HICL Infrastructure delivers 'solid operational performance'

4th Mar 2024 10:05

(Sharecast News) - Investment company HICL Infrastructure said on Monday that it had delivered a "solid operational performance" over the five months ended 29 February.

HICL said its performance had demonstrated "the resilient nature" of its underlying assets and had put it on track to deliver its target dividend of 8.25p per share for the financial year to 31 March, with cash generation in line with expectations.

The London-listed company noted that its net asset value and valuation approach continues to be well-informed by transaction data points, including its own disposal activity which now spans over £500.0m of assets, across sectors and geographies, all realised at or above their carrying values.

HICL added that the market for high-quality core infrastructure assets remained "in good health", with increasing transaction volumes noted in the period, which continues to "reaffirm market liquidity and the observed disconnect" between public market and private investor valuations for inflation-correlated core infrastructure.

Chairman Mike Bane said: "HICL's high quality portfolio continues to demonstrate its resilience amidst broader macro volatility, supported by significantly accretive asset rotation announced in the period. Effective capital allocation remains crucial, and the board has deployed disposal proceeds to reduce the balance on the company's revolving credit facility, make a highly accretive incremental investment and launch a share buyback programme."

As of 1000 GMT, HICL shares were up 1.02% at 125.06p.

Reporting by Iain Gilbert at Sharecast.com