3i Infrastructure

3i Infrastructure Dividend Analysis and Summary

• Type: Interim dividend
• Amount: 6.725 pence per share (FY25 interim: 6.325p)
• Ex-dividend date: 20/11/2025
• Record date: 21/11/2025
• Payment date: 12/01/2026
• Tax designation: 5.83p of the 6.725p to be treated as an interest distribution (UK tax)
• Cash cost (aggregate): ~£62m based on 922.4m shares
• FY26 dividend target: 13.45p per share, a 6.3% increase vs FY25; interim is explicitly “half” of target
• Covers and support:
  • H1 total income: £115m vs interim cash outflow ~£62m ? income cover ~1.85x
  • H1 total income + non-income cash: £121m ? cash cover ~1.95x
  • Company states FY26 dividend expected to be fully covered by net income
• Contextual yield (on NAV): FY26 target 13.45p vs NAV per share 407.9p implies ~3.3% NAV yield (market-price yield will differ)

• Coverage: Strong interim coverage (1.85x on income; 1.95x including non-income cash) and management guidance for full coverage in FY26 underpin dividend safety.
• Earnings/cash generation: H1 total income rose to £115m (from £98m), with total income and non-income cash at £121m (+18% YoY), comfortably supporting the ~£62m interim payment.
• Portfolio performance: H1 total return of 7.4% on opening NAV; NAV per share up to 407.9p. Broad-based earnings growth, with standout contribution from TCR, supports ongoing cash distributions.
• Balance sheet and liquidity: £556m liquidity (cash + undrawn RCF), RCF drawings £350m; no material refinancing in portfolio until 2029, and >94% of portfolio debt fixed/hedged — all supportive of stable distributions.
• Cost base: Ongoing charges ratio 1.51%; no performance fee accrual in H1 (though prior-year instalments continue to be paid), modestly easing pressure on distributable cash.
• Growth trajectory: Target dividend up 6.3% YoY to 13.45p; portfolio exposed to inflation-linked and defensive revenue streams, aiding real dividend sustainability over time.