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(Alliance News) - BBGI Global Infrastructure SA on Friday said its portfolio generated cash flows in line with expectations, as the company experienced no financial damage from the pandemic in the first-half of 2021.
Formerly known as BBGI SICA, the Luxembourg-based company invests in infrastructure in the UK, North America, Australia and Europe.
Net asset value per share was 147.8 pence as at June 30, up from 137.8 pence at December 31, following acquisitions in affordable housing, education and transport sectors.
It acquired 100 affordable housing units and two public leisure facilities in the London Borough of Tower Hamlets in late April. BBGI said that the purchase price was confidential but in the range of GBP20 million to GBP30 million.
The company highlighted that its preservation of NAV per share was despite "absorbing the impact" of corporate tax increase in the UK from 19% to 25%, effective from April 2023.
At 30 June, BBGI said it had a net cash position of GBP6.3 million with GBP25 million cash borrowings outstanding which were fully repaid in August.
Addressing its cash flow, the company said: "The portfolio has a steady stream of cash flows deriving from the company's underlying assets until 2051. The cash flows are stable and long-term, with their predictability enhanced by government or government-backed counterparties and their contracted nature.
"The investment made over the period contributed positively to both stable cash flows and the weighted average length of the portfolio. Based on current estimates and assuming no further investments, the existing portfolio is forecast to enter the repayment phase in 2035, after which cash inflows from the portfolio will be paid to the company's shareholders as capital."
Meanwhile, the FTSE 250-listed company reaffirmed its dividend target of 7.33 pence per share for 2021 and 7.48p per share for 2022, as well as added a new dividend target for 2023 of 7.63p. The addition sits 2023 in its rolling 2% annual dividend increase target.
"The pipeline for availability-based transactions remains strong within the company's target markets," said co-Chief Executive's Duncan Ball and Frank Schramm. "These factors combined should allow the company to maintain long-term, predictable, and stable income to our shareholders, and non-financial returns to the communities our assets serve."
Shares in BBGI were up 0.7% at 175.00p in London on Friday.
By Josie O'Brien; josieobrien@alliancenews.com
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