3i Infrastructure (3IN) announced its annual results for the period ended 31 March 2024. The company delivered a 11.4% NAV total return for the year, and a total shareholder return of 8.1%, marginally behind that of the benchmark index which returned 8.7% in the same period. Since the IPO, the company’s annualised total shareholder return is 11.5%, comparing favourably with the broader market’s 6.3% annualised over the same period. The discount was 3.8% at the time of publishing. The company also announced a 6.7% increase in the target dividend for FY 2025.
Discussing the results, chair Richard Laing commented;
“After further interest rate increases at the start of the financial year, there are signs that the interest rate curve may be stabilising. Our portfolio companies are well financed, and the company has remained disciplined in its investment approach and balance sheet management. We expect to repay drawings on the company’s revolving credit facility through realisation of assets over time, as we did during the year following the sale of Attero.
“Our portfolio consists of resilient businesses providing essential services to their customers and the communities they serve, aligned with long-term megatrends. We continue to see accretive growth opportunities through our existing platform investments and are prioritising these over adding new companies to the portfolio. We remain well positioned to continue our strong performance.”
Managing Partners Scott Moseley and Bernardo Sottomayor added;
“We have carefully constructed our portfolio to feature companies that are supported by long-term growth trends. We believe the quality and defensive characteristics of the portfolio will enable it to deliver attractive returns throughout the economic cycle. This was the case through the recent period of high inflation, energy prices and interest rates and before that, during Covid. We have a clear strategy to deliver long-term sustainable returns through focusing on earnings growth and accretive capital investment largely funded by our portfolio companies’ own resources. This approach, combined with the scarcity value of our assets, means we are confident about the 3iN portfolio’s potential for continued value creation.”
3IN : Another strong year for 3IN as shares head toward premium