International Public Partnerships : Full Year Results for the 12 Months to 31 Dec 2018

RNS Number : 2453U

International Public Partnership Ld

28 March 2019

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL OR TO U.S. PERSONS. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION.

28 March 2019

INTERNATIONAL PUBLIC PARTNERSHIPS LIMITED

("INPP" or the "Company")

FULL YEAR RESULTS FOR THE TWELVE MONTHS ENDED 31 DECEMBER 2018

∙Current ca s h genera ti on i s s trong a nd cons i s tent wi th foreca s ts

∙The Compa ny ha s a s us ta i ned tra ck record of s ta bl e a nd growi ng s ha rehol der returns wi th c.2.5% a nnua l di vi dend i ncrea s e for 2018, a nd

two-yea r forwa rd di vi dend gui da nce for a further i ncrea s e of c.2.5% p.a . for 2019 a nd 2020, res pecti vel y

∙	The Compa ny's pri ma ry ori gi na ti on ca pa bi l i ty res ul ted i n c.£105 mi l l i on of new or fol l ow-on i nves tments a nd commi tments
∙	The Compa ny's con nued focus on por	ol i o a s s et a nd ri s k ma na gement fa ci l i ta ted the e ffec ve tra ns i on of the projects i mpa cted by
	Ca ri l l i on pl c's l i qui da on to new fa ci l i	es ma na gement provi ders a t no ma teri a l fina nci a l i mpa ct on the Compa ny or i ts publ i c s ector
	cl i ents
∙	There i s ongoi ng enga gement wi th Ofgem to a chi eve a s a s fa ctory outcome to the current cons ul ta on on propos ed pri ce control
	mea s ures (RIIO-2) whi ch woul d govern, a mong other thi ngs , the revenue a nd i ncen ves recei ved by Ca dent between 2021 a nd 2026. The
	Compa ny ha s a dopted a preca uti ona ry a pproa ch to the a s s umed outcome whi l e thi s conti nues
∙	Tota l Sha rehol der Return s i nce IPO i s now 171.8%, whi ch repres ents a n a nnua l i s ed tota l s ha rehol der return of 8.6% s i nce IPO i n 2006, i n
	l i ne wi th the l ong-term returns ta rget of 8% or grea ter1
∙	Over 3,000 hours of s chedul ed ma na gement mee ngs took pl a ce i n 2018 wi th publ i c s ector cl i ents a nd the por ol i o a chi eved 99.9%
	a s s et a va i l a bi l i ty (for thos e i nves tments whos e performa nce i s mea s ured by a va i l a bi l i ty)

∙New ca pi ta l tota l l i ng £116 mi l l i on wa s ra i s ed i n October 2018 from new a nd exi s ti ng i nves tors a t a pri ce of 152.5 pence per s ha re

FINANCIAL HIGHLIGHTS3

∙Net As s et Va l ue ('NAV') growth of 7.9% to £2.2 bi l l i on (31 December 2017: £2.0 bi l l i on)

∙NAV per s ha re growth to 148.1 pence (31 December 2017: 145.0 pence)

∙Ful l -yea r di vi dend i ncrea s e of c.2.5% to 7.00 pence per s ha re (31 December 2017: 6.82 pence per s ha re)

∙IFRS profi t before ta x of £138.1 mi l l i on (31 December 2017: £106.4 mi l l i on)

∙Infl a ti on-l i nka ge wi th projected i ncrea s e i n return of 0.82% p.a . for ea ch 1% p.a . i ncrea s e i n i nfl a ti on (31 December 2017: 0.81%)3

∙Ta rget 2019 a nd 2020 ful l -yea r di vi dends of 7.18 a nd 7.36 pence per s ha re, res pecti vel y

∙2018 ca s h di vi dend cover of 1.2x4

PORTFOLIO UPDATE

In 2018, the Compa ny con nued to purs ue i ts proven l ong-term s tra tegy of va l ue -focus ed por ol i o devel opment, a c ve a s s et ma na gement a nd

e ffec ve fina nci a l ma na gement wi th res pect to i ts por	ol i o of hi gh qua l i ty, predi cta bl e, l ong-term projects a nd bus i nes s es whi ch meet s oci eta l
a nd envi ronmenta l needs both now a nd i n the future .	Thes e i ncl ude:

∙Selective exposure to stable,inflation-linked regulated assets

o	An i nves tment of £46.2 mi l l i on i nto the Compa ny's s eventh offs hore		tra ns mi s s i on a s s et, Dudgeon		OFTO, whi ch provi des the
o	tra ns mi s s i on ca bl e connecti on to offs hore wi nd power genera ti on for c.410,000 U.K. homes
	Commi tment of c.£35 - 40 mi l l i on to a cqui re a further i nteres t i n Ca dent whi ch, together wi th i ts i ni a l op				on, wi l l s ee the Compa ny
	i nves t a tota l	of £150-155 mi l l i on i n Ca dent by the end of June 2019	(s ubject to pri ce	a djus tment per the terms of i ts op on
o	a greements ).
	An a ddi ona l	£1.6 mi l l i on commi tment wa s ma de i nto Offenba ch Pol i ce	Centre, whi ch i s	currentl y under cons truc on a nd due to

compl ete i n mi d-2021

∙Early mover into emerginglow-risk core infrastructure asset classes

oThe Compa ny con nued to i nves t i nto di gi ta l i nfra s tructure, wi th a focus on enha nci ng U.K. fibre broa dba nd connec ons , vi a a £14.8 mi l l i on i nves tment a s pa rt of i ts £45 mi l l i on commi tment to i nves t a l ongs i de HM Government vi a the Na ona l Di gi ta l Infra s tructure Fund ('NDIF')

∙Strategic use ofpre-emption rights to increase stakes in existing assets

o	£1.7 mi l l i on i nves tment to a cqui re further i nteres t i n Her ords hi re Bui l di ng School s for Future ('BSF') project, i ncrea s i ng owners hi p
o	l evel to 100%
	£0.6 mi l l i on fi na l i nves tment i nto the s econd s ta ge of the Gol d Coa s t Li ght Ra i l PPP conces s i on, Aus tra l i a

∙Measured exposure to construction assets for greater capital growth

oThe Compa ny ha d three projects tota l l i ng 11% of the Compa ny's por ol i o (by va l ue) under cons truc on i ncl udi ng Ti dewa y, where the new 25km s ewer under the Ri ver Tha mes i s now 40% compl ete; mi nor works on the fourth ba tch of the Pri ori ty School s Bui l di ng Progra mme a nd groundworks on the Offenba ch Pol i ce Hea dqua rters , Germa ny

∙Alignment of interest with public sector counterparties

oThe Compa ny compl eted three project refina nci ngs duri ng the peri od, compri s i ng two educa on a s s ets under the Bui l di ng School s for Future ('BSF') progra mme a nd the s eni or debt i n Li verpool Centra l Li bra ry, a l l of whi ch del i vered s i gni fica nt s ha red fina nci a l benefits to the Compa ny's cl i ents

ASSET STEWARDSHIP6

The Compa ny's i nves tments con nue to del i ver s us ta i ned va l ue to s ta kehol ders i ncl udi ng by s uppor ng thei r publ i c-s ector pa rtners a nd the

wi der communi es i n whi ch they opera te . Owi ng to the Inves tment Advi s er's a c		ve a s s et ma na gement a pproa ch, the Compa ny hel ped del i ver,
a mong other thi ngs :
∙	881 commi s s i oned contra ct va ri a ons res ul ng i n over c.£10.9 mi l l i on of a ddi	ona l project work conducted on beha l f of the commi s s i oni ng
	body
∙	>150,000 a ddi ti ona l hours of a s s et a va i l a bi l i ty dedi ca ted to communi ty us e

∙>91% of the Compa ny's i nves tments moni tored thei r energy us a ge

Michael Gerrard, Chairman of Interna onal Public Partnerships Limited, commented:"The Compa ny ha s once a ga i n del i vered i ts ta rget l evel di vi dend through a yea r of s trong por ol i o performa nce . The vi s i bi l i ty of underl yi ng ca s hflows , the qua l i ty of our por ol i o a nd the a c ve a pproa ch to

a s s et ma na gement underta ken by the Compa ny's Inves tment Advi s er gi ves the Boa rd ful l confidence i n del i veri ng future returns for s ha rehol ders .

The Compa ny's focus wi l l con nue to be on a wi de ra nge of es ta bl i s hed a nd emergi ng a s s et cl a s s es where we bel i eve pri va te fina nce ca n del i ver outs ta ndi ng i nfra s tructure a nd good va l ue for money for our cl i ents a nd end-us ers .

Our exi s ng por ol i o combi ned wi th a promi s i ng pi pel i ne of gl oba l a nd di vers i fied i nves tment opportuni es wi l l s upport our a bi l i ty to con nue to del i ver predi cta bl e, l ong-term, i nfla on l i nked returns to our s ha rehol ders wi th a cons i s tentl y l ow correl a on to the broa der equi ty ma rket."

DIRECTORATE CHANGES

As previ ous l y a nnounced on 4 September 2018, the Compa ny a ppoi nted Mr. Mi cha el Gerra rd a s a n i ndependent non-execu ve di rector, a s s umi ng the rol e of Cha i rma n on 31 December 2018 fol l owi ng Mr. Rupert Dorey's pl a nned re rement. Mr. John Le Poi devi n wa s a ppoi nted a s

Cha i rma n of the Audi t a nd Ri s k Commi ee wi th e ffect from 1 Jul y 2018. Hi s predeces s or, Mr. John Whi l e rema i ns a s	Seni or Independent
Di rector of the Compa ny's Boa rd of Di rectors . John Sta res re red from hi s rol e a s Cha i r of the Nomi na on a nd Remunera	on Commi ee a nd
a l s o a s the Cha i r of the Ri s k Sub-Commi ee on 1 Februa ry 2019. Jul i a Bond ha s been a ppoi nted a s hi s repl a cement for both pos i ons . John
Sta res rema i ns a Di rector of the Compa ny.
http://www.rns-pdf.londons tockexchange .com/rns /2453U_1-2019-3-27.pdf
ENDS.
INPP wi l l be hol di ng a n a na l ys t a nd i nves tor pres enta ti on a nd conference ca l l a t 9a m on the da y of a nnouncement (28 Ma rch 2019).

For thos e a na l ys ts or i nves tors who ca nnot a end i n pers on, a conference ca l l fa ci l i ty wi l l a l s o be a va i l a bl e by di a l l i ng [phone] a nd us i ng the confi rma ti on code 1504735. Pl ea s e note the conference ca l l i s not open to the medi a or thi rd-pa rty repres enta ti ves thereof.

A copy of the res ul ts pres enta ti on ca n be downl oa ded from the Compa ny's webs i te: www.i nterna ti ona l publ i cpa rtners hi ps .com

NOTES TO EDITORS
Amber Infrastructure	FTI Consulting	FTI Consulting
Eri ca Si bree / Amy Jos l i n	Ed Berry	Mi tch Ba rl trop
[phone] / 0587	[phone]	[phone]

Important Information

Thi s a nnouncement conta i ns i nforma ti on tha t i s i ns i de i nforma ti on for the purpos es of the Ma rket Abus e Regul a ti on (EU) No. 596/2014.

Thi s a nnouncement i s a n a dver s ement. It does not cons tute a pros pectus rel a ng to the Compa ny a nd does not cons tute, or form pa rt of,

a ny offer or i nvi ta on to s el l or i s s ue, or a ny s ol i ci ta	on of a ny offer to purcha s e or s ubs cri be for, a ny s ha res i n the Compa ny i n a ny juri s di c	on
nor s ha l l i t, or a ny pa rt of i t, or the fa ct of i ts di s tri bu	on, form the ba s i s of, or be rel i ed on i n connec on wi th or a ct a s a ny i nducement to enter
i nto, a ny contra ct therefor.
Forwa rd-l ooki ng s ta tements a re s ubject to ri s ks	a nd uncerta i n es a nd a ccordi ngl y the Compa ny's a ctua l future fina nci a l res ul ts	a nd

opera ona l performa nce ma y di ffer ma teri a l l y from the res ul ts a nd performa nce expres s ed i n, or i mpl i ed by, the s ta tements . Thes e forwa rd-

l ooki ng	s ta tements s pea k onl y a s a t the da te of thi s a nnouncement. The Compa ny, Amber a nd Numi s Securi es	expres s l y di s cl a i m	a ny
obl i ga	on or underta ki ng to upda te or revi s e a ny forwa rd-l ooki ng s ta tements conta i ned herei n to reflect a ctua l res ul ts or a ny cha nge i n the
a s s ump	ons , condi ons or ci rcums ta nces on whi ch a ny s uch s ta tements a re ba s ed unl es s requi red to do s o by the	Fi na nci a l Servi ces	a nd
Ma rkets Act 2000, the Pros pectus Rul es of the Fi na nci a l Conduct Authori ty or other a ppl i ca bl e l a ws , regul a ti ons or rul es .
About International Public Partnerships:
Interna	ona l Publ i c Pa rtners hi ps ('INPP') i s a l i s ted i nfra s tructure i nves tment compa ny whi ch i nves ts i n gl oba l publ i c i nfra s tructure projects a nd
bus i nes s es , whi ch meet s oci eta l a nd envi ronmenta l needs , both now, a nd i nto the future .
INPP i s	a l ong-term i nves tor i n 130 i nfra s tructure projects a nd bus i nes s es , i ncl udi ng u l i ty a nd tra ns port bus i nes s es , tra ns mi s s i on projects ,

s chool s , courts a nd pol i ce hea dqua rters i n the UK, Europe, Aus tra l i a a nd North Ameri ca . INPP s eeks to provi de i ts s ha rehol ders wi th both a l ong-term yi el d a nd ca pi ta l growth.

Amber Infra s tructure Group ('Amber') i s the Inves tment Advi s er to INPP a nd cons i s ts over 120 s ta ffwho a re res pons i bl e for the ma na gement of, a dvi ce on a nd ori gi na ti on of i nfra s tructure i nves tments .

Vi s i t the INPP webs i te a t www.i nterna ti ona l publ i cpa rtners hi ps .comfor more i nforma ti on.

Notes:

1.	Bl oomberg - s ha re pri ce a ppreci a ti on pl us di vi dends a s s umed to be rei nves ted - from IPO i n November 2006 to 31 December 2018
2.	Onl y a ppl i ca bl e for projects where the Inves tment Advi s er provi des overs i ght of the ma na gement s ervi ces . Where a ppl i ca bl e, jobs referred
	to a re empl oyees of the Compa ny's Fa ci l i ti es Ma na gement s ubcontra ctors a nd not of the Compa ny of i ts s ubs i di a ri es
3.	Projected i ncrea s e i n por ol i o return for a 1.00% p.a . i ncrea s e i n the i nfla on ra te a s s umed i n the current va l ua on a na l ys i s for ea ch a s s et
	i n the portfol i o

4.Ca s h di vi dend pa yments to i nves tors a re pa i d from net opera ti ng ca s h fl ow beforenon-recurri ng opera ti ng cos ts a s deta i l ed.

International Public Partnerships Limited

Annual Report and Financial Statements for the year ended 31 December 2018

Registered number: 45241

www.internationalpublicpartnerships.com

N ote: Page references in this announcement refer to the full forma ed Annual Financial Report for the period ended 31 December 2018 that can be found on the Company's website. Certain charts cannot be reproduced for the RNS format and can also be seen in the PDF version of this document available on the Company's website.

COMPANY FACTS

-London Stock Exchange trading code: INPP.L

-Member of the FTSE 250 and FTSEAll-Share indices

-£2.3 billion market capitalisation at 31 December 2018

-1,484 million shares in issue at 31 December 2018

-Eligible for ISA/PEPs and SIPPs

-Guernsey incorporated company

-International Public Partnerships ('the Company', 'INPP') shares are excluded from the Financial Conduct Authority's ('FCA') restrictions,

which apply to non-mainstream investment products, and can be recommended by independent financial advisers to their clients

COVER IMAGE:

Dudgeon Offshore Transmission Project ('OFTO') - photo credit to Equinor, photographer - Jan Arne Wold. The image illustrates the Company's Dudgeon offshore substation, which was acquired in November 2018. The project's transmission cables link between the onshore and offshore substations.

FULL-YEAR FINANCIAL HIGHLIGHTS

We aim to provide our investors with long-term,inflation-linked returns, by growing our dividend and creating the potential for capital appreciation.

We expect to achieve this through responsible investment in public infrastructure, which meets societal and environmental needs, both now, and into the future.

Our investments are chosen with the intention of creating robust and long-term investment cash flows.

DIVIDENDS

7.00p - 2018 full-year dividend1per share

7.18p - 2019 full-year dividend target2per share 7.36p - 2020 full-year dividend target2per share c.2.5% - Average annual dividend increase21.2x - Cash dividend covered3

NET ASSET VALUE ('NAV') 4

£2.2bn - NAV at 31 December 2018 (2017: £2.0bn)

148.1p - NAV per share at 31 December 20184(2017: 145.0p) 7.9% - Increase in NAV

2.1% - Increase in NAV per share

PORTFOLIO ACTIVITY

c.£105m - Cash investments and commitments made during 2018

TOTAL SHAREHOLDER RETURN ('TSR')

171.8% - TSR since inception5

8.6%p.a. - Annualised Total Shareholder Return since inception5

PROFIT

£138.1m - Profit before tax (2017: £106.4m)

1The forecast date for payment of the dividend relating to the six months to 31 December 2018 is 10 June 2019.

2Future profit projection and dividends cannot be guaranteed. Projections are based on current estimates and may vary in future.

3 Cash dividend payments to investors are paid from net operating cash flow before capital activity as detailed on pages 24-25.

4 The methodology used to determine the NAV is described in detail on pages 26-33.

5 Since inception November 2006. Source: Bloomberg. Share price plus dividends assumed to be reinvested.

COMPANY OVERVIEW

CONSISTENT AND GROWING RETURNS

INPP Dividend Payments

[Diagram can be found in PDF version of this document on the Company's website].

Annualised Total Shareholder Return since inception of 8.6% p.a.1

Since listing, INPP has grown from £300m market capitalisation to £2.3bn (December 2018)

Annual dividend growth has averaged 2.5% since inception2

High degree of inflation linkage

LOW RISK AND DIVERSIFIED PORTFOLIO

Sector Breakdown

Energy Transmission	22%
Transport	21%
Education	19%
Gas Distribution	12%
Waste Water	11%
Health	4%
Courts	3%
Military Housing	3%
Other	5%

130 investments in infrastructure projects and businesses across a variety of sectors

Geographic Split

U.K.71%

Australia

10%

Belgium	10%
U.S.	3%
Germany	3%
Canada	2%
Ireland	1%
Italy	<1%

Invested in selected global regions that meet INPP's specific risk and return requirements

Investment Type
I nvestments with third party senior	91%
debt
I nvestments with no third party senior	9%
debt4
Invested across the capital structure, taking into account appropriate risks to returns
Mode of Acquisition/Asset Status
Construction	11%
Operational	89%
Early Stage Investor5	70%
Later Stage Investor6	30%

Early stage investment gives first mover advantage maximises capital growth opportunities

Project Ownership
100%	49%
50%-100%	7%
<50%	44%

Preference to hold majority positions/control or an alternative position of influence e.g. board representation

Investment Life
<20 years	48%
20-30 years	26%
>30 years	26%
Weighted average portfolio life of 35 years7

International Public Partnerships invests in high-quality infrastructure projects and businesses that are resilient over the long-term

HIGHLY PREDICTABLE PORTFOLIO PERFORMANCE

Projected Investment Receipts3

[Diagram can be found in PDF version of this document on the Company's website].

Note:This chart is not intended to provide any future profit forecast. Cash flows shown are projections based on the current individual asset financial models and may vary in the future. Only investments committed as at 31 December 2018 included.

Long-dated, contractual, predictable cash flows

Revenue streams from regulated or government backed counterparties

Investments focused on high-quality, OECD countries

STRONG STEWARDSHIP

-Experienced independent Board and strong corporate governance

-The Company's Investment Adviser, Amber Infrastructure ('Amber'), is a leading originator, asset and fund manager

-The Investment Adviser has one of the largest independent teams in the sector with over 120 employees working internationally managing our assets

-We have along-standing relationship - the Investment Adviser has managed the Company's assets since our inception in 2006

-The Investment Adviser has a strong track record of originating and developing opportunities for new investment

-The Investment Adviser's active management approach to underlying asset investments supports sustainable performance

-We aim to integrate ESG considerations throughout the investment lifecycle

Relationship with the Investment Adviser

[Diagram can be found in PDF version of this document on the Company's website].

1. Since inception November 2006. Source: Bloomberg. Share price plus dividends assumed to be reinvested.

2.Future dividends cannot be guaranteed. Projections based on current estimates and may vary in the future.

3.There are many factors that may influence the actual achievement oflong-term cash flows to the Company. These include both internal as well as external factors and investors should not treat the chart above as being more than an indicative profile and not a projection, estimate or profit forecast. The actual achieved profile will almost certainly be different and may be higher or lower than indicated.

4.Investments where the Company holds the Risk Capital and the senior debt or the senior debt has been repaid.

5.'Early Stage Investor' - asset developed or originated by the Investment Adviser or predecessor team in primary or early phase investments.

6.'Later stage investor' - asset acquired from a third party investor in the secondary market.

7.Includesnon-concession entities which have potentially a perpetual life but assumed to have finite lives for this illustration.

TOP 10 INVESTMENTS

International Public Partnerships' ('INPP's'), ('the Company's') top ten investments by fair value at 31 December 2018 are summarised below. A complete listing of the Company's investments can be found in note 21 of the financial statements, with further information available on the

Company's website (www.internationalpublicpartnerships.com).1

					% investment	% investment
			Status at	% holding at		fair value
					fair value 31
Name of			31 December	31 December	December	31 December
Investment	Location	Sector	2018	2018	2018	2017
Cadent	Va ri ous , Uni ted	Ga s	Opera ti ona l	4% Ri s k	12.4%	14.0%
	Ki ngdom	Di s tri buti on		Ca pi ta l

Ca dent owns four of the U.K.'s ei ght regi ona l ga s di s tri buti on networks ('GDNs ') a nd i n a ggrega te provi des ga s to

a pproxi ma tel y 11 mi l l i on cons umers . It i s expected tha t INPP wi l l a cqui re a n a ddi ti ona l 3% of Ca dent from Na ti ona l Gri d i n June 2019.

Tideway	London, Uni ted	Wa s te Wa ter Under	16% Ri s k	10.6%	10.8%
	Ki ngdom	Cons tructi on	Ca pi ta l

Ti dewa y i s a £4.2 bi l l i on i nves tment a nd rel a tes to the des i gn, bui l d a nd opera ti on of a 25km 's uper-s ewer' under the Ri ver Tha mes .

Diabolo Rail LinkBrus s el s , Tra ns port Opera ti ona l 100% Ri s k 10.0%10.0%

Bel gi um	Ca pi ta l

Di a bol o Ra i l l i nk i ntegra tes Brus s el s Ai rport wi th the na ti ona l ra i l network a l l owi ng pa s s engers to a cces s hi gh-s peed tra i ns , s uch a s Ams terda m-Brus s el s -Pa ri s a nd NS Hi s peed tra i ns .

Lincs Offshore	Li ncol ns hi re,	Energy	Opera ti ona l	100% Ri s k	9.0%	9.0%
Transmission	Uni ted	Tra ns mi s s i on		Ca pi ta l
	Ki ngdom

The project connects the 270MW Li ncs offs hore wi ndfa rm, l oca ted 8km off the ea s t coa s t of Engl a nd, to the na ti ona l gri d. The tra ns mi s s i on ca bl es compri s e the ons hore a nd offs hore s ubs ta ti ons a nd under-s ea ca bl es , 100km i n l ength.

Ormonde	Cumbri a ,	Energy	Opera ti ona l	100% Ri s k	6.2%	6.5%
Offshore	Uni ted	Tra ns mi s s i on		Ca pi ta l a nd
Transmission				100% s eni or
	Ki ngdom

debt

The project connects 132kV Ormonde offs hore wi ndfa rm, l oca ted 10km off the Cumbri a n coa s t, to the na ti ona l gri d. The tra ns mi s s i on a s s ets compri s e the ons hore a nd offs hore s ubs ta ti ons a nd under-s ea ca bl es , 41km i n l ength.

Reliance Rail	Sydney,	Tra ns port	Opera ti ona l	33% Ri s k	4.3%	4.4%
	Aus tra l i a			Ca pi ta l

Rel i a nce Ra i l i s res pons i bl e for fi na nci ng, des i gni ng, ma nufa cturi ng a nd ongoi ng ma i ntena nce of 78 next-genera ti on, el ectri fi ed, 'Wa ra ta h' tra i n s ets s ervi ng Sydney i n New South Wa l es , Aus tra l i a .

Angel Trains	Va ri ous , Uni ted Tra ns port	Opera ti ona l	5% Ri s k	3.5%	3.4%
	Ki ngdom		Ca pi ta l

Angel Tra i ns i s a rol l i ng s tock l ea s i ng compa ny a s s et ba s e compri s i ng over 4,400 vehi cl es . Angel tra i ns ha s i nves ted over £5 bi l l i on i n new rol l i ng s tock a nd refurbi s hment s i nce 1994, a nd i s the s econd l a rges t pri va te i nves tor i n the

i ndus try a fter Network Ra i l .

U.S. Military	Va ri ous , Uni ted	Mi l i ta ry	Opera ti ona l	100% Ri s k	3.1%	3.0%
Housing2	Sta tes	Hous i ng		Ca pi ta l

Two tra nches of mezza ni ne debt underpi nned by s ecuri ty over s even opera ti ona l PPP mi l i ta ry hous i ng projects , rel a ti ng to a tota l of 19 opera ti ona l mi l i ta ry ba s es i n the U.S. a nd compri s i ng c.21,800 i ndi vi dua l hous i ng uni ts .

Dudgeon	North Norfol k,	Energy	Opera ti ona l	100% Ri s k	2.2%	N/A
Offshore	Uni ted	Tra ns mi s s i on		Ca pi ta l
Transmission	Ki ngdom

The project connects the 402MW Dudgeon offs hore wi ndfa rm, l oca ted 32km off the coa s t of Cromer i n North Norfol k, to the na ti ona l gri d. The tra ns mi s s i on a s s et compri s e the ons hore a nd offs hore s ubs ta ti ons a nd under-s ea ca bl es , 89km i n l ength.

BeNEX RailVa ri ous ,Tra ns port Opera ti ona l49% Ri s k2.0%2.0%

Germa ny	Ca pi ta l

BeNEX l ea s es rol l i ng s tock to tra i n opera ti ng compa ni es . It hol ds s ha res i n s i x ra i l compa ni es a nd one bus compa ny, provi di ng tra ns port s ervi ces of c.39 mi l l i on tra i n km a nd c.9 mi l l i on km by roa d.

1.Risk Capital includes both project level equity and subordinated shareholder debt.

2.Includes two tranches of investment into U.S. military housing.

Significant movements in the Group's portfolio for the year ended 31 December 2018 can be found on page 15 of the Strategic Report.

CHAIRMAN'S LETTER

Dear Shareholders,

In this, my first letter as your Chairman, I am pleased to report another year of successful performance across the Company's investment portfolio. Our strong financial returns mean that the Company has again met its target full-year dividend of 7.00 pence per share (2017: 6.82 pence per share), representing an annualised increase of 2.6%. This is in line with our well-established,long-term expectations for annual dividend growth of approximately 2.5%. This helps bring our total shareholder return to 171.8%, or 8.6% on an annualised basis since the Company's inception.

Owing to the robustness and forward-visibility of the cash flows generated by the underlying assets in which the Company invests, the Board has reaffirmed its dividend target for 2019 of 7.18 pence per share and has provided additional guidance of 7.36 pence per share for the year ending 31 December 2020. We maintain our strong inflation linkage, such that for a 1.00% sustained increase in the assumed inflation rate, the Company would expect to generate a 0.82% increase in portfolio return.

The Investment Adviser's active approach to asset management and origination of new investment opportunities has helped to realise the