Investment group 3i Infrastructure PLC (LON:3IN) said it had an 'outstanding' year, delivering a 28.6% increase in net asset value, largely due to its sale of stakes in Elenia and Anglian Water Group, its largest assets.
The firm generated a total return of £480mln in the year to end March, or an increase of over 28%, far exceeding the target of between 8% and 10% per annum to be achieved over the medium term.
READ: 3i Infrastructure sells stake in UK water company Anglian Water
Pre-tax profit came in at £479.6mln versus £146.3mln last year, while EPS (earnings per share) was 47.2p (2017:14.9p).
The firm also told investors it had delivered its targeted dividend for 2018 of 7.85p, while it plans to lift the divi for the full year 2019 by 10% to 8.65p.
In the year, it returned £425mln to shareholders as a special dividend, paid on March 29 this year.
The sale of the Elenia stake realised £738mln of gross profits, or a 4.5 times' return on investment, while Anglian Water Group made £399mln of gross profits - a 3.3 times' return on investment.
Following these sales, the firm said it now had greater exposure to economic and competitive market factors than previously and its portfolio was more balanced.
"Demand for infrastructure investment remains strong. In the current low interest rate and growth environment, investors are attracted by the perceived stability of infrastructure assets and the potential for higher yields on investment than achievable through holding cash," it added.
"Competition for new investments combined with the availability of debt finance for infrastructure investment on attractive terms has driven the price of infrastructure assets materially higher over recent years and therefore projected returns lower."
3i Infrastructure is focused on economic infrastructure and greenfield projects in developed economies, principally in Europe, which generate long-term yield and capital growth.