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GCP Infrastructure - Annual Overview from QuotedData
31st January 2024
Don't look back in anger
There is no doubt that 2023 was a challenging year for GCP and the broader infrastructure sector as a confluence of factors weighed on performance, particularly the rapid increase in interest rates. Despite this, the company was still able to generate positive NAV returns thanks to inflation linkages and contracted earnings, which helped offset the impact of rising discount rates. Disappointingly, negative sentiment continued to weigh on the company's shares, with the share price discount to net asset value (NAV) widening to a record low, despite the stability of the underlying portfolio.
Promisingly, we have seen a decisive change in sentiment for the better as inflation has begun to moderate, with the headline rate falling from 11.1% to 4.0% in the UK over the past year.
In the short term, the trust's fortunes may be heavily influenced by the direction of interest rates and inflation. However, we believe that it is time that the stability of GCP's cash flows and a bumper dividend yield of almost 10% attracted attention once again.
Full Research:
https://quoteddata.com/research/gcp-infrastructure-dont-anger-qd/
This research is also available free on our website www.quoteddata.com where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required.
NB: Marten & Co was paid to produce this note on GCP Infrastructure Investments Limited, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.
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