3i Infrastructure’s results for the 12 months ended 31 March 2025 are out [an impressively short timeframe for getting this done] and they are good. The NAV return was 10.1% and the dividend target for the new year has been increased by 6.3% to 13.45p. The only drawback was a widening of the discount, which resulted in a return to shareholders of 1.3%.

The statement highlights four significant transactions during the period:

• August 2024 – Investment of a further £30m in Future Biogas to acquire majority control of a portfolio of six AD plants [the deal it did with FGEN]
• September 2024 – Syndication of 23% stake in Future Biogas to RWE Energy Transition Investments
• January 2025 – Sale of Valorem for £257m
• January 2025 – Investment of a further £20m to fund DNS:NET’s fibre roll-out programme

The sale of the trust’s 33% stake in Valorem realised a gross IRR of 21% and made it 3.6x its money. An analysis of how this was achieved offers an insight into 3i Infrastructure’s hands on investment approach.

• Increased the share of EBITDA under long-term contracts to enhance cash flow visibility.
• 4x EBITDA growth, driven by scaling the platform and retaining developed assets.
• Shifted the model to retain ownership of projects, building long-term value.
• 5.4x growth in generation capacity – now over 850MW in wind, solar and hydro across Europe.
• Development pipeline expanded 10x from 650MW to 6.6GW, including new partnerships in Poland and Sweden.
• Broadened technology and geography, diversifying from French onshore wind into solar and hydro, with presence in Finland, Greece and beyond.
• Commissioned the Viiatti Wind Project in Finland – this 313MW project supplies 1.2% of Finland’s annual electricity.
• Introduced battery storage to optimise power delivery and grid support.

3IN : 3i Infrastructure has another good year despite widening discount