Infratil Limited Analysis

Overview

Infratil owns renewable energy, transport, data and connectivity, and social infrastructure businesses in growth sectors

Performance

The following information was extracted from Infratil Limited's full year results, released on 28 May 2025:

Infratil today announced a strong full-year proportionate operational EBITDAF of $986 million, towards the upper end of guidance of $960–$1,000 million.

Infratil CEO Jason Boyes said the result reflects strong operating earnings growth over the year of $986 million (8.6%), driven by growing contributions from CDC Data Centres, One NZ, Wellington Airport and RetireAustralia.

The year-on-year uplift also captures the benefit of a full 12-month contribution from One NZ, following Infratil’s acquisition of the remaining 49.95% stake in June 2024. A final dividend of 13.25 cents per share was declared which brings the full year total dividend to 20.50 cents per share, a +2.5% increase on 2024.

Strong performance supported by technology-enabled innovation

RHCNZ Medical Imaging delivered 9% year-on-year EBITDAF growth, supported by strong organic volume growth, an ongoing shift toward higher-value modalities, and network expansion. Three new clinics were opened during the year, two in Hamilton and one in Tauranga, now New Zealand’s largest comprehensive radiology site. New flagship clinics currently under development in Auckland and Dunedin Central will further strengthen RHCNZ’s presence in key urban markets, meeting growing demand across both public and private health sectors.

In Australia, Qscan delivered 14% year-on-year EBITDAF growth. The result was driven by yield expansion - supported by Medicare indexation, a continued mix shift toward higher-value modalities, and a revised pricing strategy - as well as productivity gains from Qscan’s AI-enabled reporting platform, improved workforce efficiency, and operating leverage across its clinic network.

RetireAustralia also delivered a strong year, reaching a major milestone with the completion of the third and final stage of The Verge at Burleigh, comprising 168 homes. Construction is progressing on a further 187 units across three active developments: Tarragal Glen, Carlyle Gardens, and the Arcadia Retirement Living community in Yeronga. Portfolio occupancy remains high at 96.2%, with waitlists across 26 of 29 villages, reflecting sustained demand for high-quality retirement living.

Wellington Airport delivered EBITDAF of $103 million for the year, up 22% on the prior period. The result reflects resilient demand for travel, with international passenger volumes up 7% despite ongoing domestic headwinds. Domestic passenger numbers declined by 4%, impacted by airline fleet and capacity constraints.

Valuation & incentive fees

Following the CDC transaction announcement in February, CDC’s independent valuer confirmed their view that the transaction met all criteria to be considered fair market value and subsequently adopted A$13.7 billion as the mid-point of its independent valuation. This valued Infratil’s investment at NZ$7.2 billion, up from NZ$4.4 billion at the same time last year.

Following this, and alongside the independent valuations of its other international assets, Infratil has accrued a $350.6 million incentive fee payable to Morrison as at 31 March 2025, and payable over three years. This includes the write-down of Infratil’s investment of RetireAustralia by $85 million to $404 million.