Net Asset Value, Dividend and FY25 Dividend Target

JLEN Environmental Assets Group Ltd

29 May 2024

 

29 May 2024

JLEN ENVIRONMENTAL ASSETS GROUP LIMITED

("JLEN" or the "Company")

Net Asset Value, Dividend Declaration and FY25 Dividend Target

Net Asset Value and dividend target
JLEN, the listed environmental infrastructure fund, is pleased to announce an unaudited Net Asset Value ("NAV") of £751.2 million at 31 March 2024 (31 December 2023: £777.7 million). This results in a NAV per Ordinary Share of 113.6 pence (31 December 2023: 117.6 pence) after payment of the target quarterly dividend of 1.90 pence.

The Board is pleased to announce the Company's 10^th consecutive dividend increase since IPO, with a dividend target of 7.80 pence per share for the year to 31 March 2025, representing a 3.0% uplift from the year to 31 March 2024.

Summary of changes in NAV:

	NAV per share
NAV at 31 December 2023	117.6p
Dividends paid in the period	-1.9p
Power prices	-2.1p
Battery revenue outlook	-1.6p
Discount rate changes	0.4p
Other movements (including actual asset performance)	1.2p
NAV at 31 March 2024	113.6p

Power prices
The portfolio continues to benefit from a high degree of protection from short term price hedges as well as revenues from subsidies and long-term contracts that are not derived from power prices. As a result the portfolio has been resilient despite a significant reduction in near term electricity and gas price expectations.

Once reflecting the compensating impact from the Electricity Generator Levy, downward power price forecasts have resulted in a reduction in NAV of 2.1 pence compared to 31 December 2023.

Battery revenue outlook
Near term battery revenue projections have reduced significantly in recent months. Whilst the portfolio only has one operational asset, this backdrop has impacted pricing and valuations in the market for assets at all stages of their lifecycle.

The impact of changes to revenue forecasts is to decrease the NAV by 1.6 pence compared to 31 December 2023.

Since April 2024, revenues have started to rise, and independent market analysis suggests this trend to continue through 2024 and 2025 as well as continued strong fundamentals for the long term outlook of the sector.

Discount rates
Discount rates have been reviewed across the portfolio to ensure they remain in line with evidence of recent market transactions seen by the Investment Manager and assessment from JLEN's independent valuation advisor. There have been no material changes to discount rates in the period, and the overall Weighted Average Discount Rate remains at 9.4%. The net effect of changes to discount rates is to increase the NAV by 0.4 pence compared to 31 December 2023.

Update on asset sales
The Investment Manager continues to progress several credible selective asset disposal opportunities. The Board expects to update shareholders in due course.

Dividend

Financial performance of the portfolio has been satisfactory, with dividend cover of 1.30x for the year to 31 March 2024.

The Company also announces a final quarterly interim dividend of 1.89 pence per share for the period from 1 January 2024 to 31 March 2024.

Together with the interim dividends paid during the financial year to date of 5.68 pence per share, the Company will have paid total dividends of 7.57 pence per share in respect of the year ended 31 March 2024, in line with the dividend target set out in the 2023 Annual Report.

Dividend Timetable

Ex-dividend date	6 June 2024
Record date	7 June 2024
Payment date	28 June 2024

This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.

For further information, please visit www.jlen.com or contact: 

Foresight Group Chris Tanner Edward Mountney Wilna de Villiers	[phone] [e-mail]
Winterflood Securities Limited Neil Langford	[phone]
SEC Newgate Elisabeth Cowell Alice Cho Harry Handyside	[phone] [e-mail]
Apex Fund and Corporate Services (Guernsey) Limited Matt Lihou Matt Falla	[phone]

About JLEN

JLEN's investment policy is to invest in a diversified portfolio of Environmental Infrastructure. Environmental Infrastructure is defined by the Company as infrastructure assets, projects and asset-backed businesses that utilise natural or waste resources or support more environmentally friendly approaches to economic activity, support the transition to a low carbon economy or which mitigate the effects of climate change. Such investments will typically feature one or more of the following characteristics:

·       long-term, predictable cash flows, which may be wholly or partially inflation-linked cash flows;

·       long-term contracts or stable and well-proven regulatory and legal frameworks; or

·       well-established technologies, and demonstrable operational performance

JLEN's aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly and to preserve the capital value of the portfolio over the long term on a real basis. The target dividend for the year to 31 March 2025 is 7.80 pence per share¹.  The dividend is payable quarterly.

JLEN is an Article 9 fund under the EU Sustainable Finance Disclosure Regulation and has a transparent and award winning approach to ESG.

Further details of the Company can be found on its website www.jlen.com

LEI: 213800JWJN54TFBMBI68

(1) These are targets only and not profit forecasts.  There can be no assurance that these targets will be met or that the Company will make any distributions at all.

 

END