plus a modest divvy or two.

Wood for tree's. You should be more gutted that you missed out on 21% return each year for the last ten years.

[Basil]

They quoted 20% 10 year CAGR on their website when I looked last evening.  Amazing long term run rate, for sure. Anyone who has achieved anything close to that using their own skills should feel very content.

Yeah, capital raise muddies the water a bit, maybe they have done 3% plus dividend(s) so far this financial year ? I think I'd be looking to fire myself as my own fund manager if that was all I could do with booming international tech markets.

[Left Field]

.... You should be more gutted that you missed out on 21% return each year for the last ten years.

Exactly, long term 5yr and 10yr charts show the recent 'sell-down' was a buying opportunity or a top up opportunity in an excellent company for those who can see further than the naysayers.

Happy to hold IFT at 20% of a well balanced portfolio.

[Crackity]

CDC Data Centres' auction of a 12.5 per cent slice in the $16 billion-plus business is done and dusted.
Street Talk can reveal CDC Data Centres' shareholders, the $9.5 billion dual-listed Infratil and the $238 billion Future Fund, have leveraged their pre-emption rights to acquire the stake that was held by the Commonwealth Superannuation Corporation (CSC). Barrenjoey Capital Partners oversaw the negotiations.

AFR tonight

[Left Field]

Thanks Crackity here's the announcement from IFT re CDC..... good move imho

https://www.nzx.com/announcements/446853

Infratil Limited ("Infratil") (NZX/ASX: IFT) today announces that, alongside The Future Fund ("Future Fund"), it has exercised pre-emption rights to acquire a 12.04% stake in CDC Data Centres ("CDC") from Commonwealth Superannuation Corporation ("CSC") following an external sale process launched in November 2024.
 
 Under the agreement, Infratil will acquire approximately 1.58% of CDC's ordinary shares for ~A$216 million, with Future Fund acquiring the remainder (10.46%) of the 12.04% stake sold by CSC. Upon completion, Infratil, Future Fund and CSC will own 49.75%, 34.55% and 12.04% of CDC, respectively. The CDC management, led by CEO Greg Boorer as the largest individual shareholder, will retain 3.66% of shares.
 
 The consideration represents an Equity Value of A$13.7 billion (100% basis) and is consistent with Infratil's return requirements. The purchase price is subject to customary completion adjustments.
 
 Infratil CEO Jason Boyes said, "CDC has been one of our most successful investments, and this increased ownership reinforces our commitment to investing in 'ideas that matter'. It reflects our strong conviction in CDC and the powerful tailwinds driving digital infrastructure.
 
 "With this investment, Infratil gains additional governance rights, and we look forward to working alongside Future Fund and CSC to support CDC's strategic direction and long-term growth. We remain focused on expanding CDC's capacity and delivering high-quality digital infrastructure to meet our customers' growing demand.
 
 "With a strong shareholder base and a long-term investment horizon, CDC is well-positioned to make the investments needed for sustained growth across key markets."
 
 With a total of ~2.5GW of capacity across its operational, under construction and development pipeline, CDC is a strategic data centre provider of global scale and a long-term partner to some of the largest and most important organisations in the world.
 

[Left Field]

CEO purchased  476,190 shares @ $10.50 on the market.

CFO also purchased more shares.

Encouraging votes of confidence.

The CEO now has over 1.9 mill shares all purchased on the market..... ie not provided as incentives.

https://api.nzx.com/public/announcement/447553/attachment/438594/447553-438594.pdf

(Nice buffer for me as  the CEO's av holding SP is now well above mine! )

[Dolcile]

Wow, not mucking around, $5m worth!

[Basil]

Anyone who can afford to write a cheque like that is obviously extremely well paid. Genuine question I have always wondered.  Seeing as Morrisons are paid such a truly handsome fee to manage all IFT's assets, what exactly does the extremely well-paid CEO do ?

[Left Field]

.... what exactly does the CEO do ?

Cynical question by a non-holder.

 If you ever decide to attend an IFT meeting.... you will find out.

(FWIW I've met the CEO and several Board members including the late Lloyd Morrison. A very. very impressive team, doing great things. )

[Crackity]

Anyone who can afford to write a cheque like that is obviously extremely well paid. Genuine question I have always wondered.  Seeing as Morrisons are paid such a truly handsome fee to manage all IFT's assets, what exactly does the extremely well-paid CEO do ?

He's employed by Morrisons and not paid directly by IFT

IFT pays Morrisons a rather large ( but totally justified so far ) management fee.....


And I met and talked to Tim Brown a few times - he is a switched on cookie
I always like the IFT and Morrisons roadshows

[Basil]

Thanks for explaining that Crackity.

[Cod]

Interesting IFT chart, overbought moving to oversold, then revert to mid channel.
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[BlackPeter]

Interesting IFT chart, overbought moving to oversold, then revert to mid channel.
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I think the jury is still out, whether they will return into the rising channel. President Dump clearly changed the game by adding a huge amount of uncertainty to the industry, but particularly to everything which could help us to stem climate change.

I expect the markets to significantly reduce the premium for anything renewable until Dump and his henchmen leave the stage for good. This might be in two years (if he looses the midterms and gets finally and properly impeached), four years (dto) or later. Until then IFT is running particularly in the US some high risk businesses and the market will price them accordingly. 

[BlackPeter]

... actually interesting dilemma for holders:

Clearly - if Trump manages to combine Trumpflation together with Trumpcession as he seems to be hellbent to do (https://www.theguardian.com/us-news/2025/mar/09/trump-recession-trade-tariffs), it clearly is not good for anybody dependent on the US markets. This includes Infratil's renewables in the US, but as well any other stocks. On the bright side - it might kill Trump and at least end Trumps economical and political folly.

If however Trump manages to stay in the saddle, he promised to kill any renewable energy (https://www.theguardian.com/us-news/2025/feb/03/trump-war-on-clean-energy-big-oil) and replace them with CO2 emitters. Can't be good for a company which did place its bets on stemming climate change, can it?

No matter what happens, I don't see how IFT can win against the MAGA dilusion. Bad bet.