The really interesting thing about the sale is that the value difference of £227m since Sept 17s valuation almost exactly equals the NAV premium at the beginning of this week. No wonder the SP has shot up. Even at 204p the premium is still only 3.5% approx.
I remain a huge fan of 3IN.
It may be that this is just a re-adjustment from the strange fall back to 190p from 200p, which also seemed to have no reason behind it. I believe this is the strongest pure infrastructure but trust - but thats only my personal opinion. I remain a great fan of this share and added to my holding at 190p.
The leader in today's Times Tempus column is a great buy recommendation for 3IN following the takeover of Infinis. I am expecting another good increase in underlying NAV when interims are announced later this week.
It's worth remembering that the dividend policy is 5.5% yield on NAV. That's the real reason the SP is always so far ahead of the NAV. The price premium is just a lag in the revaluation timetable. The risk of course is that assets do not appreciate further in value ( or worse, actually lose value), however in today's ultra low interest rate environment, it's hard to see anything other than increasing asset prices. The Infinis assets yielding a net 10% are a typical example.
As an original 3IN investor, I have seen the SP nearly double and the initial 5.5% yield rise to over 7.5%. The total return since launch has been double figures annually.
I am therefore a great fan of both this share and the whole sector.
As I'm sure I've said before - get rich slow !
I'm surprised you are surprised. Infrastructure is one sector that will be least affected by the current turmoil. Revenue streams are guaranteed, often by governments, have inflation protection, and have long timeframes - up to 30 years.
You can keep your "exciting opportunities" I am very comfortable with 4.5% yields and average 5%+ annual capital appeciation. Get rich slow!!
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