IFT - Infratil

[horus1]

You take your view on alternative energy,I take mine. Mine is that this is the field to be in ,the NZ Electricity Industry has its head in the sand and is ripe for major disruption by renewables. 65% non CO2 etc. If you take my view buy IFT if yours leave them. So that you can make a judgement remember B.Harker is a very good analyst of the electricity markets as is G Sweir, both are close to IFT.I have been buying.

[kiora]

IFT has plenty of money to grow.$500m
• Current capital settings:
– Approximately $500m of cash and available facilities prior to any potential divestments
– Reliable Free Cash Flow from core assets
– Aligned JV partners with access to capital
– Long average duration for retail bonds and access to senior bank debt
– Discretion/control over timing of major project investment
– Major development options with low carry cost and lengthy exercise periods
– Ability to raise debt at project level
– Sensible DPS and distribution strategy with active buy-back programme
Now issuing bonds < 5%

[Beagle]

That $100m outperformance fee to Morrison mentioned is one big lump of money eh.

Breathtaking and all the more so because its primarily based on subjective theoretical valuations of non listed companies and not on realised profit on same.
I have never owned Infratil shares because I believe the management fees payable to Morrison are grossly excessive and this latest and most egregious fee debauchery is completely outrageous in my opinion.

[horus1]

The fee is over 3years and reflects the sort of profits you can get outside NZ. I get 80% . Its fair and am buying more .

[macduffy]

The fee is over 3years and reflects the sort of profits you can get outside NZ. I get 80% . Its fair and am buying more .

"Fair" or not, I've done very well out of holding - and adding to - my IFT parcel and I'll continue to hold while the stock continues to perform.

[BlackPeter]

That $100m outperformance fee to Morrison mentioned is one big lump of money eh.

Big lump, that's for sure. Wondering whether they would be happy to pay back some of the money if and when property stocks and infrastructure crumble. Can't happen? Look no further than at our very own NWF;

But I am sure if this happens then it will be just "caveat emptor" - could not possibly have anything to do with the managers performance - can it? Manager just shares the spoils.

[Beagle]

Big lump, that's for sure. Wondering whether they would be happy to pay back some of the money if and when property stocks and infrastructure crumble. Can't happen? Look no further than at our very own NWF;

But I am sure if this happens then it will be just "caveat emptor" - could not possibly have anything to do with the managers performance - can it? Manager just shares the spoils.

Paying massive performance fees based on some theoretical valuation exercise without the hard supporting evidence of either a listed stock to check the real market value or the benefit of an actual transaction validating same is wide open to the possibility of error or manipulation. With tens of millions of dollars at stake the mind boggles as to how many "independent" valuations of the various assets Morrisons commissioned before choosing the ones that conferred them the greatest commercial advantage ?

So many assumptions go into valuing a private company, (many on here would have no idea) and the variance between one valuation and another by so called experts can be truly eye watering. I don't care what the management agreement says I think its morally repugnant to charge massive performance fees on unrealised theoretical valuation gains that could quite easily prove to be grossly inaccurate or as BP suggests, reverse over time.

[kiora]

"The country’s share of renewable power generation - almost 84 percent last year - is likely to reach the “low to mid” 90 percent mark relatively easily, he said.

But maintaining affordable supplies is going to be a challenge if the government persists with a 100 percent renewables target."
http://www.sharechat.co.nz/article/a...+30+April+2019

[bull....]

"The country’s share of renewable power generation - almost 84 percent last year - is likely to reach the “low to mid” 90 percent mark relatively easily, he said.

But maintaining affordable supplies is going to be a challenge if the government persists with a 100 percent renewables target."
http://www.sharechat.co.nz/article/a...+30+April+2019

never get to 100% , the gas industry has said gas will run out in 10yrs so the country will need to import coal and gas to maintain energy at current levels. so to stopthat would need huge investment in more power plants

[RTM]

"The country’s share of renewable power generation - almost 84 percent last year - is likely to reach the “low to mid” 90 percent mark relatively easily, he said.

But maintaining affordable supplies is going to be a challenge if the government persists with a 100 percent renewables target."
http://www.sharechat.co.nz/article/a...+30+April+2019

Governments come and go Kiora. Same as policies.