3i Infrastructure reported a total return of £166m for the six months to 30 September, down from £258m in the same period last year, as the London-listed infrastructure investor confirmed it remains on track to meet its 8% to 10% target return for the year.
The Jersey-incorporated investment trust, which acquires and manages infrastructure businesses across Europe and North America, said total return on opening net asset value (NAV) was 4.5% for the half, against 7.4% a year earlier.
NAV rose to £3,841m at 30 September, up from £3,737m at 31 March, with NAV per share climbing to 416.4p from 405.2p.
Total income and non-income cash reached £195m, up from £121m in the prior-year period, a rise the company said was driven in part by a £92m non-income cash distribution from portfolio company Joulz.
The board declared an interim dividend of 7.15p per share, up from 6.725p a year earlier, payable on 11 January to shareholders on the register on 27 November.
The company reiterated it remains on track to deliver its FY27 dividend target of 14.30p per share, a 6.3% increase on FY26's total, and said the payout is expected to be fully covered by net income.
"We have a high-quality, diversified portfolio aligned with a range of supportive long-term megatrends, which continues to deliver strong earnings growth," said Richard Laing, chair of 3i Infrastructure, adding the company has "up to £1.2 billion of available liquidity" to support portfolio growth and new investment.
The half followed the completion in June of the sale of TCR, which generated roughly €1.1bn in proceeds at a money multiple of about 3.5x and a gross annual internal rate of return of roughly 19%, proceeds that were used to repay the group's revolving credit facility in full.
That repayment transformed the balance sheet: borrowings fell from £535m at 31 March to zero at 30 September, while cash balances rose to £269m from £4m.
The company also completed its investment in the Lefdal Mine Datacenter platform in August, adding digital infrastructure exposure, and in October portfolio company Future Biogas acquired the remaining 49% of six gas-to-grid anaerobic digestion plants from Foresight Environmental Infrastructure, with 3i Infrastructure investing £96m to part-fund the deal.
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Within the portfolio, Infinis performed ahead of expectations, while ESVAGT benefited from strong vessel utilisation and day rates, though construction delays on three service operation vessels are expected to affect its 2026 earnings.
Ionisos saw slower-than-expected demand growth despite bringing its new Henriville X-ray facility into operation, and SRL performed in line with expectations but the company said it remains cautious given continued weakness in the core hire market.
The ongoing charges ratio fell to 1.32% for the period from 1.51% a year earlier, with the investment manager's fee down to £46.1m from £50.8m.
The company's annual general meeting, held on 2 July, saw all resolutions approved, and Andrew Sykes joined the board on 23 July as chair designate, set to succeed Laing as chair from 1 January 2027.