In this webinar, Phil Kent and Cameron Gardner provide an update following the publication of GCP Infrastructure Investments Limited’s net asset value (NAV) as at 30th June 2026.
Below are the key takeaways from the webinar and you can watch the replay here:
GCP Infrastructure Investments Q2 2026 update webinar
Capital allocation remains the priority
The team began the update by stating that they remain focused on the capital allocation programme, with the continuing recycling of capital through asset disposals. They also reiterated the framework introduced early in the year at the Capital Markets Day, which outlines the criteria for assessment of whether cash should be returned to shareholders through buybacks or reinvested into new opportunities in the future. This framework focuses on the return of capital when the Company’s shares trades at a discount to NAV of 15% or greater, with the possibility of attractive investments alongside the return of capital when trading at a discount to NAV of 15% to 5%. The current discount means share buybacks remain the preferred use of capital today, although selective reinvestment could be considered if the discount narrows.
Disposals continue to validate portfolio valuations
More than £180 million of asset disposals have now been announced of over the past two years, with transactions completed on average at or around NAV. Recent activity included a solar refinancing with total proceeds of £40 million, the sales of an anaerobic digestion plant resulting in total proceeds of c.£3 million and the sale of two onshore wind projects with total proceeds of c.£11 million. These disposals contribute to the Company’s goal of rebalancing the portfolio, reducing equity-like positions. The revolving credit facility was also fully repaid post period end. Calendar year to date £38 million has been returned in aggregate value through share buybacks (to 23rd July 2026), with over 19 million shares bought back during the quarter.
A further pipeline of asset sales is progressing
The team went on to highlight a disposal pipeline of around £130 million. This includes further solar and onshore wind disposals that are progressing through due diligence. The aim is to continue recycling capital while maintaining the scale of the Company and supporting the 7p per share dividend target.
The portfolio continues to perform as expected
The portfolio remains fully operational, diversified across 47 investments, and continues to generate strong cash flows. Around half the portfolio benefits from some form of inflation protection, while no investments currently have construction or development risk. The portfolio continues to support a stable and sustainable dividend.
Portfolio changes are expected to reduce duration
As the Company exits supported social housing and some equity-like renewable investments, the weighted average life of the portfolio is expected to reduce from around 11 years to approximately eight years. The team also expects the weighted average annualised portfolio yield to increase modestly from 8.0% to 8.3%.
NAV was affected by power prices and discount rates
The NAV declined during the second quarter, primarily due to lower power price forecasts and higher discount rates applied by the independent valuation agent. The team noted that power prices have since recovered strongly and suggested much of the reduction linked to power price forecasts would reverse if the portfolio were valued today.
Gas peaking assets were revalued
The team explained that two gas peaking assets were revalued following structural changes in the market. Greater battery storage capacity and lower market volatility have reduced opportunities for gas peaking plants compared with previous years. The team stressed these are the only two assets of this type within the portfolio and there is no wider read-across to the rest of the portfolio.
Diversification remains an important strength
The webinar highlighted the breadth of the portfolio's revenue streams, technologies and underlying assets. The team believes this diversification provides resilience against changes affecting individual sectors or revenue mechanisms.
Investor engagement continues to improve
The team encouraged shareholders to use the online investor portal, which provides detailed information on the portfolio and has recently been updated following the quarterly valuation. Investors were also invited to attend the annual site visit to an energy-from-waste facility in September.
Important Information
This article has been prepared by Gravis Capital Management Limited (the "Investment Adviser“ or “Gravis”) and is for information purposes only. It is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Any recipients of this article outside the UK should inform themselves of and observe any applicable legal or regulatory requirements in their jurisdiction and are treated as having represented that they are able to receive this article without contravention of any law or regulation in the jurisdiction in which they reside or conduct business.
This article should not be considered as a recommendation, invitation or inducement that any investor should subscribe for, dispose of or purchase any such securities or enter into any other transaction in the GCP Infrastructure Investments Ltd (the “Company”) or any other fund affiliated with Gravis. The merits and suitability of any investment action in relation to securities should be considered carefully and involve, among other things, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of such securities.
No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of the Company, the Investment Adviser or any of their respective directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained in this article and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise for any other communication written or otherwise. In addition, neither the Company or the Investment Adviser undertake any obligation to update or to correct any inaccuracies which may become apparent. The information in this article is subject to updating, completion, revision, further verification and amendment without notice.
Past performance is no guarantee of future performance.
Gravis Capital Management Ltd is authorised and regulated by the Financial Conduct Authority; registered in England and Wales No: 10471852 and its principal place of business is 24 Savile Row, London W1S 2ES.
