LONDON (Alliance News) - 3i Infrastructure PLC Thursday said its portfolio is performing in line with expectations, though it generated lower income in the first quarter of the infrastructure investment company's financial year.
Advised by 3i Investments PLC, which is part of FTSE 100 constituent 3i Group PLC, 3i Infrastructure is listed in its own right and forms part of the FTSE 250 index.
Portfolio income, which refers to dividends, interest receivable and any fees received from portfolio assets, between April 1 and June 30 fell to GBP14.0 million, compared with GBP19.5 million in the corresponding quarter of the prior year.
3i Infrastructure said it had expected lower portfolio income due to reduced interest receipts following the sale of Eversholt Rail in April and a lower dividend received from Anglian Water Group.
"The European portfolio continues to perform well," Chairman Peter Sedgwick said in a statement.
"Supported by our outlook for the European portfolio and significant realised capital profits, we remain on track to deliver a full year dividend for FY2016 of 7.25 pence per share and to grow this progressively beyond FY2016," Sedgwick said.
Representing investment adviser 3i Investments, Ben Loomes and Phil White reiterated that big demand for large European core infrastructure investments has been driving asset prices higher and projected returns lower.
"These conditions have had a positive impact on the valuation of the company's portfolio of large core investments, which were acquired in a more favourable prospective returns environment. Going forward, we are seeing more attractive risk-adjusted returns available from investments in the mid-market economic infrastructure and primary PPP project and low-risk energy sectors where we have been active," Loomes and White said in a statement.
"We continue to develop our investment pipeline in mid- market economic infrastructure and primary PPP and low-risk energy projects," Loomes and White said.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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