International PPL performing in line with expectations
Updated : 07:45
Public infrastructure projects investor International Public Partnerships issued an update for the period from 1 July to 15 November on Wednesday, with the company saying its portfolio of 126 investments was performing fully in line with expectations.
The FTSE 250 firm had reported an increase in net asset value per share to 138.2p at its 2016 interim results for the six months to 30 June.
On Wednesday, it said inflation linkage in the portfolio remained strong, with a 1.00% increase in inflation leading to a 0.71% increase in return.
A first half dividend of 3.325p per share was declared on 1 September and was paid on 3 November, the board confirmed, and a minimum target dividend for the 2016 and 2017 financial years had been set at 6.65p and 6.82p per share respectively.
Those amounts were in line with the average increase of 2.5% or greater each year;
International PPL said an additional £133m of investments were made during the period, including £33.9m in relation to its commitment to the Thames Tideway Tunnel.
It said it has an attractive pipeline of investment opportunities across the UK, Northern Europe, Australia and North America, and will continue to deploy capital to meet its existing investment commitment to the Thames Tideway Tunnel project.
The company has delivered a total shareholder return, comprising share price growth and aggregate dividends, since IPO in November 2006 pof 153.96%, or 9.76% on an annualised basis.
“We have been encouraged by the continued strong performance of the company's portfolio, as the demand for private investment in public infrastructure across the UK and the overseas developed markets where we have interests remains high,” said chairman Rupert Dorey.
“As a result, we remain confident in the pipeline of suitable infrastructure and utility projects currently under review and will continue to use our primary origination capability to uphold the long-dated, low-risk and inflation-linked characteristics that make up the company's investment case.”