The Infratil Ltd (ASX: IFT) share price is slipping today, down 0.3% in morning trade as the wider S&P/ASX 200 Index (ASX: XJO) is down 1.7%.
Below we take a look at the infrastructure investment company's full year results for the year ended 31 March.
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What full year results did Infratil report?
Infratil's share price is slipping despite the company reporting an increase in proportionate earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDAF).
Proportionate EBITDAF from continuing operations climbed to NZ$398.8 million (AU$369.3 million) for the year, up from NZ$370.2 million from the previous year.
(Proportionate EBITDAF shows Infratil's operating costs and its share of the EBITDAF of the companies it has invested in. It excludes discontinued operations and management incentive fees.)
Infratil said that COVID had negatively impacted its Wellington Airport and Vodafone New Zealand assets. But this was mitigated by 25% growth in its CDC Data Centres earnings.
Unrealised energy derivative losses at Trustpower and increased management incentive fees drove Infratil's share of the net loss for the year to NZ$49.2 million. The company said this reflects valuation increases not recognised for accounting purposes.
Acquisitions and investments
Over the full year Infratil and its portfolio businesses invested NZ$250 million in digital infrastructure and technology, NZ$590 million in renewable energy, and NZ$310 million for the acquisition of 56.25% of Australian based Qscan Group to initiate a new diagnostic imaging platform.
Following the acquisition of Qscan, Infratil announced it had also entered into an unconditional agreement to acquire 53.5–58.5% of Pacific Radiology. The cost will be in the range of NZ$312–344 million.
Commenting on the acquisitions, Infratil CEO Jason Boyes said:
[The acquisitions] create a meaningful Australasian healthcare platform with a number of potential synergies and adjacent opportunities. The purchases also confirm our continuing confidence in thematics which are driving our capital allocation in communications and digital infrastructure, decarbonisation, and aging populations.
Infratil reported it will have net cash of more than NZ$1 billion for investment following the acquisition of Pacific Radiology and receipt of the Tilt Renewables Ltd (ASX: TLT) sale proceeds.
Returns and dividends
Infratil reported "total shareholder return for the year was 91.9%, comprising 4.3% after tax dividend return and 87.6% capital gain, including the rights issue".
The company has declared a final dividend of 11.5 NZ cents per share. That's up 4.5% from the previous year.
Infratil said it will provide full details of its potential new offer of unsecured, unsubordinated fixed rate Infrastructure bonds at the end of May.
Looking ahead, the company's guidance for the year ending 31 March 2022 is for a proportionate EBITDAF of NZ$470–520 million. That figure excludes Tilt Renewables and Pacific Radiology.
Infratil share price snapshot
Over the past 12 months, Infratil shares have gained 53%, outpacing the 25% gains posted by the ASX 200.
Year-to-date the Infratil share price has slipped, down 5% so far in 2021.
