Portfolio performance drives growth at 3i Infrastructure

Investment company 3i Infrastructure reported “good” portfolio performance in its first half on Thursday, which it said drove growth in net asset value.

The FTSE 250 firm reported a 7.1% total return on its opening net asset value for the six months to 30 September, with a total return of £121m for the period ahead of the 8% to 10% annual return target for the medium term.

Its net asset value was £1.82bn at period end, up from £1.74bn at the end of March, with the board confirming its net asset value per share stood at 177p.

“The company has had a good first half of the year, with a total return ahead of target,” commented chairman Richard Laing.

The company claimed “strong” growth in income as well, which was said to have been driven by new investments made in the prior financial year.

Total income stood at £48m in the period, with non-income cash of £33m also received for total income and non-income cash of £81m.

3i Infrastructure said it maintained an “efficient” balance sheet, with a low level of cash held over the period and a £10m cash balance at period end.

Its undrawn revolving credit facility balance was £379m, which the board described as a “good” level of liquidity for investment from its £500m total facility available, including a £200m accordion increase.

The board declared an interim dividend of 3.925p per share, to be distributed on 8 January, adding that it was on track to deliver the total dividend target of 7.85p per share for the 2018 financial year, which would represent growth of 4% year-on-year.

“Our investments have delivered strong NAV growth and income to the company, through our focus on engaged asset management,” commented Phil White, managing partner of infrastructure at 3i Investments.