Investment Companies Daily HICL final results, FGEN March NAV, GRID JV, NBPE April NAV, HGT investment, CYN moving to Tufton, BOOK realisation

Research evidence excerpt

Investment Companies Daily HICL final results, FGEN March NAV, GRID JV, NBPE April NAV, HGT investment, CYN moving to Tufton, BOOK realisation

he portfolio is UK, 16% Europe ex UK, 8% North

America, 8% Australia and New Zealand. The largest sector exposures are electricity &

water (25% of portfolio), transport (22%), healthcare (17%) and education (10%). The

top five investments by value are Affinity Water (13.6%), Fortysouth (8.0%), Texas

Nevada Transmission (6.1%), London St. Pancras High Speed 1 (5.5%) and Cross

London Trains (4.8%). Combined the top five investments represent 38% of the portfolio.

HICL says it sees £600m of growth capex potential within its portfolio over the next five

years, the largest share of which relates to Affinity Water. HICL expects the growth capex

to be self-funded by portfolio companies.

• Portfolio debt: Portfolio has underlying look through debt of 65% of GAV with 83% of

this fixed until the concession end date and of the amount requiring refinancing, just 0.6%

of the total is due in the next 1-2 years. The gearing is higher on the PPP assets and for

the assets where refinancing is required it is lower at 46% of GAV on average.

• Affinity Water (13.6% of portfolio): In FY26 Affinity Water resumed shareholder

distributions as previously guided. HICL expects regular distributions across the current

regulatory period, AMP8 which runs to 2030. HICL reduced the uncertainty premium

applied to the Affinity Water discount rate by 10bps due to the resumption of dividends.

Affinity Water’s EBITDA growth was 3% ahead of HICL’s expectations and driven by

better than anticipated revenues from non-metered, fixed-tariff customers, offsetting

additional costs incurred in the hot summer of 2025. Affinity Water’s performance