IFT - Infratil

[kiora]

Some company’s management should be recognized as profit centers unlike other companies’ management. I prefer to invest in companies whose management do as they say they are going to do. Management that considers all stake holders even handily. Trust is earned and added to by having well thought out succession plans.
The fact that M & Co skim off 10 % leaving the investors 90% of the gains is an argument heard ad infinitum from investors/advisors who can’t seem to better their performance. They do have their own costs to run their business and provide the service to IFT.
This “fee” is drawn over 3 years and often reinvested into purchasing IFT shares. The recent purchases were at $9.15.
https://stocknessmonster.com/announcements/ift.nzx-399247/
Was this a good investment for them? The fair value for IFT was $12.58 @30 Sept ,2022.I suspect so as I can’t recall IFT being so undervalued relative to fair value
https://www.sharetrader.co.nz/attachment.php?attachmentid=14321&d=1668553845
WB was once heard to say a good way to get good long term investment returns is to invest in low risk infrastructure assets then leverage the investment up.
Strategies to maximize returns since the IPO from IFT include selling head shares & reinvesting proceeds in the warrants then using a mortgage to exercise the warrants.

And continuing to add to the portfolio winners and sell the other portfolio losers.

That way an investor can better an original investor who participated in Infratil’s initial public offering who could have acquired 1,000 shares for $1,000
That person would now have shares worth nearly $130,790 on 30 September 2022 - 15,462 shares (at $8.65 each).

[Bjauck]

Yes they were all listed in NZ.

I have found this reference to a 'Shoeshine' column from 22 years ago that outlined what happened

http://www.sharechat.co.nz/article/b09883cb/the-shoeshine-column-infratil-australia-takeover-bid-stumbles.html...Thanks for that bit of history. My investment in IFT NZ exceeded expectations. As you previously said, a retail investor could not replicate their current portfolio. As IFT matured it managed to access a greater range of opportunities. The IFT/Superfund partnership seems to benefit them both.

[huxley]

No sale of retire Australia

[kiora]

Likely good outcome as likely low ball offers even that the business trucking along nicely
Plus IFT have plenty of financial facilities for their investment needs at the moment

So why sell RTA ?

[Curly]

What are posters predictions of reduction in share price post dividend. .45c?

[kiora]

Looks like it will need another acquisition to get to the $10?
There has been a bit of interest in this sector
https://www.afr.com/companies/healthcare-and-fitness/ifm-unisuper-to-buy-radiology-business-in-800m-deal-20221117-p5bz3l
"IFM and UniSuper plan to invest in both back-end technology and artificial intelligence-enabled software to generate efficiencies in the business, and expand the business into new procedures and open additional clinics.

The space has been a hot one for M&A activity in the past few years. Advent Partners bought a majority stake in Imaging Associates late last year and ASX-listed Integral Diagnostics acquired Queensland’s Peloton Radiology in February."

[Ggcc]

Another good announcement. Utilising government subsidies (not yet of course) to create wealth for shareholders. Not too late to join before we head to $10+. Of course DYOR and don’t take my word as advice.

[kiora]

Rinse & repeat ?
https://stocknessmonster.com/announcements/ift.nzx-404099/

[GTM 3442]

Rinse & repeat ?
https://stocknessmonster.com/announcements/ift.nzx-404099/

Yes, rinse and repeat.

From what I've read and heard over past months, the idea is to develop a template for "green energy companies", and roll them out across the world wherever they can see a buck to be made. With "green energy" as a major investment theme.

They certainly learned a lot from the TrustPower/Tilt experience

[Curly]

Another good announcement. Utilising government subsidies (not yet of course) to create wealth for shareholders. Not too late to join before we head to $10+. Of course DYOR and don’t take my word as advice.
SP all over the place. This announcement didn’t do it we live in hope. Mentioned by Forsyth Barr as one of 5 to watch in 2023.

[Southern Lad]

The December valuation update for CDC (and indication of impact on the Morrison & Co performance fee) has been released to the ASX this motning:

https://www.asx.com.au/asxpdf/20230103/pdf/45kbqhg4k5lv1y.pdf

Appears that the valuation takes into account the large future build plans, which have outweighed a higher cost of debt. Interestingly they are saying the the valuer has reduced the cost of equity since the last valuation date.

[kiora]

The December valuation update for CDC (and indication of impact on the Morrison & Co performance fee) has been released to the ASX this motning:

https://www.asx.com.au/asxpdf/20230103/pdf/45kbqhg4k5lv1y.pdf

Appears that the valuation takes into account the large future build plans, which have outweighed a higher cost of debt. Interestingly they are saying the the valuer has reduced the cost of equity since the last valuation date.

Not bad for an initial investment of $400m?

[Ggcc]

Not bad for an initial investment of $400m?

Shhhhh people might feel it’s a good investment. Of course I’m happy to keep holding

[Curly]

SP One good announcement away from hitting $9 plus me thinks?

[kiora]

"“The firm's growing a lot offshore and in our business, everything is about culture and consistency of the investment process.

“There’s that sense of excitement, when you arrive in New York and you see just how much opportunity there is, in the spaces we're good at, like renewable energy and digital infrastructure.”"
https://www.stuff.co.nz/business/300812373/ceo-paul-newfields-journey-from-backpacker-philosophy-to-global-infrastructure

[Felonius]

"“The firm's growing a lot offshore and in our business, everything is about culture and consistency of the investment process.

“There’s that sense of excitement, when you arrive in New York and you see just how much opportunity there is, in the spaces we're good at, like renewable energy and digital infrastructure.”"
https://www.stuff.co.nz/business/300812373/ceo-paul-newfields-journey-from-backpacker-philosophy-to-global-infrastructure

Thank you Kiora. I enjoyed the read.
With such good over-arching philosophies the company appears to be in good hands.

[Curly]

Thank you Kiora. I enjoyed the read.
With such good over-arching philosophies the company appears to be in good hands.
Mr Market not liking something. Down .28c today. Might be while before we see the highs at this rate.

[Toddy]

Probably just punters cashing up to take part in the RYM capital restructure.

[Toddy]

Today's investor presentation has been released along with the latest profit guidance.

IFT continues on its growth path and has plenty of capital available for future expansion and acquisitions.

[3141592]

The investor presentation has some very positive news. Some highlights.
Longroad, they've broken cover on their pathway to creating $500m EBITDA run rate. There's a graph showing current year 2023 = $200m, and 2025 is just shy of $500m (more like $480m). So it goes from last year where the analysts couldn't value it, and they waited for a market transaction with the new equity owner to give it $3bn of value to today - the analysts have the pathway of profit growth plus critically the capital required to get there and enough information to estimate which year that capex is spent - and thus can develop forecast valuation tools and better npv analysis. The future capex requirement is $8bn. The US market has very relaxed regulations in comparison to Europe of even AU/NZ so their confidence looks very high. Looking forward to 2025’s forward 5 year view!
The inflation reduction act - they've now fully acknowledged that it's accelerating the business. Remember they issued the $500m target within 5 years before the act came out, and now we can see that they have expectations to deliver far more than that, more quickly, and critically it's not a destination, just a milestone on the journey to a sustainable future.
Great news, but this ignores that in that time, Galileo Green Gurin and AU’s new entrant will all scale up…. They’ve got the experience, capital, expertise and governance to make the global renewable business (platform?) utterly massive.

CDC - they’ve again now revised CAGR growth rates from 25% to 30% growth going forward. They’re seeing unprecedented demand from customers, accelerating capital plans to meet these demands and have used up about 25% of their available current land holding (future potential capacity). This business is accelerating, not slowing down and it’s now at scale.

The above business dynamics underwrite an incredible growth journey to a proportionate EBITDA >$1bn and it does seem likely IFT will become one of the top cap companies in NZ comfortably before the decade closes.

Is it boring - not at all, just needs a few decent journalistic headlines understanding what’s emerging. Pacific Black Rock in the making, (didn’t the head of strategy of Black Rock just join Morrison and Co as a director) - i doubt she’d risk her reputation on a pup… just sayin.

[winner69]

Media seems to be highlighting Morrisons $148m fee

[Sideshow Bob]

Media seems to be highlighting Morrisons $148m fee

Where can we buy shares in Morrisons.....?? :mellow:

[Ggcc]

The investor presentation has some very positive news. Some highlights.
Longroad, they've broken cover on their pathway to creating $500m EBITDA run rate. There's a graph showing current year 2023 = $200m, and 2025 is just shy of $500m (more like $480m). So it goes from last year where the analysts couldn't value it, and they waited for a market transaction with the new equity owner to give it $3bn of value to today - the analysts have the pathway of profit growth plus critically the capital required to get there and enough information to estimate which year that capex is spent - and thus can develop forecast valuation tools and better npv analysis. The future capex requirement is $8bn. The US market has very relaxed regulations in comparison to Europe of even AU/NZ so their confidence looks very high. Looking forward to 2025’s forward 5 year view!
The inflation reduction act - they've now fully acknowledged that it's accelerating the business. Remember they issued the $500m target within 5 years before the act came out, and now we can see that they have expectations to deliver far more than that, more quickly, and critically it's not a destination, just a milestone on the journey to a sustainable future.
Great news, but this ignores that in that time, Galileo Green Gurin and AU’s new entrant will all scale up…. They’ve got the experience, capital, expertise and governance to make the global renewable business (platform?) utterly massive.

CDC - they’ve again now revised CAGR growth rates from 25% to 30% growth going forward. They’re seeing unprecedented demand from customers, accelerating capital plans to meet these demands and have used up about 25% of their available current land holding (future potential capacity). This business is accelerating, not slowing down and it’s now at scale.

The above business dynamics underwrite an incredible growth journey to a proportionate EBITDA >$1bn and it does seem likely IFT will become one of the top cap companies in NZ comfortably before the decade closes.

Is it boring - not at all, just needs a few decent journalistic headlines understanding what’s emerging. Pacific Black Rock in the making, (didn’t the head of strategy of Black Rock just join Morrison and Co as a director) - i doubt she’d risk her reputation on a pup… just sayin.



Shh people might like this share and start buying it. I’m glad to see some appreciation in the shares I hold while loads of other shares I own seem to be dipping.

[Toddy]

I'm sure that I read somewhere that Morrisons reinvest the fee back into IFT shares.

[Muse]

Where can we buy shares in Morrisons.....?? :mellow:

Morrison's a partnership and owned by 12 partners.

A pretty massive whack of performance fees would be paid out as bonuses to staff. but the underlying mgmt company would be kicking out incredible dividends.

[3141592]

Having taken the time to watch the entire 5h presentation on video playback a few more thoughts for those that are interested…

I’d describe the day as upbeat, bullish, confident and about as much swagger as IFT ever puts on, or at least has done historically.

In terms of new investments from a portfolio perspective, it does look like they’ll focus mainly on existing sectors / themes, or adjacent areas, rather than an imminent foray into a new territory. I’d imagine more datacentres, digital infrastructure, renewable, and radiology businesses than any leftfield move. Looks like they’ve been fishing for some time, but noted challenges that recently despite global context, private valuations hadn’t really tapered off. The infrastructure class of assets have been increasingly sought after by large fund managers and recent years had seen record deal flow. Great when they’re selling, more challenging to buy at value in the mean time. But they’re plugging away. They also had reconsidered their core, core plus and growth assets by being a little more sophisticated about how they analysed their portfolio. By way of example instead of just bucketing all of CDC into growth, they broke the business up into it’s existing build datacentre (and now categorised that as core). I’m not entirely sure about this, but it felt like they realised that they have more core assets and so this might skew them into looking for more high growth areas. I personally hope this is the case. Jason or Paul (can’t recall) did comment on why they don’t just deploy excess leverage capital into CDC / renewable in US if they’re so good. A good question to posit IMO - but risk concentration is not their focus.

They highlighted increasingly global diversification and spread of the underlying portfolio, and later HRL Morrison highlighted that their team has expanded to meet this need. They demonstrated on a slide that the high 18.5% return over 29 years put them in the top performing of their analysed infrastructure funds across available datasets (and their performance was perhaps even better in light of the length of time they’ve delivered it across). Most of the businesses that exceeded them had <10 years. The credentials were vital to their future deal flow, access to capital, access to opportunities etc.

Long road - one of the stand outs. Confident on their trajectory, capability, spent a lot of time just showing the sheer scale of the individual projects that underwrite their 1.5GW annual growth target. One of these in the future - is a 200,000 acre site that takes approx 2h to drive across. By way of example. The inflation reduction act had supercharged the business and given them more confidence, details were still emerging from how the tax incentives would work, but their IRR’s were increasing and feasibility increasing. Jason Boyes notes at the end to the investor base, go find another management team to run a US renewable business better than this team. I reckon hard pushed to find it. Deion (ex Tilt CEO) now at HRL in the mix too as Chair of Mint in AU and supporting the global play makes it a formidable line up.. The $500m plus EBITDA is definitely just on the horizon (2025/2026).

CDC, Greg Boorer remains a charismatic forthright compelling leader and entertaining presenter. He is laser focused on doubling the business within 3 years. He made one comment that in the debt financing negotiations with US banks, they simply couldn’t believe CDC’s weighted average forward sales contract tenure, and even more remarkably the length of this was growing as the business matures. I don’t think the ‘average data centre’ has this experience. Also he’s not seeing any slow down in their clients demands (unlike some consumer datacentres) It’s an exceptional business. The technology secret sauce is hard to know, Greg alludes to it, but understandably doesn’t go into technical details. With no Sandy Munroe (of tesla fame) to pull a datacentre apart and confirm it’s there, we have to take it on a bit of trust, unless of course you just let the result progression demonstrate that their clients believe in it…

Radiology businesses, more of a classic foray into a sector with good tailwinds, and an unusual dynamic with lower referrals following covid than prior to covid. Since their move into the segment, their seems to be a reasonable PE / fund activity level making buying value harder. Clearly working on teleradiology, and building out synergies and global expertise. This is probably a longer burn. If the post covid dynamics settle it’ll deliver strong gains.

Vodafone - was probably a slight upside surprise for me. Jason seemed full of swagger, not too surprising given beating his existing year forecast - but he repeatedly referred to business momentum. Said it was very hard to get in the large telco space, but also very hard to stop once you’ve got it. Vodafone was on a roll. They were selectively attacking their strategic segments and winning, seemingly pulling off the rather challenging trick of driving simplicity,achieving material cost efficiency and revenue growth. I’d say they’ll have a compelling number to contribute towards next years guidance. I remain interested in the diversification plan - a 2024 IPO seems compelling to me if the markets are supportive. What a run.

Finally, in May on year end result finalisation we’ll get their guidance for FY24. It’ll be very interesting to see given Longroad, CDC, and Vodafone and Wellington Airport all should have material increases…. If they could find a way of using that unused leverage… might be stellar. Either way it should be a solid uplift. Happy holder.

[Swala]

Having taken the time to watch the entire 5h presentation on video playback a few more thoughts for those that are interested…

I’d describe the day as upbeat, bullish, confident and about as much swagger as IFT ever puts on, or at least has done historically.

In terms of new investments from a portfolio perspective, it does look like they’ll focus mainly on existing sectors / themes, or adjacent areas, rather than an imminent foray into a new territory. I’d imagine more datacentres, digital infrastructure, renewable, and radiology businesses than any leftfield move. Looks like they’ve been fishing for some time, but noted challenges that recently despite global context, private valuations hadn’t really tapered off. The infrastructure class of assets have been increasingly sought after by large fund managers and recent years had seen record deal flow. Great when they’re selling, more challenging to buy at value in the mean time. But they’re plugging away. They also had reconsidered their core, core plus and growth assets by being a little more sophisticated about how they analysed their portfolio. By way of example instead of just bucketing all of CDC into growth, they broke the business up into it’s existing build datacentre (and now categorised that as core). I’m not entirely sure about this, but it felt like they realised that they have more core assets and so this might skew them into looking for more high growth areas. I personally hope this is the case. Jason or Paul (can’t recall) did comment on why they don’t just deploy excess leverage capital into CDC / renewable in US if they’re so good. A good question to posit IMO - but risk concentration is not their focus.

They highlighted increasingly global diversification and spread of the underlying portfolio, and later HRL Morrison highlighted that their team has expanded to meet this need. They demonstrated on a slide that the high 18.5% return over 29 years put them in the top performing of their analysed infrastructure funds across available datasets (and their performance was perhaps even better in light of the length of time they’ve delivered it across). Most of the businesses that exceeded them had <10 years. The credentials were vital to their future deal flow, access to capital, access to opportunities etc.

Long road - one of the stand outs. Confident on their trajectory, capability, spent a lot of time just showing the sheer scale of the individual projects that underwrite their 1.5GW annual growth target. One of these in the future - is a 200,000 acre site that takes approx 2h to drive across. By way of example. The inflation reduction act had supercharged the business and given them more confidence, details were still emerging from how the tax incentives would work, but their IRR’s were increasing and feasibility increasing. Jason Boyes notes at the end to the investor base, go find another management team to run a US renewable business better than this team. I reckon hard pushed to find it. Deion (ex Tilt CEO) now at HRL in the mix too as Chair of Mint in AU and supporting the global play makes it a formidable line up.. The $500m plus EBITDA is definitely just on the horizon (2025/2026).

CDC, Greg Boorer remains a charismatic forthright compelling leader and entertaining presenter. He is laser focused on doubling the business within 3 years. He made one comment that in the debt financing negotiations with US banks, they simply couldn’t believe CDC’s weighted average forward sales contract tenure, and even more remarkably the length of this was growing as the business matures. I don’t think the ‘average data centre’ has this experience. Also he’s not seeing any slow down in their clients demands (unlike some consumer datacentres) It’s an exceptional business. The technology secret sauce is hard to know, Greg alludes to it, but understandably doesn’t go into technical details. With no Sandy Munroe (of tesla fame) to pull a datacentre apart and confirm it’s there, we have to take it on a bit of trust, unless of course you just let the result progression demonstrate that their clients believe in it…

Radiology businesses, more of a classic foray into a sector with good tailwinds, and an unusual dynamic with lower referrals following covid than prior to covid. Since their move into the segment, their seems to be a reasonable PE / fund activity level making buying value harder. Clearly working on teleradiology, and building out synergies and global expertise. This is probably a longer burn. If the post covid dynamics settle it’ll deliver strong gains.

Vodafone - was probably a slight upside surprise for me. Jason seemed full of swagger, not too surprising given beating his existing year forecast - but he repeatedly referred to business momentum. Said it was very hard to get in the large telco space, but also very hard to stop once you’ve got it. Vodafone was on a roll. They were selectively attacking their strategic segments and winning, seemingly pulling off the rather challenging trick of driving simplicity,achieving material cost efficiency and revenue growth. I’d say they’ll have a compelling number to contribute towards next years guidance. I remain interested in the diversification plan - a 2024 IPO seems compelling to me if the markets are supportive. What a run.

Finally, in May on year end result finalisation we’ll get their guidance for FY24. It’ll be very interesting to see given Longroad, CDC, and Vodafone and Wellington Airport all should have material increases…. If they could find a way of using that unused leverage… might be stellar. Either way it should be a solid uplift. Happy holder.

Great post. Thanks for that. I'm sorely temped to increase my already overweight exposure!

[RTM]

Thanks for taking the time to post. Away with intermittent internet so hard to look at stuff in detail. Appreciated.



Having taken the time to watch the entire 5h presentation on video playback a few more thoughts for those that are interested…

I’d describe the day as upbeat, bullish, confident and about as much swagger as IFT ever puts on, or at least has done historically.

In terms of new investments from a portfolio perspective, it does look like they’ll focus mainly on existing sectors / themes, or adjacent areas, rather than an imminent foray into a new territory. I’d imagine more datacentres, digital infrastructure, renewable, and radiology businesses than any leftfield move. Looks like they’ve been fishing for some time, but noted challenges that recently despite global context, private valuations hadn’t really tapered off. The infrastructure class of assets have been increasingly sought after by large fund managers and recent years had seen record deal flow. Great when they’re selling, more challenging to buy at value in the mean time. But they’re plugging away. They also had reconsidered their core, core plus and growth assets by being a little more sophisticated about how they analysed their portfolio. By way of example instead of just bucketing all of CDC into growth, they broke the business up into its existing build datacentre (and now categorised that as core). I’m not entirely sure about this, but it felt like they realised that they have more core assets and so this might skew . Either way it should be a solid uplift. Happy holder.

[Ggcc]

Having taken the time to watch the entire 5h presentation on video playback a few more thoughts for those that are interested…

I’d describe the day as upbeat, bullish, confident and about as much swagger as IFT ever puts on, or at least has done historically.

In terms of new investments from a portfolio perspective, it does look like they’ll focus mainly on existing sectors / themes, or adjacent areas, rather than an imminent foray into a new territory. I’d imagine more datacentres, digital infrastructure, renewable, and radiology businesses than any leftfield move. Looks like they’ve been fishing for some time, but noted challenges that recently despite global context, private valuations hadn’t really tapered off. The infrastructure class of assets have been increasingly sought after by large fund managers and recent years had seen record deal flow. Great when they’re selling, more challenging to buy at value in the mean time. But they’re plugging away. They also had reconsidered their core, core plus and growth assets by being a little more sophisticated about how they analysed their portfolio. By way of example instead of just bucketing all of CDC into growth, they broke the business up into it’s existing build datacentre (and now categorised that as core). I’m not entirely sure about this, but it felt like they realised that they have more core assets and so this might skew them into looking for more high growth areas. I personally hope this is the case. Jason or Paul (can’t recall) did comment on why they don’t just deploy excess leverage capital into CDC / renewable in US if they’re so good. A good question to posit IMO - but risk concentration is not their focus.

They highlighted increasingly global diversification and spread of the underlying portfolio, and later HRL Morrison highlighted that their team has expanded to meet this need. They demonstrated on a slide that the high 18.5% return over 29 years put them in the top performing of their analysed infrastructure funds across available datasets (and their performance was perhaps even better in light of the length of time they’ve delivered it across). Most of the businesses that exceeded them had <10 years. The credentials were vital to their future deal flow, access to capital, access to opportunities etc.

Long road - one of the stand outs. Confident on their trajectory, capability, spent a lot of time just showing the sheer scale of the individual projects that underwrite their 1.5GW annual growth target. One of these in the future - is a 200,000 acre site that takes approx 2h to drive across. By way of example. The inflation reduction act had supercharged the business and given them more confidence, details were still emerging from how the tax incentives would work, but their IRR’s were increasing and feasibility increasing. Jason Boyes notes at the end to the investor base, go find another management team to run a US renewable business better than this team. I reckon hard pushed to find it. Deion (ex Tilt CEO) now at HRL in the mix too as Chair of Mint in AU and supporting the global play makes it a formidable line up.. The $500m plus EBITDA is definitely just on the horizon (2025/2026).

CDC, Greg Boorer remains a charismatic forthright compelling leader and entertaining presenter. He is laser focused on doubling the business within 3 years. He made one comment that in the debt financing negotiations with US banks, they simply couldn’t believe CDC’s weighted average forward sales contract tenure, and even more remarkably the length of this was growing as the business matures. I don’t think the ‘average data centre’ has this experience. Also he’s not seeing any slow down in their clients demands (unlike some consumer datacentres) It’s an exceptional business. The technology secret sauce is hard to know, Greg alludes to it, but understandably doesn’t go into technical details. With no Sandy Munroe (of tesla fame) to pull a datacentre apart and confirm it’s there, we have to take it on a bit of trust, unless of course you just let the result progression demonstrate that their clients believe in it…

Radiology businesses, more of a classic foray into a sector with good tailwinds, and an unusual dynamic with lower referrals following covid than prior to covid. Since their move into the segment, their seems to be a reasonable PE / fund activity level making buying value harder. Clearly working on teleradiology, and building out synergies and global expertise. This is probably a longer burn. If the post covid dynamics settle it’ll deliver strong gains.

Vodafone - was probably a slight upside surprise for me. Jason seemed full of swagger, not too surprising given beating his existing year forecast - but he repeatedly referred to business momentum. Said it was very hard to get in the large telco space, but also very hard to stop once you’ve got it. Vodafone was on a roll. They were selectively attacking their strategic segments and winning, seemingly pulling off the rather challenging trick of driving simplicity,achieving material cost efficiency and revenue growth. I’d say they’ll have a compelling number to contribute towards next years guidance. I remain interested in the diversification plan - a 2024 IPO seems compelling to me if the markets are supportive. What a run.

Finally, in May on year end result finalisation we’ll get their guidance for FY24. It’ll be very interesting to see given Longroad, CDC, and Vodafone and Wellington Airport all should have material increases…. If they could find a way of using that unused leverage… might be stellar. Either way it should be a solid uplift. Happy holder.
This may prove to be one of the best shares of 2023/24. Thanks for the feedback

[warthog]

Having taken the time to watch the entire 5h presentation on video playback a few more thoughts for those that are interested…

I’d describe the day as upbeat, bullish, confident and about as much swagger as IFT ever puts on, or at least has done historically...

Thanks for that. Together with the presentation documentation it covered the event and trajectory.

[kiora]

Some more skin in the game
https://stocknessmonster.com/announcements/ift.nzx-409320/

[Toddy]

One NZ has signed a deal with Starlink that will enable customers to send data via the satellites meaning that the old issue of areas blank spots will be history.

This is a real game changer. I live rural and have been on starlink for 2 years. Whenever the Spark tower network was down (alot since anniversary weekend floods) then I was still able to send communication via data (messenger, what's app etc).

[Ricky-bobby]

One NZ has signed a deal with Starlink that will enable customers to send data via the satellites meaning that the old issue of areas blank spots will be history.

This is a real game changer. I live rural and have been on starlink for 2 years. Whenever the Spark tower network was down (alot since anniversary weekend floods) then I was still able to send communication via data (messenger, what's app etc).

Great move I recon! Another point of difference and I think Spark will be kicking themselves for missing this one….

[Sideshow Bob]

Great move I recon! Another point of difference and I think Spark will be kicking themselves for missing this one….

Just pity they couldn't do something half smart with their new name....!! ;)

[kiora]

Vodafone
I this how it plays out?
Pay around $1b for half share
Sell towers for around $500 half share(low ROR, dinosaur technology, replaced with deal with Starlink, think Yellow Pages)

Float half share in 2 years for $2b?

Classic Playbook?

[Ggcc]

At this rate we will be seeing new high’s shortly. The good story continues

[Swala]

At this rate we will be seeing new high’s shortly. The good story continues

Yes. I recently watched the five hour presentation (as highlighted by a previous poster). There's an awful lot to feel confident about.

[Ggcc]

Yes. I recently watched the five hour presentation (as highlighted by a previous poster). There's an awful lot to feel confident about.

Yes and we will continue to see growth if all falls into place as long as outside interferences don’t control what will happen.

[kiora]

"Vodafone NZ: creating momentum is 'hard to do, but also hard to stop'"
https://www.reseller.co.nz/article/706468/vodafone-nz-creating-momentum-hard-do-also-hard-stop/?fp=2&fpid=1

[kiora]

Vodafone
I this how it plays out?
Pay around $1b for half share
Sell towers for around $500 half share(low ROR, dinosaur technology, replaced with deal with Starlink, think Yellow Pages)

Float half share in 2 years for $2b?

Classic Playbook?

Even better than I surmised
"Infratil CEO Jason Boyes told shareholders that following completion of Vodafone's tower sale, Infratil would have received almost $1 billion in cash distributions over the three years since it spent $1.03 billion to buy just shy of half of the telco. "
https://www.reseller.co.nz/article/703309/vodafone-cdc-star-infratil-reports-strong-first-half/

[kiora]

"Has One NZ stolen Spark's shine?
https://www.stuff.co.nz/business/131833447/has-one-nz-stolen-sparks-shine

[bull....]

Strong Continued Recovery For Wellington Airport
https://www.scoop.co.nz/stories/BU2305/S00181/strong-continued-recovery-for-wellington-airport.htm

[BlackPeter]

Strong Continued Recovery For Wellington Airport
https://www.scoop.co.nz/stories/BU2305/S00181/strong-continued-recovery-for-wellington-airport.htm

Wow - they more than 8-folded their profit from $3m to $25.3m. Clearly, this means next year market expects a profit of at least $200m - right ;) ?

[Ggcc]

Wow - they more than 8-folded their profit from $3m to $25.3m. Clearly, this means next year market expects a profit of at least $200m - right ;) ?
All the while IFT is close to their ATH. when will they pass it?

[BlackPeter]

All the while IFT is close to their ATH. when will they pass it?

maybe when they start to invest their cash pile into something more promising and less cyclical than airports ;) ?

[LaserEyeKiwi]

maybe when they start to invest their cash pile into something more promising and less cyclical than airports ;) ?


For context…

14587

[BlackPeter]

For context…

14587

cheers - but ... wrong context. You probably just missed the discussion around them potentially taking off shares from the Auckland City council :) , didn't you?

[Curly]

cheers - but ... wrong context. You probably just missed the discussion around them potentially taking off shares from the Auckland City council :) , didn't you?
And what do you perceive is wrong with that?

[BlackPeter]

And what do you perceive is wrong with that?

Absolutely nothing - given that I don't hold :) ;

As a holder however I would be concerned if IFT buys into another overpriced airport with limited growth potential ...

[Rawz]

Absolutely nothing - given that I don't hold :) ;

As a holder however I would be concerned if IFT buys into another overpriced airport with limited growth potential ...

Auckland Airport is a nice business with lots of growth ahead. The way I see it is the airport is a printing press to fund the property development over the coming decades

[Curly]

Auckland Airport is a nice business with lots of growth ahead. The way I see it is the airport is a printing press to fund the property development over the coming decades
Yes, it will always be the gateway to NZ and provides a perpetual positive income stream for expansion in other areas of investment.

[ronaldson]

maybe when they start to invest their cash pile into something more promising and less cyclical than airports ;) ?

I don't regard airports as " cyclical " investments. The recent Covid impact/disruption is hardly a cyclical circumstance.

Rather, an airport is literally a runway of relatively stable and reliably increasing long term revenue generation as BP suggests, albeit occasionally significant capital investment is necessary to underpin growth.

[BlackPeter]

Auckland Airport is a nice business with lots of growth ahead. The way I see it is the airport is a printing press to fund the property development over the coming decades

Maybe ... though they are properties with quite significant fish hooks. They are lying very close to sea level ... and they are neighbouring an international airport. Obviously - you might say - global warming and sea level rise might fix both problems ;) ... and hey, they might;

But yes, I do see that property speculation is clearly the only reason for AKL's share price holding up in these levels.

The thing with speculation is .... it may work - or it might not. Not something I would hope IFT is considering :) ;

[Bjauck]

Maybe ... though they are properties with quite significant fish hooks. They are lying very close to sea level) ... and they are neighbouring an international airport. Obviously - you might say - global warming and sea level rise might fix both problems ;) ... and hey, they might;

But yes, I do see that property speculation is clearly the only reason for AKL's share price holding up in these levels.

The thing with speculation is .... it may work - or it might not. Not something I would hope IFT is considering :) ; AIA elevation above sea level(current) is 7.01m
WIA 13m

SYD 9.0m
HKG 8.53m
Singapore 6.65m
Adelaide 6m
Boston 6m
Rome 5m
JFK 4m
Brisbane 4m
Vancouver 4m
Miami 3m
Schiphol -3m

An incomplete list of low lying airports - just the ones I have landed at!

We’re all doomed! We could get some Dutch engineers first.

[winner69]

Infratil have often said there’s better use of capital than owning airports

They sold a chunk of Auckland not that long ago and have quit their UK and German airport investments. I’m sure Wellington would have gone as well but nobody prepared to pay what they want so they hang on to it.

Maybe airports the new ‘plaything’ ……. I doubt it

[BlackPeter]

AIA elevation above sea level(current) is 7.01m
WIA 13m

SYD 9.0m
HKG 8.53m
Singapore 6.65m
Adelaide 6m
Boston 6m
Rome 5m
JFK 4m
Brisbane 4m
Vancouver 4m
Miami 3m
Schiphol -3m

An incomplete list of low lying airports - just the ones I have landed at!

We’re all doomed! We could get some Dutch engineers first.

Not quite sure what point you want to make ... I highlighted one risk ... but I didn't say its unique to AIA's land, didn't I?

I trust you compared as well the tide-differences at the various locations, the geological base (sand tends to erode easier than rocks) and the location (how easy is it to build seawalls) to find out whether AIA is safer or less safe than these other airports you mentioned.

But again - while this all might be interesting, if you make a choice into which of these airports to invest, I don't understand what your point is in the context of my post ...?

If I tell you that you have a x% risk of dying in a car accident and you tell me that your neighbour has a similar risk, then yes, this might well be true, but how exactly does this impact on your risk?

[Swala]

Given that AIA's market cap is approximately twice that of IFT I think the whole conversation is pretty academic!

[Ggcc]

Given that AIA's market cap is approximately twice that of IFT I think the whole conversation is pretty academic!
Plus you can bet the superfund will go roughly halves with them as they want it to remain in nz hands.

[BlackPeter]

Given that AIA's market cap is approximately twice that of IFT I think the whole conversation is pretty academic!

I didn't started it ... but as far as I remember was the start just the idea for IFT to take over the shares City of Auckland is holding, which would be obviously less than AIA's total market cap.

I agree however, that there are as well many other reasons other than what was already raised above making this whole thing unlikely ... as a starter ... IFT prefers to control their investments - and Auckland has not a big enough stake to offer this.

[Ggcc]

I didn't started it ... but as far as I remember was the start just the idea for IFT to take over the shares City of Auckland is holding, which would be obviously less than AIA's total market cap.

I agree however, that there are as well many other reasons other than what was already raised above making this whole thing unlikely ... as a starter ... IFT prefers to control their investments - and Auckland has not a big enough stake to offer this.
I guess what some are saying is it is a great investment so far.

It is good to continue looking at a share carefully. I for one have been wrong many times over and it baffles me when share rise to certain levels when they shouldn't. In the case with Infratil it should.

Infratil has its sights set on how it can make money and governments around the world are jumping on the "Climate change" speech and throwing money at it or subsidising it. Im not disagreeing with Climate change but to be honest I don't care for now. I follow the money instead of fighting it.

[Ggcc]

Looks like the ATH might happen today. Congratulations holders

[BlackPeter]

Looks like the ATH might happen today. Congratulations holders

ATH today? This would be frightening ...

If its really the ATH - sell immediately and run ...

[Ggcc]

ATH today? This would be frightening ...

If its really the ATH - sell immediately and run ...
I would rather keep holding over the next few years. We still have a way to go up. I would not be surprised to a see $20 sp within 5 years and don’t wish to sell until fully retired in 10-15 years.
Who knows maybe $30-40 by then.

[BlackPeter]

I would rather keep holding over the next few years. We still have a way to go up. I would not be surprised to a see $20 sp within 5 years and don’t wish to sell until fully retired in 10-15 years.
Who knows maybe $30-40 by then.

But then it would not be ATH today. Sorry - I trusted you.

[Ggcc]

But then it would not be ATH today. Sorry - I trusted you.
I thought you were more clever than this. Guess I was wrong.

Hope one day you will invest in IFT and you and I will both be happy together.

[Sideshow Bob]

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

Infratil delivers a strong FY2023 result, and provides positive guidance for FY2024 despite near term global and local economic headwinds, with strong thematic tailwinds continuing to drive investment across the portfolio

Infratil today announced a net parent surplus from continuing operations of $643.1 million for the year ended 31 March 2023, driven by significant growth in earnings from its associates and the gains recognised on the sale of the Trustpower retail business and the sale of One New Zealand’s passive tower assets.

Proportionate EBITDAF was $531.5 million – an 11.9% increase on the $474.9 million from the same period the previous year - reflecting strong performances from CDC Data Centres, One New Zealand and Wellington Airport – and towards the top end of our most recent guidance.

Infratil CEO Jason Boyes said that on performance, we unapologetically aim high, and the current year has been no different on that front, meeting our market guidance and achieving our target returns to shareholders in a difficult macro environment.

“The last year has been extremely active across our portfolio. Longroad Energy undertook a significant capital raise, which saw a material uplift in its value. One New Zealand completed its rebrand as well as the sale of its passive mobile tower infrastructure to a consortium including Infratil, leading to the establishment of Fortysouth. CDC Data Centres delivered an additional 104MW of data centre capacity across in Canberra, Sydney and Auckland. While Manawa Energy completed the sale of the Trustpower mass market retail business.”

At a portfolio level Infratil committed to setting a science-based target with a clearly defined path to reduce emissions in line with the Paris Agreement goals in May 2023.

“What’ is pleasing is that despite all of the activity across our portfolio, the management teams of our portfolio companies have remained focused and delivered a set of impressive financial and operational results.

“CDC saw a significant expansion of capacity to meet new and existing customer demand, substantial capital deployment to bring this capacity online and a continuation of strong financial growth, this year delivering 33% EBITDAF growth. Expansion included two new Auckland campuses in Silverdale and Hobsonville, which are the largest and most secure data centres of their type in New Zealand.

“2023 was a year of change as Vodafone rebranded to One New Zealand, a culmination of its second phase of transformation involving network expansion, improved customer experience, and the sale of passive mobile tower assets. Against this backdrop One New Zealand delivered a strong annual result with EBITDAF of $527.8 million, and momentum that will see further growth in FY2024.

“By any measure it was a stand-out period for Longroad Energy, starting with the announcement of a US$500 million capital raise and introduction of new co-investor MEAG. The transaction, which closed prior to the announcement of the Inflation Reduction Act, highlighted the level of value that Longroad had created for shareholders. With this new capital committed Longroad is now in the midst of the largest construction programme in its history, totalling 1.3GW across six projects in five states of the United States of America.

“Hydrological conditions, wholesale pricing, and hedging contracts contributed to a stronger net energy margin for Manawa Energy, however this was offset by a fall in carbon prices, the loss of ACoT revenue, and increased development and corporate overheads. Following the completion of the sale of the Trustpower retail business in May 2022, Manawa has used the last 12-months to refocus on advancing new developments and serving its commercial and industrial customers.

“Looking ahead, the New Zealand diagnostic imaging team expects to see a return to pre-covid scan volume growth rates in FY2024. The industry fundamentals remain strong, the health system reforms are gathering pace, and the healthcare system and radiology referral network is continuing its recovery from covid. We are also excited to deliver additional capacity in Whangārei, Auckland, Hamilton, Tauranga, Whanganui, Napier and Dunedin over the next year.

Mr Boyes said, the scale of Infratil’s platform, which also includes Qscan in Australia, means that we can continue to invest in the best technology, offer the best learning and development opportunities for our doctors and staff, and most importantly, offer patients and referrers the widest breadth of expertise across a full range of sub-specialisations.

“Demand for RetireAustralia’s retirement villages continues to be strong with 432 sales during the year and waitlists now in place for over 75% of its villages. The integration of care into villages is continuing, using a combination of RetireAustralia’s own home care services and partnerships with select local care providers.
“In its first full year of travel without covid restrictions since the start of the pandemic, Wellington Airport hosted 5.3 million passengers, with 4.7 million domestic passengers and 560,000 international passengers passing through its terminals. This helped drive an improved financial result from the previous year, with EBITDA up 57.6% to $89.6 million, reflecting a solid recovery across all revenue lines and in line with the growth in passenger numbers.

Over the last year, close to $1.4 billion was deployed across the portfolio, primarily across Infratil’s existing digital and renewable businesses. “This is the type of investment that shareholders should be looking at, because it is the investment, we are making today that will generate returns over the next 10-year period and beyond.”

Mr Boyes highlighted that Infratil retains significant liquidity to support further internal and external investment opportunities.

“Thematic tailwinds continue to provide valuable options for growth across Infratil’s portfolio. Climate commitments from governments and societal demands are growing and will accelerate the transition to renewable energy, resulting in an unprecedented level of investment. Data demand and connectivity growth is showing no sign of slowing, which also creates further unique investment opportunities in this sector.

In the last 12-months we have seen the United States-led Biden Administration’s climate agenda receive a US$369 billion boost in federal funding towards clean energy and climate change mitigation with the signing of the Inflation Reduction Act. This is most meaningful for developers that have already spent time building their development pipelines.

Not to be outdone, the European Union has also increased its funding, with over €400 billion now allocated to the clean energy transition, which we expect to continue globally.”
Infratil currently has $1.4 billion of available capacity to fund growth, including significant undrawn corporate facilities, and almost $600 million of cash on hand. At 31 March, gearing was 9.8%, significantly below the target range of 30%.

Reflecting feedback and concerns of shareholders in recent years, Infratil and its Manager, Morrison & Co, have agreed in principle to make amendments to the incentive fee provisions in the Management Agreement. The amendments will provide for annual offsetting of over and under performance between the three categories of incentive fees for international assets, and the carry forward of the impact of underperformance for unrealised assets (and in limited circumstances for realised assets).
The amendments will be applied to the calculation of the incentive fees due to Morrison & Co for FY2023, and the net effect of the changes for FY2023 is a reduction in incentive fees of $5.7 million.

In addition to this, Infratil has elected to pay $60.0 million of the third tranche of the FY2021 Annual Incentive Fee by way of issue of shares on 29 May 2023. In accordance with the Management Agreement, the share issue price will be set at 98 per cent of the weighted average sale price of all trades of Infratil’s ordinary shares on the NZX on the 5 business days immediately prior to the issue date of 29 May 2023.

“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.”
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.

Investor briefing

There will be a briefing for institutional investors, analysts and media commencing at 10.00am. A webcast of the presentation will be available live on the below link.
https://edge.media-server.com/mmc/p/ikpvzpep

[Toddy]

1.4 billion capital available for future investments. Forecast 11 percent increase in profits for 2024 year..

Massive tailwinds in portfolio.

There is nothing not to like.

Let's see where the market prices the stock over the coming weeks.

[Ggcc]

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

Infratil delivers a strong FY2023 result, and provides positive guidance for FY2024 despite near term global and local economic headwinds, with strong thematic tailwinds continuing to drive investment across the portfolio

Infratil today announced a net parent surplus from continuing operations of $643.1 million for the year ended 31 March 2023, driven by significant growth in earnings from its associates and the gains recognised on the sale of the Trustpower retail business and the sale of One New Zealand’s passive tower assets.

Proportionate EBITDAF was $531.5 million – an 11.9% increase on the $474.9 million from the same period the previous year - reflecting strong performances from CDC Data Centres, One New Zealand and Wellington Airport – and towards the top end of our most recent guidance.

Infratil CEO Jason Boyes said that on performance, we unapologetically aim high, and the current year has been no different on that front, meeting our market guidance and achieving our target returns to shareholders in a difficult macro environment.

“The last year has been extremely active across our portfolio. Longroad Energy undertook a significant capital raise, which saw a material uplift in its value. One New Zealand completed its rebrand as well as the sale of its passive mobile tower infrastructure to a consortium including Infratil, leading to the establishment of Fortysouth. CDC Data Centres delivered an additional 104MW of data centre capacity across in Canberra, Sydney and Auckland. While Manawa Energy completed the sale of the Trustpower mass market retail business.”

At a portfolio level Infratil committed to setting a science-based target with a clearly defined path to reduce emissions in line with the Paris Agreement goals in May 2023.

“What’ is pleasing is that despite all of the activity across our portfolio, the management teams of our portfolio companies have remained focused and delivered a set of impressive financial and operational results.

“CDC saw a significant expansion of capacity to meet new and existing customer demand, substantial capital deployment to bring this capacity online and a continuation of strong financial growth, this year delivering 33% EBITDAF growth. Expansion included two new Auckland campuses in Silverdale and Hobsonville, which are the largest and most secure data centres of their type in New Zealand.

“2023 was a year of change as Vodafone rebranded to One New Zealand, a culmination of its second phase of transformation involving network expansion, improved customer experience, and the sale of passive mobile tower assets. Against this backdrop One New Zealand delivered a strong annual result with EBITDAF of $527.8 million, and momentum that will see further growth in FY2024.

“By any measure it was a stand-out period for Longroad Energy, starting with the announcement of a US$500 million capital raise and introduction of new co-investor MEAG. The transaction, which closed prior to the announcement of the Inflation Reduction Act, highlighted the level of value that Longroad had created for shareholders. With this new capital committed Longroad is now in the midst of the largest construction programme in its history, totalling 1.3GW across six projects in five states of the United States of America.

“Hydrological conditions, wholesale pricing, and hedging contracts contributed to a stronger net energy margin for Manawa Energy, however this was offset by a fall in carbon prices, the loss of ACoT revenue, and increased development and corporate overheads. Following the completion of the sale of the Trustpower retail business in May 2022, Manawa has used the last 12-months to refocus on advancing new developments and serving its commercial and industrial customers.

“Looking ahead, the New Zealand diagnostic imaging team expects to see a return to pre-covid scan volume growth rates in FY2024. The industry fundamentals remain strong, the health system reforms are gathering pace, and the healthcare system and radiology referral network is continuing its recovery from covid. We are also excited to deliver additional capacity in Whangārei, Auckland, Hamilton, Tauranga, Whanganui, Napier and Dunedin over the next year.

Mr Boyes said, the scale of Infratil’s platform, which also includes Qscan in Australia, means that we can continue to invest in the best technology, offer the best learning and development opportunities for our doctors and staff, and most importantly, offer patients and referrers the widest breadth of expertise across a full range of sub-specialisations.

“Demand for RetireAustralia’s retirement villages continues to be strong with 432 sales during the year and waitlists now in place for over 75% of its villages. The integration of care into villages is continuing, using a combination of RetireAustralia’s own home care services and partnerships with select local care providers.
“In its first full year of travel without covid restrictions since the start of the pandemic, Wellington Airport hosted 5.3 million passengers, with 4.7 million domestic passengers and 560,000 international passengers passing through its terminals. This helped drive an improved financial result from the previous year, with EBITDA up 57.6% to $89.6 million, reflecting a solid recovery across all revenue lines and in line with the growth in passenger numbers.

Over the last year, close to $1.4 billion was deployed across the portfolio, primarily across Infratil’s existing digital and renewable businesses. “This is the type of investment that shareholders should be looking at, because it is the investment, we are making today that will generate returns over the next 10-year period and beyond.”

Mr Boyes highlighted that Infratil retains significant liquidity to support further internal and external investment opportunities.

“Thematic tailwinds continue to provide valuable options for growth across Infratil’s portfolio. Climate commitments from governments and societal demands are growing and will accelerate the transition to renewable energy, resulting in an unprecedented level of investment. Data demand and connectivity growth is showing no sign of slowing, which also creates further unique investment opportunities in this sector.

In the last 12-months we have seen the United States-led Biden Administration’s climate agenda receive a US$369 billion boost in federal funding towards clean energy and climate change mitigation with the signing of the Inflation Reduction Act. This is most meaningful for developers that have already spent time building their development pipelines.

Not to be outdone, the European Union has also increased its funding, with over €400 billion now allocated to the clean energy transition, which we expect to continue globally.”
Infratil currently has $1.4 billion of available capacity to fund growth, including significant undrawn corporate facilities, and almost $600 million of cash on hand. At 31 March, gearing was 9.8%, significantly below the target range of 30%.

Reflecting feedback and concerns of shareholders in recent years, Infratil and its Manager, Morrison & Co, have agreed in principle to make amendments to the incentive fee provisions in the Management Agreement. The amendments will provide for annual offsetting of over and under performance between the three categories of incentive fees for international assets, and the carry forward of the impact of underperformance for unrealised assets (and in limited circumstances for realised assets).
The amendments will be applied to the calculation of the incentive fees due to Morrison & Co for FY2023, and the net effect of the changes for FY2023 is a reduction in incentive fees of $5.7 million.

In addition to this, Infratil has elected to pay $60.0 million of the third tranche of the FY2021 Annual Incentive Fee by way of issue of shares on 29 May 2023. In accordance with the Management Agreement, the share issue price will be set at 98 per cent of the weighted average sale price of all trades of Infratil’s ordinary shares on the NZX on the 5 business days immediately prior to the issue date of 29 May 2023.

“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.”
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.

Investor briefing

There will be a briefing for institutional investors, analysts and media commencing at 10.00am. A webcast of the presentation will be available live on the below link.
https://edge.media-server.com/mmc/p/ikpvzpep
Very positive so far. Love how IFT emphasise about the amount of money world governments are throwing into renewable energy and climate change. Right up Infratil’s scene. Would not be surprised to see it over $10 shortly.

[Curly]

Great result, down .23c. Give it a week and should bounce back and push to $10 I recon.

[Ggcc]

Great result, down .23c. Give it a week and should bounce back and push to $10 I recon.
We might see $10 today. The support looks good

[Curly]

We might see $10 today. The support looks good
Come in spinner. Bring it on. ATH.

[LaserEyeKiwi]

“Knock knock knocking on heavens ten dollar door”

[BlackPeter]

“Knock knock knocking on heavens ten dollar door”

Not a religious person, but are you sure the entry into heaven is that cheap?

[Snoopy]

Not a religious person, but are you sure the entry into heaven is that cheap?


Yes only the sanctimonious poor get to go in. As you draw your last breath you should spend your last buck (except for $10 of course). And if you don't know how to dispose of your greedily sauntered away riches, there are plenty of religious gurus out there who will willingly take those riches from you. WhitePeter will be at the gate to take your ten bucks when the time comes.

SNOOPY

[Bjauck]

Yes only the sanctimonious poor get to go in. As you draw your last breath you should spend your last buck (except for $10 of course). And if you don't know how to dispose of your greedily sauntered away riches, there are plenty of religious gurus out there who will willingly take those riches from you. WhitePeter will be at the gate to take your ten bucks when the time comes.

SNOOPY Big bucks to be made by the Church back in the day from the sale of indulgences. That is until the man from Eisleben became the party pooper. I regret selling some of my IFT a couple of weeks ago.

[Ggcc]

And as Tina from turners mentioned. Boom money in the bank, or you can wait till we get to $15 next year.

[Curly]

And as Tina from turners mentioned. Boom money in the bank, or you can wait till we get to $15 next year.
Bingo, Simply the best.

[Swala]

We might see $10 today. The support looks good

Came in just as you surmised. Onwards and upwards!

[Valuegrowth]

Another over 15 bagger company. It was trading around 0.50 NSD in 2020 and smashed 10 NZD. Current PE ratio is over 23. It is better to identify valuable busineesses before crowds come in droves.

[BlackPeter]

Another over 15 bagger company. It was trading around 0.50 NSD in 2020 and smashed 10 NZD. Current PE ratio is over 23. It is better to identify valuable busineesses before crowds come in droves.

You want to expand on what 0.50 NSD would be? Is this some funny home made crypto currency, and who would trade IFT against such funny currencies?

In case the currency is a typo, then you got the amount wrong as well. The absolute low for IFT in 2020 was NZD 3.16 ... which would make it more like a triple bagger (assuming you really got the absolute low, most of the year it traded well above NZD 4.00 and up to NZD 5.50);

[Valuegrowth]

Sorry I made a mistake. It traded around 55 cents(NZD) in 2000.
You want to expand on what 0.50 NSD would be? Is this some funny home made crypto currency, and who would trade IFT against such funny currencies?

In case the currency is a typo, then you got the amount wrong as well. The absolute low for IFT in 2020 was NZD 3.16 ... which would make it more like a triple bagger (assuming you really got the absolute low, most of the year it traded well above NZD 4.00 and up to NZD 5.50);

[kiora]

WB has been heard to say buy low risk infrastructure then leverage returns

The IFTWB where good value way back here
https://www.sharetrader.co.nz/showthread.php?1360-IFT-Infratil/page4

Digger had a good few
"07-01-2005, 10:50 AM#30
digger digger is offline
Advanced Member


Join Date
Apr 2001
Posts
1,973
Default
IFT is my best investment ever,GEN is my worst. Strange how suddenly in the last two months the warrants are now seen at 80 odd cents as great value. I bought 180000 at 54 cents shortly after listing and at the time we had top advise saying they should be only worth 35 cents.
This co needlessly drifted back after the Whenuapai fiasco.Personally i think they would be better off putting their effort into existing airports rather than the 200 year permits needed to start up another. IFT has a lot without worring about Whenuapai.
To conclude at the moment i think the warrants and the heads are about in fair comparative relative value.
I hold this stock and it is also in my 5 picks for 2005."
Then sold all of them?
His shareholding of 50,000 shares + 180,000 IFTWB would be worth around $2.3 m now if he coughed up the $180k ? to convert them

SL brought then sold??? Then brought back in. Then sold them?
And directors "See the other week a director sold heads and bought warrants,as per notice."
And Shasta, Steve, Toddy,Colin
https://www.sharetrader.co.nz/showthread.php?7091-IFTWC-s&highlight=IFTWB


IFTWB excise price around $1.80? as per SL post
https://www.sharetrader.co.nz/showthread.php?1360-IFT-Infratil/page47&highlight=infratil

Those who still holds all there IFT after converting IFTWB have seen a sizeable return.
Probably not Balance?
https://www.sharetrader.co.nz/showthread.php?1360-IFT-Infratil/page82

[LaserEyeKiwi]

Not complaining at all, but interesting to debate where we would be if Infratil management was in house, instead of paying Morrison & co that huge incentive fee annually. I mean their performance has been spectacular, but they certainly take an arm and a leg.

I haven’t done the math, but aren’t they somewhere in the ballpark of having extracted over half a billion dollars from Infratil over the last few years?

[kiora]

In house management may have its advantages in lower fees but then wouldn't the key personal leave & set up their own company or be seduced away by a competitor?
Higher staff retention rates of key personal is key over the long term.

The advantages of the statis quo in my view is all stakeholders are aligned to performance & the structure assists in blocking takeovers. The fee still leaves shareholders with 90% of the gains

IFT share performance is double the return from Berkshire Hathaway from 1995 when they listed to the present
IFT outperformance by quite a stretch +++ IFT pays dividends on top of these long term gains

https://finance.yahoo.com/quote/BRK-A/chart?p=BRK-A#eyJpbnRlcnZhbCI6Im1vbnRoIiwicGVyaW9kaWNpdHkiOjEs ImNhbmRsZVdpZHRoIjoyLjg4ODU1NDIxNjg2NzQ3LCJmbGlwcG VkIjpmYWxzZSwidm9sdW1lVW5kZXJsYXkiOnRydWUsImFkaiI6 dHJ1ZSwiY3Jvc3NoYWlyIjp0cnVlLCJjaGFydFR5cGUiOiJsaW 5lIiwiZXh0ZW5kZWQiOmZhbHNlLCJtYXJrZXRTZXNzaW9ucyI6 e30sImFnZ3JlZ2F0aW9uVHlwZSI6Im9obGMiLCJjaGFydFNjYW xlIjoicGVyY2VudCIsInBhbmVscyI6eyJjaGFydCI6eyJwZXJj ZW50IjoxLCJkaXNwbGF5IjoiQlJLLUEiLCJjaGFydE5hbWUiOi JjaGFydCIsImluZGV4IjowLCJ5QXhpcyI6eyJuYW1lIjoiY2hh cnQiLCJwb3NpdGlvbiI6bnVsbH0sInlheGlzTEhTIjpbXSwieW F4aXNSSFMiOlsiY2hhcnQiLCLigIx2b2wgdW5kcuKAjCJdfX0s ImxpbmVXaWR0aCI6Miwic3RyaXBlZEJhY2tncm91bmQiOnRydW UsImV2ZW50cyI6dHJ1ZSwiY29sb3IiOiIjMDA4MWYyIiwic3Ry aXBlZEJhY2tncm91ZCI6dHJ1ZSwicmFuZ2UiOnsicGVyaW9kaW NpdHkiOnsiaW50ZXJ2YWwiOiJtb250aCIsInBlcmlvZCI6MX0s ImR0TGVmdCI6IjE5OTUtMDgtMzFUMTI6MDA6MDAuMDAwWiIsIm R0UmlnaHQiOiIyMDIzLTAzLTMxVDExOjAwOjAwLjAwMFoiLCJw YWRkaW5nIjowfSwiZXZlbnRNYXAiOnsiY29ycG9yYXRlIjp7Im RpdnMiOnRydWUsInNwbGl0cyI6dHJ1ZX0sInNpZ0RldiI6e319 LCJjdXN0b21SYW5nZSI6eyJzdGFydCI6ODA5ODcwNDAwMDAwLC JlbmQiOjE2Nzc1ODIwMDAwMDB9LCJzeW1ib2xzIjpbeyJzeW1i b2wiOiJCUkstQSIsInN5bWJvbE9iamVjdCI6eyJzeW1ib2wiOi JCUkstQSIsInF1b3RlVHlwZSI6IkVRVUlUWSIsImV4Y2hhbmdl VGltZVpvbmUiOiJBbWVyaWNhL05ld19Zb3JrIn0sInBlcmlvZG ljaXR5IjoxLCJpbnRlcnZhbCI6Im1vbnRoIn0seyJzeW1ib2wi OiJJRlQuTloiLCJzeW1ib2xPYmplY3QiOnsic3ltYm9sIjoiSU ZULk5aIn0sInBlcmlvZGljaXR5IjoxLCJpbnRlcnZhbCI6Im1v bnRoIiwiaWQiOiJJRlQuTloiLCJwYXJhbWV0ZXJzIjp7ImNvbG 9yIjoiIzcyZDNmZiIsIndpZHRoIjo0LCJpc0NvbXBhcmlzb24i OnRydWUsInNoYXJlWUF4aXMiOnRydWUsImNoYXJ0TmFtZSI6Im NoYXJ0Iiwic3ltYm9sT2JqZWN0Ijp7InN5bWJvbCI6IklGVC5O WiJ9LCJwYW5lbCI6ImNoYXJ0IiwiZmlsbEdhcHMiOmZhbHNlLC JhY3Rpb24iOiJhZGQtc2VyaWVzIiwic3ltYm9sIjoiSUZULk5a IiwiZ2FwRGlzcGxheVN0eWxlIjoidHJhbnNwYXJlbnQiLCJuYW 1lIjoiSUZULk5aIiwib3ZlckNoYXJ0Ijp0cnVlLCJ1c2VDaGFy dExlZ2VuZCI6dHJ1ZSwiaGVpZ2h0UGVyY2VudGFnZSI6MC43LC JvcGFjaXR5IjoxLCJoaWdobGlnaHRhYmxlIjp0cnVlLCJ0eXBl IjoibGluZSIsInN0eWxlIjoic3R4X2xpbmVfY2hhcnQiLCJoaW dobGlnaHQiOmZhbHNlfX1dLCJzdHVkaWVzIjp7IuKAjHZvbCB1 bmRy4oCMIjp7InR5cGUiOiJ2b2wgdW5kciIsImlucHV0cyI6ey JpZCI6IuKAjHZvbCB1bmRy4oCMIiwiZGlzcGxheSI6IuKAjHZv bCB1bmRy4oCMIn0sIm91dHB1dHMiOnsiVXAgVm9sdW1lIjoiIz AwYjA2MSIsIkRvd24gVm9sdW1lIjoiI2ZmMzMzYSJ9LCJwYW5l bCI6ImNoYXJ0IiwicGFyYW1ldGVycyI6eyJ3aWR0aEZhY3Rvci I6MC40NSwiY2hhcnROYW1lIjoiY2hhcnQiLCJwYW5lbE5hbWUi OiJjaGFydCJ9fX19

[warthog]

Not complaining at all, but interesting to debate where we would be if Infratil management was in house, instead of paying Morrison & co that huge incentive fee annually. I mean their performance has been spectacular, but they certainly take an arm and a leg.

I haven’t done the math, but aren’t they somewhere in the ballpark of having extracted over half a billion dollars from Infratil over the last few years?

IFT is not dissimilar to a listed PE fund with management and upside margin. The hog suspects that's what the key personnel would be doing via some other vehicle if not IFT as a listed company.

[kiora]

XD 12.5c today
Held up well

Expecting significant tail winds for CDC & Longroad. These two could easily triple size over next 5 years.

[Ggcc]

XD 12.5c today
Held up well

Expecting significant tail winds for CDC & Longroad. These two could easily triple size over next 5 years.
Very interesting on their first road show in Napier. CDC only about 100 customers and they pick and choose who they want. On top most have 20 year contracts from the date they first signed and also claimed there was still lots of demand despite others in the same field.

Longroad will produce enough energy supplies eventually to produce more than all providers in nz and with most states offering incentives towards clean energy they have lots of growth adding approximately 1.5 GW per year irrespective who is running the country. All electricity suppliers want similar incentives from the nz government for more renewable energy.

They want more growth eventually in Europe.

In August a report will come out how they will try to see how they can reduce their carbon footprint in all industries. It’s the in thing what institutions are wanting apparently.

All in all a happy investor. I was surprised how many people who had invested with Infratil for over 20 years never knew Morrison and co oversaw the company.

They are still aiming for a 11-15% after tax increase in value for annum based over a 10 year period. Last 10 years was just under 19%

[Swala]

Very interesting on their first road show in Napier. CDC only about 100 customers and they pick and choose who they want. On top most have 20 year contracts from the date they first signed and also claimed there was still lots of demand despite others in the same field.

Longroad will produce enough energy supplies eventually to produce more than all providers in nz and with most states offering incentives towards clean energy they have lots of growth adding approximately 1.5 GW per year irrespective who is running the country. All electricity suppliers want similar incentives from the nz government for more renewable energy.

They want more growth eventually in Europe.

In August a report will come out how they will try to see how they can reduce their carbon footprint in all industries. It’s the in thing what institutions are wanting apparently.

All in all a happy investor. I was surprised how many people who had invested with Infratil for over 20 years never knew Morrison and co oversaw the company.

They are still aiming for a 11-15% after tax increase in value for annum based over a 10 year period. Last 10 years was just under 19%

Thanks for posting Ggcc. I will be unable to attend my local Roadshow this year so good to to be able to read your synopsis. The future still looking very rosy!

[BlackPeter]

XD 12.5c today
Held up well

Expecting significant tail winds for CDC & Longroad. These two could easily triple size over next 5 years.

They could as well crash and burn or just fizzle out.

Renewables are currently in their beginnings. Its a bit like the times early last century when every coachbuilder changed their business model to build coaches with ICE (cars with combustion engine). Hundreds of manufactures emerged. Just go into the next vintage car museum and ask yourself, how many of these companies survived. Sure - some of them succeeded and got really profitable (e.g. Ford, Daimler, GM, ...) but most of them just disappeared.

I realise that this is the thread to cheerlead and groupthink, but investors maybe should wonder as well what IFT might have what others don't - and its not a cunning external fund manager you need to make renewables successful.

Here are just a handful of the big fish in the tank:

https://energydigital.com/top10/top-10-biggest-renewable-energy-companies

Brookfield Renewable Corp. ...
Algonquin Power & Utilities Corp. ...
Siemens Gamesa Renewable Energy SA. ...
Vestas Wind Systems A/S (VWDRY) Market cap: $29.58bn. ...
Orsted A/S. Market cap: $36.19bn. ...
Iberdrola SA. Market cap: $72.67. ...
NextEra Energy, Inc. Market cap: $147.57bn.

There is an awful lot of really big and resourceful companies and funds around the world focussing on renewables, and clearly - this sector is currently not a deep value game but more in the inevitable bubble. I suspect - like in any other business maybe 5% will thrive ... 20% might survive (Pareto) and the reminder will go down the gurgler.

IFT is on an international scale a very small fish and not even a renewable specialist. Renewables might turn well into one of their loss leaders ... lots of companies around who lost money with renewables before.

Ah yes - our very own NWF is a good example that it is very easy to loose a lot of money with renewables ...

Anyway - just bring back the cheerleaders ...

[Toddy]

It's pretty easy to be a chairleader when the p.e ratio is currently only 11.

[BlackPeter]

It's pretty easy to be a chairleader when the p.e ratio is currently only 11.

Admittedly - I didn't thought about leading chairs, but if that's what makes you tick ... :) ;

Never trust a PE unless you made it up yourself ... but I suppose you realise that Infratils earnings happen to be incredibly patchy. They buy stuff cheap and from time to time they sell stuff with huge profits before the respective bubble bursts (that's the good years - like e.g. Z-Energy) or with losses (that's the not so good years - like some European Airports). They are basically operating like a pirate ship. Identify opportunities and cease them before somebody else does - and try to make them to money before the market looses its interest. Risky business and sometimes very profitable, but not necessarily sustainable. Luckily for them they do it with other peoples money.

Averaging over the last 10 years they had 48 cents earnings per share - pushing the average PE somehow in the low 20íes. Market seems to factor in ongoing significant earnings growth.

Markets are sometimes right and sometimes wrong.

[Ggcc]

Admittedly - I didn't thought about leading chairs, but if that's what makes you tick ... :) ;

Never trust a PE unless you made it up yourself ... but I suppose you realise that Infratils earnings happen to be incredibly patchy. They buy stuff cheap and from time to time they sell stuff with huge profits before the respective bubble bursts (that's the good years - like e.g. Z-Energy) or with losses (that's the not so good years - like some European Airports). They are basically operating like a pirate ship. Identify opportunities and cease them before somebody else does - and try to make them to money before the market looses its interest. Risky business and sometimes very profitable, but not necessarily sustainable. Luckily for them they do it with other peoples money.

Averaging over the last 10 years they had 48 cents earnings per share - pushing the average PE somehow in the low 20íes. Market seems to factor in ongoing significant earnings growth.

Markets are sometimes right and sometimes wrong.
Keep speaking negatively about the company it’s working so far.

We are not cheer leaders, we just understand this investment maybe a little bit better. I’m happy to hear the negative side of investments, but I’ve been hearing your negative rants/ opinions since $8ish. Post 2773 (Clearly your ego, about this share)

Just get on board at a price you feel comfortable and join in the ride.

[BlackPeter]

Keep speaking negatively about the company it’s working so far.

We are not cheer leaders, we just understand this investment maybe a little bit better. I’m happy to hear the negative side of investments, but I’ve been hearing your negative rants/ opinions since $8ish. Post 2773 (Clearly your ego, about this share)

Just get on board at a price you feel comfortable and join in the ride.

What can I say - when cheerleaders start getting personal and attack the poster instead of arguing their case, this must be the time to run :) - well, for investors, this is;

But look - this is a forum of ideas and different view points. Just wondering ... given that you seem to be so convinced of and settled in your "only can go up" view - why would you bother to suppress a discussion about the risks?

Maybe you are not so sure after all :scared:?

[Ggcc]

What can I say - when cheerleaders start getting personal and attack the poster instead of arguing their case, this must be the time to run :) - well, for investors, this is;

But look - this is a forum of ideas and different view points. Just wondering ... given that you seem to be so convinced of and settled in your "only can go up" view - why would you bother to suppress a discussion about the risks?

Maybe you are not so sure after all :scared:?

No I am quite sure for now, of course my opinion can change but currently it has not. Plus I am not attacking the poster I am trying to fix the broken record. I have been holding for over 10 years. I did have to sell some to buy a house in 2021. Plus for the record I truly do admire your posts on various different companies but on IFT you have jaded glasses on.

If you go to these events you get to speak to management themselves and you can ask the hard questions if you like. For one CDC pick their customers. Would that indicate that the demand outstrips the supply if you can pick your customers.........? I know it to be so and management said demand is there so they are building more.

https://infratil.com/news/infratil-2023-investor-day/3-infratil-investor-day-2023-cdc-data-centres-update/


As for Longroad again there is huge demand for renewable green energy in certain states in US like California who announced only wanting green renewable energy and that other states will eventually follow suit over time with incentives from local government

https://www.longroadenergy.com/longroad-energy-announces-500-million-equity-investment-from-meag-nz-super-fund-and-infratil/

All their other investments are doing well so far which you will only find out in great detail talking to management after the presentation. Just go to one in your town and ask the pertinent questions you need answered, they don't ask for ID, well they didn't in Napier.

[Toddy]

BlackPeter
Using your methodology and comparing apples with apples. What's the pe ratio for FPH, MFT, ATM based on 10 year average earnings?

[BlackPeter]

BlackPeter
Using your methodology and comparing apples with apples. What's the pe ratio for FPH, MFT, ATM based on 10 year average earnings?

Good question. I assume you want me to compare that with IFT?

So, lets take backward PE and backwards earnings CAGR ... this way we don't need to rely on analyst forecasts.

And as well - these numbers don't really describe the future, unless we assume that the next 10 years will be like the last 10 .... and, while FPH, MFT and as well IFT are no doubt quality companies (which does not mean that they are currently cheap or good value), not sure I'd put ATM into the same category.

But anyway - here we go:

FPH: PE (10yr backwards) 57.2 Earnings CAGR 12.2
MFT: PE (10yr backwards) 39.4 Earnings CAGR 20.4
ATM: PE (10yr backwards) 31.5 Earnings CAGR 41.3
IFT: PE (10yr backwards) 20.3 Earnings CAGR 23.2

Taking these numbers at face value does IFT look really good, doesn't it?

What the numbers don't tell you is that only MFT and FPH managed to continuously and sustainably grow their EPS (MFT from from 66 cents in 2013 to $ 4.24 in 2023, FPH from 14 cents in 2013 to 43 cents in 2023). They are the members of this group which I would assess based on these two parameters (obviously not just), and FPH clearly looks based on them currently dear. MFT on the other hand I hold quite a lot.

ATM has a great CAGR based on starting the "competition" in 2013 with only 1 cent EPS (which makes it easy to get huge growth rates) ... and hey, clearly their sales channel disaster changed their future earnings potential.

... and IFT's EPS year on year jumps around like a rabid dog ... sure - some years they have amazing earnings (when they just sold out one of their speculation objects), and in other years their EPS is close to zero. Monte Carlo?

Unless you are sure that the board keeps being really lucky with selling their assets, I would not buy them based on these numbers.

So - yes, good question, but for two out of the four competitors (and IFT is one of them) you clearly need to look at other parameters as well.

[Ggcc]

Good question. I assume you want me to compare that with IFT?

So, lets take backward PE and backwards earnings CAGR ... this way we don't need to rely on analyst forecasts.

And as well - these numbers don't really describe the future, unless we assume that the next 10 years will be like the last 10 .... and, while FPH, MFT and as well IFT are no doubt quality companies (which does not mean that they are currently cheap or good value), not sure I'd put ATM into the same category.

But anyway - here we go:

FPH: PE (10yr backwards) 57.2 Earnings CAGR 12.2
MFT: PE (10yr backwards) 39.4 Earnings CAGR 20.4
ATM: PE (10yr backwards) 31.5 Earnings CAGR 41.3
IFT: PE (10yr backwards) 20.3 Earnings CAGR 23.2

Taking these numbers at face value does IFT look really good, doesn't it?

What the numbers don't tell you is that only MFT and FPH managed to continuously and sustainably grow their EPS (MFT from from 66 cents in 2013 to $ 4.24 in 2023, FPH from 14 cents in 2013 to 43 cents in 2023). They are the members of this group which I would assess based on these two parameters (obviously not just), and FPH clearly looks based on them currently dear. MFT on the other hand I hold quite a lot.

ATM has a great CAGR based on starting the "competition" in 2013 with only 1 cent EPS (which makes it easy to get huge growth rates) ... and hey, clearly their sales channel disaster changed their future earnings potential.

... and IFT's EPS year on year jumps around like a rabid dog ... sure - some years they have amazing earnings (when they just sold out one of their speculation objects), and in other years their EPS is close to zero. Monte Carlo?

Unless you are sure that the board keeps being really lucky with selling their assets, I would not buy them based on these numbers.

So - yes, good question, but for two out of the four competitors (and IFT is one of them) you clearly need to look at other parameters as well.

But you forgot to mention. You always make more money selling businesses than running businesses. But I assume you already know that being as you have been self employed....

Every business I have ever bought I sold for more than I bought it. That is one of the reasons why I like IFT. They know the formula

[BlackPeter]

But you forgot to mention. You always make more money selling businesses than running businesses. But I assume you already know that being as you have been self employed....

Every business I have ever bought I sold for more than I bought it. That is one of the reasons why I like IFT. They know the formula

I suppose "always" is clearly wrong. I do know people who lost money selling businesses, and actually, IFT did as well.

But sure - I know where you are coming from and agree that so far it looks they did more right than wrong in this business of buying and selling businesses.

Never said either that IFT is a bad fund (and that's all it is - a fund) ... though in my books currently too dear. This whole discussion just started because somebody (I could check who, but its not important) allowed their excitement about some (in the schema of things quite small) renewable energy holdings to carry them away ... and yes, this is just bubble territory stuff.

But that's ok - we do need investors like that - otherwise the market would not work as well as it does (e.g. for momentum traders). No, not me, but I know some who make a good living off other peoples exuberance and fear.

[Ggcc]

https://www.nzx.com/announcements/412638

A great option and they were so positive about One/Vodafone during their presentation in Napier. I'll be buying a few more myself I feel at a nice little discount.

[LaserEyeKiwi]

Sweet holy Moses

[James108]

Back of the napkin calc, this isn’t eps accretive. Will still participate.

[BlackPeter]

Back of the napkin calc, this isn’t eps accretive. Will still participate.

Lets face it - IFT only makes big EPS when they sell stuff they bought cheap. So - the question is, do you believe they will make lots of money when they resell Vodafone in a handful of years? Is the money they pay now for them really cheap?

Who knows, bit like playing Lotto. Only one thing is sure - the money for Morrison will continue to flow.

[James108]

They are pretty smart operators so it wouldn’t surprise me. They already stripped the transmission towers for huge $$ so the initial purchase with the Canadians was very smart. They are paying a lot more this time, so who knows.

This is a share I’ve had for a long time and don’t think about, unless they occasionally ask me for more equity, which I will give them until they let me down.

[RTM]

Back of the napkin calc, this isn’t eps accretive. Will still participate.

Finding it hard to get my head around it all.
They say acquiring 49.95% for 1.8Bn. My calcs says this values One at 3.6Bn.
But also state:
" The Acquisition values One NZ at an enterprise value of NZ$5.9 billion"

If 5.9Bn is real...then its a steal ?

[James108]

No.. they are simply calculating the value based on what they are paying lol

The enterprise value includes one nz’s debt.

I wonder if they will use the increase in value that they themselves set (based on what they are paying) to give Morrison and co a bigger bonus…

[RTM]

Thanks James...I am now totally confused and clearly have the wrong idea....have a science background.
If someone bought my house for 1m.....then that's its value,
If it had debt associated with it of 200K....and they bought that as well...then surely its value is 800K ?
Sorry for the dumbass questions...probably should have taken it off line with someone.



No.. they are simply calculating the value based on what they are paying lol

The enterprise value includes one nz’s debt.

I wonder if they will use the increase in value that they themselves set (based on what they are paying) to give Morrison and co a bigger bonus…

[RTM]

14/5/2019, 8:30 am TRANSACT
Infratil announces NZ$3.4 billion acquisition of Vodafone New Zealand

A consortium comprising Infratil Limited ("Infratil") and Brookfield Asset Management Inc. ("Brookfield") today announced it had executed a conditional agreement to acquire Vodafone New Zealand Limited ("Vodafone NZ") from Vodafone Group Plc for an enterprise value of NZ$3.4 billion (the "Acquisition")(1).

https://www.nzx.com/announcements/334468

[mwri]

Thanks James...I am now totally confused and clearly have the wrong idea....have a science background.
If someone bought my house for 1m.....then that's its value,
If it had debt associated with it of 200K....and they bought that as well...then surely its value is 800K ?
Sorry for the dumbass questions...probably should have taken it off line with someone.

It’s more like adding the cost to the house. If you bought the house and it’s worth $1m but also has $200k debt then it really costs $1.2m as you’d also be owing that extra money on top. Cash gets subtracted

[James108]

When you buy a company you buy it’s debt as well. So if a company cost $1m and had $500k of debt, you could think of it as the future cash flows of the company being worth $1.5m.

[RTM]

When you buy a company you buy it’s debt as well. So if a company cost $1m and had $500k of debt, you could think of it as the future cash flows of the company being worth $1.5m.


It’s more like adding the cost to the house. If you bought the house and it’s worth $1m but also has $200k debt then it really costs $1.2m as you’d also be owing that extra money on top. Cash gets subtracted

Thanks...I think.

[Toddy]

Can anyone do the maths and work out what the pro rata will possibly look like.

[kiwikeith]

It’s more like adding the cost to the house. If you bought the house and it’s worth $1m but also has $200k debt then it really costs $1.2m as you’d also be owing that extra money on top. Cash gets subtracted

Actually I think it is better explained if you bought a $1m house using $200k of your own savings and an $800k loan. On the one hand, you could say you have bought a house for $200k as that is all you are putting in. But the house has an enterprise value of $1m comprising equity of $200k and a bank loan of $800k. The important number from a valuation perspective is the $1m enterprise value. Similarly when buying a business, it is the enterprise value which is the most important valuation number - the division of that between equity and debt is secondary.

[kiora]

Can anyone do the maths and work out what the pro rata will possibly look like.

If one is unsure about the pro rata number a specified amount of shares can be brought through your sharebroker from their allocation at no commission I have been told by sharebroker.

[RTM]

Actually I think it is better explained if you bought a $1m house using $200k of your own savings and an $800k loan. On the one hand, you could say you have bought a house for $200k as that is all you are putting in. But the house has an enterprise value of $1m comprising equity of $200k and a bank loan of $800k. The important number from a valuation perspective is the $1m enterprise value. Similarly when buying a business, it is the enterprise value which is the most important valuation number - the division of that between equity and debt is secondary.

Yep, I understand now.
Thanks all.

[maclir]

Can anyone do the maths and work out what the pro rata will possibly look like.

Not sure I have this right but Market Cap is 7,375.73m; raise is 850m - so 11.5%.

[Southern Lad]

Not sure I have this right but Market Cap is 7,375.73m; raise is 850m - so 11.5%.

Page 22 of the presentation states that the equity raise will increase the total number of shares on issue by approximately 12.7%. So if you have 1,000 shares, you will need to acquire a further 127 shares to maintain your current effective ownership percentage.

[Valuegrowth]

What will happen to its share prices after this capital raise?. How many times did they raise capial over the last couple of years?

[Toddy]

I would expect that the majority of the shareholders will take up the offer. Because this is very much a value add exercise. Not a stress debt restructure exercise like RYM etc.

[maclir]

Page 22 of the presentation states that the equity raise will increase the total number of shares on issue by approximately 12.7%. So if you have 1,000 shares, you will need to acquire a further 127 shares to maintain your current effective ownership percentage.

Thanks for that.

[kiora]

Interesting choice of underwriter's
New "partner" in the making?
https://www.afr.com/street-talk/ubs-barrenjoey-on-board-for-nz850m-infratil-raise-20230607-p5delj
https://barrenjoey.com/7839-2/

[LaserEyeKiwi]

IFT price drop of 4%, after announcing a 12.7% share count dilution / capital raise.

Market doesn't hate this deal.

[Bjammin]

Assuming all $850m is raised at $9.20 and holding all else equal, 4% drop is higher than the 1% drop implied by adding the $ onto the market cap and dividing by new total shares. Feels improper to draw a conclusion from the 12.7% share dilution (compared to -4%) while ignoring new cash in business and the likely additional holdings gained at a discount.



Shares
730,270,023


Last
10.10


mkt cap
7,375,727,232






raise shares
92,391,304


raise price
9.20


raise value
850,000,000






New shares
822,661,327


New share price
9.999


new mkt cap
8,225,727,232






Theoretical change in SP
-1.00%

[Swala]

I would imagine some people will be selling a portion of their holdings to get it back at a cheaper price in the offer.

[Ggcc]

Almost back to $10. Institutions and shareholders must have been positive on the proposal

[stoploss]

Almost back to $10. Institutions and shareholders must have been positive on the proposal
Looks like this was heavily oversubscribed . I got 5.3 % of what I asked for ......

[Toddy]

The market disclosure yesterday said that all current shareholders who applied got their full pro rata entitlement.

It's always good to hear when management look after their loyal shareholder base.

[winner69]

Poor Nigel on Sharesies

Applied for $1.115 of shares ….got $58.52 worth …prob all he was entitled to.

The message he got said big end of town got what they wanted and little guys were scaled back

Nigel needs to understand that Infratil only interested in the big end of town and don’t care a stuff about the small shareholders ..in many respects they are a bloody pain in the neck.

Hope Nigel knows he can ask for more under the retail offer next week

[Ggcc]

Poor Nigel on Sharesies

Applied for $1.115 of shares ….got $58.52 worth …prob all he was entitled to.

The message he got said big end of town got what they wanted and little guys were scaled back

Nigel needs to understand that Infratil only interested in the big end of town and don’t care a stuff about the small shareholders ..in many respects they are a bloody pain in the neck.

Hope Nigel knows he can ask for more under the retail offer next week
Must have been overpriced to have been so heavily scaled

[SouthernSlim]

I am a current shareholder and received no information relating to application to purchase new shares, anyone know why some shareholders have priority over others?.

[Toddy]

Info with offer for shareholders comes out next Tuesday

[Lego_Man]

Poor Nigel on Sharesies

Applied for $1.115 of shares ….got $58.52 worth …prob all he was entitled to.

The message he got said big end of town got what they wanted and little guys were scaled back

Nigel needs to understand that Infratil only interested in the big end of town and don’t care a stuff about the small shareholders ..in many respects they are a bloody pain in the neck.

Hope Nigel knows he can ask for more under the retail offer next week


It's outrageous that Sharesies get to place the insto bookbuild out to their retail clients. Can't believe the FMA let them get away with it. It's an unregulated offer and all the other brokers only let their certified wholesale clients into the offer.

They also effectively get to double dip when the retail terms go out.

[maclir]

I am a current shareholder and received no information relating to application to purchase new shares, anyone know why some shareholders have priority over others?.

You should have received an email. Current shareholders will get two weeks from the 13th to place a request for up to 80k.

[Toddy]

I thought the info so far has been clear. The shareholders that applied in the first round were given their full entitlement. So effectively are done and dusted.

The correspondence next week will show what individual shareholders have been allocated if they wish to take up the offer (upto 80k).

Manage ARE looking after their shareholder base.

[kiora]

https://www.nzherald.co.nz/business/lack-of-ordering-mainfreights-freak-fortunes-yet-to-find-a-floor/47KIXWHPDFDZXFH3M46LI62N4M/

"One" good return over a long term. IFT always wanted 100% of Vodafone.
Got most of original investment back from tower sale
Future:
Investing in network
Selling ICP products

Like digital assets.

[BlackPeter]

https://www.nzherald.co.nz/business/lack-of-ordering-mainfreights-freak-fortunes-yet-to-find-a-floor/47KIXWHPDFDZXFH3M46LI62N4M/

You sure you got the right thread?

[winner69]

You sure you got the right thread?

It’s a two part story Peter

[Onemootpoint]

You sure you got the right thread?

IFT comes up later in the article, or 14.30 in the video.

[kiora]

Want to maintain shareholder relativity .....

[jg8512]

does anyone have any info on what proportion of retail shareholders on average participate in a SPP ?
my gut feel is that it's not very high ... but does anyone have any real data? Thanks

[warthog]

For those who may be wondering, Link will be notifying of Entitlement Numbers for the IFT Retail Offer later today.

[kiora]

Eeeek!
"I just did some simple calculation and found out that over six years, the computer power that we have I'm talking about hardware, connectivity, disk, and so on will increase by around a quarter of a million times over six years"
https://seekingalpha.com/article/4610915-as-ai-evolves-which-stocks-make-sense-kirk-spano-with-ramy-taraboulsi?mailingid=31769842&messageid=must_reads&serial=31769842.588300&utm_campaign=Must%2BReads%2Brecurring%2B2023-06-12&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads

" The amount of disk storage that's required for AI is huge. The amount of data that was created over the last two years is as much as the amount of data that was created from the beginning of time until two years ago."

[warthog]

For those who may be wondering, Link will be notifying of Entitlement Numbers for the IFT Retail Offer later today.

The Entitlement Number email process has started.

[Rossimarnz]

Does anyone know how many shares I need to apply for to maintain my proportionality? If I currently own 1000 shares how many more do I need? TIA

[kiora]

Does anyone know how many shares I need to apply for to maintain my proportionality? If I currently own 1000 shares how many more do I need? TIA

127/1000 as in offer

[PeterTrub]

Does anyone know how many shares I need to apply for to maintain my proportionality? If I currently own 1000 shares how many more do I need? TIA
Detailed in retail offer - 127 shares @ $9.20 = $1,168.40 per 1000 shares currently held

[Joshuatree]

Eeeek!
"I just did some simple calculation and found out that over six years, the computer power that we have I'm talking about hardware, connectivity, disk, and so on will increase by around a quarter of a million times over six years"
https://seekingalpha.com/article/4610915-as-ai-evolves-which-stocks-make-sense-kirk-spano-with-ramy-taraboulsi?mailingid=31769842&messageid=must_reads&serial=31769842.588300&utm_campaign=Must%2BReads%2Brecurring%2B2023-06-12&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads

" The amount of disk storage that's required for AI is huge. The amount of data that was created over the last two years is as much as the amount of data that was created from the beginning of time until two years ago."

Thanks that's grrreat read.An AI etf with those companies mentioned (and some others on a link) could be the way to go.👍

"And the amount of data that will be created in the next two years will be equal to the amount of data that was created from the beginning of time until now. So the amount of disks that's required is huge."

[BlackPeter]

Thanks that's grrreat read.An AI etf with those companies mentioned (and some others on a link) could be the way to go.��

"And the amount of data that will be created in the next two years will be equal to the amount of data that was created from the beginning of time until now. So the amount of disks that's required is huge."

We clearly better stock up with some more floppy disks, shall we?

Assume however that Moore's law still applies (Factor 2 every 2 years for transistors on a chip, but derived from that as well for memory). That's eight-folding in 6 years, not half a million or whatever.

As well - how often have humans in the past been successful to predict technological developments and the changes these create?

I trust the odds didn't change ... no need to worry too much.

[winner69]

Shame metaverse didn’t last long …wonder what’ll come after AI …….that’s if AI hasn’t decided to destroy the world

[RGR367]

127/1000 as in offer

Way easy enough to maintain your proportionality. This stock is almost on negative book value to me so I might be tempted to apply for the maximum amount. What is there not to like about this stock :t_up:

[Joshuatree]

Thanks that's grrreat read.An AI etf with those companies mentioned (and some others on a link) could be the way to go.👍

"And the amount of data that will be created in the next two years will be equal to the amount of data that was created from the beginning of time until now. So the amount of disks that's required is huge."

There I've done it for you.Anyone know of an etf for some of these.Most don't have a clue what's coming and how fast AI is changing things.Infratil do though.

AMD
Nvidia
Microsoft
Intel
MICRON
Seagate
Western Digital
Dell
Apple
Walmart
John Deere
Ilumina
Lockheed Martin
Disney
Amazon
Costco

[Swala]

Read the offer document carefully. My interpretation is that there is a small possibility of scaling. If so, those applying for significantly more than just looking to maintain proportionality would be scaled to a greater extent. I thing their objective is to try to ensure anyone who is looking to maintain proportionality is able to.

[kiora]

Eeeek!
"I just did some simple calculation and found out that over six years, the computer power that we have I'm talking about hardware, connectivity, disk, and so on will increase by around a quarter of a million times over six years"
https://seekingalpha.com/article/4610915-as-ai-evolves-which-stocks-make-sense-kirk-spano-with-ramy-taraboulsi?mailingid=31769842&messageid=must_reads&serial=31769842.588300&utm_campaign=Must%2BReads%2Brecurring%2B2023-06-12&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads

" The amount of disk storage that's required for AI is huge. The amount of data that was created over the last two years is as much as the amount of data that was created from the beginning of time until two years ago."

And now selling Trustpower Retail Mana can supply Data centers with "Renewable Energy" at higher prices/better margins?

[Toddy]

When completing the IFT offer online it asks for an 'entitlement number'.

Where can I find this? I have had nothing emailed to me.

[kiora]

When completing the IFT offer online it asks for an 'entitlement number'.

Where can I find this? I have had nothing emailed to me.

It is an email from Link Market Services today to the email address that is registered to their account
Check in spam?
You could ring them & email them

[777]

Read the offer document carefully. My interpretation is that there is a small possibility of scaling. If so, those applying for significantly more than just looking to maintain proportionality would be scaled to a greater extent. I thing their objective is to try to ensure anyone who is looking to maintain proportionality is able to.

I would expect there will be a large possibility of scaling for those that apply for more than 127/1000 shares.

[lissica]

When completing the IFT offer online it asks for an 'entitlement number'.

Where can I find this? I have had nothing emailed to me.

Call link market services.

We have a company holding under Jarden/DB and a personal holding under ASB securities. Only received email for the company holding, but Link gave us the entitlement number for the other. Just have your CSN handy.

[kiora]

https://stocknessmonster.com/announcements/ift.nzx-413146/
For that relevant interestNumber held in class before acquisition or disposal: 55,000
Number held in class after acquisition or disposal: 206,800
Current registered holder(s): Unknown
Registered holder(s) once transfers are registered:
Investment Custodial Services
Limited as custodian for Andrew
John Clark and Rebecca Ann Keen

Significant Director buying at $9.80

[Southern Lad]

Significant Director buying at $9.80

At $1.5m that is a very serious vote of confidence from a non-Morrison & Co aligned director. Really pleasing to see he wasn’t favoured with an allocation through the placement. I note this purchase follows up the initial 55,000 share purchase in August 2022 that cost $0.5m.

Given the lack of share price weakness following the issue of the placement shares this week plus the ability of existing shareholders to sell down 11.3% of their existing shareholding and repurchase at a cheaper price through to SPP, this suggests to me that the SPP will be massively over subscribed and there is little point in applying for an allocation that is materially higher that the 127/1000 ratio of shareholding on the record date.

[Ggcc]

Placed my order today for what I could get. I ordered on the 127 per 1000 shares required. I also ordered extra as well just in case. Great share and great leadership so far

[kiora]

Director brought in to placement
https://stocknessmonster.com/announcements/ift.nzx-413262/

[Curly]

Expecting that SP will quickly rally upwards following closure of share offer on 27/6/23. Any thoughts on degree of scaling on new shares. If I get third of what I applied for I would be happy.

[hey_homes]

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

[BlackPeter]

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

It just means that you own a smaller share of the company, which however should be worth the same amount of money your larger stake was before (assuming they don't waste the capital raised). So - all other things being equal (but they never are), and ignoring the cost of the capital raise, your shares should keep the same value.

Obviously - shares don't like to stay on the same price, they will go up or down or jitter or cycle as they always do.

But this will be dependant on the markets mood after the capital raise as well as on the usual suspects. If Mr. Market thinks it was an amazing idea to raise this capital, than shares might keep rising. If Mr. Market has second thoughts (often happens after capital raises - post CR syndrome), than shares will go down.

It will be however absolutely irrelevant, whether you decide to join the CR or not - unless you are acting on behalf of Morrison (but than you probably would not ask :) ;

[kiora]

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

Consequences of not participating is that your % shareholding of IFT will be lower but your shares will be worth more /share if/when the takeover is earnings accretive over the medium term
https://infratil.com/news/infratil-announces-nz850-million-equity-raising/

[hey_homes]

Thank you both

[warthog]

Sorry for being thick, but what are the practical consequences of not participating in the offer? Will it mean the shares I currently hold will be worth less?

Your shareholding as a percentage of overall shares will decrease i.e. you will be diluted.

All things being equal, you should have approximately the same value invested if you do not participate.

[LaserEyeKiwi]

Quite the close!

Stock essentially back to where it was when cap raised was announced.

[huxley]

Closed at $9.98 today!

[Curly]

Announcement tomorrow re allocation of new shares, trading of new shares commencing 4/7/23. Looking good.

[winner69]

Closed at $9.98 today!

$9.985 to be exact

Pretty good return on the $9.20 capital raise shares

Way it’s meant to be

[kiora]

Craigs Investment Partners interview
https://www.youtube.com/watch?v=_sQQkqkl2yI

[Bjauck]

Craigs Investment Partners interview
https://www.youtube.com/watch?v=_sQQkqkl2yI

Thanks for the link. I lost count of the no. of times Jason Boyes mentioned digital infrastructure…

About 8:21 was also interesting with respect to when they decide to off-load a business.

Disc: I decided not to participate in the latest issue - IFT is my largest holding already.

[777]

Interesting from notice on over subscriptions today.

"Applications were received from 27,983 eligible shareholders"

yet 2023 Annual Report has

Total of 21,542 shareholders.

[Sideshow Bob]

Interesting from notice on over subscriptions today.

"Applications were received from 27,983 eligible shareholders"

yet 2023 Annual Report has

Total of 21,542 shareholders.

Probably Sharesies. Their holdings are all under one, but probably applications are under individual names.

[777]

Yes that would explain it along with those nominee and custodial holdings.

[whatsup]

$10-00 GONE well done all holders .

[Southern Lad]

Given the total size of the capital raise has increased by $85m ($850m to $935m), shareholders will have needed to have applied for 13.97% (rather than 12.7%) of their 6 June shareholding to maintain a pro rata share of the company. Do we assume that this is the level SPP applications will be scaled to? If you only applied for 12.7% you will have your ownership percentage slightly reduced.

[Curly]

Given the total size of the capital raise has increased by $85m ($850m to $935m), shareholders will have needed to have applied for 13.97% (rather than 12.7%) of their 6 June shareholding to maintain a pro rata share of the company. Do we assume that this is the level SPP applications will be scaled to? If you only applied for 12.7% you will have your ownership percentage slightly reduced.
Announcement was not clear on allocation of number of shares those who subscribed could expect. I tried ringing Link Mkt Services but got tired of waiting
to talk to a person. Guess we just need to wait till 4 July. Does anyone know if you can check on line?

[Ggcc]

Hey new ATH again. Won’t be the last one

[LaserEyeKiwi]

<please delete>

[777]

Well I got 135.5/1000 shares.

[Curly]

How were you notified? Received nothing yet. Not impressed with the allocation.

[RTM]

698 shares. Hardly worth the effort.
Check in Link.

[777]

How were you notified? Received nothing yet. Not impressed with the allocation.

The share registry (Link) has your new total.

[Crocodilo]

Me too got 135.5/1000 shares.

[Curly]

698 shares. Hardly worth the effort.
Check in Link.
Agree, not a good way to reward long standing loyal shareholders.

[tango]

Well I got 135.5/1000 shares.

Same ratio

[Toddy]

I applied at 127/1000 so got what I applied for.

[kiora]

Not happy about this
"Additional issue of 155,213
ordinary shares made to 12
shareholders in connection with
the retail offer announced on 7
June 2023 where the IFT Board
has exercised discretion to accept
a higher application from such
shareholders to help maintain their
pro rata shareholding."
Why wasn't it pro rata for all shareholders that missed out in institutional offer?
https://stocknessmonster.com/announcements/ift.nzx-414176/

[Curly]

Not happy either. Would have been better going to my broker and seeking a firm allocation from their institutional allocation. Small guy misses out again. No way to treat loyal shareholders. The fat get fatter.

[Bjauck]

Agree, not a good way to reward long standing loyal shareholders.
They couldn’t treat long-standing shareholders differently from short-standing ones.

[kiora]

Not happy either. Would have been better going to my broker and seeking a firm allocation from their institutional allocation. Small guy misses out again. No way to treat loyal shareholders. The fat get fatter.

Did seek a firm allocation from broker on same day offer was announced. Broker didn't get enough to allocate to all but a few members !

[winner69]

These guys from Forbar usually pretty conservative but …..

Aaron Ibbotson and Benjamin Crozier released a note outlining why the infrastructure investment firm’s rating was increased from neutral to outperform and putting its 12-month target price at $11.90.




From BusinessDesk

[Ggcc]

These guys from Forbar usually pretty conservative but …..

Aaron Ibbotson and Benjamin Crozier released a note outlining why the infrastructure investment firm’s rating was increased from neutral to outperform and putting its 12-month target price at $11.90.




From BusinessDesk
And I truly believe them on this one. I am seeing this hit $12.50 by end of next year if not earlier. Driven by their future earnings and what people are prepared to pay for if they want a piece of the government (“tax payer”) funded green energy pie. If you can pay $500 million for a 12% stake in Longroad now. Imagine what that is worth next year then the year after and so forth.

Would you look at that. Another ATH not the last.

[LaserEyeKiwi]

And I truly believe them on this one. I am seeing this hit $12.50 by end of next year if not earlier. Driven by their future earnings and what people are prepared to pay for if they want a piece of the government (“tax payer”) funded green energy pie. If you can pay $500 million for a 12% stake in Longroad now. Imagine what that is worth next year then the year after and so forth.

Would you look at that. Another ATH not the last.

I expect them to IPO one.nz near the top of the next cycle when they can get a high earnings multiple for it. Going to be a major wealth creating event. Likely a few years before that though.

[Ggcc]

I expect them to IPO one.nz near the top of the next cycle when they can get a high earnings multiple for it. Going to be a major wealth creating event. Likely a few years before that though.

Not too sure if they will get rid of one in a hurry. They might do and when they do it will bring in the money. 8-10 billion float for one nz. The majority of their portfolio is also jacked, but I am more excited about their green portfolios and CDC. I feel CDC and one might help each other immensely

[LaserEyeKiwi]

Not too sure if they will get rid of one in a hurry. They might do and when they do it will bring in the money. 8-10 billion float for one nz. The majority of their portfolio is also jacked, but I am more excited about their green portfolios and CDC. I feel CDC and one might help each other immensely

“Jacked”

Is that a technical term?

(I approve)

[BlackPeter]

I expect them to IPO one.nz near the top of the next cycle when they can get a high earnings multiple for it. Going to be a major wealth creating event. Likely a few years before that though.

You mean, like they did with Z-Energy? Great investment for anybody selling it at the right time. Just pray that the average retail investor didn't learn from this saga.

Wondering how often IFT can repeat this game in the same market?

[Ggcc]

You mean, like they did with Z-Energy? Great investment for anybody selling it at the right time. Just pray that the average retail investor didn't learn from this saga.

Wondering how often IFT can repeat this game in the same market?
On a different note and more to do with people’s memories. I have discovered loads of people do have short memories. I still hear people currently blaming the current government for the housing problems, when in actual fact the last 20 odd years governments were to blame. All people want to hear is how they will “fix it”. There are other examples I can mention from personal experience, but hey those are my choices to learn from. I’m still learning and evolving, but from my experiences the majority of people don’t.

[LaserEyeKiwi]

Just came across this rather frank recent interview with CEO Jason Boyes

https://podcasts.apple.com/nz/podcast/lunch-money/id1515069366?i=1000617877491

He is rather forthcoming with likely timeframes: One.NZ will likely be a few years before floating, Retire Australia is definitely not a core asset and it’s not long for this world as part of Infratil portfolio, expect another review once environment has improved.

[Ggcc]

Just came across this rather frank recent interview with CEO Jason Boyes

https://podcasts.apple.com/nz/podcast/lunch-money/id1515069366?i=1000617877491

He is rather forthcoming with likely timeframes: One.NZ will likely be a few years before floating, Retire Australia is definitely not a core asset and it’s not long for this world as part of Infratil portfolio, expect another review once environment has improved.
Thanks for sharing this

[mshierlaw]

Well just got my allocation notification email, got exactly the same as everybody else. What to do with the $$$$ being returned?

I was hoping to pick up more on weakened market leading up to the offer but such a small dip, was not worth it. Pleased with the rebound following issue and my thanks to infratil to offer me a second capital raise option. The last one in 2019 @ $4.00, wow that was a bargain in hindsight. What will we say about this issue in 4 years.

Slowly slowly catchy monkey.

[Ggcc]

Well just got my allocation notification email, got exactly the same as everybody else. What to do with the $$$$ being returned?

I was hoping to pick up more on weakened market leading up to the offer but such a small dip, was not worth it. Pleased with the rebound following issue and my thanks to infratil to offer me a second capital raise option. The last one in 2019 @ $4.00, wow that was a bargain in hindsight. What will we say about this issue in 4 years.

Slowly slowly catchy monkey.
Yeah I just got mine as well. Happy holder and I will add more at some stage. One share to be left in the bottom drawer at the back

[maclir]

One gives them a significant cash generating business, which allows them to fund other businesses without having to raise as much thru debt.

[kiora]

Have I got this right?

Lately heard that ONE (Vodafone) business is now a similar sized business to Spark?

Spark is capitalized at $9.3 b ?

IFT over the last couple of years has secured ONE (Vodafone) business at a net cost of around $2b ?

[Bjauck]

I expect them to IPO one.nz near the top of the next cycle when they can get a high earnings multiple for it. Going to be a major wealth creating event. Likely a few years before that though. That would be great. (It won’t end up being like their British airports investment.) Maybe it will be like Trustpowers’s 19% return over 22 years.

https://hrlmorrison.com/portfolio/trustpower-and-tilt-renewables/

[bull....]

have said many times on this thread IFT is a core holding and still is :t_up:

[GTM 3442]

Have I got this right?

Lately heard that ONE (Vodafone) business is now a similar sized business to Spark?

Spark is capitalized at $9.3 b ?

IFT over the last couple of years has secured ONE (Vodafone) business at a net cost of around $2b ?

I don't think the real comparison is Spark vs One. I think it's Infratil vs Spark. Spark has a wider product offering and is looking to upgrade it's business offerings into the data centre space.

Infratil is already there, with One and Canberra Data Centres. Data Centres need power and Infratil both have and are building generation capacity. I think Infratil will kick Spark's butt down the road in the medium term.

[RGR367]

Got allocated for 1K shares. It's what I applied for and nice to have gotten it.

[Curly]

Got allocated for 1K shares. It's what I applied for and nice to have gotten it.
Lucky you. I only got about one sixth of what I applied for with the scaling. Will have to find somewhere else to park refund $$$$.

[ratkin]

Lucky you. I only got about one sixth of what I applied for with the scaling. Will have to find somewhere else to park refund $$$$.

Have you had your refund yet? Mine has not arrived.

[Bjauck]

I guess shareholders are lucky that the discrepancy between the allotment price and the closing share price on the day of allotment is not automatically a taxable gain…

[777]

Up to 5 business days from allotment according to the allotment notice sent out to all holders.

[mshierlaw]

Got mine midnight Thursday. Has already burnt a hole in my pocket.

Had to enter the new shares into my Jarden account.

[RTM]

https://www.nzx.com/announcements/414461

Seems exciting, we often say that we have to trust our companies management to make the right decisions.
So far my trust in IFT is growing….slowly.
Investor since June ‘20.

[Ggcc]

https://www.nzx.com/announcements/414461

Seems exciting, we often say that we have to trust our companies management to make the right decisions.
So far my trust in IFT is growing….slowly.
Investor since June ‘20.
Aiming for 15-25% P.A growth over 10 years. Another goodie.

[rollypolly]

A NZ company buying Console Connect (CC) is big news.
Infratil must have done their due diligence for this opportunity.
An example.
United States/European company HQ wants to expand their operation into Australia/NZ. They need rack space in both AUS/NZ data centre. Rather than with Amazon or Microsoft, they can go with CC/Infratil. Infratil will supply them rack space in their Australia data centre and rack space in their New Zealand data centre. Infratil will then use CC and provide a network connectivity from AUS/NZ, back to United States/Europe.

Smart move in my opinion. Fund managers will love it.

[Bjauck]

A NZ company buying Console Connect (CC) is big news.
Infratil must have done their due diligence for this opportunity.
An example.
United States/European company HQ wants to expand their operation into Australia/NZ. They need rack space in both AUS/NZ data centre. Rather than with Amazon or Microsoft, they can go with CC/Infratil. Infratil will supply them rack space in their Australia data centre and rack space in their New Zealand data centre. Infratil will then use CC and provide a network connectivity from AUS/NZ, back to United States/Europe.

Smart move in my opinion. Fund managers will love it. Thanks for this insight. TBH I was having trouble getting my head around what Console Connect actually provided!

[ronaldson]

Lots of statutory consents needed in various jurisdictions. No settlement anticipated until third quarter next year and that will assume no issues arise in that process.

But otherwise seems a very positive move. IFT/Morrisons are good at due diligence and leveraging these acquisitions over time.

[rollypolly]

Thanks for this insight. TBH I was having trouble getting my head around what Console Connect actually provided!

Imagine CC like an octopus and it has tentacles that touch to every continent in the world for network connectivity. Now that Infratil has bought this cctopus, they will have two tentacles attached to AUS and NZ.
These two tentacles will most likely be connected to CDC AUS and CDC NZ respectively.

What does that mean? Here are some possibilities
a. CDC data centres will be in demand
b. Infratil might look at one of the tentacles and decide to build another data centre elsewhere in the world.

Usually data centre owners, do not own infrastructure networks. I could be wrong, Infratil, as far as I know, is the first one.

[winner69]

Let’s hope that Jason Boyes is spot on when says he is “pretty confident” there are few political risks in its move into subsea cable infrastructure and global connectivity with a Chinese partner, despite the sector’s sensitivity in the relationship between the US and China.

Wouldn’t want too much in the way of geopolitical risk would we.

[bull....]

megaport on the asx is a competitor in the space

[rollypolly]

Let’s hope that Jason Boyes is spot on when says he is “pretty confident” there are few political risks in its move into subsea cable infrastructure and global connectivity with a Chinese partner, despite the sector’s sensitivity in the relationship between the US and China.

Wouldn’t want too much in the way of geopolitical risk would we.

Nah, the Chinese will not be able to do it, or else, no one will use it. More over, there are so many submarine cables in the world. Infratil need more than what they have paid CC today, to lay a submarine cable. There is only one today that no one has invest. That is from NZ to South America.

[rollypolly]

megaport on the asx is a competitor in the space

read this
https://www.afr.com/rear-window/bevan-slattery-stands-with-megaport-s-short-sellers-20230309-p5cqso

[bull....]

read this
https://www.afr.com/rear-window/bevan-slattery-stands-with-megaport-s-short-sellers-20230309-p5cqso

yes what are you suggesting from the article that megaport is stuffed ? or that the business model they run is no good ?

[Snoopy]

Usually data centre owners, do not own infrastructure networks. I could be wrong, Infratil, as far as I know, is the first one.


Try Spark and Telstra for a couple more.

SNOOPY

[Rawz]

Good to see IFT using the old revenue multiplier when buying companies. Works a treat lol

[Toddy]

SP took a hiding today.

[kiora]

SP took a hiding today.

Yes interesting.

Institutional investor who went over weight in the placement selling down???

It really pays to look after the retail investors better???

[Curly]

Yes interesting.

Institutional investor who went over weight in the placement selling down???

It really pays to look after the retail investors better???
Agreed. Plus over committed retail investors selling new shares to right their bank account balance. Larger than average volume being sold. Should right itself within a week.

[Toddy]

Agree. Good buying at these levels.

[kiora]

Agreed. Plus over committed retail investors selling new shares to right their bank account balance. Larger than average volume being sold. Should right itself within a week.

Larger parcels than retail investors would have had were crossed ???

[Ggcc]

I’m all good if it goes lower. I will add more if it goes near $9. Longterm not worried as price will continue to rise.

[rollypolly]

yes what are you suggesting from the article that megaport is stuffed ? or that the business model they run is no good ?

Whatever Meagaport used to do, CC can do the same and have more coverage in the world.

[bull....]

Whatever Meagaport used to do, CC can do the same and have more coverage in the world.

time will tell but currently megaport operates the biggest platform in the world for this type of business.
ift has potentially more firepower to invest in the business so lets see what happens and how they play the business aquisition

[maclir]

time will tell but currently megaport operates the biggest platform in the world for this type of business.
ift has potentially more firepower to invest in the business so lets see what happens and how they play the business aquisition

something in the water

https://www2.asx.com.au/markets/company/mp1

[bull....]

something in the water

https://www2.asx.com.au/markets/company/mp1

are you referring to megaport upgrade earnings announcement which saw there stock price surge 40%.

If you look at megaport valuation after the surge it is valued very richly now for future growth.
now if you compare what ift paid for there aquisition on similar valuation metrics either megaport is overvalued or ift got a bargain ... you decide

[bottomfeeder]

Well what a fine, 3.5 million. The commerce commission dont realise such a great penalty, penalises innocent mum and dad shareholders as well as ordinary nz customers. I think 1 million would have been enough. The Commission can be ruthless trying to get revenue for the government to turn around and give it to the rich supermarkets when gst inclusive price of fruit and vegetables stabilise to a market pricing.

I wonder who will pay that penalty, was it a contingent liability for the previous owners.

[LaserEyeKiwi]

Even though I am a IFT shareholder - i dont see anything wrong with the fine. The FibreX branding fiasco was absolutely atrocious BS from vodafone. Quite rightly deserved large punishment.

[huxley]

The fine is deserved; they should just accept it and move on (and avoid behaving unethically in the future).

It was pre-2019 Infratil investment, but a bunch of Vodafone/one management would still be around. If shareholders are unhappy they can express this via the AGM.

[Toddy]

AGM tomorrow.

[huxley]

AGM tomorrow.


if anyone is able to attend, can you please post your comments on here :)

I won’t be able to attend and I don’t think they put up a recording of these meetings on their website.

will be interesting to hear any comments about their Hong Kong investment.

cheers

H

[LaserEyeKiwi]

if anyone is able to attend, can you please post your comments on here :)

I won’t be able to attend and I don’t think they put up a recording of these meetings on their website.

will be interesting to hear any comments about their Hong Kong investment.

cheers

H

there is a live webcast at least:

www.virtualmeeting.co.nz/ift23

[LaserEyeKiwi]

AGM presentation PDF:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IFT/416546/400584.pdf

[LaserEyeKiwi]

FY24 guidance:

14715

[LaserEyeKiwi]

Interesting:

14716

[LaserEyeKiwi]

Updated financials as of yesterday:

https://www.sharetrader.co.nz/blob:https://www.sharetrader.co.nz/eb928cfd-8c10-4c05-b8e1-f05ed18b258b
14717

[maclir]

Thermal, perhaps?

[LaserEyeKiwi]

Thermal, perhaps?

Hopefully. But also battery storage for load balancing is a massive growth category overseas (especially Australia) and highly profitable, yet I haven’t seen a single battery farm even contemplated in NZ yet which is strange.

[Southern Lad]

Hopefully. But also battery storage for load balancing is a massive growth category overseas (especially Australia) and highly profitable, yet I haven’t seen a single battery farm even contemplated in NZ yet which is strange.

See page 29 of the Contact Energy presentation from Monday:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CEN/416270/400271.pdf

Looking at 2 North Island sites (Glenbrook and Stratford) with a FID in the next 6 months. Glenbrook preferred site but Stratford already consented.