3i Infrastructure (3IN)

[idpickering]

Q3 Performance update

Highlights

· New investment commitments of c.£850m:

- On 17 November 2021, 3i Infrastructure agreed to invest c.£376 million to acquire 100% of Global Cloud Xchange ('GCX'). GCX is a leading global data communications service provider and owns one of the world's largest private subsea fibre optic networks

- On 3 December 2021, the Company agreed to acquire the 50% stake in ESVAGT owned by its co-investor AMP Capital for c.£258 million. 3i Infrastructure will hold 100% of the equity in ESVAGT upon completion which is expected to take place on 1 February 2022

- On 14 December 2021, 3i Infrastructure completed the c.£191 million acquisition of a 92% stake in SRL Traffic Systems ('SRL'), the market leading traffic management equipment rental company in the UK

- On 16 December 2021, the Company agreed to invest a further c.£21 million into Valorem through a capital increase to fund its growth, raising the Company's stake in Valorem to c.33%

· Successful realisation of Oystercatcher's four European terminals: On 29 October 2021, the Company completed the sale of its 45% stakes in four European liquid storage terminals for proceeds of c.€55 million after debt repayment. 3i Infrastructure continues to hold a 45% stake in Oiltanking Singapore

· Portfolio performing well against the expectations we set in September 2021

· Income as expected in the Period: Total income and non-income cash was in line with expectations at £26 million. This compares with £24 million of income and non-income cash received in the same period last year

· On-track to meet FY22 dividend target of 10.45 pence per share, a year-on-year increase of 6.6%

https://www.investegate.co.uk/3i-infras ... 00042272A/

[Dod101]

I have held this company for some time and am very pleased with it I must say. It just quietly gets on with its business and recycles its assets as I would expect, taking profits along the way, and it never/seldom asks shareholders for additional funds.

Dod

[idpickering]

I have held this company for some time and am very pleased with it I must say. It just quietly gets on with its business and recycles its assets as I would expect, taking profits along the way, and it never/seldom asks shareholders for additional funds.

Dod

Thanks for your input Dod. I knew you hold these, and last year, whilst trawling for likely buys in the sector, I did have a look at them. What put me off was the fairly low dividend yield on offer(2.82% according to HL( https://www.hl.co.uk/shares/shares-sear ... lc-ord-npv) . Then again, we both hold Unilever, although the yield on offer from them (ULVR) is higher than the norm for them currently. I do like the wide variety of areas they (3IN) do business globally though. Hmm....

Ian.

[Dod101]

I have held this company for some time and am very pleased with it I must say. It just quietly gets on with its business and recycles its assets as I would expect, taking profits along the way, and it never/seldom asks shareholders for additional funds.

Dod

Thanks for your input Dod. I knew you hold these, and last year, whilst trawling for likely buys in the sector, I did have a look at them. What put me off was the fairly low dividend yield on offer(2.82% according to HL( https://www.hl.co.uk/shares/shares-sear ... lc-ord-npv) . Then again, we both hold Unilever, although the yield on offer from them (ULVR) is higher than the norm for them currently. I do like the wide variety of areas they (3IN) do business globally though. Hmm....

Ian.

Well I am happy to trade a higher yield for a good business. This IT does not specialise in one particular area either by business or geography and that is another thing I like about it.

I bought at £2.45 in April 2020 and by 31 December that year it was £3.08 and at the end of last year £3.71. It has come off a bit since then and is now about £3.50, but that record plus the dividend yield is good enough for me.

Dod

[idpickering]

Well I am happy to trade a higher yield for a good business. This IT does not specialise in one particular area either by business or geography and that is another thing I like about it.

I bought at £2.45 in April 2020 and by 31 December that year it was £3.08 and at the end of last year £3.71. It has come off a bit since then and is now about £3.50, but that record plus the dividend yield is good enough for me.

Dod

Thanks for coming back on this Dod. I do get where you're coming from. I shall mull a potential buy of 3IN in the future maybe?

Ian.

[monabri]

I noticed that the domicile was Jersey (ISIN JE00BF5FX167) , which might be a consideration if held within a non-ISA (or SIPP) account when it comes to reporting to HMRC.

Hargreaves Lansdowne reports that 3IN is currently on a premium of 20% to it's underlying Net Asset Valuation which I'd guesstimate was over twice the 10 year average (by eyeball!)

source: https://www.hl.co.uk/shares/shares-sear ... are-charts



It has traded at an even higher premium. The premium increases might have been driven by investors looking for (hopefully) reliable income through Covid early days.

It is listed on the Association of Investment Companies (AIC)...(which lists the premium as nearer to 21%)

https://www.theaic.co.uk/companydata/0P00008Y8H


In terms of the dividend history, the significance of Capital returns needs to be considered.

data sourced from the AIC website https://www.theaic.co.uk/companydata/0P ... /dividends

[Dod101]

It is not an Investment Trust I see. Most infrastructure companies trade at a premium to NAV and so there is nothing unusual about that, but this might not be the best entry point for a new investor.

I am a bit puzzled though about why monabri tells us that the significance of capital returns needs to be considered. That is a welcome change from many infrastructure companies where they keep coming to shareholders for more capital!

Dod

[monabri]

It is not an Investment Trust I see. Most infrastructure companies trade at a premium to NAV and so there is nothing unusual about that, but this might not be the best entry point for a new investor.

I am a bit puzzled though about why monabri tells us that the significance of capital returns needs to be considered. That is a welcome change from many infrastructure companies where they keep coming to shareholders for more capital!

Dod

I deliberately steered clear of using the IT nomenclature...saying it was listed on the AIC website. I flagged up the domicile and the premium and I agree that now might not be a best entry point.

With regard to dividends, I listed out the dividends but split the table into "income" and "capital" (could this return of capital be another consideration for non ISA holders?). I take your point on infrastructure companies coming to investors "cap in hand" and I think this has been discussed elsewhere. The other point, doling out, what appear to me as " specials" in the form of capital payments leads to a lower dividend in the next few years. Of course one can redeploy the capital returned however one desires but there will be a cost element.

Was that 41.4p capital controlling the premium (in early 2018 the premium went to a discount) and if so, could another be on the cards?

source https://www.hl.co.uk/shares/shares-sear ... are-charts

[Dod101]

With regard to dividends, I listed out the dividends but split the table into "income" and "capital" (could this return of capital be another consideration for non ISA holders?). I take your point on infrastructure companies coming to investors "cap in hand" and I think this has been discussed elsewhere. The other point, doling out, what appear to me as " specials" in the form of capital payments leads to a lower dividend in the next few years. Of course one can redeploy the capital returned however one desires but there will be a cost element.

Was that 41.4p capital controlling the premium (in early 2018 the premium went to a discount) and if so, could another be on the cards?

Thanks. I do not know about the history of capital returns as I have held it only since April 2020. It will be interesting to see what if anything they do about the premium. Issuing more shares would be the usual way of trying to control a premium, that is an excessive demand for the shares but we'll see. On their website they seem more concerned about the shares trading at a discount as they specifically mention that they would consider buying in their own shares were that to be the case, but nothing on managing a premium.

Dod

[monabri]

With regard to dividends, I listed out the dividends but split the table into "income" and "capital" (could this return of capital be another consideration for non ISA holders?). I take your point on infrastructure companies coming to investors "cap in hand" and I think this has been discussed elsewhere. The other point, doling out, what appear to me as " specials" in the form of capital payments leads to a lower dividend in the next few years. Of course one can redeploy the capital returned however one desires but there will be a cost element.

Was that 41.4p capital controlling the premium (in early 2018 the premium went to a discount) and if so, could another be on the cards?

Thanks. I do not know about the history of capital returns as I have held it only since April 2020. It will be interesting to see what if anything they do about the premium. Issuing more shares would be the usual way of trying to control a premium, that is an excessive demand for the shares but we'll see. On their website they seem more concerned about the shares trading at a discount as they specifically mention that they would consider buying in their own shares were that to be the case, but nothing on managing a premium.

Dod

Out of interest, I had a shufty at the 2018 Annual report, Page 23. They refer to the 41.4p as a "special"

https://www.3i-infrastructure.com/media ... elease.pdf

"On 21 February 2018, the Company announced that it would return £425 million to shareholders by way of a special dividend of 41.4 pence per share, to enable shareholders to participate directly in the exceptional value generated bythe sale of Elenia and AWG. The Company also announced a 15 for 19 share consolidation.....to neutralise the impact of the payment of the special dividend on the share price".


Elenia is a Finnish distributor of electrical energy
AWG Anglian Water Group

[Dod101]

Wunderbar. Very good indeed. I hope they might do something similar at 31 March 2022. For the calendar year 2021 they appear to have cleared 20% plus the dividend of around 2.85 giving a TSR of about 23%. Assuming they do not fall at the last couple of hurdles that should produce a good return for the year to 31 March 2022.

I do not mind but all I am saying is that for me this has been a good investment, better than many that are touted like the wind farm investments.

Dod

[Arborbridge]

I have held this company for some time and am very pleased with it I must say. It just quietly gets on with its business and recycles its assets as I would expect, taking profits along the way, and it never/seldom asks shareholders for additional funds.

Dod

Thanks for your input Dod. I knew you hold these, and last year, whilst trawling for likely buys in the sector, I did have a look at them. What put me off was the fairly low dividend yield on offer(2.82% according to HL( https://www.hl.co.uk/shares/shares-sear ... lc-ord-npv) . Then again, we both hold Unilever, although the yield on offer from them (ULVR) is higher than the norm for them currently. I do like the wide variety of areas they (3IN) do business globally though. Hmm....

Ian.

I haven't checked the yield lately, but it has been non-hypable for some time now. Not that it is a bad company - quite the opposite - but if one is trying to run a HYP, or perhaps show that the HYP principle works, then one should walk on by.

I do own shares in it, but in my basket of ITs , which is obviously not run to HYP guidelines. (It's listed in the AIC which makes it fair game for my IT basket in my view)

Arb.

[idpickering]

I have held this company for some time and am very pleased with it I must say. It just quietly gets on with its business and recycles its assets as I would expect, taking profits along the way, and it never/seldom asks shareholders for additional funds.

Dod

Thanks for your input Dod. I knew you hold these, and last year, whilst trawling for likely buys in the sector, I did have a look at them. What put me off was the fairly low dividend yield on offer(2.82% according to HL( https://www.hl.co.uk/shares/shares-sear ... lc-ord-npv) . Then again, we both hold Unilever, although the yield on offer from them (ULVR) is higher than the norm for them currently. I do like the wide variety of areas they (3IN) do business globally though. Hmm....

Ian.

I haven't checked the yield lately, but it has been non-hypable for some time now. Not that it is a bad company - quite the opposite - but if one is trying to run a HYP, or perhaps show that the HYP principle works, then one should walk on by.

I do own shares in it, but in my basket of ITs , which is obviously not run to HYP guidelines. (It's listed in the AIC which makes it fair game for my IT basket in my view)

Arb.

Thanks for your input Arb. Although I said further up this thread that I was toying with buying these, maybe, I certainly wouldn't currently as they're not all that cheap imho. One to keep an eye on for a cheaper entry point in the future perhaps though methinks?

Ian.

[Dod101]

I have held this company for some time and am very pleased with it I must say. It just quietly gets on with its business and recycles its assets as I would expect, taking profits along the way, and it never/seldom asks shareholders for additional funds.

Dod

Thanks for your input Dod. I knew you hold these, and last year, whilst trawling for likely buys in the sector, I did have a look at them. What put me off was the fairly low dividend yield on offer(2.82% according to HL( https://www.hl.co.uk/shares/shares-sear ... lc-ord-npv) . Then again, we both hold Unilever, although the yield on offer from them (ULVR) is higher than the norm for them currently. I do like the wide variety of areas they (3IN) do business globally though. Hmm....

Ian.

I haven't checked the yield lately, but it has been non-hypable for some time now. Not that it is a bad company - quite the opposite - but if one is trying to run a HYP, or perhaps show that the HYP principle works, then one should walk on by.

I do own shares in it, but in my basket of ITs , which is obviously not run to HYP guidelines. (It's listed in the AIC which makes it fair game for my IT basket in my view)

Arb.

What has HYP got to do with it? This is the Company Shares Board. This company gave me a total return of about 25% last year, a trailing yield of around 2.7% and the rest from capital growth. That is attractive to me. For devotees of the HYP every share has to be measured against the requirements for a HYP?

Dod

[idpickering]

Pre-close update.

Highlights

· Strong level of investment in new platforms and existing portfolio companies:

- On 17 November 2021, 3i Infrastructure agreed to invest c.$512 million to acquire 100% of Global Cloud Xchange ('GCX'). GCX is a leading global data communications service provider and owns one of the world's largest private subsea fibre optic networks. Additional acquisition debt was raised in March 2022, reducing the Company's equity commitment to c.£300 million. The transaction is due to complete in Summer 2022

- On 14 December 2021, 3i Infrastructure completed the c.£191 million acquisition of a 92% stake in SRL Traffic Systems ('SRL'), the market leading traffic management equipment rental company in the UK

- On 16 December 2021, the Company invested a further c.£21 million into Valorem through a capital increase to fund its growth, raising the Company's stake in Valorem to c.33%

- On 1 February 2022, 3i Infrastructure completed a further £258 million investment in ESVAGT, the market leader in service operation vessels for the offshore wind industry, doubling its equity stake to 100%

- On 14 February 2022, the Company invested a further £33 million in DNS:NET to fund the next step of its fibre roll-out, increasing 3i Infrastructure's stake in DNS:NET to 64%

· Successful realisation of Oystercatcher's four European terminals: On 29 October 2021, the Company completed the sale of its 45% stakes in four European liquid storage terminals for proceeds of c.€55 million after debt repayment. 3i Infrastructure continues to hold a 45% stake in Oiltanking Singapore.

· Sale of the European projects portfolio: On 29 March 2022, the Company agreed to sell its European projects portfolio to 3i European Operational Projects Fund ('3i EOPF') for c.£100 million. This transaction is expected to reach completion by June 2022.

· Portfolio performing strongly: The portfolio overall has delivered strong operational and financial performance over the Period, in most cases ahead of the expectations we set in September 2021.

· Income as expected in the Period: Total income and non-income cash was in line with expectations at £86 million in the Period. This compares with £69 million of income and non-income cash received in the same period last year.

· On-track to meet the FY22 dividend target of 10.45 pence per share, a year-on-year increase of 6.6%. The dividend is expected to be fully covered.

· Efficient balance sheet: In January 2022, 3i Infrastructure obtained an additional one-year credit facility of £400 million from existing lenders. As a result, the Company's aggregate credit facilities total £1 billion, giving ample liquidity to fund existing commitments and bid for new investment opportunities.

https://www.investegate.co.uk/3i-infras ... 01016790G/

[idpickering]

New leadership of 3i's Infrastructure business.

3i Group plc ("3i" or "3i Group") today announces a change to the leadership of its Infrastructure team.

After eight years leading our Infrastructure team, Phil White, Managing Partner, has decided to step down from the role with effect from 1 July 2022. Phil will remain with 3i on a part time basis, as Vice Chair of Infrastructure and as a member of the Group's Investment Committee.

Scott Moseley and Bernardo Sottomayor will be appointed Managing Partners and Co-Heads of European Infrastructure, and will join 3i Group's Executive and Investment Committees, effective 1 July 2022. They will work closely alongside Rob Collins, Managing Partner, who heads our North American Infrastructure team.

Scott joined 3i in 2007 and became a Partner in 2012, and is currently Co-Head of Economic Infrastructure, Europe. He has led a number of our most successful Infrastructure investments including Elenia, Tampnet, ESVAGT and XLT.

Bernardo Sottomayor joined 3i as a Partner in 2015 and alongside Scott is currently Co-Head of Economic Infrastructure, Europe. During his time at 3i, Bernardo has taken a leading role across a number of important Infrastructure investments including Joulz, TCR, Attero and ESP.

Simon Borrows, 3i's Chief Executive said:

"I would like to thank Phil for his excellent contribution since he joined 3i in 2007, and for his exceptional leadership of the Infrastructure team over the last eight years. In that time Infrastructure has performed extremely well and has generated consistently strong returns for 3iN and its shareholders (including 3i Group) and for the investors in the other Infrastructure funds we manage. I am pleased that we will continue to benefit from Phil's experience."

https://www.investegate.co.uk/3i-group- ... 00066748G/

[idpickering]

Results for the year to 31 March 2022.

3i Infrastructure plc (the 'Company') today announces a 17.2% return for the year, delivery of the FY22 dividend of 10.45 pence and a 6.7% increase in the target dividend for FY23 to 11.15 pence per share.

Richard Laing, Chair of 3i Infrastructure plc, said:

"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. 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 ."

And later;

The Company proposes paying a final dividend of 5.225 pence per share (2021: 4.9 pence) which will be payable to those shareholders that are on the register on 17 June 2022. On the basis of the shares in issue at year end, this would equate to a total final dividend of £47 million (2021: £44 million).

The final dividend is subject to approval by shareholders at the AGM in July 2022 and has therefore not been accrued in these Financial statements

https://www.investegate.co.uk/3i-infras ... 00048589K/

[Dod101]

Results for the year to 31 March 2022.

3i Infrastructure plc (the 'Company') today announces a 17.2% return for the year, delivery of the FY22 dividend of 10.45 pence and a 6.7% increase in the target dividend for FY23 to 11.15 pence per share.

Richard Laing, Chair of 3i Infrastructure plc, said:

"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. 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 ."

And later;

The Company proposes paying a final dividend of 5.225 pence per share (2021: 4.9 pence) which will be payable to those shareholders that are on the register on 17 June 2022. On the basis of the shares in issue at year end, this would equate to a total final dividend of £47 million (2021: £44 million).

The final dividend is subject to approval by shareholders at the AGM in July 2022 and has therefore not been accrued in these Financial statements

https://www.investegate.co.uk/3i-infras ... 00048589K/

Very good results amid all the doom and gloom from yesterday's stock market. Dividend payable 11 July and the current year's target is up by 6.7%. Even in days of high inflation that is good. I like the well spread selection of assets that they hold and feel that it is good for all seasons.

Dod

[pje16]

(Alliance News) - 3i Infrastructure PLC on Wednesday said it has signed an agreement to offload 17% of its stake in rescue and response vessel company Esvagt to 3i Aura.

3i Aura is a new 3i Investments-managed company. It is funded by three institutional investors.
3i Infrastructure's holding in Esvagt will decrease from 100% to 83%, for total consideration of GBP89.9 million.
3i Infrastructure said that the proceeds obtained will be deployed to repay part of the company's outstanding RCF balance.
Following completion, 3i Investments will continue to manage 100% of Esvagt.

Phil White, managing partner and head of infrastructure at 3i Investments said: "This transaction helps 3i Infrastructure to maintain a balanced portfolio and provides useful additional liquidity. "
Shares in 3i Infrastructure were up 0.1% at 351.99 pence each in London on Wednesday afternoon.

Source
https://www.ii.co.uk/secure/my-news-fee ... 9088196600
login required

[idpickering]

Q1 performance update.

Highlights

· Portfolio performing strongly: Our portfolio companies have continued to perform in line with or ahead of expectations set at March 2022. The essential nature of the services provided by 3iN's portfolio companies ensures an element of pricing power that we expect to underpin a positive correlation between inflation and total portfolio value. 3iN's portfolio companies are also part-funded with debt that is not inflation-linked, often fixed at attractive long-term rates.

· Further investment in TCR : On 14 June 2022, 3iN announced that it had agreed to acquire the stake in TCR owned by funds managed by DWS for c.£334 million. This will result in 3iN increasing its holding from c. 48% to c. 96% of the equity in TCR, alongside management. Completion is subject to certain third party consents and is expected to take place in the final quarter of 2022.

· Extension of credit facilities: On 6 July 2022, the Company restructured and extended its existing Revolving Credit Facility ('RCF') to £900 million maturing in November 2024, comprising a base facility of £600 million and commitments under an accordion facility of £300 million.

· Income as expected in the Period: Total income and non-income cash was in line with expectations at £36 million in the Period. This compares with £22 million of income and non-income cash received in the same period last year.

· Final FY22 dividend payment and FY23 target: Payment of the final dividend for FY22 of 5.225 pence per share is due to be made on 11 July 2022. The Company is on track to deliver the FY23 dividend target of 11.15 pence per share, up 6.7% from FY22.

· Net asset value ('NAV'): The reported NAV of the Company at 31 March 2022, adjusted for the final dividend for FY22, is 298.1 pence per share. The TCR acquisition announced in the Period implies an increase in NAV of c.4 pence per share from aligning the value of the existing stake in TCR as reported at 31 March 2022.

https://www.investegate.co.uk/3i-infras ... 00075832R/

Ian.