News & media Cordiant Core+ vehicle announces good set of results in line with target returns
Cordiant Digital Infrastructure Limited (“CDIL” or “the Company”), a Core+ vehicle managed by Cordiant Capital Inc (“Cordiant” or “the Investment Manager”) and listed on the London Stock Exchange (LSE:CORD), today announced its full-year results for the year ending 31 March 2024.
Said Benn Mikula, CEO of Cordiant Capital and Co-Head of Cordiant Digital:
“We are very pleased that the Company delivered a good set of results, highlighting its continued success in delivering NAV and EBITDA growth. The strength of Cordiant’s team and CDIL’s Board has allowed the Company to play an active role in supporting the growth of platform assets and deliver on its Core+ strategy.”
Cordiant continues to execute its Buy, Build & Grow model in order to deliver a larger, more diversified digital infrastructure platform, capital growth and a progressive dividend over time.
Key financial highlights of the announcement include:
- Total return for the year of 9.3%[i], increasing NAV per share to 120.1p
- NAV total return since inception of 32.8%, or 10.5% annualised, exceeding IPO expectations
- Total dividend for the year increased 5.0% to 4.2p, ahead of guidance; the dividend is well covered by earnings (4.4x) and adjusted funds from operations (AFFO) (1.6x)
- NAV increased to £920.7 million, underpinned by strong EBITDA growth
With a mid-market focus that creates substantial opportunity, Cordiant has built a portfolio of assets acquired at competitive prices. The asset base grew during the year and now includes five platform assets in five countries across Europe and the United States. Portfolio companies generated EBITDA growth[ii] of 7.2% year-on-year to £139.3 million.
Portfolio diversification was improved with the acquisition of Speed Fibre Group, Ireland’s leading open access fibre infrastructure provider. In addition, the Norkring portfolio of 25 towers in Belgium was also acquired during the year.
Portfolio companies Emitel, CRA and Hudson Interexchange saw growth driven by new contracts and bolt-on acquisitions, underscoring the focus on Buy, Build & Grow.
Said Shonaid Jemmett-Page, Chairman of Cordiant Digital Infrastructure Limited:
“The portfolio is high quality with strong potential for growth, with predominantly blue-chip customers, and is generating robust cash flows through long-term, largely inflation-linked contacts. A disciplined investment approach has resulted in a portfolio acquired for an EV/EBITDA multiple of approximately 10.2%. The underlying strengths of the Company, the growth in the sector and the attractiveness of our core markets lead the Board to look forward to the year ahead with confidence.”
For more information on CDIL’s annual results, please click here.
About Cordiant Capital
Cordiant is a specialist global infrastructure and real assets manager with a sector-led approach to providing growth capital solutions to promising mid-sized companies in Europe, North America and selected global markets. Since the firm’s relaunch in 2016, Cordiant–a partner-owned and partner-run firm–has developed a track record of exceeding mandated investment targets for our clients.
Cordiant focuses on the next generation of infrastructure and real assets: sectors (digital infrastructure, energy transition infrastructure and the agriculture value chain) characterised by growth tailwinds and technological dynamism. In addition, Cordiant applies a strong sustainability and ESG overlay to its investment activities.
With a mix of managed funds offering both value-add and core strategies in equity and direct lending, our sector investment teams (combining seasoned industry executives with traditional private capital investors) work with investee companies to develop innovative, tailored financing solutions backed by a comprehensive understanding of the sector and demonstrated operating capabilities. In this way, Cordiant aims to provide value to LPs seeking to complement existing infrastructure equity and infrastructure debt allocations.
Cordiant has offices in Montreal, London, São Paulo and Luxembourg.
Press Release Disclaimer:
The risks associated with investing in Cordiant Digital Infrastructure Limited (the “Fund”) are outlined in the prospectus and in the Fund’s annual and interim reports, which may be viewed at www.cordiantdigitaltrust.com. These risks are based upon the Fund’s investment objectives and strategies and describe the material risks of investing in that fund under normal market conditions when considering the Fund’s portfolio as a whole, not each individual investment within the portfolio. The material and information provided therein does not constitute investment advice and is for informational purposes only. It is not a solicitation to buy or sell any of the securities or fund(s) mentioned herein. It does not take into account any investor’s particular investment objectives, strategies or tax status. Professional advisors should be consulted before making any investment decision
Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Cordiant Capital and its affiliates do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Cordiant Capital and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages. The forward-looking statements are not historical facts but reflect Cordiant’s current expectations regarding future results or events. These forward-looking statements are made as of the date of this document and are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although when making a forward-looking statement, Cordiant, as the case may be, believe that the assumptions inherent in this statement are reasonable, forward-looking statements are not guarantees of future performance.
[i] Based on opening ex-dividend NAV at 1 April 2023 of 111.4p
[ii] On pro forma, normalised, constant currency basis
