Australia Infrastructure: Ift, APA lead the batting order, AIA in the middle and toll roads (TCL/ALX) towards the end (less preferred)

Research evidence excerpt

Australia Infrastructure: Ift, APA lead the batting order, AIA in the middle and toll roads (TCL/ALX) towards the end (less preferred)

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07 Jul 2026 00:01:04 ET │ 20 pages

Australia Infrastructure

IFT, APA lead the batting order, AIA in the middle and toll roads

(TCL/ALX) towards the end (less preferred)

Suraj Nebhani, CFA AC

CITI'S TAKE +61-2-8225-4829

Following investor queries, we publish our latest order of preference among suraj.nebhani@citi.com

our infrastructure coverage. Infratil (IFT.AX/IFT.NZ) is the most-preferred Howard Penny

name given strong growth outlook from data center/renewable exposures

driving growth in NAV and Price to NAV discount narrowing. APA is our 2nd +61-2-8225-4819

most-preferred name, benefiting from CPI-linked income escalation, strong howard.penny@citi.com

~8% free cash flow yield with ~3% p.a. CAGR to FY30, and upside from Akshit Batra

future gas projects (like Beetaloo) as well from potential data center power +91-22-4277-5184

generation projects. We are Neutral on AIA given near-term pressure on

capacity from AirNZ, but see strong medium-term growth from the >$6bn akshit.batra@citi.com

capex program. We are Neutral rated on toll roads TCL, ALX and see limited

near-term upside. See inside for more details.

IFT most preferred — Significant contracted activity in recent months as well as

growth in the CDC development pipeline to 3.9GW leasable capacity (from 2.05GW

at Mar-26) highlights potential for ongoing growth in the CDC business which

makes up ~40% of IFT's last reported NAV. We also see growth from Longroad’s US

renewable exposure and the 4GW+ data centre pipeline.

APA 2nd most preferred — We recently initiated on APA with Buy and A$11.10 target

price. We like APA’s ~8% free cash yield and 3%+ p.a.