International Public Partnerships reports that, for the year ended 31 December 2016, it delivered overall NAV growth of 24.3% to GBP1.6 billion (partly on the back of a £200m fund raise during the year). NAV per share growth was 9.2% to 142.2 pence (2015: 130.2 pence). Its IFRS profits before tax rose by 119.4% to GBP175.3 million (2015: GBP79.9 million). They have increased the dividend to 6.65 pence per share from 6.45 pence per share and say that the company is on track for continued dividend growth in 2017 and 2018 (minimum target 2017 and 2018 full-year dividend of 6.82 and 7.00 pence per share, respectively with 1.2x cash dividend cover).
INPP committed to invest more than GBP489 million in 18 projects in 2016. All these new investments were in core infrastructure assets and are projected to enhance overall returns for shareholders. They say that there is a clear pipeline of new opportunities offering accretive returns for 2017 and beyond. In 2016, INPP deployed a record GBP209.9 million of investment and c.GBP280 million of investment commitments to seven new and eleven follow-on investments, including:
- GBP275 million agreed investment in National Grid’s gas distribution network;
- GBP70.2 million follow-on investment in the Thames Tideway Tunnel;
- GBP26.8 million investment in Westermost Rough offshore transmission project;
- GBP72.3 million investment to acquire interests in ten Building Schools for Future (“BSF”) projects;
- acquisition of an additional 72% in the Wolverhampton BSF concession;
- GBP5.1 million in the fifth and final batch of schools delivered under Priority Schools Building Aggregator Programme;
- Capitalising on unique primary access to the North American P3 market through the Investment Adviser’s joint venture, with a GBP24.6 million investment in the US military housing sector; and
- Further geographical diversification in low-risk, OECD countries with a GBP4.4 million commitment to invest in the 7.3km extension to the Gold Coast Light Rail PPP concession project in Queensland, Australia.
Rupert Dorey, Chairman of International Public Partnerships Limited, commented: “On the Company’s tenth anniversary, I am pleased to report another very successful year for our shareholders with continued dividend growth. This was also a record year for investment in which we invested or committed over GBP489 million into regulated and public infrastructure projects. As a result of our strong operational performance, the Company continues to deliver predictable, inflation-linked returns, helping generate a total shareholder return of 148.5% over the past decade.
The strength of the Company and its Investment Adviser’s experience and credibility has been proven in our ability to help originate multi-billion pound regulated infrastructure transactions, giving access to some of the most desirable assets in the market both under construction and in operation – including the Thames Tideway Tunnel and National Grid’s gas distribution network in the U.K.
We continue to work and invest within the core infrastructure sector where returns are predictable and growing, and where we believe that risks are mitigated through long term contracts and well established regulatory regimes. We continue to benefit from a measured approach to new investments and through the ability of our Investment Adviser to generate opportunities for the Company offering enhanced capital growth and also through maximising the use of the Company’s pre-emption rights over its existing portfolio. These factors make us confident in our ability to continue to procure a strong pipeline that will provide highly predictable and secure cash flows over the long term. The oversubscription of two capital raisings in 2016 also gives us confidence in the level of investor appetite for the Company’s investment strategy. We look forward to maintaining a track record of stable and growing returns to our investors.”
INPP : International Public Partnerships invested/committed £489m in 2016