(Alliance News) - 3i Infrastructure PLC on Tuesday said it is planning to increase its dividend payout for next year after its portfolio met annual expectation targets.
3i Infrastructure posted a net asset value total return of 9.2% for the year ended March 31, in line with its return target of between 8% and 10% per year.
"This is the seventh consecutive year that we have met or exceeded our medium-term return target; and we have increased the dividend per share in every year of the company's existence," the infrastructure investor noted.
3i's net asset value per share increased to 268.1 pence at the end of March from 254.5p a year before.
Jersey-headquartered 3i recommended a final dividend for the year of 4.9p per share, up from 4.6p in 2020. This would take the total dividend for the year to 9.8p per share, 6.5% above last year's total.
Looking ahead, the total dividend target for the 2022 financial year is 10.45p per share, representing an increase of 6.6% year-on-year.
Shares in 3i were down 1.1% at 294.00p in London on Tuesday morning.
3i Infrastructure posted a full-year pretax profit of GBP206 million, down 8% from the GBP224 million seen in the previous year.
Chair Richard Laing commented: "The past year has seen significant volatility in both equity and credit markets and in oil and power prices. In this environment, the infrastructure sector has performed relatively well, demonstrating its value as an asset class.
"We remain confident in our business model. We have strong liquidity to take advantage of investment opportunities as economies start to recover as well as to continue to support and grow our portfolio companies."
FTSE 100-listed 3i Group PLC holds a 30% stake in 3i Infrastructure. 3i Investments PLC, a wholly-owned subsidiary of 3i Group PLC, acts as the investment manager to 3i Infrastructure.
By Will Paige; willpaige@alliancenews.com
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