Feature article: Solid IICs, cash-consolidating REIFs Since the beginning of 2024, the share prices of Infrastructure Investment Companies (IICs) and Renewable Energy Infrastructure Funds (REIFs) have generally remained lacklustre, failing to recover from the losses experienced in 2023. A significant factor contributing to this trend has been the sharp rise in interest rates since 2021, which has negatively impacted the sector due to the increased yields on “risk-free” 10-year gilts. The recent change in the UK government may bring some relief, with potential relaxations in planning approvals for new onshore wind and solar plants. Despite the challenging environment, there have been mixed performances among the companies. Sector-wide, many stocks are trading at significant discounts to their NAVs, with IICs averaging a 23% discount and REIFs a 32% discount. This has led to several share buyback programs in an attempt to support share prices. Dividend performance has varied across the sector, with some companies maintaining or even increasing their payouts, while others have struggled. Currently, the average prospective dividend yield stands at 5.6% for IICs and 6.6% for REIFs.