John Laing Infrastructure Fund Reports Portfolio Value Increase

LONDON (Alliance News) - John Laing Infrastructure Fund Ltd Wednesday reported a 1.2% increase in the value of its portfolio over the first six months of the year.

JLIF partners with public-sector counterparties across the world to deliver local and national infrastructure projects. In return, these provide government-backed, inflation-linked revenue streams to the business.

In a statement, the FTSE 250 listed infrastructure fund said its portfolio value increased by GBP9.4 million to GBP805.2 million in the six months ended June 30. The portfolio realised real underlying growth of 4.95% after taking into account acquisitions made during the period, distributions received and exchange rate movements, the fund said. This equates to over 10% on a compounded annual basis. JLIF said the growth is due to the majority of its projects performing well.

Reporting a pretax profit of GBP27.3 million for the six months ended June 30, up from GBP22.1 million in the corresponding period last year, JLIF said it will pay a 3.250 pence per share interim dividend for the period, up from 3.125p.

"As we continue to develop our existing portfolio, I am pleased to report that the existing projects are performing strongly, and we have been able to deliver several value enhancements in the period," Chairman Paul Lester said in a statement.

Pester also said the fund is continuing to develop its pipeline of potential acquisitions, but wants to maintain a disciplined approach to further investment as the priority remains on ensuring long-term sustainable returns. According to Pester, JLIF has "declined or ceased bidding" for a number of opportunities this year, because it doesn't want to compromise on its strict pricing discipline.

"As demand for assets exceeds supply, prices in the UK have continued to rise. While our approach may reduce the speed of the company's growth, we are confident that acquiring assets at good value rather than hunting for volume remains in the best interest of JLIF's shareholders in the long term," Pester said.

Nevertheless, Pester is confident about the fund's prospects, with higher prices in the UK meaning JLIF can focus on opportunities further afield.

"We are optimistic about new opportunities coming to market in the short to medium term, as we take further steps to build our overseas presence in Continental Europe, Australia and the United States of America," Lester said.

JLIF shares were Wednesday morning quoted flat at 119.41 pence.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright 2014 Alliance News Limited. All Rights Reserved.