Downing Renewables & Infrastructure Trust (DORE) H1 2024 earnings summary

Executive summary

• NAV per share increased from 117.7p to 117.9p in H1 2024, with a total NAV return of 37.9% since IPO and 2.6% for the period.

• Share buybacks reached 5.7% of issued shares by September 2024, with 4.2m shares repurchased at an average price of 80.4p, increasing NAV/share by 0.9p.

• Operational profitability rose 10.4% year-over-year, with profit for the period at £3.9m and EPS of 2.22p.

• Portfolio expanded with acquisition of three Swedish hydropower plants, now totaling 37 assets.

• DORE was awarded 'Renewables Fund of the Year' and maintains Article 9 SFDR status.

Financial highlights

• NAV per share rose 0.2% in H1 2024, driven by positive portfolio performance, power price updates, and a £4.4m uplift from wind asset life extension.

• Share buybacks contributed a 0.9p increase in NAV per share.

• Total NAV return since IPO is 37.9%, with 15.33p per share in dividends announced.

• Target dividend for 2024 is 5.80p per share, a 7.85% increase year-over-year.

• Dividend cover averaged over 1.35x for the past three years.

Outlook and guidance

• Dividend target for 2024 is 5.80p per share, with a progressive policy supported by the board.

• DORE is well positioned for growth, with a strong pipeline in the UK and Nordics, and a focus on revenue optimisation and sustainability.

• Short- and medium-term power price forecasts have reduced, but long-term forecasts remain stable or slightly higher.

• Significant pipeline opportunities in Swedish/Norwegian hydro, Icelandic hydro, and Nordic BESS co-location.

• The new UK government and Nordic policy support renewables, enhancing confidence in the strategy.