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Infratil earnings rise on aged care gains

NZ NewswireNZ Newswire 17/05/2016 Paul McBeth

Infratil has lifted annual underlying earnings by 2.5 per cent as its aged care investments delivered bigger contributions and says it is still looking for assets to buy.

Underlying earnings from continuing operations before interest, tax, depreciation, amortisation and financial derivative movements (ebitdaf) rose to $462.1 million in the 12 months to the end of March from $450.87m a year earlier, it said.

The bulk of that came from Infratil's controlling stake in electricity generator Trustpower, while its retirement village investments, NZ Bus, and Wellington International Airport units all delivered increased earnings.

Infratil affirmed 2017 earnings guidance of between $475m-$515m.

"Last year saw satisfactory creation of value for Infratil's shareholders and a great deal of preparation for future investment," chairman Mark Tume and chief executive Marko Bogoievski said in the annual report.

"We would have liked the $728.6 million on deposit with our banks to have been deployed to more productive investments, but this is an environment that will reward patience and discipline."

Infratil has up to $1 billion to spend on new investments after selling its 20 per cent stake in Z Energy last year.

It was unsuccessful in its bid for renewable electricity firm Pacific Hydro.

Last month the firm told investors it's looking at Australian and New Zealand technology prospects to build on its existing portfolio, and has committed $US25m to California-based Envision Ventures Fund.

The board declared a final dividend of 9 cents per share which takes the annual dividend to 14.25 cents, up from 12.5 cents a year earlier.

Net profit, which includes gains on the sale of assets and unrealised movements in the value of its portfolio, rose to $495.5m from $466.3m.

The shares last traded at $3.31, and have increased 1.1 per cent this year.

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