INPP 2025 results: NAV higher, dividend growing, discount tackled
International 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.
Key numbers at a glance
| 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 |
Dividends and cash cover: 25 years mapped out
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.
Capital allocation: realisations, buybacks, and selective growth
INPP’s toolkit is working:
- Realisations: c.£130 million in 2025 across regulated assets, PPPs (public-private partnerships) and operating businesses, all at or above carrying value. Since June 2023, disposals exceed £385 million, about 14% of portfolio value.
- Buybacks: the programme has been increased to up to £225 million through March 2027. Over £135 million has already been repurchased, adding an estimated 1.6p per share to NAV. This is one of the cleaner ways to tackle the discount if the shares trade below intrinsic value.
- Selective new investments: £47.3 million invested in 2025, including the first tranche into Sizewell C. Since June 2023, INPP has made over £345 million of commitments where projected returns beat both the portfolio’s WADR and the returns implied by buybacks.
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.
Notable portfolio updates: Tideway, Cadent, OFTOs, BeNEX and Angel Trains
A few big-name assets drove the year:
- Tideway: the 25km “super sewer” is fully connected and commissioning is underway, expected to complete in H1 2026. Fair value rose 7.6% to £421.7 million, reflecting resilient cash flows and progress to completion.
- Cadent: Ofgem’s RIIO-3 Final Determination for 2026-2031 was “more favourable” than the draft, with higher allowances. Cadent is seeking a CMA review on certain aspects. INPP’s valuation reflects the Final Determination and excludes any upside from a successful appeal. Fair value was £417.5 million, down a modest 0.9% year-on-year.
- OFTOs (offshore electricity transmission owners): operationally strong with 99.6% paid availability versus a 98.0% target. A cable fault at Beatrice was deemed beyond the operator’s control, so no revenue loss under regulatory protections. A 49% stake in Moray East OFTO sold slightly above the previously published NAV, which is helpful third-party validation. INPP is also preferred bidder for its twelfth OFTO, Moray West, with an estimated c.£65 million equity outlay in H2 2026.
- Angel Trains: partial disposal at a premium reduced INPP’s stake from 10% to 8%; year-end fair value was £163.2 million, reflecting lower ownership but higher underlying valuation informed by deal pricing.
- BeNEX: big uplift of 35.1% to £112.2 million after securing/renewing multiple German concessions and FX tailwinds.
Valuation drivers, WADR, and correlation
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.
ESG and governance changes that may move the needle
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.
My take: why this update matters for INPP shareholders
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.
