Cordiant Digital Infrastructure Ltd (LSE:CORD) Chairman of Digital Infrastructure Steven Marshall and Chief Financial Officer Mark Tiner joined Steve Darling from Proactive to provide some insight on the company’s three-year anniversary since listing on the London Stock Market.
The company has made significant strides, raising just shy of a billion dollars from investors. The company has expanded its portfolio by acquiring substantial assets in the digital infrastructure sector, including tower businesses in the Czech Republic and Poland, the second-largest fiber developer in Ireland, and an interconnect Data Center in Manhattan. These assets boast long-term contracts with blue-chip clients and inflation-protected escalation clauses.
Financially, the company has shown robust growth, with revenue up 8.2% to over 217 million across its portfolio for the first three quarters up to December 31. EBITDA increased by 6.4% to over 99 million pounds. The company has also seen a positive progression in its dividend cover, with adjusted funds from operations increasing to 1.6 times the annual dividend target. Although there has been a slight increase in finance costs, the company's net leverage remains competitive at 4.7 times EBITDA, with net debt over gross asset value at 14.6%, providing substantial headroom under the 50% cap outlined in the company's prospectus.
The success of Cordiant Digital Infrastructure can be attributed to its core strategy of "buy, build, and grow". This involves acquiring high-quality assets, enhancing them through strategic investments, and expanding customer base and services offered. The company has successfully integrated acquisitions and embarked on significant building projects, such as digital audio broadband networks, edge data facilities, and a proposed state-of-the-art data center in the Czech Republic. This strategy has driven the company's growth and success in the digital infrastructure sector.