16th Nov 2016 08:10
LONDON (Alliance News) - HICL Infrastructure Co Ltd on Wednesday said its net asset value per share has risen over its first half, though noted it continued to be tough to find value when seeking new investments.
The infrastructure investment company said its net asset value per share at September 30 was 145.70 pence, up 2.5% from 142.20p at the end of March. HICL said its total shareholder return fot he period was 10.4%, on an annualised basis, based on interim dividends and the uplift in net asset value per share.
HICL said the aggregate quarterly dividends declared for the first half were 3.82p per share, from 3.72p per share a year earlier. This puts it on track to achieve its dividend target of 7.65p per share, representing an increase of 2.7%, the group said.
Four investments were completed during the period, along with one follow-on investment, and a contract was signed for a further four new investments and two follow-on investments. HICL said this resulted in a combined total commitment of GBP102.5 million.
HICL said high demand for infrastructure investments has "positively impacted" the valuation of its existing portfolio, but noted it remains "challenging to secure new investment opportunities at attractive prices".
"Pricing discipline in the current environment remains vital and we are likely to see more cases in which investments are being bid on terms we consider unrealistic," the group said.
"The company's investment proposition - to deliver sustainable, long-term income to shareholders while preserving the capital value of its investment portfolio - remains as relevant and attractive as ever, particularly given the challenging macroeconomic conditions and market volatility in the UK," said Chairman Ian Russell.
"This was evidenced by the over-subscribed equity issue in September, which is testament to investors' confidence in the company's diversified portfolio and its ability to generate the stable, inflation-correlated cashflows that underpin future dividend payments," the chairman added.
Shares in HICL were up 0.4% at 168.20 pence on Wednesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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