HICL Infrastructure confident ahead of financial year-end

Investment vehicle HICL Infrastructure reported an updated net asset value of 165.8p as at 31 December on Friday, representing a 1.5p increase from the prior quarter.

The FTSE 250 firm put the increase down to actual inflation rates and deposit rates, as well as adjustments to asset-specific discount rates.

HICL also reported progress in its recently-signed acquisitions, including the completion of Fortysouth1 and the advancement of consents for Texas Nevada Transmission.

The company said it had an exclusive pipeline of more than £300m in high-quality investment opportunities.

HICL said its public-private partnership (PPP) portfolio had performed well since the beginning of October, with availability-based and inflation-linked revenues providing a strong foundation.

Traffic across demand-based assets was also in line with forecasts.

The firm said it remained on track to deliver its target dividend of 8.25p per share for the financial year ending 31 March.

Looking ahead, HICL said its defensive positioning through its low beta and peer-leading inflation correlation provided resilience and protected its portfolio value.

It added that its pipeline was “compelling”, with opportunities in traditional and modern economy sectors across the UK, Europe, and North America.

“HICL's portfolio continued to perform well in the period, with positive inflation correlation underpinning further net asset value growth,” said chair Mike Bane.

“Disciplined completion of transactions and successful integration of recent acquisitions into the portfolio remain the key focus for the board and [investment manager] InfraRed.”

At 1015 GMT, shares in HICL Infrastructure were up 0.2% at 157.92p.

Reporting by Josh White for Sharecast.com.