Downing Renewables & Infrastructure Trust plc (DORE) has announced its annual results for the financial year ending 31 December 2022.
- DORE reported a NAV total return of 19.5% over the year, and a NAV growth of 15.5% (i.e. the underlying portfolio). DORE reported a share price total return of 21.1% over the same period.
- DORE will pay a total annual dividend of 5p per share for its financial year, which was covered 1.26x by the cash generated over the period. This represents a 43% increase in dividends from the prior year. The board has also announced its intention to pay a 3.38p dividend for the 2023 financial year, a 7.6% increase.
- Over the year DORE was able to issue a further 47.6m shares on 7 June 2022, raising £52.0m, and brining DORE’s market cap to an excess of £200m. We note that DORE currently trades on a discount of c.1.1%, as of 3 April 2023.
- Over the 12 month period DORE invested £72.6m in five new investments, and a further £5.1m in two additional investments after the year end. DORE’s portfolio is expected to generate 391GWh of renewable electricity per year, double that as at 31 December 2021. The board highlights the diversification benefits of these acquisitions, which included the trust’s first hydropower assets in Sweden’s SE4 pricing zone.
- DORE’s operating profit exceeded expectations by 14.7%, with a profit of £33.2m. We note that the positive revaluation of new investments added £9m to DORE’s NAV.
- The board has increased the revolving credit facility available to the investment managers, from £25m to £40m.
DORE’s chairman, Hugh W M Little, commented:
“2022 was dominated by the ongoing war in Ukraine and rising inflation. The Ukraine crisis has forced governments, companies, and citizens across the world to take a hard look at how energy is sourced and utilised. Over recent years renewables has been a key growth sector for investment companies, however, since the crisis began there have been accelerated commitments to renewables and governments have now realised that the energy transition is not only important for the planet, but also for energy security. We believe that DORE can play an active part in this.
“The Board is very satisfied with the £72.6m deployed in the five high-quality investments made in the year. At a portfolio level, the Investment Manager’s in-house asset management team will continue its focus on delivering continued positive operational performance, along with optimisation initiatives where appropriate. The Company will continue to leverage the expertise of the Investment Manager to deliver strong operational performance whilst placing its sustainability goals at the centre of its operational objectives.
“In order to increase the Company’s diversification, drive efficiencies of scale at the portfolio level, spread the fixed costs over a wider asset base and increase liquidity for current and future shareholders, the Board intends over time to increase the size of the Company through the issue of further shares.”