3i shares were up 0.6% to 1,243.5p in early morning trading on Tuesday, after the company reported a 17.2% return for 2022.
The positive result exceeded the group’s 8-10% per year goal for the eighth consecutive year, which the company highlighted as “demonstrating the attractiveness of [its] portfolio.”
The investment firm announced a FY2022 dividend of 10.45p, alongside a 6.7% increase in its target dividend for FY2023 to 11.15p per share.
“I am delighted to report that we achieved a return of 17.2% in the year ended 31 March 2022, well ahead of our target and demonstrating the attractiveness of our portfolio,” said 3i Infrastructure chair Richard Lang.
“This is the eighth consecutive year that we have met or exceeded our return target; and we have increased the dividend per share in every year of the Company’s existence.”
3i Infrastructure reported that its portfolio consistently met or exceeded target returns, and noted a £404 million total return for the year, along with a 303.3p NAV per share.
The group confirmed £980 million in new investments or commitments and highlighted its positive realisation of Oystercatcher’s European terminals and the European Projects portfolio, with a 14% and 20% IRR, respectively.
3i Infrastructure said it successfully completed the sale of Oystercatcher’s four European terminals in October 2021, resulting in a distribution of €55 million to the firm after the repayment of Oystercatcher’s debt facilities.
The company sold its European Projects portfolio to 3i European Operational Projects Fund for £103 million, with the transaction scheduled to close by June 2022.
3i Infrastructure said its outlook for the future was positive, with the company in a position to grow on the back of selective investments and asset sales which could generate strong shareholder returns.
“It was a very good year for the Company – a high level of new investment, excellent realisations, and a strong portfolio performance,” said 3i Infrastructure managing partner Phil White.