Downing Renewables & Infrastructure Trust (DORE) announced its interim results for the six months to 30 June 2024. The company’s NAV total return was flat over the period, although is up 4% over the past 12 months. The share price total return fell 9% and the discount was 33% at the time of publishing. Interim dividends per ordinary share of 2.80 pence were paid, a 7.7% increase from the corresponding period last year, and a further 1.45 pence per ordinary share declared (but not accrued) relating to the three months to June 2024 is to be paid in September 2024. The company has also continued its buyback programme, purchasing 4.2m shares during the period at an average price of 80.4 pence, creating further value and increasing NAV per share by 0.9pps. In line with the peer group, the shares traded at a discount during the period, however DORE continues to provide additional market liquidity to help mitigate discount volatility.
Highlights for the period included the extension of the lease of the Gabrielsberget Syd Vind AB farm to 35 years which resulted in a £4.4m uplift in its valuation, and the successful pre-qualification of DORE’s first Swedish hydropower plant for participation in the Frequency Containment Reserve Markets with first revenues being earned in July 2024.
Discussing the results, Hugh Little, the chair of DORE, commented:
“During the period under review, DORE has continued to prioritise delivering value within the underlying portfolio, with a series of capital expenditure initiatives in progress, all aimed at increasing long term returns for investors, and from which tangible benefits are already emerging. Further, we are confident that by careful selection of the many investment and capital expenditure opportunities identified by the investment manager, DORE will continue to progress its strategic priorities, whilst focussing on its principal objective, the optimisation of shareholder returns.”
Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, commented:
“We have focused on increasing productivity through active asset management and portfolio enhancement. Optimisation initiatives across hydropower and wind have progressed well, which have further diversified and strengthened DORE’s revenue streams. Acquisitions completed during and after the period-end further underpin the company’s commitment to pursuing this highly diversified strategy. The outlook for DORE remains very encouraging as we progress a significant pipeline of investment opportunities and portfolio enhancements that we expect will deliver inflation-linked returns and robust operational cash flows.”
DORE: Modest returns to start 2024, however portfolio progress continues for DORE
