Downing Renewables & Infrastructure Trust (DORE) H2 2024 earnings summary

Executive summary

• Total NAV return since IPO reached 39.3%, with a 3.8% NAV total return for 2024 and a 7.9% increase in dividends year-over-year.

• Share buybacks totaled 8.9m shares in 2024, increasing NAV per share by 1.8pps; buybacks now represent 7.8% of issued shares.

• Portfolio optimization included a 54% return on the Gabriel Wind farm sale and a 30% uplift in Mersey shunt reactor contracted revenue.

• Diversified portfolio across hydro, solar, wind, grid infrastructure, and multiple geographies, with 68% of GAV in hydro and 50% in Sweden.

• DORE is classified as an Article 9 fund, awarded the Green Economy Mark, and achieved strong ESG performance, including a GRESB score of 90.

Financial highlights

• NAV per share decreased from 117.7pps to 116.7pps in 2024, mainly due to dividend payments.

• Market capitalization at year-end was £132m, with a gross asset value of £319m and net asset value of £200m.

• Dividend for 2024 was 5.80p per share, up 7.9% from 2023; dividend cover was 1.20x.

• Total shareholder return for 2024 was -6.8%, but 39.3% since IPO.

• Weighted average discount rate for the portfolio is 8.0%.

Outlook and guidance

• 2025 dividend target set at 5.95p, a 2.6% increase over 2024.

• Short-term UK power price forecasts have slightly improved; Swedish forecasts have dropped short-term but remain flat long-term.

• Pipeline includes bolt-on hydro opportunities in Sweden, Iceland, Norway, and selective BESS and solar projects in Sweden.