Cordiant Digital Infrastructure (CORD) H2 2024 earnings summary

Executive summary

• Achieved a total return of 9.3% for the year, with NAV per share rising to 120.1p from 113.4p, despite FX headwinds.

• Dividend increased 5% to 4.2p per share, ahead of IPO plan and covered 4.4x by EBITDA and 1.6x by AFFO.

• Portfolio expanded with acquisitions in Ireland (Speed Fibre) and Belgium (Norkring), enhancing diversification.

• Strong operational performance with 7.9% revenue growth and 7.2% EBITDA growth year-over-year.

• Active capital allocation, including £5.4m in share buybacks at a 37.6% discount to NAV.

Financial highlights

• Portfolio company revenues reached £304.7m, with normalised EBITDA of £142.1m for the year to 31 March 2024.

• Dividend coverage at 4.4x EBITDA and 1.6x AFFO; aggregate growth capex of £33.2m invested.

• Net asset value at year-end was £920.7m, with closing NAV per share at 120.1p.

• Basic earnings per share were 10.4p; final dividend per share was 2.2p.

• Prudent debt management with long-term net gearing of 4.5x EBITDA and 38.9% portfolio gearing.

Outlook and guidance

• Targeting net annual returns of 9%+ p.a. through capital growth and progressive dividends.

• Focus remains on Core Plus growth platforms in the middle market, with a pipeline of opportunities exceeding €3.3bn.

• Data centres and cloud expected to comprise 20% of revenues in the coming year, offering attractive growth.