(Alliance News) - 3i Infrastructure PLC on Thursday said it is on track to beat its total return objective and meet its dividend target following a third quarter during which it made over GBP580 million in realisations.
For the year to the end of March, the infrastructure investor expects its annual total return to exceed the 8% and 10% target range.
It also expects to propose a 9.20 per share dividend, in line with its aim, and 6.4% higher than 8.65p the year before.
For the three-month period to December 31, portfolio income was 46% higher at GBP38 million from GBP26 million the year before.
Following a series of realisations, 3i Infrastructure said its September pro-forma net asset value per share increased by 5.9% to 253.0 pence from 239.0p. The new figure is an adjustment to include estimated proceeds from a series of disposals the company completed in December, rather than being a new NAV.
3i Infrastructure sold its 93% holding in Wireless Infrastructure Group to Brookfield Infrastructure. The GBP387 million price compares to a valuation of GBP291 million at September 30.
The company earlier in December said it will net GBP194 million after selling some UK assets following a review.
The assets being sold consisted of stakes in Ayrshire College in Elgin, which has 16 project investments, Mersey Gateway bridge, the Octagon hospital, the West of Duddon Sands offshore transmission project, and an interest in Dalmore Capital Fund.
3i Infrastructure Managing Partner Phil White said: "Our recent divestments have delivered exceptional returns for our shareholders. The portfolio overall continues to perform in line with expectations and deliver a good level of income. We are working on a broad range of potential investment opportunities, seeking to invest in businesses that enhance the company's portfolio, while continuing to manage liquidity carefully."
Shares in the company were 1.6% higher at 313.84 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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3i Infrastructure (3IN)