As Bilfinger is set to divest of its concession business comprising most of its PFI/PPP projects, there will be limited opportunities for the trust to acquire future projects from the group going forward.
In the trust's annual results to 31 December, BBGI reported a 103.89% increase in NAV on an investment basis, from £220.34m to £449.25m.
NAV per share was 105.6p, representing a 2.04% increase on the prior year with a total dividend distribution of 5.5p over the year (2.75p paid in October and 2.75p paid in December).
Premium to NAV
The portfolio's market cap increased by 118% from £230.8m to £502.2m over the year, including two capital raises totalling £230m, in order to fund acquisitions. Shares were yielding 4.6% and trading at a premium to NAV of 11.8% at the year end.
Chairman David Richardson said he remained encouraged by the outlook. While 2014 would be a year for consolidating existing acquisitions, current market conditions were "challenging" for further growth at a sensible cost.
Numis Securities said the trust, which primarily invested in social infrastructure and road projects, had cash balances of £126.3m, of which £106m was earmarked for acquisitions awaiting completion. The remainder would be used for the next dividend distribution.
Numis said: "Once all of the pipeline assets have been acquired, BBGI will have the largest proportion of assets in construction and outside of the UK among the listed PFI Infrastructure funds. The current share price of 117.6p represents a premium of 11.3% to the NAV at 31 December 2013; the highest premium amongst the peer group."
