Downing Renewables & Infrastructure Trust sees NAV assets increase

Downing Renewables & Infrastructure Trust sees NAV assets increase. Image: Getty Images.

Downing Renewables & Infrastructure Trust (DORE), who entered the solar market in 2021, has unveiled a net asset value (NAV) total return of 14.1% for a six-month period as it boosts its renewable portfolio.

This increase saw its NAV increase to £214 million, equal to 115.9 pence per ordinary share for a six-month period from 31 December 2021 to 30 June 2022. The firm stated this increase has been driven by accretive acquisitions, increased power prices and inflation.

The NAV increase builds on previous positive results with DORE having recorded an operating profit of investments 16.9% above expectations for the period from incorporation on 8 October 2020 to 31 December 2021.

According to the firm, wind and solar assets have both exceeded expectations and have been generated strong cash flows. In doing so, DORE could accelerate the deployment of solar assets in the UK at scale.

“We have continued to grow the portfolio through a series of strong acquisitions, all of which have been accretive to NAV due to operational and capital efficiencies achieved,” said Tom Williams, partner and head of energy and infrastructure at Downing.

“The assets have performed well overall and have generated strong cash flows, with solar and wind generation ahead of expectations.

“Diversification is key to ensuring stability of income across the portfolio and we are pleased to be progressing a significant pipeline of opportunities across different technologies and sectors, including wind, hydro, solar and utilities in lower price zone areas in Europe, with a view to deploying the remaining capital raised in June.”

The UK portfolio performed especially well with it generating 172GWh of renewable energy during the period. This is supporting the pursuit of net zero in the UK and providing low-cost energy for British households amid the energy crisis.

DORE completed its first UK investment with the acquisition of a portfolio of solar PV assets on 19 March 2021.

This portfolio consists of 13 ground-mounted sites located across mainland Great Britain totalling c.73MWp, 28 commercial rooftop assets totalling c.10MWp and seven residential rooftop portfolios in Northern Ireland totalling c.13MWp.

“We are delighted with what we have achieved in the first half of the year, both in terms of the performance of the assets and the quality of the acquisitions completed,” said Hugh Little, chair of Downing Renewables & Infrastructure Trust.

“In particular we are pleased to have introduced wind power to the portfolio, which further diversifies our energy generation in line with our investment strategy. The market response to our fundraise was very encouraging.

“We believe we are well-placed to deploy the remaining capital as we continue to review a strong pipeline of potential acquisitions that will drive efficiencies and help deliver a consistent income stream as the portfolio becomes more diversified. We look forward to updating the market to this effect in due course.”

DORE’s portfolio stretches across multiple energy generation sources. It is actively progressing what it said is several hundreds of millions of pounds of pipeline opportunities. These opportunities span UK and Nordic hydropower, wind, solar and batteries, Nordic utilities and essential infrastructure.

Hydropower in Sweden is a particular area the firm has explored recently. The firm acquired two operational portfolios of hydropower plants, located in central Sweden for £20.1 million. The portfolio consists of c. 12GWh per annum portfolio located in a SE3 electricity pricing zone and a c. 36GWh per annum portfolio located in a SE2 zone.

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