BBGI Global Infrastructure reported portfolio performance and cash receipts ahead of its business plan in its annual results on Thursday, with its investment basis net asset value rising 6.7% in 2020 to end the year at £916m.
The FTSE 250 infrastructure investor, formerly known as BBGI SICAV, said its net asset value per share grew 1.2% in the 12 months ended 31 December to 137.8p, as its total shareholder return since listing reached 157.5%, making for an annualised total shareholder return of 11%.
Its board announced dividends per share of 7.18p for 2020, with cash dividend cover standing at 1.27x.
The firm’s target dividends for 2021 and 2022 were set at 7.33p and 7.48p, respectively, while its ongoing charges for 2020 were reported to have fallen to 0.86% from 0.88% in 2019.
BBGI reported a “consistently high” level of asset availability at over 99.8%, with no material lock-ups or defaults reported in the period, adding that it did not experience any material Covid-19-related operational or financial impacts either.
A combined £59.2m of new cash investments were made in six new and follow-on acquisitions in lower-risk availability-based healthcare, as well as road and bridge investments.
The board noted “strong support” for its investment case, after the oversubscribed equity issue in November, which raised gross proceeds of £55m.
At year-end, the group had a net cash position of £20.5m, with no cash borrowings outstanding under the revolving credit facility.
The company said it had an “attractive” pipeline of availability-based investments in highly-rated investment grade countries across Europe and North America.
“Over the year, our priority was to preserve the value of the company’s portfolio and continue providing essential infrastructure services to our public sector clients by maintaining a high level of asset availability,” said chair Sarah Whitney.
“This strong performance was again underpinned by the company’s proven business model of investing in low-risk, availability-based infrastructure in highly-rated investment grade countries.
“In practice, our value-driven active asset management approach enabled safe and secure working, learning and health environments, and fully functioning transport infrastructure and other facilities across the UK, North America, Australia and continental Europe.”
Whitney said cash receipts during the year were ahead of its business plan, and none of the company’s investments recorded a material lock-up or default.
She explained that any deductions over the period were either borne by third-party facility managers and road operators, or as part of planned lifecycle budgets.
“The fiscal commitment to infrastructure spending is likely to generate a medium-term pipeline of opportunities, and further affirms the inherent attractiveness of our asset class and the benefits of infrastructure investment allocation through the economic cycle.
“We have confidence in our ability to continue sourcing attractive acquisition opportunities thanks to the strength of the company’s relationships, our proven track record in value-driven active asset management, and the dedication of our people and partners.
“We are therefore confident in our ability to maintain a robust long-term, predictable and stable income derived from our diversified global portfolio of infrastructure investments.”
At 0934 GMT, shares in BBGI Global Infrastructure were down 0.13% at 167.57p.