3i Infrastructure delivers 2020 dividend, increases target for 2021
3i Infrastructure announced an 11.4% return for the year, delivery of its 2020 dividend of 9.2p, and a 6.5% increase in its target dividend for 2021 to 9.8p on Thursday.
The FTSE 250 company said its total return for the year was £224m, as its net asset value per share at year-end on 31 March stood at 254.5p.
It highlighted its new, £186m investment in Ionisos, which the board said further diversified the fportfolio, while it brought in gross proceeds of £581m from WIG and the UK projects portfolio.
The board said it had a “strong” cash position of £418m amid an uncertain market.
“The company continued to outperform its objectives and made two major realisations in the year as well as a new investment in Ionisos,” said chair Richard Laing.
!Covid-19 will affect all businesses but the portfolio is so far proving resilient, reflecting the essential nature of the services delivered.
“The strength of our portfolio and liquidity position gives us the confidence to set a target dividend of 9.8p per share for the 2021 financial year, an increase of 6.5%.”
Phil White, managing partner of infrastructure at 3i Investments, said the firm delivered a return “well ahead” of its target of 8% to 10% per annum over the medium term.
“We have a well-diversified portfolio of defensive asset-intensive businesses delivering essential services.
“These are unprecedented conditions but the performance of our portfolio has been reassuring and we continue to believe that it is well positioned to meet our targets.”
At 1131 BST, shares in 3i Infrastructure were up 3.95% at 263p.