Portfolio Update
Summary by AI BETAClose X
INTERNATIONAL PUBLIC PARTNERSHIPS LIMITED
PORTFOLIO UPDATE
1 JULY 2025 - 12 DECEMBER 2025
12 December 2025
International Public Partnerships Limited, the listed infrastructure investment company ('INPP', or the 'Company'), has today issued a portfolio update for the period 1 July 2025 to 12 December 2025[1].
Mike Gerrard, Chair of International Public Partnerships, commented: "We remain focused on delivering sustainable, long-term value for shareholders through disciplined capital management and active portfolio optimisation. Sizewell C, which reached financial close in November, demonstrates our commitment to realising value from maturing assets and redeploying capital into high-quality infrastructure investments that enhance the portfolio's performance and resilience, offer higher returns, and strengthen alignment with strategic objectives. Since July 2023, we have realised over £345 million of investments across UK regulated, PPP, transport, digital and international assets and returned over £114 million through share buybacks, generating 1.3 pence per share of NAV accretion."
HIGHLIGHTS
· The Company's high-quality portfolio of over 130 infrastructure projects and businesses continued to perform well and in line with expectations during the five-month period ended 30 November 2025. The portfolio continues to deliver essential services to stakeholders, maintaining availability levels that remain at or above target levels.
· The Board and Investment Adviser significantly progressed the Company's capital allocation initiatives which aim to substantially enhance shareholder returns. Between 1 January 2025 and 30 November 2025, the Company has executed:
· Over £70 million of share buybacks, with £114 million completed since the inception of the programme, generating 1.3 pence per share of NAV accretion;
· Over £85 million of asset realisations, contributing to over £345 million of realisations since July 2023, all completed at or above the most recently published valuations; and
· Approximately £40 million of selective reinvestments, with total reinvestments of over £120 million since July 2023.This includes the first tranche of the recently announced investment into Sizewell C ('SZC'), the UK's latest nuclear power station facility and the first to be financed using the Regulated Asset Base ('RAB') model[2] which fits into the Company's selective reinvestment criteria of offering higher returns, and strengthening the alignment with strategic objectives.
· The Board reaffirms its commitment to prudent capital allocation and announces that the buyback programme of up to £200 million has been increased to up to £225 million and extended from 31 March 2026 to 31 March 2027.
· Projected net returns of 9.9%[3] offer attractive premiums of c.4.7%-5.4% to the yields on 30-year and 10-year UK government bonds[4], while offering the potential for long-term NAV accretion and indexation-linked income growth.
· The first interim quarterly dividend of 2.14 pence was announced in July 2025 and paid in September 2025, and the second quarterly interim dividend of 2.14 pence was announced in October 2025 and is expected to be paid on 15 December 2025[5]. These dividends are expected to be fully covered by net operating cash flows and the annual increases are in line with the Company's long-term projected annual dividend growth rate of c.2.5%, which has been met every year since inception in 20065.
· From 1 July 2025, the base fee payable in respect of each quarter is based on the equal weighting of the average of the closing daily market capitalisation of the Company during that quarter; and the most recently published NAV. This fee change enhances alignment of interests with shareholders.
CAPITAL ALLOCATION
The Company remains focused on active portfolio management and disciplined capital allocation, funding our enhanced capital return programme through divestments and surplus cash, while reinvesting recycled capital into high-value opportunities where compelling opportunities arise that offer the potential for higher returns, enhance the portfolio for investors and support our long-term objectives.
We have been able to realise assets at attractive rates compared with the portfolio weighted average discount rate[6], and then reinvested the capital into opportunities that offer stronger returns than buying back our own shares. Taken together, this has been accretive to the overall portfolio return. Sizewell C shows this in practice, since that single transaction is expected to add c.0.30%[7] to the Company's overall returns.
Realisations
Since July 2023, INPP has realised over £345 million of proceeds in the energy transmission, PPP, transport and digital infrastructure sectors, equivalent to c.13% of the portfolio based on valuations as at 30 June 2025. All of the divestments have been in line with, or above the most recently published valuations, validating INPP's valuation methodology.
During the period, the Company completed the following transactions:
· Angel Trains: The partial sale of INPP's holdings in Angel Trains completed in August 2025. The sale realised c.£32 million, at an attractive premium to the Company's last published valuation.
· UK education: In July 2025, the Company completed its debt financing to release c.£49 million of capital from its Priority Schools Building Aggregator Programme ('Priority Schools Programme') investments and 13 BSF portfolio interests, consisting mostly of minority stakes. The value of the retained equity interests and funds released from the transaction was at a premium to the last published valuation.
INPP is taking an active, value-driven approach to divestments, crystallising gains and validating valuations through sales across the wider portfolio, including from the PPP, regulated and operating sectors. A targeted divestment plan is underway to fund INPP's investment commitments in Sizewell C and its preferred bidder position in Moray West OFTO, ensuring capital is recycled efficiently and strategically. The Company's disciplined approach prioritises selling assets where pricing is attractive and redeploying proceeds into buybacks or investments with higher-returning potential, ensuring capital allocation remains firmly aligned with shareholder value.
Investment activity
The Company continues to benefit from a significant and differentiated pipeline of future potential investment opportunities identified by Amber Infrastructure, its investment adviser. New investments will continue to be considered within the context of the Company's capital recycling programme and attractiveness compared to buyback.
During the period, the Company made the following investments:
· Sizewell C: c.£35 million invested in Sizewell C's regulated company, as part of its c.£254 million equity commitment over the next five years. INPP intends to fund its c.£50 million annual instalments over the next five years through its capital recycling programme, together with surplus operational cash generated by the portfolio[8].
As previously announced, letters of credit under the Company's Corporate Debt Facility ('CDF') will support the equity commitment. To accommodate these letters of credit, the Company extended its CDF by £50 million with the terms of the accordion in line with the existing facility[9]. The extension is not expected to be used for cash drawings.
· Gold Coast Light Rail and toob: £5.1 million invested into two long-standing commitments to Gold Coast Light Rail - Stage 3 (Transport) and toob (Digital Infrastructure) with the investment into Gold Coast Light Rail now fully deployed.
Investor returns
· INPP offers net returns of 9.9%[10] supported by an attractive 7.1%[11] dividend yield and significant inflation protection through its 0.7% inflation linkage[12].
· The Board confirms the 2025 and 2026 dividend targets, at 8.58 pence and 8.79 pence per share, respectively5.
· The Board's established progressive dividend policy remains unchanged. These dividends are expected to be fully covered by net operating cash flows and the annual increases are in line with the Company's long-term projected annual dividend growth rate of c.2.5%, which has been met every year since inception in 2006. Projected cash flows from the Company's portfolio are expected to sustain INPP's progressive dividend policy for at least 20 years[13], reinforcing the outlook for a steadily increasing cash yield.
· The share buyback programme remains active. As at 30 November 2025, £114.1 million worth of shares have been repurchased, generating 1.3 pence per share of NAV accretion to date.
· The Board reaffirms its commitment to increase shareholder returns and today announces that the buyback programme of up to £200 million has been increased to up to £225 million and extended from 31 March 2026 to 31 March 2027.
PORTFOLIO UPDATES
As of the latest valuation date (30 June 2025), the Company's portfolio had achieved excellent operational performance with asset availability of 98.7%, exceeding the 98% target[14]. As at 30 June 2025, the INPP portfolio comprised UK regulated investments including Cadent, Tideway and 11 OFTOs (50% of portfolio investment fair value), availability-based PPPs (26%), PPPs with revenue risk mechanisms (11%) and other rail and digital infrastructure businesses (13%).
Tideway
In February 2025, Tideway was fully connected and as of 30 November 2025 over 12 million tonnes of sewage have been prevented from entering the Thames. The commissioning process, which requires testing under storm conditions is underway, with its completion being subject to the necessary weather conditions.
On 17 October 2025, Tideway rang the opening bell at the London Stock Exchange to celebrate the first issuance of a GBP Blue Bond, which is designed to allow investors exposure to issuers making a difference to the health of rivers and waterways. Tideway has now issued 18 green bonds and one blue bond[15].
Tideway continues to monitor developments in relation to the financial position of Thames Water. As previously reported, the matter is not expected to have a material impact on the Company's investment in Tideway.
Cadent
Cadent has now received Ofgem's RIIO-3 Final Determination ('FD'), which sets out its allowed revenues, investment allowances, obligations, and performance requirements for the 2026-2031 price control period.
Overall, the FD represents a more favourable position than Ofgem's draft proposals and provides Cadent with higher and more workable allowances than previously anticipated. While a detailed review of the FD is underway, the determination is broadly consistent with the assumptions applied in the 30 June 2025 valuation.
The Company does not expect the FD to have any material impact on the valuation of its investment in Cadent.
PPP handbacks
During the period, Hereford and Worcester Courts, which accounts for less than 0.2% of INPP's portfolio value, was successfully handed back to the public sector, with positive feedback provided to INPP and the Investment Adviser by the Ministry of Justice and their advisors for how the process was managed. The expiry dates for the rest of the PPP concessions are spread over the next 25 years, with a significant volume of project hand backs not until the mid-2030s.
Beatrice OFTO
As previously reported, the Beatrice OFTO operated for a period at reduced capacity due to a cable fault that occurred in April 2025. The repair works to the offshore cable were completed and the asset returned to full capacity in July 2025. The Investment Adviser currently anticipates that the revenue protection will be maintained, that the costs of the repair will be covered by insurance, and no material portfolio financial impact is expected.
CORPORATE GOVERNANCE
Mike Gerrard, Chair of INPP recently announced on 4 September 2025 his intention to retire from his position as Chair and from the Board at the 2026 AGM. Mike joined the Board in 2018, becoming Chair in 2019. As recently announced, Sarah Whitney has joined the INPP Board from 24 November 2025 and is intended to take position as Board Chair from the 2026 AGM.
From 1 September 2025, Jamie Hossain succeeded Chris Morgan as lead portfolio manager. Jamie now leads the Company's shareholder engagement alongside other senior members of the Investment Adviser's team, having joined the Investment Adviser in 2006.
The Board and the Investment Adviser are pleased to note the recent outcome[16] on cost disclosures, offering greater clarity and consistency for cost reporting across the investment trust sector.
MACROECONOMIC OUTLOOK
Near-term inflation rates across the Company's key geographies such as the UK and Australia have remained slightly elevated compared to forecasts set out in the 2025 Interim Report. Absence of any other changes, this should have a marginally positive impact on NAV. In the remaining territories to which the Company is exposed, inflation has either remained in line with forecasts or has trended marginally lower.
Government bond yields, particularly in the UK, rose sharply through the middle of the year, then retraced in the weeks leading up to the UK Budget. Following the Budget, yields have stabilised but remain sensitive to shifts in policy expectations and macroeconomic data. The discount rates to be applied in the 31 December 2025 valuation will continue to reflect a range of factors, including the strong operational performance of the Company's investments and prevailing market evidence for infrastructure asset valuations.
The Company has observed a weakening of Sterling against the majority of the currencies it is exposed to during this period. Other things being equal, this would have a positive impact on the Company's NAV.
The Company's NAV per share remains sensitive to a range of external macroeconomic factors, including inflation, tax rates and foreign exchange movements. Taken together, and assuming all other factors remain constant, the Company anticipates the NAV per share to remain broadly in line with the position as at 30 June 2025.
COMPANY OUTLOOK
The Board and the Investment Adviser remain highly confident in the Company's outlook and its ability to deliver long-term shareholder value to those investors seeking long-term inflation-linked income with attractive opportunities for capital growth. This is supported by an accretive capital recycling programme, including selective reinvestments at attractive returns and ongoing capital returns to existing shareholders.
The Company remains focused on broadening its investor base through the Investment Adviser and wider industry initiatives. The Board strongly believes that the current discount to NAV continues to undervalue the strength and resilience of INPP's diversified, inflation-linked portfolio, and the attraction of INPP to a variety of investors. INPP's objective is to generate predictable cash flows from actively managing a portfolio of high-quality infrastructure projects and business that deliver essential public services which, in turn, support a progressive dividend policy. INPP has delivered this objective through multiple credit cycles since IPO in 2006.
The ongoing government focus on critical infrastructure and asset valuations in the secondary market for the types of projects and businesses which the Company holds supports a positive outlook. Building on its established strengths in essential infrastructure where INPP has a first-mover advantage in de-risking infrastructure assets to make them suitable for the Company's shareholders' desired risk-return criteria and through the Investment Adviser's network of over 180 employees located across 12 countries, Amber remains well positioned to source new opportunities offering stable, inflation-linked returns and long-term societal and environmental benefits for INPP's consideration.
ENDS.
For further information
Erica Sibree +44 (0) 7557 676 499
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Deutsche Numis
Mitch Barltrop/ Maxime Lopes +44 (0) 7703 330 199 / (0) 7890 896 777
FTI Consulting
Notes to Editors:
While it is no longer a requirement under the Disclosure Guidance and Transparency Rules for the Company to issue Interim Management Statements, the Board believes it is in the interest of shareholders for the Company to provide quarterly updates in addition to its half year reports.
About INPP:
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meet societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in over 130 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia, New Zealand and North America.
INPP seeks to provide its shareholders with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and in this capacity is responsible for investment origination, asset management and fund management of the Company.
Amber is part of Boyd Watterson Global Asset Management Group LLC, a global diversified infrastructure, real estate and fixed income business with over $36 billion in assets under management and over 300 employees with offices in eight US cities and presence in twelve countries.
[1] Please refer to the Company's RNS dated 4 September 2025 for the latest NAV update (as at 30 June 2025).
[2] For further information, see the INPP website: https://www.internationalpublicpartnerships.com/investments/case-studies/regulated-asset-base-model
[3] As at 30 November 2025. This is calculated based on INPP's weighted average discount rate, less the Ongoing Charges Ratio, adjusted to reflect the share price discount to the NAV using published sensitivities.
[4] As at 30 November 2025, 10-year and 30-year UK gilts have been used as the tenor which most closely matches the majority of the long-dated nature of the assets within the INPP portfolio.
[5] Future profit projection and dividends cannot be guaranteed. Projections are based on current estimates and may vary in the future.
[6] Weighted average discount rate of 9.0% as at 30 June 2025.
[7] For further information see page 14 of https://www.internationalpublicpartnerships.com/media/zkvd0hln/20250722_inpp_troy-presentation_vf.pdf
[8] For further information please see the Company case study: https://www.internationalpublicpartnerships.com/investments/case-studies/sizewell-c
[9] The CDF was renewed in April 2025 on broadly the same terms as the expiring loan facility agreement. As at 30 November 2025, the CDF has no cash drawings but has c.£250m committed letters of credit, supporting various investments.
[10] As at 30 November 2025. This is calculated based on INPP's weighted average discount rate, less the Ongoing Charges Ratio, adjusted to reflect the share price discount to the NAV using published sensitivities.
[11] Dividends projected to be paid over the 12 months from 30 November 2025 divided by the Company's share price as at the same date.
[12] Following the full deployment of SZC, the inflation linkage is anticipated to increase to 0.8%, all else being equal.
[13] Following the full deployment of SZC, the portfolio's ability to service growing dividends is forecast to grow from 20 to 25 years, all else being equal.
[14] The asset availability target applies to assets generating availability-based revenues (i.e. both PPPs and OFTOs). See the Asset Management section of the 2025 Interim Report for further information on the asset availability during the period. For further information on the Company's approach to asset management, please see: https://www.amberinfrastructure.com/news-and-insights/insights/asset-management/
[15] In June 2025, Tideway became the first corporate to issue a Blue Bond in the UK. A Blue Bond is a debt instrument that national governments, development banks and corporations issue to raise finance for marine and ocean-based projects that have long-term sustainability objectives and benefits. They can be used to finance projects with adaptation benefits. Blue Bonds are a subset of the better-known Green Bonds, which are specifically targeted at projects that benefit seas and marine environments. Tideway was also one of the first UK corporates to issue Green Bonds when the project was in its initial stages.
[16] https://www.theaic.co.uk/aic/news/press-releases/new-cci-rules-victory-for-common-sense
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