Cordiant Digital Infrastructure Ltd's (LSE:CORD) half-year figures show a period of reliable operational delivery and improving asset valuations, with analysts at Kepler Partners describing the outcome as “an impressive milestone” as the trust’s net asset value rose beyond £1 billion for the first time.
The trust reported a 10% net asset value total return for the six months to 30 September, with NAV per share increasing from 129.6p to 140p, an 8% rise.
Kepler noted that gains in the Polish złoty and Czech koruna supported performance, but said that even excluding currency effects the portfolio delivered a 5.6% return, ahead of Cordiant’s 9% annualised target.
Kepler’s analysis points to steady underlying growth across all six portfolio companies. Revenue rose 7% on a constant-currency, pro forma basis, while earnings, measured by earnings before interest, tax, depreciation and amortisation, increased 6.5%.
The strongest contributions came from Emitel and Czech network operator CRA, both of which met operational targets and saw their valuations increase.
CRA also benefited from a reduction in its discount rate by an external valuer, adding about 3.3p per share, compared with 2.8p from Emitel.
The report highlights further diversification of the portfolio. Speed Fibre’s acquisition of BT Ireland was completed during the period, lifting fibre networks to 34% of portfolio revenue, ahead of digital television infrastructure at 30% and data centres at 13%.
Construction also began on CRA’s Prague Gateway data centre, though no future revenue has yet been reflected in valuations.
Development spending reached £38 million in the half, which Kepler views as an illustration of the managers’ approach to generating organic growth from existing assets.
The trust’s discount narrowed to 30.4%, though share buybacks were not used. Kepler argued that the scale and operational progress demonstrated in the period may prompt investors to reassess the trust’s valuation.