HICL Infrastructure on track to deliver targeted dividends

Infrastructure assets investor HICL Infrastructure said on Monday that it remains on track to deliver its target dividend of 8.25p per share for the year ending 31 March 2023.

Despite "heightened market uncertainty" linked to macroeconomic instability and geopolitical events in Europe, HICL said the market for core infrastructure investment remained "resilient", with a positive outlook, underpinned by key defensive attributes of its asset class, including inflation-linked returns and low correlation to wider asset markets.

"Higher than expected inflation rates have benefitted the portfolio, with the manager estimating that, all other things being equal, inflation will contribute an increase in net asset value per share of between 3.0 and 3.6p to the 30 September 2022 valuation," said HICL.

HICL also added that historically, more challenging macro-economic environments had provided the opportunity for "nimble and well capitalised companies, such as HICL", to execute their acquisition strategies effectively.

As of 0855 BST, HICL shares were up 0.087% at 173.55p.

Reporting by Iain Gilbert at Sharecast.com