Cordiant Digital Infrastructure (CORD)

26/11/2025

Results analysis from Kepler Trust Intelligence

Cordiant Digital Infrastructure (CORD) has released results for the half year ending 30/09/2025. The NAV total return for the six months was 10% based on the ex-dividend opening NAV. Performance was positively affected by currency movements, although when removed, the portfolio still delivered a total return ahead of its annualised total return target.

Underlying revenue generation supported performance, with both earnings and revenue increasing. All holdings contributed positively to performance in local currency terms, with returns largely driven by the two largest holdings which both met performance targets. One also benefitted from a reduction in its independently valued discount rate.

Two further assets also met operational targets and increased in valued, although one of these was offset by an increase in its WACC.

Portfolio diversification efforts continued in the period, with fibre optic networks now the largest subsector by revenue, with digital TV infrastructure and data centres also notable assets. During the period, work commenced on the construction of a flagship data centre.

At period end, the trust had cash of £84m plus access to a further £150m in undrawn facilities.

The dividend was increased in line with the annual target. The managers use an adjusted fund from operations (AFFO) figure to show dividend cover, which has remained consistent at 1.7x.

The investment manager and directors continued to buy shares, with the total shareholding increasing to 2.2%, including 13.8m shares owned by executive chairman Steven Marshall.

Chairman Shonaid Jemmett-Page had a positive outlook, stating that the "underlying strengths of our business model, the resilience of our portfolio companies, and the structural growth in the sector, combined with the attractiveness of our core markets, give the Board confidence as we look ahead to the remainder of the financial year."

Kepler View

These results mark an impressive milestone for Cordiant Digital Infrastructure (CORD) as the first time the NAV has crossed the £1bn threshold. In the period, the trust has continued to beat expectations, with a NAV total return of 10%, more than the 9% annualised goal. Since inception, the trust has now delivered 13% annualised total returns. These have been achieved as a result of operational targets being met, a testament to the portfolio quality, in our view, as well as the managers' ability to generate growth from their assets.

The latest changes improve diversification, mitigating one of the previous key risks. We believe the latest acquisitions means the fibre network assets offer upside revenue potential, as does the flagship data centre. Both are prudently valued, meaning there is considerable upside potential and a demonstration of the managers ability to extract growth, differentiating CORD to the peer group.

When combined with the trust's discount, we think CORD continues to be a compelling opportunity for long-term investors as the rating undervalues the growth potential of the portfolio.

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