IFT - Infratil

[hamish]

A lot to like about IFT at moment.

Seems like a good solid Portfolio they have. Wellington airport = growth, recent refit and hotel/parking upgrades really needed (as a traveller out of WLG every week, happy with this and good show of confidence and investment) TPW upcoming demerger with it's further growth potential - particular with the clean green energy for Aus beckoning and approvals positive. Looking forward to hearing how the Canberra Data centre acquisition is panning out, with acquisition delays from election. In particular, how deep are the agreements with AUS Govt and locked-in contracts. MET and Retire Aus portfolio, set for steady growth as population ages... Just NZ Bus nags at me a little...

Testing the $3.40 high. I'm no chartist, yet looks like steady steady on rise, with lower lows and higher highs.. I'm intending to go to the shareholder meeting on August 24th in WLG.

[longy]

Yes. Chart does look good. Hopefully it brakes 3.4 and stay above this point. Would be interesting to see where it will end up.

[macduffy]

Yes. Chart does look good. Hopefully it brakes 3.4 and stay above this point. Would be interesting to see where it will end up.

$3.40 is near enough to an all time high for IFT. I would expect some encouraging comments from the AGM but continuing favourable market conditions are the key to a higher shareprice, ie continuing low interest rates!

[Hectorplains]

$3.40 is near enough to an all time high for IFT. I would expect some encouraging comments from the AGM but continuing favourable market conditions are the key to a higher shareprice, ie continuing low interest rates!

Infratil advises that the Australian National University (ANU) has today awarded Infratil and Commonwealth Superannuation Corporation a 30 year concession for the net rental revenue from nine on-campus Purpose Built Student Accommodation (PBSA) residences, comprising approximately 3,760 beds. Infratil’s 50% equity investment will be made for a total cash equity consideration of approximately A$82.5 million. The transaction is expected to settle in August 2016.
The long term concession includes responsibility for the provision of “hard” facilities management services such as building maintenance and lifecycle replacement. The investors have sub-contracted the provision of these services to Spotless for the term of the concession. The ANU retains responsibility for the delivery of “soft” facilities maintenance services, such as marketing and managing applications for the accommodation, processing rental agreements, cleaning internal areas of the residences and providing day-to-day pastoral care to residents.
Infratil Chief Executive, Marko Bogoievski, commented that “the ANU portfolio is the standout portfolio in the on-campus PBSA sector in Australia in terms of both scale and quality. PBSA is an emerging asset class supported by strong domestic and international demand growth for quality tertiary education. The concession agreement provides the consortium with a stable, long-term inflation-linked cashflow and rights and protections regarding the development of additional on campus PBSA residences."
The ANU investment will be managed by investment management firm H.R.L Morrison & Co on behalf of Infratil and Commonwealth Superannuation Corporation.

[Harvey Specter]

Weird investment. From what I can tell it is a pure sale and lease back property purchase. There are additional services they have to do but they have fully subcontracted that to Spotlight. Can't see where the growth is unless they got it at a bargain and plan to resell.

[artemis]

Weird investment. From what I can tell it is a pure sale and lease back property purchase. There are additional services they have to do but they have fully subcontracted that to Spotlight. Can't see where the growth is unless they got it at a bargain and plan to resell.

Growth from capital gain as property prices (probably) continue to rise over time. Plus a secure inflation adjusted income stream which hopefully beats putting the cash in the bank.

And the rights to develop more on site could eclipse both of those.

[Snow Leopard]

The slide pack says on page 3 "ANU will retain ownership of the residences".

So they are just paying upfront for the next 30 years income.

I gave up on owning IFT years ago, and I see no reason to change that attitude at present.

Best Wishes
Paper Tiger

[Bjauck]

The slide pack says on page 3 "ANU will retain ownership of the residences".

So they are just paying upfront for the next 30 years income.

I gave up on owning IFT years ago, and I see no reason to change that attitude at present.

Best Wishes
Paper Tiger

I was somewhat perplexed as to what IFT were actually buying. From their information release I thought it seemed as though they have bought the concession to manage the student accommodation. Yet they also state that they bought a "50% equity stake in ANU’s student accommodation". So presumably it was a sale (maybe not of the land?) to IFT and partner plus a type of leaseback. They also state that this type of business was profitable in the US and UK. We shall see.

[kiora]

I wonder when data centers will catch up to airlines for C emissions?
http://www.nzherald.co.nz/business/n...ectid=11689314
Carbon emissions from data centres already represent 0.2 per cent of the world's total carbon dioxide emissions, compared to 0.6 per cent for airlines, according to a 2010 McKinsey & Co report
High water use as well
In 2015, Facebook said it used a total of 221 million gallons of water, with 70 per cent of that consumption at its data facilities.

[artemis]

Wellington runway extension - who to believe with conflicting reports by presumed experts. The latest report by Ailevon Pacific Aviation Consultants was commissioned by an airlines lobby group. It slams earlier report from InterVistas. Both supposedly independent experts.

Who knows, but isn't the rule - follow the money? Auckland is the hub at the moment. It is very lucrative for them.