Digital 9 Infrastructure adjusted gross asset value hits £1.3bn

Investment company Digital 9 Infrastructure said on Wednesday that pro-forma adjusted gross asset values had hit £1.3bn as of 30 September 2022 amid growth in consolidated investee company underlying earnings.

Digital 9 stated consolidated investee company revenue came in at about £418.0m, while consolidated investee company underlying earnings of approximately £221.0m exceeded expectations by roughly 10%.

The FTSE 250-listed group highlighted that its diversified portfolio of eight "high-quality data centre, subsea fibre, and wireless network assets" which make up its investee companies, had performed "strongly" during the period.

Digital 9 added that it was targeting an aggregate dividend of 6.0p per ordinary share for the year ended 31 December, and said it currently has approximately £74.0m of cash available and £43.8m remaining undrawn on its £375.0m revolving credit facility, excluding an accordion tranche of up to £125.0m.

Chairman Phil Jordan said: "Since IPO, the company has selectively acquired high-quality businesses with an established market presence in data centres, subsea fibre, and wireless networks. These form a diversified and integrated portfolio now well-placed to grow organically.

"The business performance and our latest forecasts demonstrate the strength of our portfolio's revenues and profitability. The majority of D9's portfolio comprises capital intensive businesses, underpinned by an exponential demand for data, and the growth opportunities for each can be supported by a visible pipeline of investment which is already part-funded by the group. Through our active asset management approach, we expect these investments to deliver both income and capital growth which will underpin our 10% total return target and 6 pence per share dividend per annum target."

As of 0855 GMT, Digital 9 shares were up 0.56% at 89.10p.

Reporting by Iain Gilbert at Sharecast.com