A great start for Downing Renewables & Infrastructure – Downing Renewables & Infrastructure (DORE) has released its interim results for the six months to 30 June 2021, during which time, it raised gross proceeds of £122.5m. Its NAV increased from 98p per share immediately after its IPO on 10 December 2021, to 100.2p per share and its interim dividend per ordinary share was declared at 1p. The target dividend has been increased to 5p per share per annum from 1 July 2021.
Meanwhile, DORE also completed two investments during period under review, investing £102m (83% of IPO proceeds) ahead of expectations indicated at IPO. This included a portfolio of eight operational hydropower plants in central and southern Sweden for €65m (£60m); and a 96MWp portfolio of UK Solar PV assets for £42m.
The company achieved portfolio generation of 101,211 MWh, 6.6% above expectations and strong performance meant operating profit of investments was 14.4% above expectations.
DORE also boasts a strong pipeline of assets for future growth in the hydropower, wind, solar and battery space, including the Lake Vänern Wind Project in Sweden announced 15 January 2021 and the hydropower plants and electricity distribution assets from AB Edsbyn Elverk.
Hugh Little, Chair of DORE plc, said; “I am very pleased to report strong portfolio performance, which has been driven by power generation of the assets exceeding expectations and the strengthening of long-term power prices. The combination of UK solar and Swedish hydropower assets, whose generation and revenue profiles show little correlation to one another, highlight the benefits of the Company’s diversification strategy which aims to increase stability and reliability of returns to shareholders. As a result, NAV has increased by 2.33% to 100.2p.
“The Company set out a dividend target of three interim dividends totalling 3 pence per share for the period from IPO to 31 December 2021, rising to a target annualised dividend yield of 5% for the financial year to 31 December 2022, with a progressive dividend policy thereafter. Due to the rapid deployment of the IPO proceeds and the strong performance of the assets, I am also pleased to announce the intention to increase the dividend to 5 pence per share for the year to 30 June 2022, representing a dividend of 1.25 pence for the quarter ending September 2021 and thereafter.1
“The Board is pleased with the progress made to date and, alongside the Investment Manager, will continue to explore opportunities for further value enhancement across the solar and hydro portfolio. With 83% of the IPO proceeds now deployed, the Company is considering an equity raise to fund further investments and should it decide to proceed with an equity raise, a further announcement with details will be made in due course.”
Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, commented: “We are delighted with the strong performance of the Company during the period. The majority of the proceeds from the IPO were deployed quickly and the rate of deployment remains ahead of expectations. The assets acquired are of high quality and offer the diversification of technology, geography and power market exposure that is central to the aims of the Company. We believe we are very well placed to access investments and pipeline that will take full advantage of DORE’s diversified strategy and allow the Company to grow to a level that will meet its ambitions.”
DORE : A great start for Downing Renewables & Infrastructure