by Sam Benstead from interactive investor, 7th June 2023:
The London market’s only Europe-focused renewable energy investment trust faces the risk of being wound up, with investors set to vote on its continuation on 14 June., which was launched in summer 2019, owns solar, hydro and wind renewable energy assets across Europe, with a particular focus on Spain, Portugal, Denmark and Norway.
Shares in the €375 million (£321 million) market cap trust yield just over 5% and trade on a 12.5% discount to net asset value (NAV). Shares are down 6% since they began trading four years ago, with the discount opening up in late 2021.
Following completion of the solar project Guillena in Spain, as announced in May this year, the portfolio is now fully operational with total operating capacity of 464 megawatts of electricity a year.
James Carthew, head of investment trust research at QuotedData, an analyst, says he expects investors to convincingly vote in favour of continuing the trust.
He said: “The date for this continuation vote was set when the trust launched four years ago. With NAV returns at around 7% a year since then, the trust has executed well and is now fully invested, even after multiple fundraising rounds.
“The only blip came a year ago when it raised money but did not proceed with an investment, but those issues are now behind it. It has lots of cash and a well covered dividend, and has been buying back shares, which is a huge tick for shareholders.”
Read more here