Infratil Limited
(ASX: IFT)Share Price and News
About Infratil Limited
Infratil is a investment company focused in infrastructure assets including renewable energy, digital infrastructure, healthcare, and transportation.
Infratil's diverse portfolio includes a 99.9% stake in companies such as Manawa Energy, CDC Data Centres, Wellington Airport, One NZ (formerly Vodafone New Zealand), and RetireAustralia.
The company’s strategy focuses on sustainable returns through well-managed assets in high-growth industries, demonstrating its commitment to future-focused infrastructure investments. It has risen to prominence for its high exposure to renewable energy - something lacking amongst other Australasian listed companies.
IFT Company History
Infratil was founded in 1994 in New Zealand by the late Lloyd Morrison and remains to this day managed by the company he founded (Morrison and Co).
Its initial investment was a minority stake in Trustpower, which laid the foundation for its expansive portfolio. Over the years, Infratil has made several strategic acquisitions, including a 66% shareholding in Wellington Airport in 1998 and substantial investments in digital infrastructure and renewable energy.
In recent years, the company has focused on data centre expansion, digital connectivity, and renewable power, aligning with global trends in infrastructure and technology. One of its key investments is Canberra data centre business CDC. CDC is the largest private operator in Australia with 268Mq in capacity operational and another 265mw under construction across Australia and New Zealand. It has big contracts with government departments and cloud companies such as Microsoft.
Future Outlook of Infratil Limited (ASX: IFT)
Infratil's future outlook appears promising, driven by its diversified portfolio and strategic focus on high-growth sectors. In the immediate term, the key will be meeting its guidance.
The company has provided ‘adjusted FY2025 Proportionate Operational EBITDAF’ guidance of NZ$951-991m (previously NZ$960-1,000m). The F in EBITDAF stands for financial derivative movements for those wondering.
Infratil’s investments in digital infrastructure, particularly its significant stake in CDC Data Centres, position the company well to capitalise on the increasing demand for data storage and processing capabilities, which are crucial in the digital economy. Moreover, Infratil’s focus on renewable energy aligns it with global trends towards sustainability and climate resilience.
Its investments in Manawa Energy, one of New Zealand's largest renewable power producers, underscore its commitment to a low-carbon future.
However, the company also faces potential challenges, including interest payments not being fully covered by earnings and recent shareholder dilution. And this is also before you consider that the types of assets the company invests in are very costly (in both time and money) to build. Investors should remain mindful of these risks when considering their investment strategies.
Is IFT a Good Stock to Buy?
Infratil’s diversified portfolio across high-growth sectors like renewable energy, digital infrastructure, and healthcare, along with its strong earnings and revenue growth forecasts, makes it an attractive option for long-term investors. The company’s dividend yield stands at approximately 1.78% (forward) and 1.56% (trailing), offering a modest income stream while providing exposure to sectors expected to benefit from long-term structural trends.
However, investors should carefully consider the company’s risk profile, including interest coverage concerns, past shareholder dilution and the risks of missing guidance before making a decision to buy.
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Frequently Asked Questions
As of May 2025, Infratil offers a dividend yield of approximately 1.78%, providing a modest income stream for shareholders.