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International Public Partnerships on Thursday said it was seeing signs of a positive shift in sentiment as it reported a modest increase in net asset value per share in the first half of 2025. The London-based global infrastructure investor said NAV per share increased by 2.8% to 148.7 pence in the six months ended June 2025 from 144.7p at the end of 2024. This was primarily driven by strong portfolio performance, the successful execution of asset realisations at a meaningful premium to NAV, and around 1.1p per share of NAV accretion to date from the ongoing share buyback programme. Chair Mike Gerrard said: ‘Our portfolio continued to perform exceptionally well during the period, delivering resilient cash flows and demonstrating the strength of our high-quality, diversified asset base. We are encouraged by early signs of improving market sentiment and remain confident that our capital allocation is providing real value for shareholders.’ IFRS pretax profit ballooned to £142.6 million from £16.7 million a year ago, reflecting the unrealised fair value movements of the investment portfolio in each period. IPP explained portfolio valuations in the period benefitted from continued strong asset performance as well as positive impacts from divestments. In the prior period, rises in government bond yields and market return expectations contributed to an increase in the discount rates used in the valuation process. In addition, the firm reconfirmed the 2.5% dividend growth target for 2025 and 2026, which extends the company’s track record of growing dividends each year since the initial public offer in 2006. IPP announced the first interim dividend for financial 2025 of 2.14p in July. The firm intends to return up to £200 million of capital by March 31, 2026. As of June 30, £80 million of shares had been acquired since the buyback programme started in January 2024. The return of capital will continue to be funded through divestments and surplus operating cash flows. IPP said it was committed to invest around £250 million over the next five years in the regulated company financing the construction of Sizewell C, with an expected return profile above the level implied from a share buyback. Looking ahead, IPP said: ‘We are now seeing early signs of a positive shift in sentiment.’ ‘Investors are increasingly recognising the long-term benefits of the defensive characteristics of the infrastructure asset class in a complex market environment, highlighting the compelling opportunity for those seeking resilient, stable returns.’ Shares in IPP rose 3.1% to 122.85 pence each in London on Thursday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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