GCP Infra (LSE:GCP) has confirmed further progress on asset disposals, announcing that borrowers have exchanged contracts to sell supported social housing properties. On completion, the transactions are expected to repay £47.5 million of loans and deliver around £43 million of immediate cash proceeds, broadly in line with previous valuations.
The company reported an unaudited net asset value of 100.27 pence per share at 31 December 2025, down modestly from 101.40 pence at the end of September. The decline was mainly driven by weaker power price assumptions, updated curtailment forecasts for Northern Irish wind assets and changes to renewable subsidy indexation. These factors were partly offset by higher inflation expectations and resilient operational performance across the portfolio.
The board reiterated its capital allocation priorities, highlighting ongoing share buybacks, continued progress towards at least £150 million of asset disposals, and its intention to eliminate outstanding debt and return a minimum of £50 million to shareholders. Following the latest disposals and loan repayments, total proceeds linked to this policy are expected to reach around £128 million, enabling full repayment of the revolving credit facility. A quarterly dividend of 1.75 pence per share was declared for the period to 31 December 2025, in line with the company’s 7.00 pence per share annual dividend target.
Overall, the portfolio of mature, diversified infrastructure debt assets continues to perform broadly in line with expectations, providing investors with defensive and partially inflation-linked income.
From an outlook perspective, GCP Infra benefits from a conservative balance sheet and improving cash generation, supported by generally constructive technical signals. These strengths are tempered by inconsistent revenue trends and a relatively demanding P/E multiple, although the attractive dividend yield and ongoing corporate actions, including buybacks and dividend stability, provide meaningful support.
More about GCP Infrastructure Investments Limited
GCP Infrastructure Investments Limited is a closed-ended FTSE 250 investment company listed on the London Stock Exchange. The group focuses on delivering long-term dividends and capital preservation through investment in UK infrastructure debt and related assets, typically backed by public sector or availability-based revenues with partial inflation protection. GCP Infra has also been awarded the London Stock Exchange’s Green Economy Mark in recognition of its contribution to positive environmental outcomes.
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