Philip Kent, CEO at Gravis and lead manager to GCP Infrastructure Investments (LSE:GCP) joined Stephen Gunnion in the Proactive studio with more on the trust’s long-term performance, dividend track record and disciplined capital allocation strategy.
Kent outlined how GCP Infrastructure invests in UK-based infrastructure projects backed by public sector-supported revenues, with a focus on debt rather than equity. This approach is designed to provide investors with stable, sustainable income alongside capital preservation. He explained that the portfolio is underpinned by long-term contractual cash flows and amortising debt structures that naturally return capital over time.
Celebrating its 15th year since IPO, the trust has delivered a total NAV return of around 183% while maintaining a consistent dividend. The current dividend target stands at £0.07 per share, equating to roughly a 9% yield based on a share price of approximately £0.78. Kent said, “We’ve paid a stable, sustainable dividend for the last 15 years,” highlighting the trust’s income focus.
The portfolio is diversified across renewables (around 57%), PFI/PPP assets (approximately 25%), and supported social housing. Kent also discussed the trust’s risk framework, covering market, credit, operational and legal/regulatory risks, as well as the importance of disciplined capital allocation given sector-wide discounts to NAV.
Watch the full interview to understand how GCP Infrastructure balances income generation with capital preservation, and what investors should monitor in the year ahead.
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