IFT - Infratil

[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/202301...qhg4k5lv1y.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/202301...qhg4k5lv1y.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/300...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/300...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.