International Public Partnerships (LSE: INPP)

Last close As at 24/06/2024


−0.20 (−0.16%)

Market capitalisation


International Public Partnerships is an infrastructure investment company, which listed in 2006. It invests in a diversified portfolio of global public infrastructure assets and businesses, with a focus on availability-based or regulated revenues. It aims to provide investors with a consistent and predictable return from assets that meet societal and environmental needs, both now and in the future.

Equity Proposition

Four things investors need to know

#1 INPP offers predictable returns with strong ESG credentials

International Public Partnerships (INPP) is an established infrastructure investor, listed since 2006, and advised by Amber Infrastructure, a well-resourced and specialist international infrastructure investment manager. INPP invests in developed international infrastructure markets with a focus on lower-risk assets, providing essential public infrastructure services. The portfolio is diversified by both sector and geography, and revenues are generally ‘availability based’ or regulated, significantly government backed, with a high level of inflation linkage (0.7) and protection against rising debt costs. This strategy has underpinned the company’s strong track record of delivering consistent and predictable returns for investors, while delivering environmental and/or social benefits for the individuals and communities that are served by its assets. INPP is an Article 8 Financial Product under EU Sustainable Finance Disclosure Regulation and also provides details on EU Taxonomy alignment.

#2 Amber is core to strategy and performance

Amber Infrastructure has advised INPP since it listed and its ability to actively and responsibly source and manage the company’s investments, and enhance their performance, is one of the company’s core strengths. It provides a team of over 45 asset managers, including a dedicated ESG group, with sector expertise and presence across the geographies in which INPP is invested. It is responsible for the oversight and optimisation of INPP’s investments, over which it seeks a high degree of influence. Amber undertakes its own in-house research, as well as drawing on external expertise, to identify new investment opportunities and developments that may have an impact on existing investments. This includes researching emerging trends in sustainability and newer technologies that are driven by, and support, environmental and social change.

#3 INPP targets sustainable and predictable dividend growth

DPS has increased every year since inception, across a number of market cycles and under sometimes challenging economic conditions, and has consistently been fully covered. To enable investors to benefit from the portfolio revenue linkage to inflation, FY23 DPS was increased by 5% to 8.13p, and growth of 3% to 8.37p is targeted for FY24. Based on the end of May 2024 share price of 125p, this represents an attractive prospective dividend yield of 6.7% and is a higher but sustainable base for continued growth. The company calculates that the future cash flows expected from the existing portfolio alone, without any benefit from new investments, are sufficient to meet progressive dividends, in line with the long-term average of c 2.5% pa, for at least the next 20 years. With a vast global requirement for infrastructure investment, the prospects for accretive investment remain strong.

#4 The INPP share price implies an expected return of more than 9%

Despite consistent operational and financial performance, and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. The discount rate used to value the portfolio at the end of FY23 implies an expected return on the end-FY23 NAV per share (152.6p) of 8.4% pa. With the shares trading at a discount to NAV, the implied return to investors is higher. Based on the end-May share price, an 18% discount to the end-FY23 NAV, the implied return was 9.4%. The expected fall in interest rates should provide support to the rating and meanwhile INPP has taken a number of actions to optimise the portfolio performance and enhance shareholder returns. Alongside the DPS step-up, capital recycling has facilitated the repayment of the relatively high-cost corporate debt facility in full, underlined the robustness of asset valuations, provided funding for accretive reinvestment, and generated capital for ongoing share repurchases. With the board and manager committed to taking appropriate action to deliver value for shareholders, further measures cannot be ruled out.

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Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Mike Gerrard


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.1 0.3 1.9
Relative 4.7 (4.0) (8.5)
52 week high/low 139.2p/115.4p


International Public Partnerships’ (INPP’s) FY23 results show that it continues to deliver consistent and predictable returns for investors, while delivering environmental and social benefits for the individuals and communities that are served by its assets. Despite this strong performance and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on INPP’s share price, in common with the wider sector. Regardless, attractive returns are available from the existing portfolio with opportunities for further enhancement.



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