(Alliance News) - Cordiant Digital Infrastructure Ltd on Thursday said demand for digital infrastructure continues to be sound as it reported net asset value growth.

The investor in data centres, telecommunications towers, and fibre networks in the UK, Europe and North America said net asset value per share rose 6.0% to 120.15 pence as at March 31, when its financial year ended, from 113.36p a year prior.

Total return was 9.3% in financial 2024, lower than 10% in financial 2023.

Cordiant said its performance was strong despite the backdrop of inflation "and central bank interest rates not seen in many years."

It added: "The portfolio companies were able to benefit from significant levels of inflation protection through a combination of contractual revenue escalators, pass-through costs and hedging policies. Active management of long-term contracts also provided opportunities to renegotiate contractual terms with a number of customers. Together, these provided an offset to the adverse effects of inflation and interest rates on costs."

The company declared a final dividend of 2.0p per share, bringing the total to 4.2p, up 5.0% from 4.0p a year prior.

Looking ahead, Chair Shonaid Jemmett-Page said: "We are seeing the demand for digital infrastructure continue unabated, a trend that we expect to be maintained, particularly with the pace of evolution of AI. Interest rates now appear to be to be on a downward trajectory in our key geographies and, more broadly, Poland, the Czech Republic and Ireland are all forecast to outperform the EU's overall economic growth rate in 2024. The underlying strengths of the company and our portfolio, the growth in the sector and the attractiveness of our core markets together lead the Board to look forward to the year ahead with confidence."

Cordiant shares closed 6.9% higher at 77.60 pence each on Thursday in London.

By Tom Budszus, Alliance News slot editor

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