3i Infrastructure posts positive NAV growth in first half

The FTSE 250 company published a total return of £73.8m for the half year, or 5.0% of opening NAV.

Its board claimed it was a good result in the context of its return target of 8% to 10% per annum, to be achieved over the medium term.

Four new investments were made during the period, for a total consideration of £287m, into WIG, TCR, Valorem and the Hart van Zuid PPP Project.

The board said these investments further diversify the portfolio and have used a substantial part of the capital raised in June 2016.

3i’s portfolio generated income of £35.5m during the period, in line with expectations, with non-income cash of £12.5m also received.

The firm’s revolving credit facility was extended to May 2019 during the period, and the accordion feature of the RCF was exercised and subsequently cancelled, utilising the company's flexible funding model.

The board declared that an interim dividend of 3.775p per share will be distributed on 9 January.

It said it was on track to deliver the full year target distribution of 7.55p per share, representing growth of over 4% on FY 2016.

“The company has had a productive first half,” said chairman Richard Laine.

“In a competitive market, we completed four new investments for a total consideration of £287m and executed a successful capital raise.”

Laing said the company's portfolio continued to deliver income in line with expectations.

“Supported by our outlook for the portfolio, including the new investments completed in the period, we remain on track to deliver a full year dividend for FY 2017 of 7.55p per share.”

Ben Loomes and Phil White, managing partners and co-heads of infrastructure at 3i Investments, noted that the portfolio performed well in the first half of FY17, with strong NAV growth and continuing good progression in portfolio income.

“We have successfully converted four of the opportunities that we had identified prior to raising equity, meaning that the majority of the equity issue proceeds have now been deployed.

“These investments will provide further income and diversification to the portfolio, and underscore our ability to secure attractive opportunities in this competitive market,” the pair explained.

“Whilst we continue to see a good flow of new investment opportunities, we remain disciplined and focused on maintaining a balanced and attractive portfolio for shareholders.”