3i Infrastructure posts strong NAV growth

3i Infrastructure reported on a year of strong portfolio performance on Thursday, with a 14% total return on net asset value in the year to 31 March.

The FTSE 250 firm’s net asset value at year-end was £1.28bn, or 161p per share, after a £150m special dividend payment to shareholders last July.

Its strategy of diversifying the portfolio also saw a total of £193m invested or committed during the 12 months, and it was now committed to invest a further £75m in Wireless Group, €200m in TCR and €5m in the Hart van Zuid project since year end.

Total income during the year was £64m, with the company saying it made good progress in building portfolio income after selling Eversholt Rail in April 2015.

The board also achieved its dividend target for the year, with total dividends of 7.25p per share.

During the year, 3i renewed its revolving credit facility, increasing its size from £200m to £300m. Cash balanced at year-end were £50m, with £277m undrawn from the facility.

“3i Infrastructure provides its shareholders with a differentiated investment proposition,” said company chairman Richard Laing.

“The infrastructure market continues to offer attractive investment opportunities, as demonstrated by the new investments completed by the Company.”

Managing partners and co-heads of infrastructure, Ben Loomes and Phil White, also issues a joint statement saying the portfolio continued to perform well, underpinning strong net asset value growth and portfolio income progression in line with objectives.

“This performance builds on the strong long-term performance of the company, which has delivered an annualised total shareholder return of 11.3% since its IPO in 2007.

“We were pleased to have made a number of new investments during the year, demonstrating our ability to access attractive opportunities within the company's target markets,” they explained.

Loomes and White said the investments further diversified the company’s portfolio, with the group being well-positioned for the future.

Looking at the current financial year, 3i Infrastructure said it was aiming for total dividends of 7.55p, a 4% increase in 2016.

It also announced an open offer, placing and intermediaries offer to raise up to £350m from existing and new shareholders, with an ability to issue up to an additional £130m on a non-preemptive basis, based on demand and the investment pipeline.