Digital 9 Infrastructure | Winterflood Research

In order to access the website of Winterflood Securities Limited you must first read and accept the following terms:

This website is not directed at, or intended for distribution to or use by, any U.S. citizen, person, or entity that resides in or is located in the United States of America or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation which would subject Winterflood to any registration or licensing requirements with such jurisdiction. Services are not available to U.S. persons except where such services are permitted under SEC rule 15a6 or other relevant exemptions from SEC Broker/Dealer registration requirements.

Please note that Winterflood Securities Limited is not registered as a broker-dealer with the Securities and Exchange Commission and is not a member of Financial Industry Regulatory Authority Inc. (“FINRA”). All research reports provided on this website are being distributed directly by Winterflood Securities Limited to persons in the U.S. that qualify as “major U.S. institutional investors” in compliance with Rule 15a-6(a)(2) of the Securities Exchange Act of 1934. Accordingly, these research reports have not been prepared in compliance with FINRA requirements. Please refer to our Full Disclaimer here.

Research on this Website

Research on this website has been issued for the information of Professional Clients and Eligible Counterparties (as defined in the FCA handbook) of Winterflood Securities Ltd (“Winterflood”). The terminology used within the research reports is intended for professional investors. Research reports are not intended to provide the sole basis for any evaluation of an investment decision.

Each research report on this website must be read in conjunction with any disclaimer which forms part of it. Your attention is drawn to the date of issue of the information provided and of the opinions expressed therein. Any opinions are those of the Winterflood Investment Trust research team and are subject to change without notice and Winterflood is not under any obligation to update or keep current the information contained herein. The material on this website is based on information obtained from sources believed to be reliable but which have not been independently verified and are not guaranteed as being accurate.

Use of Cookies

For information on the cookies used on our websites, please refer to our Cookies Policy which can be accessed here.

Privacy

For information on how we treat your personal data, please refer to our Privacy Notice which can be accessed here.

More information can be found in our Legal Disclaimer

Subsea cabling laying the foundations for growth

On 17 March Digital 9 Infrastructure (“D9”) published its annual results for the period from IPO on 31 March 2021 to 31 December 2021. Over the period, the fund's NAV per share increased by 6.8% from 98p to 104.6p, while the total return was 9.8%. This included a revaluation gain of £45.5m, reflecting 15% and 11% uplifts in the Aqua Comms and Verne Global valuations respectively. The revaluation gain (+6.3p) and the secondary equity raise (+4.3p) were the biggest contributors to the uplift in the NAV per share. The operating costs and acquisition expenses detracted in aggregate 1.41p from the NAV. The total shareholder return was 16.9% for the period.

Income over the period was £2.9m, while profit before tax was £38.3m inclusive of fair value gains on investments, reflecting a basic EPS of 9.77p. Total dividends paid or declared in respect of the period to 31 December amounted to 4.5p, equivalent to an annualised dividend of 6.0p, in line with target, and reflects a prospective yield of 5.5%. D9 and its subsidiaries invested £462m, executing on four assets identified at IPO. The fund had c.£250m of cash resources available at the period-end, of which £11.3m is being retained for working capital purposes. Post year-end, D9 raised a further £95.2m of gross proceeds in January 2022 and secured a £300m credit facility in March 2022.

Client log in

Please note that this website is part of Winterflood's research service and therefore only available to MiFID II compliant research clients. For further information please e-mail research@winterflood.com