Infratil (IFT) investor relations material

Strategic Direction and Portfolio Evolution

• The portfolio spans energy, data centers, communications, and healthcare, with $22b in assets and 73% allocated to AI infrastructure.

• Refined focus on scaled growth engines in data centers (CDC) and renewables (Longroad), supported by divestments of non-core assets and a more balanced operating cash flow, with NZD 600 million divested and another NZD 1 billion planned.

• Strategy targets cashflow generators, mature and future growth platforms, and dynamic capital allocation, aiming for 11–15% annual returns over 10 years, with a historical track record of 18% per annum over 32 years.

• Emphasis on leveraging adjacencies, such as integrating power and data centers, and exploring joint ventures to accelerate growth and capitalize on infrastructure scarcity.

• Board tracks KPIs including shareholder return, valuation, risk management, and portfolio composition, with ongoing thematic focus on long-term societal needs and disciplined capital allocation.

AI Infrastructure and Market Trends

• Surging global AI demand is driving rapid data center capacity growth, with global demand projected to rise 2.7x by 2030.

• Supply constraints in chips, power, and approvals are supporting value for incumbent platforms, with power and grid connectivity as key bottlenecks.

• AI infrastructure represents the strongest opportunity, with $16b of portfolio value and significant scarcity supporting economics.

• Attractive returns are seen across the AI infrastructure value chain, with project-level levered returns ranging from 12% to 25%.

• CDC’s differentiation lies in security, adaptability, sustainability (net zero across all scopes), and long-term customer relationships, with 0% churn over 20 years.

Data Centres (CDC and Kao Data)

• CDC has over 1.1 GW of contracted capacity, underpinning over half its valuation and expected to deliver A$2.2b EBITDAF when fully deployed.

• CDC’s FY27 EBITDAF guidance upgraded to NZD 710–750 million (A$710m–$750m), with FY28 expected to exceed NZD 1 billion and annualized EBITDA of NZD 2.2 billion by March 2029.

• 555MW contract signed with a US hyperscale customer in May 2026, with 70MW of new capacity in development.

• Over 90% of CDC’s CapEx is allocated to contracted capacity, with a weighted average lease expiry of 28.7 years and 90% of revenue from investment-grade customers; Baa2 credit rating.

• Capital expenditure is ramping, with $3.8–$4.2b planned for FY27, and funding is diversified with nearly $5b in available liquidity.