Feature article: IICS/REIFS – NAV discounts and the ill wind from Denmark Since the start of 2024, the share prices of the eight Infrastructure Investment Companies (IICs) and of the 18 Renewable Energy Infrastructure Funds (REIFs) have been generally weak – and, conspicuously, have failed to recover the losses of 2023. Undoubtedly, high interest rates have undermined the sector – and there is no certainty that they will fall significantly. Not only has this situation adversely affected NAVs, but the comparison with “risk-free” 10-year gilts is stark – the latter are currently yielding an attractive 4.8%. Sector sentiment has not been helped by the ca.£7bn rights issue announced by the EU’s largest offshore wind operator, Denmark’s Orsted; it has faced serious issues relating to its US operations off New England. Following the rights issue announcement, Orsted’s shares plunged by almost a third, a reaction that has undermined the valuations of many other renewable energy stocks.