IFT - Infratil

[Left Field]

As a holder I like the investments but really dislike the incentive fee - $265 m pending according to the announcement.

Easy to criticise this fee, however what is the alternative management scenario and associated costs that you would propose to manage a company so well placed in such crucial industries such as Data Centres, Renewable Energy and key utilities in countries such as the USA, Europe, Asia and Australia?

I expect the Board at IFT spend considerable time and effort debating the same Question.

[Left Field]

IFT SP being hit by uncertainty surrounding this news and possibilities of another cap raise.

(Behind a paywall but you get the gist)

https://www.afr.com/street-talk/cdc-data-centres-preps-5b-debt-package-eyes-equity-raising-20251215-p5nnsg

[Hectorplains]

IFT SP being hit by uncertainty surrounding this news and possibilities of another cap raise.

(Behind a paywall but you get the gist)

https://www.afr.com/street-talk/cdc-data-centres-preps-5b-debt-package-eyes-equity-raising-20251215-p5nnsg

CDC seeking a $4-5b package, on top of the $4.4 billion net debt already on their books. 

"In addition to the debt, CDC will require an equity injection from its three shareholders, Infratil, Future Fund and Commonwealth Superannuation Scheme, in the next 12 months which the trio are understood to be supportive of."

With those kind of figures, it's no wonder there's some "uncertainty" in the market with IFT! 

[Basil]

Lot of uncertainty in the tech sector in the US especially around the value of A.I. companies and data center build-out too.  People need to ensure they fully understand IFT's highly concentrated position in this field.  Its not the more rounded well diversified infrastructure fund it once was. 

[Left Field]

Lot of uncertainty in the tech sector in the US especially around the value of A.I. companies and data center build-out too.  People need to ensure they fully understand IFT's highly concentrated position in this field.  Its not the more rounded well diversified infrastructure fund it once was. 

It's all about uncertainty IMO - Markets don't like it.

However saying IFT is "Highly concentrated" in Data Centres is perhaps a tab misleading. The word 'concentrated' means "wholly directed to one thing".

IFT is well positioned in many sectors such as renewable energy (Longroad, Gurin Energy, Gallileo, Mint Renewables, Contact) and more.

In addition, the CDC capital need has been signalled by IFT for a long time, and likely accounts for the $250 mill IFT has allocated to CDC in 2026. IFT has also committed $100 mill to "Clearvision ventures" in 2026. While at the same time IFT is committed to asset sales of $1 Bill ( eg Retire Australia - sold and Qscan - under negotiation.)

That said, the market doesn't like uncertainty and there is a need for IFT to update the market around this 'news' report.

(Disc Happy to hold IFT as part of a well balanced portfolio.)

[Basil]

Fair enough.  I accept "highly concentrated" is not the best way to describe it.  $7.7 Billion of $19 Billion of assets as at the half year report
https://api.nzx.com/public/announcement/462548/attachment/456583/462548-456583.pdf
Going forward, call it say, approximately half their fund's assets after the planned divestments of other assets and further investment in CDC planned.

[Left Field]

IFT : Average target Price of 8 analysts $14.02

( plus NTA worth north of $16.00 per share some say.....    https://www.nzx.com/announcements/465462)

Just saying.

[winner (n)]

IFT : Average target Price of 8 analysts $14.02

( plus NTA worth north of $16.00 per share some say.....    https://www.nzx.com/announcements/465462)

Just saying.

Share price hasn't been behaving itself of late

Over optimistic broker guesses or a wise market ....just saying

From Marketscreener

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[Left Field]

Nice chart Winner. Thanks for sharing.

Seems the chart is also saying buying the dips is a smart way to go.

[Cod]

IFT -- Price has slipped out of the rising channel twice as failed retests of channel round trip (over jump/under jump) matching time cycle events, next test of channel midline looks to be on or around earnings 14th May again matching time cycle event.
You cannot view this attachment.

[Left Field]

With USA renewable energy generation costs such as solar & wind power amongst the cheapest, this news could be good for energy cost efficient suppliers such as Longroad & CDC .

https://finance.yahoo.com/news/trump-moves-tech-giants-pay-023341234.html

Interesting times.

[Left Field]

This article well worth reading....""Turning AI disruption into Telco's growth engine"

https://www.bcg.com/publications/2026/turning-ai-disruption-into-telcos-growth-engine

IFT would seem to be well positioned.....(but is SPK??)

Extracts

" .....Over the past five years, telcos have lagged nearly every other technology sector in both revenue growth and total shareholder return. (See Exhibit 1.) Investors are discounting the sector, with enterprise multiples of just five to seven––far below those of data center and cloud providers, which command multiples closer to 20. This valuation gap underscores the belief among investors that without fundamental change, telcos risk being left behind in the digital value chain......

"....Growing nearly 10% annually, the data center market is projected to exceed $400 billion by 2028, driven by surging demand for high-density computing and AI workloads. Hyperscalers such as AWS, Microsoft, and Google are investing tens of billions of dollars to build AI-optimized data centers, while players such as OpenAI and Nvidia are focusing on purpose-built AI clusters.

The new infrastructure race is as much about sovereignty as scale. More than 100 data localization measures across 40 countries now regulate where and how data can move. Governments are seeking residency, transparency, and regulatory-grade AI inference, and increasingly favor neutral and sovereign infrastructure providers to deliver it. Taken together, these trends mark a structural shift in who holds the keys to digital infrastructure and who is trusted to secure it....."


" ... By 2030, leading telcos will no longer be defined by their networks alone but also by their role as intelligence orchestrators across connectivity, data, and cloud."

[LaserEyeKiwi]

This article well worth reading....""Turning AI disruption into Telco's growth engine"

https://www.bcg.com/publications/2026/turning-ai-disruption-into-telcos-growth-engine

IFT would seem to be well positioned.....(but is SPK??)

Extracts

" .....Over the past five years, telcos have lagged nearly every other technology sector in both revenue growth and total shareholder return. (See Exhibit 1.) Investors are discounting the sector, with enterprise multiples of just five to seven––far below those of data center and cloud providers, which command multiples closer to 20. This valuation gap underscores the belief among investors that without fundamental change, telcos risk being left behind in the digital value chain......

"....Growing nearly 10% annually, the data center market is projected to exceed $400 billion by 2028, driven by surging demand for high-density computing and AI workloads. Hyperscalers such as AWS, Microsoft, and Google are investing tens of billions of dollars to build AI-optimized data centers, while players such as OpenAI and Nvidia are focusing on purpose-built AI clusters.

The new infrastructure race is as much about sovereignty as scale. More than 100 data localization measures across 40 countries now regulate where and how data can move. Governments are seeking residency, transparency, and regulatory-grade AI inference, and increasingly favor neutral and sovereign infrastructure providers to deliver it. Taken together, these trends mark a structural shift in who holds the keys to digital infrastructure and who is trusted to secure it....."


" ... By 2030, leading telcos will no longer be defined by their networks alone but also by their role as intelligence orchestrators across connectivity, data, and cloud."

NZ telcos went infrastructure light to enable high shareholder returns (e.g. selling the tower networks and making large one off distributions) - they are in no position currently to be able to get into building data centers in any serious manner.

[Left Field]

The tail winds for IFT (and CDC) just keep getting stronger. Only a matter of time before IFT is significantly re-rated IMO.

https://edition.cnn.com/2026/02/10/business/google-one-hundred-year-bond

".....Now, let's just underline that for a second: Google, a nearly $4 trillion public company with more than $73 billion in free cash flow annually, is turning to debt markets to raise even more money. That's because even Google's $126 billion cash on hand starts to look pretty paltry when the company says it plans to double its AI spending this year – to a staggering $185 billion."

[Left Field]

Latest newsletter for those interested

https://infratil.com/news/infratil-newsletter-february-2026/infratil-newsletter-february-2026/?utm_medium=email&utm_campaign=2026%20Infratil%20February%20Newsletter&utm_content=2026%20Infratil%20February%20Newsletter+CID_4f9bc9a1a9a94d99946bc5949598c21c&utm_source=Campaign%20Monitor&utm_term=here

"Markets have continued to focus on AI-related news in the short time since our early
December newsletter. This focus drove significant market volatility in the last few weeks
and at the time of writing Infratil's share price is some 6% below the NZ$11.86 close
when we published that newsletter. This represents an even larger gap to our 30
September 2025 net asset value of $15.55 per share."