Why the Infratil (ASX:IFT) share price is trading higher today

The Infratil Ltd (ASX: IFT) share price is trading up today. We take a look at the latest announcement to find out why.

| More on:

Should you invest $1,000 in Woolworths Group Limited right now?

Before you buy Woolworths Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Woolworths Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

A happy businessman pointing up, inidicating a rise in share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Infratil Ltd (ASX: IFT) share price is lifting this morning after the company released an update on the valuation of its investment in Canberra Data Centres (CDC).

At the time of writing, the Infratil share price is trading up 1.8% at $7.04.

Increase in demand driving value

After the independent valuation, Infratil's 48.1% investment in CDC is now valued at between $2,039 million to $2,334 million, as at the end of December 2020. This is a substantial increase from the previous valuation in September, ranging between $1,597 million to $1,807 million.

The nearly 28% uplift in value, from the bottom end of valuer estimates, is reportedly a result of accelerated demand in both new and existing customers for its data centre services. This surprise uptake has the company expecting existing data centres to reach capacity sooner than first thought.

Infratil said it would provide further details of CDC's growth plans at the company's investor day on 16 February.

The price for performance

The New Zealand-based infrastructure investment company implements an incentive model. The fee payable by Infratil acts as a monetary reward to the entities for delivering growth in the value of the investment.

The revised value of its CDC investment is expected to increase the international portfolio annual incentive fee (IPAIF) to $147.6 million. This is up from $57.7 million since the provided September estimate.

Infratil noted that it has not assessed incentive fees since September in regards to other investments.  These investments include Tilt Renewables Ltd (ASX: TLT), Longroad Energy, Retire Australia, and Australian Social Infrastructure Partners.

The final IPAIF will be payable to investments on 31 March 2021.

What's next?

The Infratil share price has performed solidly over the last year, returning 39.9% in the last 12 months. This compares to the S&P/ASX 200 Index (ASX: XJO) which fell 2.17%.

The company performance has not gone unrecognised either – with AustralianSuper lobbying a takeover bid back in early December. This offer was rejected by the board, as they believed it undervalued the high quality and unique portfolio of assets.

Infratil expects it will conclude its strategic review of its investment of Tilt Renewables within the next 6 months. The company conveyed the potential of divestment of the renewable energy provider back in December.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

Happy man working on his laptop.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Two funeral workers with a laptop surrounded by cofins.
Broker Notes

Macquarie just forecast this ASX 300 dividend share could surge 37%. Here's why

Atop its passive income payouts, Macquarie expects this ASX dividend stock could leap 37% in a year.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls
Materials Shares

Does Macquarie rate James Hardie shares a buy, hold or sell?

The company is set to report FY25 earnings this week.

Read more »

A man looking at his laptop and thinking.
Industrials Shares

Which ASX 200 industrials stock does Macquarie expect to sink 40% over the next 12 months?

Can this name build it's way out of such negative sentiment?

Read more »