IFT - Infratil

[Left Field]

IFT increases shareholding in Contact energy (CEN)  to 14.3%

https://www.nzx.com/announcements/461007

The purchase price of $437.7 million, or $8.95 per share, will be funded through a combination of $218.8 million in existing debt capacity and the issuance of $218.8 million of new Infratil shares to TECT at $12.43 per share, being the NZX closing price on Friday, 17 October 2025.
 
 On completion, Infratil's shareholding in Contact will rise to 14.3%, up from 9.4% following the recent merger of Contact and Manawa Energy. Infratil had earlier completed the sale of its 51% stake in Manawa Energy to Contact in July 2025, in return for approximately NZ$186 million in cash and its current shareholding in Contact. The acquisition reinforces Infratil's strategy to invest in high-quality assets in strong market environments.

[LaserEyeKiwi]

Reading the businessdesk article on IFT today.

CDC now has enough capacity contracted to hit 95% & 100% of its stated 2027 financial year earnings projections according to analysts at Jarden & Forsyth Barr respectively.

[Mousehold]

Interesting debate on the other channel. It seems Snoopy who some accuse of 'paralysis by analysis' struggles to see the potential of IFT's CDC investments.

With Infratil I think a key part is who gets the potential of the underlying businesses, Infratil shareholders or Morrison & Co, given how the latter is paid. For example, buying 50% of Vodafone and then paying more for the other half placed a higher value on the whole - certainly useful for Morrison & Co.

[Left Field]

Steady as she goes IFT 1H FY26

https://www.nzx.com/announcements/462548


 • Proportionate operational EBITDAF up 7% from HY25 to $514 million
 • Proportionate capital expenditure down $52 million from HY25 to $1,139 million
 • Net parent surplus of $606 million reflecting CDC asset valuation increases and Manawa Energy sale
 • Sale of Fortysouth and Infratil Property investments announced for combined $250m+
 • EBITDAF guidance updated to reflect portfolio divestments
 • Dividend of 7.25cps consistent with HY25

[LaserEyeKiwi]

Results are out:

https://www.nzx.com/announcements/462548

Interim results for the period ended 30 September 2025


13/11/2025, 08:30 NZDT, HALFYR

Earnings lift as Infratil refines its portfolio for growth
• Proportionate operational EBITDAF up 7% from HY25 to $514 million
• Proportionate capital expenditure down $52 million from HY25 to $1,139 million
• Net parent surplus of $606 million reflecting CDC asset valuation increases and Manawa Energy sale
• Sale of Fortysouth and Infratil Property investments announced for combined $250m+
• EBITDAF guidance updated to reflect portfolio divestments
• Dividend of 7.25cps consistent with HY25

Infratil delivered a step-up in earnings for the six months ended 30 September 2025 and announced the divestment of Fortysouth and its legacy property assets as it refines its portfolio for further growth.

The geographic and sector diversity of Infratil's portfolio saw Proportionate Operational EBITDAF [1] grow to $514 million in the six-month period to 30 September. This was up 7% from the prior HY25 period, largely driven by Longroad Energy in the United States and CDC in Australasia. Proportionate Capital Expenditure was down $52 million, to $1,139 million, when comparing HY26 and HY25.

Jason Boyes, Infratil Chief Executive, said the infrastructure investor has successfully navigated through the noise of the market and regulatory challenges that faced its digital and renewables businesses in early 2025.

"Digital and renewable energy thematics are stronger than ever, with CDC and Longroad building strong earnings momentum on the back of new waves of demand. CDC has recently announced 140 megawatts of contracts and Longroad Energy reached financial close for 925MW of new projects.

"Gurīn Energy in Asia is another investment poised for growth and we're always scanning for other attractive new growth sectors. Our focus is on simplifying our current portfolio and reinvesting in areas with strong thematic drivers, to position Infratil for continued growth and shareholder returns," said Mr Boyes.

The total asset value of Infratil's investments grew by $735 million, to just over $19 billion, in the six-month period. Increases in CDC's property valuations and the sale of Manawa Energy resulted in a net parent surplus of $606 million, compared with a $247 million loss in HY25.

Sale of Fortysouth and Infratil Property announced Infratil has entered into a conditional agreement to sell its 20% shareholding in Fortysouth to InfraRed Capital Partners and Pantheon. The sale proceeds will be more than $200 million, in line with recent transaction multiples in the sector. The final amount is subject to the timing of settlement, with the transaction conditional only on Overseas Investment Office approval.

The transaction marks another step in Infratil's strategy to refine its portfolio for growth. "Fortysouth, while a high-quality business with strong leadership and customer relationships, represents a relatively small position in our portfolio. We're pleased to have reached an efficient agreement with existing holders, allowing for a seamless transition without the need for a broader sale process," said Mr Boyes.

Infratil acquired its interest in Fortysouth in 2022 when Vodafone NZ sold its passive mobile tower infrastructure to Infratil, Infrared Capital Partners and Northleaf Capital.

An unconditional sale of Infratil's property asset in Auckland has also been signed for $55 million. The asset was a legacy of Infratil's past bus company investment.

Divestments to fund growth opportunities
Today's Fortysouth and property sale announcements mean Infratil is now over halfway to its medium-term target of $1 billion of divestments, when including the previously announced sale of RetireAustralia. A strategic review of Infratil's 57% shareholding in Australian medical imaging business Qscan, last valued at NZ$487 million, was also announced in September.

Together, its recent increased investment in Contact Energy, the strong progress on divestments and growing operating cashflow underpins Infratil's significant financial flexibility to invest for future growth. Infratil expects to invest another A$250 million in CDC during the next six months, so CDC can accelerate its construction programme to meet the surging demand for capacity in Australia.

CDC's recent contract announcements mean it will deliver forecast revenue to achieve its target of doubling FY25 EBITDAF in FY27. "Customer demand for liquid cooled, high density capacity has reached a new high, and we are best positioned in the market to deliver against it," says CDC CEO Greg Boorer.

Longroad Energy is seeing benefit from data centres in the USA, where it is constructing its largest ever solar farm to support Meta's operations with clean energy. Earnings grew more than 2.5 times as it increased its total operational solar-battery-wind fleet to 3.5GW, with another 1.6GW under construction.

In Asia, Gurīn Energy is awaiting a decision on the export licence for Project Vanda, one of the largest solar-plus-battery projects in the world that will deliver solar energy from Indonesia to Singapore. A final investment decision on Project Vanda is targeted for around mid-2026. It recently acquired a new 303MW project in South Korea, adding to its potential 9GW development pipeline across a range of markets.

New Zealand business performance
Despite the weak New Zealand economy, Infratil's New Zealand businesses have been largely resilient.

Wellington Airport reported 4% EBITDAF growth with positive performance across commercial operations and continued cost discipline. International passengers were up 7% from the same period last year, while domestic passengers declined 5%.

One NZ increased revenue by $14 million from HY25 and is seeing positive trading momentum as it heads into the peak summer trading period. Revenues have lifted through a mix of pricing and service initiatives, including the One Wallet loyalty programme and SpaceX text services – with more than 6 million texts now sent via the exclusive satellite service.

Although RHCNZ Medical Imaging completed more scans than the prior year, a lower margin service mix and cost inflation meant EBITDAF was down slightly on the prior period. It is focused on a range of improvement initiatives for the second half. This includes creating a standalone teleradiology service provider that will include staff and assets from Infratil's Australian diagnostic imaging investment, Qscan. Qscan grew its EBITDAF by 11% from HY25, helped by a positive mix of imaging demand and pricing changes.

Interim dividend and FY26 guidance
Infratil confirmed it will pay a partially imputed interim dividend of 7.25 cents per share on 16 December. The dividend reinvestment plan will be available with a 2% discount applied to the strike price.

Guidance for Proportionate Operational EBITDAF of NZ$1,000 to $1,050 million is unchanged on a like-for-like basis. Adjusting for the announced divestments of RetireAustralia and Fortysouth and a modest tightening in the range results in an updated guidance range of $960 to $1,000 million.

Proportional Development EBITDAF guidance has been narrowed to expenditure of $85 to $100 million. Guidance for Proportionate capital expenditure is unchanged at NZ$2.2 to $2.6 billion.

Virtual investor briefing: from 11.00am (NZT) at https://infratil.com/for-investors/results/half-year-results-for-the-period-ended-30-september-2025/interim-results-announcement-september-2025/

[LaserEyeKiwi]

IFT getting hammered today

[LaserEyeKiwi]

Perhaps the issue is this:

"Guidance for Proportionate Operational EBITDAF of NZ$1,000 to $1,050 million is unchanged on a like-for-like basis. Adjusting for the announced divestments of RetireAustralia and Fortysouth and a modest tightening in the range results in an updated guidance range of $960 to $1,000 million."

They can say EBITDAF is "unchanged on a like-for-like basis" - but what the updated guidance range implies is that they are selling assets responsible for $40m-$50m EBITDAF

[LoungeLizard]

Perhaps the issue is this:

"Guidance for Proportionate Operational EBITDAF of NZ$1,000 to $1,050 million is unchanged on a like-for-like basis. Adjusting for the announced divestments of RetireAustralia and Fortysouth and a modest tightening in the range results in an updated guidance range of $960 to $1,000 million."

They can say EBITDAF is "unchanged on a like-for-like basis" - but what the updated guidance range implies is that they are selling assets responsible for $40m-$50m EBITDAF

Part of IFT's business model has always been to buy, build and sell assets so I'm not too concerned about that. The numbers look ok in my view - hard to know why the market has responded negatively. Maybe it's talk of the AI / Database bubble, coupled with Trumps known antipathy towards renewables. ie big picture worries rather than the fundamentals of IFTS business, which as I say, look solid to me.
At a shade over $12, might be a buying opportunity perhaps?

[Left Field]

At a shade over $12, might be a buying opportunity perhaps?

IFT SP likely to drift below $12.00 in the short term IMO.

(Later edit - $NZ11.85 ish after ASX opens....... the tree is being shaken.)

[LoungeLizard]

IFT SP likely to drift below $12.00 in the short term IMO.

(Later edit - $NZ11.85 ish after ASX opens....... the tree is being shaken.)

Yep, right you are LF. Holding back for now, but very tempted...

[winner (n)]

Jenny Ruth started her Friday piece with this " Looking at the Infratil first-half results, I was reminded of what the former Brierley Investments had used to look like just before investors lost patience,...."

Don'think she was suggesting Infratil will go the same way (better quality assets etc etc' but a spooky thought all the same

[Left Field]

Jenny Ruth started her Friday piece with this " Looking at the Infratil first-half results, I was reminded of what the former Brierley Investments had used to look like just before investors lost patience,...."

Don'think she was suggesting Infratil will go the same way (better quality assets etc etc' but a spooky thought all the same..

I think holders who read/attended the latest IFT investors presentation will be pretty relaxed at the current tree shaking going on. For some it provides an opportunity to buy more IFT.

That said, there is a bit of concern around the world about AI being over-hyped and many don't understand IFT's  positioning and so there is some short term vulnerability.

The market also concerned that if IFT is selling $1 billion in assets that produce revenue..... how/when will that revenue be replaced? To them future revenue is a concern that was made worse when IFT didn't provide an earnings upgrade.


So really IFT nothing like Brierley.... but hey Jenny don't let facts get in the road of a good story!

[Red Baron]

So really IFT nothing like Brierley.... but hey Jenny don't let facts get in the road of a good story!

Actually zhere eez one theeng een common between BIL and IFT.
Ze respective Chairmen of ze two  companies, both do not have knighthoods!

RB

[Left Field]

Latest news from IFT...... they say IFT shares undervalued.... NTA circa $15.50 per share

So IFT SP at close today $11.86 trading at a 23% discount to NTA??

Judge for yourself from their latest update.....

https://api.nzx.com/public/announcement/463909/attachment/458291/463909-458291.pdf

[Mos]

Latest news from IFT...... they say IFT shares undervalued.... NTA circa $15.50 per share

So IFT SP at close today $11.86 trading at a 23% discount to NTA??

Judge for yourself from their latest update.....

https://api.nzx.com/public/announcement/463909/attachment/458291/463909-458291.pdf

As a holder I like the investments but really dislike the incentive fee - $265 m pending according to the announcement. The discount to Net Asset Value probably justified by the super aggressive Morrison fee structure, but good fundamentals behind key CDC and Longroad investments.