Ecofin US Renewables Infrastructure Trust (RNEW) has reported its audited results for the year ended 31 December 2024, marking a difficult period for the company as it navigates a managed wind-down process. The company’s net asset value (NAV) fell by 47.5% during the year to $61.7m (44.7 cents per share), reflecting operational underperformance, asset impairments, and valuation changes. The NAV total return for the year was -46.5%, while the share price total return was -44.6%. Dividends of 0.7 cents per share were declared during the period, though future payouts will be restricted to maintain investment trust status as capital is returned to shareholders.
The wind-down strategy, formally adopted in January 2025, follows the conclusion of a strategic review that failed to identify a buyer for the entire portfolio on acceptable terms. RNEW’s board opted for an orderly realisation of assets, and the first major disposal – its distributed generation (DG) solar portfolio – was completed in March 2025 for net proceeds of approximately $33.5m. These proceeds were used to fully repay the company’s revolving credit facility.
Operationally, the portfolio of 65 solar and wind assets generated 279 GWh of clean electricity during 2024, up from 248 GWh the year before. However, performance was 5.1% below budget due to inverter issues at the Beacon projects, curtailments at Whirlwind following storm damage, and commissioning delays in the Echo Solar portfolio.
As at year-end, RNEW had total portfolio generating capacity of 177MW with a weighted average remaining revenue contract term of 12.5 years. Gearing rose to 63% of gross asset value as at 31 December 2024 but has since reduced following the DG Solar sale.
Looking ahead, the company now holds only two remaining assets – Whirlwind and a 49.5% stake in Beacon 2 and 5 – and is considering the best timing and approach to realise these holdings. The board reiterated its commitment to consult with major shareholders before disposing of any remaining assets at material discounts and confirmed it is actively exploring replacement management arrangements, with Ecofin set to step down in early 2026. Chair Brett Miller noted that while it had been a challenging year for shareholders, the board remains focused on achieving the best possible outcome from the wind-down in a timely manner. RNEW’s AGM will be held on 26 June 2025.
[QD comment MR: This is a sobering set of results from RNEW, reflecting both operational headwinds and a less certain market backdrop for renewables in the US. The 47.5% drop in NAV is significant, although not entirely surprising as the asset impairments were flagged previously. With only two assets remaining, the focus now shifts to realising those at fair value, but with the debt cleared and cash in hand, the trust has some breathing room. The share price continues to trade at a wide discount, reflecting ongoing uncertainty, but any progress on asset sales could help to narrow that.]
