**Summary of GCP Infrastructure Investments Limiteds Annual Report and Financial Statements for the Year Ended 30 September 2025**
**Overview**
GCP Infrastructure Investments Limited ("GCP Infra" or the "Company") released its annual report and financial statements for the year ended 30 September 2025, highlighting its performance, strategic achievements, and future plans. The Company, a FTSE 250 closed-ended investment company, focuses on providing shareholders with regular, sustained, long-term dividend income while preserving capital through investments in UK infrastructure debt and similar assets.
**Financial Highlights**
**Portfolio Valuation**£858.9 million (2024: £960.0 million).
**Dividends for the Year**7.0 pence per share (maintained from 2024).
**NAV per Share**101.40 pence (2024: 105.22 pence).
**Weighted Average Annualised Yield**8.0% (2024: 7.8%).
**NAV Total Return**3.1% (2024: 2.2%).
**Total Profit and Comprehensive Income**: £18.4 million (2024: £19.5 million).
**Portfolio and Investment Strategy**
The Company maintains a diversified portfolio of 47 investments across renewable energy, social housing, and PPP/PFI sectors, with 49% partially inflation-protected.
The portfolio is focused on sustainable infrastructure, contributing to renewable energy generation and social impact, aligning with UN Sustainable Development Goals (SDGs).
The Company has a weighted average annualised yield of 8.0% and an average life of 11 years.
**Capital Allocation and Leverage**
**Leverage Reduction**Reduced leverage by 80% since the capital allocation policy announcement in December 2023, with a Loan-to-Value (LTV) ratio of 2.4% at year-end.
**Disposals and Cash Proceeds**Generated £46.4 million from disposals, primarily in renewables, bringing total proceeds since the policy to £77.8 million.
**Share Buybacks**Repurchased 30.8 million shares for £22.8 million, returning £35.6 million to shareholders since March 2023.
**Dividends and Shareholder Returns**
Paid a dividend of 7.0 pence per share, in line with the target, and reaffirmed the same target for the forthcoming year.
Dividend cover was 0.31 times on an earnings basis and 0.96 times on an adjusted earnings basis.
**Sustainability and ESG Integration**
The Company continues to integrate ESG criteria into its investment processes, with 57% of the portfolio invested in renewable energy.
Achieved B Corp certification for the Investment Adviser in 2024, reflecting commitment to sustainability.
Contributed to renewable energy generation (1,434 GWh) and social housing (3,040 people housed).
**Market Outlook and Strategy**
The UK infrastructure market presents significant opportunities, with £725 billion in public investment and £500 billion in private investment planned over the next decade.
The Company is well-positioned to capitalize on emerging sectors like long-duration energy storage, water, and heat networks.
Political risks, including policy changes and election uncertainties, are closely monitored.
**Governance and Stakeholder Engagement**
Welcomed new directors Ian Brown and Heather Bestwick, enhancing board diversity and expertise.
Engaged extensively with shareholders, including 62 meetings, webinars, and site visits.
Maintained strong relationships with borrowers, suppliers, and public sector stakeholders.
**Future Plans**
The Company intends to engage with shareholders in early 2026 to propose a future strategy for capital recycling and utilization.
Focus on portfolio rebalancing, reducing exposure to supported living, and exploring new investment opportunities in line with its sustainability and income objectives.
**Conclusion**
GCP Infra demonstrated resilience and strategic progress in 2025, maintaining its dividend target, reducing leverage, and advancing its capital allocation policy. Despite challenges, the Company remains committed to its investment objectives, sustainability goals, and delivering value to shareholders. The Board is optimistic about future opportunities in the UK infrastructure market and continues to prioritize shareholder engagement and governance excellence.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Portfolio Valuation (£m) | 858.9 | 960.0 | -10.5% |
| Dividends for the year (pence per share) | 7.0 | 7.0 | 0% |
| NAV per share (pence) | 101.40 | 105.22 | -3.6% |
| Weighted Average Annualised Yield (%) | 8.0 | 7.8 | +2.6% |
| NAV Total Return (%) | 3.1 | 2.2 | +40.9% |
| Leverage (£m) | 20 | 57 | -64.9% |
| LTV Ratio (%) | 2.4 | 6.0 | -60.0% |
| Disposals and Cash Proceeds (£m) | 46.4 | 31.4 | +47.8% |
| Share Buybacks (£m) | 22.8 | 2.2 | +936.4% |
| Total Profit and Comprehensive Income (£m) | 18.4 | 19.5 | -5.6% |