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INPP's 2025 results show a 7.1% yield, 25 years of dividend growth, and a rising NAV, as strategic asset sales fund buybacks and new investments like Sizewell C.
This article covers information on International Public Partnerships.
LON:INPPInternational Public Partnerships (INPP) has posted a strong 2025 set of numbers, with NAV per share up, dividends growing again, and a clear push to narrow the stubborn discount to NAV. For income-focused investors, the story is simple: the board reconfirms a progressive dividend policy for at least the next 25 years, fully covered by portfolio distributions, and now paid quarterly.
Under the bonnet, capital discipline is doing the heavy lifting – over £385 million of asset realisations since June 2023 (all at or above book value), a beefed-up buyback, and highly selective new commitments such as Sizewell C. The portfolio remains resilient, with over 98% of revenues backed by long-term secure or regulated cash flows.
| NAV per share (31 Dec 2025) | 151.5p (up 6.8p, +4.7%) |
| NAV total return | 10.6% |
| Total NAV | £2.7 billion (+1.1%) |
| IFRS profit before tax | £263.9 million (2024: £0.5 million) |
| Weighted average discount rate (WADR) | 9.1% (from 9.0%) |
| 2025 dividend achieved | 8.58p per share (c.2.5% growth) |
| 2026 dividend target | 8.79p per share |
| 2027 dividend target | 9.01p per share |
| Cash dividend cover | 1.1x |
| Share buybacks | £120.6m by year-end; now over £135m (c.1.6p NAV accretion) |
| Realisations since June 2023 | Over £385m (c.14% of portfolio value) |
| Implied dividend yield | 7.1% on the 2026 target as at 27 February 2026 |
INPP hit its 2025 dividend target of 8.58p (up c.2.5%) and moved from semi-annual to quarterly payments. The next 2.15p final dividend is expected on 8 June 2026. Targets of 8.79p for 2026 and 9.01p for 2027 were reconfirmed, keeping that steady 2.5% annual growth cadence.
The company says it expects to maintain its progressive dividend policy for at least the next 25 years, fully covered by portfolio distributions even if no further investments are made. Cash dividend cover for 2025 was 1.1x, which is adequate but not plush – worth watching if inflation or regulatory outcomes wobble. On the flip side, the revenue base is highly secure, and the pipeline looks supportive.
INPP’s toolkit is working:
On Sizewell C, financial close landed in November 2025 for c.£254 million of equity over up to five years. INPP invested c.£35 million initially, funded from disposals and cash. The plan is a 6% annual cash yield through construction and early operations into the early 2040s, with a forecast IRR in the low-teens based on a real allowed return on equity of 10.8% plus CPIH. That is punchy – but remember, it is a regulated company structure, which changes the risk/return profile versus a merchant project.
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A few big-name assets drove the year:
NAV per share rose to 151.5p, supported by solid asset performance, disposal uplifts, and positive FX/macro updates, offsetting the cost of £156.3 million of dividends and £77.0 million of buybacks during the year. The weighted average discount rate ticked up to 9.1% from 9.0%, largely due to recycling capital into higher-returning assets. That nudges the portfolio’s projected net return to 10.3% (company estimate) and is a sensible way to enhance value when selling mature, lower-yielding positions.
One to note: the shares maintained a low 0.5 correlation to the FTSE All-Share over the year. That diversification benefit matters for multi-asset investors, particularly when bond yield moves are swamping everything else.
On responsible investment, highlights include a five-star PRI rating again, 100% of new investments supporting UN SDGs, and 94% of in-scope investments aligned or aligning to the Net Zero Investment Framework by 2030. These credentials increasingly influence capital allocation and, for some investors, the investability of the trust.
Governance-wise, Sarah Whitney will take over as Chair at the June 2026 AGM. A notable fee alignment landed on 1 July 2025: the investment adviser’s base fee is now calculated from an equal weighting of market cap and NAV, expected to cut ongoing fees by about 10% per year. That is shareholder-friendly and aligns incentives to close the discount as well as grow NAV.
Three things stand out. First, execution: selling assets at or above book value in a tricky market is strong proof the carrying values are fair, and it frees up cash for buybacks and better-returning opportunities. Second, income: a 7.1% implied yield on the 2026 target and 25 years of mapped dividend growth – backed by largely government/regulated revenues – is hard to ignore for income portfolios. Third, discipline: the fee reset, the early repayment of the corporate facility, and nudging the WADR higher via recycling all point to a management team doing the right things at the right time.
What are the watch-outs? Dividend cover at 1.1x is fine but leaves less room for error if anything surprises. Sizewell C is long-dated and complex – albeit with a regulated framework and stated 6% cash yield through construction. Cadent’s CMA process introduces some regulatory uncertainty, and rising government bond yields can still pressure valuations in the short term.
Net-net, this is a confident update. If you believe the board that the shares are materially undervalued, then continued buybacks, steady 2.5%-a-year dividend growth, and selective reinvestment into higher-returning assets should, over time, do the heavy lifting to close the gap.
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