IFT - Infratil

[bull....]

Outlook for probable div growth, and I don't suppose they would have mentioned special divs if there is not a good prospect.

guess it helps people over look the downgrade ... nice warm fuzzy comments.

the fact is they need to invest substantial capital to get returns going forward so i dont see the benefit of paying out divs and then borrowing for the capital expenditure

[ratkin]

The company told investors total shareholder return has been an annual 13.3 percent over the past seven years, but that the share price "has not recognised the potential of the recent investments or option value of multiple extensive pipelines". Still, those valuation discounts are expected to narrow as Infrailt's investments achieve independent scale, and it said it is considering "utilising periodic development gains to supplement shareholder distributions."

Seems very positive, and with the shares currently below NTA they look a fairly safe place to park some cash. Might top up

[kiora]

IFT well positioned?
http://www.nzherald.co.nz/business/n...ectid=12032074
Over many yrs investors have come to expect 17+% ann returns.Over last 3 yrs 13% why?
Because rebuilding its portfolio.Better things to come.TLT,Longroad etc

[artemis]

So NZBus has won the BOP bus contract largely by paying drivers more than the incumbent GoBus (owned by 2 iwi charitable trusts so their tax advantage did not help them here).

Particularly interesting is that there are to be 5 EVs from the outset, and sounds like more coming. That sounds like their EV programme progresses. Maybe they plan to trial it away from Wellington, where the topography is more challenging. Anyway they have spare trolley buses to convert!

Not sure how this contract win fits with their plan to divest NZBus.

[bull....]

i went to a presentation last yr where they say nz bus will be sold , which i consider sensible as it has never provided an acceptable ift return on capital

[artemis]

IIRC they were waiting for the conclusion of the Wellington PTOM round of contracted routes. At that point they knew they had lost routes to Tranzit and Uzabus, but also knew they would retain the other Wellington routes. Which they did. Adding BOP is an interesting move, and can only think it is designed to better position themselves for sale and make headway on the electric buses.

I expect they will retain all or most of the GoBus drivers, who will get a pay rise. Other GoBus drivers will be putting up their hands.

[Pavan Sharma]

Still like the long term view of their renewable and data business, Wellington Airport is still a grey area based on getting consent, would comfortable take a bet on them based on where they are trading

[bull....]

IFT well positioned?
http://www.nzherald.co.nz/business/n...ectid=12032074
Over many yrs investors have come to expect 17+% ann returns.Over last 3 yrs 13% why?
Because rebuilding its portfolio.Better things to come.TLT,Longroad etc

agree , they need to build scale in the new platforms to get the really big returns. I prefer tlt and cdc ( data centres ) over longroad as the best areas to get bang for buck

[kiora]

i went to a presentation last yr where they say nz bus will be sold , which i consider sensible as it has never provided an acceptable ift return on capital

Agh ha,but maybe they are thinking long term as well,That their electric buses give them a competitive advantage.And they have the rights to the technology n NZ

[kiora]

agree , they need to build scale in the new platforms to get the really big returns. I prefer tlt and cdc ( data centres ) over longroad as the best areas to get bang for buck

Agree.Hats off to them/I suggest one of the best companies planning long term investment strategies.And they execute strategies well.One of the best brains trust of any NZ Co.Look at how smoothly the transition after Lloyds sad passing.One of few set & forget shares.Just need to compare FBU,yuk.Owned FBU in 80's,never again.
https://www.interest.co.nz/news/9329...sh-counterpart