Net Asset Value and Operational Update

RNS Number : 2141Z

Downing Renewables & Infrastructure

20 May 2021

 

20 May 2021

Downing Renewables & Infrastructure Trust plc 

("DORE" or "the Company")

Net Asset Value and Operational Update

Downing Renewables & Infrastructure Trust plc (LON:DORE) reports that, as at 31 March 2021, its unaudited net asset value (NAV) rose to £121.6 million, or 99.2 pence per share. This is up 1.3% from DORE's NAV as at 31 December 2020 of £119.9 million or 97.9p per share. A little over half of the NAV uplift was driven by operational and financial performance ahead of budget across the portfolio in Q1 with an increase in the long-term power price forecasts in Sweden constituting the balance.

DORE has now invested 83% of the £122.5 million raised at its Initial Public Offering (IPO), well ahead of schedule, and is progressing a series of near-term opportunities that would comfortably see the remaining proceeds from the IPO invested.

DORE is successfully executing its strategy of acquiring a portfolio of renewable generation and infrastructure assets diversified by technology, natural resource, project stage and geography. The two complementary acquisitions completed since IPO comprise a c.96MW (c.90 GWh per annum) high-yielding, operational UK solar portfolio and a c.26MW (c.100 GWh per annum) operational Swedish hydropower portfolio. DORE has also secured exclusivity in relation to a proposed investment in a 100 MW wind farm in Sweden.

By combining assets such as UK solar and Swedish hydropower, whose generation and revenue profiles show little correlation to one another, DORE aims to increase stability and reliability of returns to shareholders.

The revenues of the combined portfolio as at 31 March 2021 were 83% fixed, with 17% exposure to merchant power prices and on a net present value basis approximately half of revenues are fixed.

Both the operational and financial performance of the Swedish hydropower assets were strong during the quarter (with operating profit c.400% above acquisition model assumption). Outperformance was mainly due to optimisation of dispatch from the reservoir capacity, which increased power production in periods of higher-than-expected power prices.

UK solar generation and power prices were in line with expectations, and Downing's in-house asset management team helped to realise cost efficiencies and drive financial outperformance in the UK solar assets.

The impact of the recently announced corporation tax increases in the UK and the downward movements in UK long term power price forecasts in Q1 were factored into the acquisition of the UK solar portfolio and so are reflected in this 31 March NAV.

Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, further commented:

"We are delighted with the strong start since IPO, and are particularly pleased with the operating and financial performance that has contributed to the uplift in net asset value for the quarter of 1.3%. DORE has invested 83% of the funds raised at IPO ahead of schedule and has an attractive pipeline of near-and-medium term opportunities.  This set of results clearly demonstrates the benefits of DORE's strategy of investing in different technologies in different locations selling power into different electricity markets."

DORE has today published its quarterly factsheet and commentary to the end of March 2021. Copies can be downloaded from the Company's website:  www.doretrust.com .

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU no. 596/2014).

Link Company Matters Limited

Company Secretary

ENDS

Contact details:

Downing LLP - Investment Manager to the Company Tom Williams	[phone]
N+1 Singer - Corporate Broker Robert Peel, Alan Ray, Asha Chotai (Investment Banking) Sam Greatrex, Alan Geeves, James Waterlow, Paul Glover (Sales)	[phone]
TB Cardew - Public relations advisor to the Company Ed Orlebar Tania Wild	[phone] [phone] / [phone] [e-mail]

About Downing Renewables & Infrastructure Trust plc (DORE)

DORE is a closed-end investment trust that aims to provide investors with an attractive and sustainable level of income, with an element of capital growth, by investing in a diversified portfolio of renewable energy and infrastructure assets in the UK and Northern Europe.

DORE's strategy, which focuses on diversification by geography, technology, revenue and project stage, is designed to increase the stability of revenues and the consistency of income to shareholders. For further details please visit www.doretrust.com  

LEI: 2138004JHBJ7RHDYDR62

About Downing LLP

Downing LLP is a London-based investment management firm.   It has over 25,000 investors and has raised over £1.7 billion into businesses across a range of sectors, from renewable energy, care homes, health clubs, and children's nurseries, to technology and sports nutrition. Downing has a demonstrable track record in renewables, having made 119 investments into solar parks, wind farms and hydroelectric plants since 2010. For further details please visit www.downing.co.uk  

 

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