3i Infrastructure PLC (LSE:3IN) reported first-half returns that exceeded expectations on Tuesday, driven by robust performance from its largest holding, TCR, which helped push the stock higher.
The firm indicated it is on track to surpass its target return for the period ending September 29 and to achieve its full-year dividend goal of 13.45p, fully covered by net income.
In a pre-close update, management highlighted that the company “maintains a disciplined approach to pricing despite an active asset pipeline.” Proceeds from the next asset sale are earmarked to reduce part of its £900 million revolving credit facility, of which £360 million is currently drawn.
3i Infrastructure also reported a cash balance of £13 million and total income and non-income cash of £122 million, representing an 18% increase compared with the same period last year.
TCR exceeded the projections set in March 2025, benefiting from higher rental margins and cost efficiencies. Infinis also outperformed expectations, supported by progress in its development pipeline.
FLAG reported strong demand for subsea fibre connectivity, driven by hyperscaler growth and AI workloads, while ESVAGT maintained a solid pipeline despite vessel delivery delays caused by shipyard operational issues. Management noted that recovery for SRL “remains slow.”
“A strong headline from 3IN with the company ahead of guidance for H1, whilst also indicating a further realisation is expected. We continue to expect strong demand for 3IN assets and therefore expect a good premium on any realisation,“ said analysts at RBC Capital Markets in a note.
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