Aquila Energy Efficiency Trust (AEET) has released its annual results for the year ended 31 December 2024, as it continues its managed wind-down. The company’s NAV fell 9.3% over the year to 85.55p per share (2023: 94.28p), with a NAV total return of -2.7% once dividends are included. Shares closed the year at 52.0p, representing a 39.2% discount to NAV.
The company returned £17.5m to shareholders via a tender offer in May 2024 and paid a dividend of 6.139p per share in November. Post year-end, AEET has realised £23.8m in further repayments, largely from its Bio-LNG investment in Germany and the majority of its Superbonus investments in Italy. A special interim dividend of 36.837p per share, worth £30m in total, will be paid on 30 May 2025, reflecting the strong cash position built up through these repayments.
Portfolio realisations have been challenged by the complex and small-scale nature of many of AEET’s investments, particularly in the Italian and Spanish solar and Superbonus portfolios. A number of projects have suffered delays, operational problems, or required discounts to accelerate returns. Nonetheless, realised returns on the Italian Superbonus projects achieved IRRs of more than 9% per annum.
Asset sales have improved portfolio quality, with 95% of AEET’s investments now offering fixed returns and about 84% of counterparties assessed as investment grade. The remaining portfolio, following recent disposals, has an average life of 8.9 years.
Operational setbacks, particularly at some Spanish solar projects and UK wind assets, resulted in further impairments during the year. Ongoing charges rose to 3.8% from 3.5% as the wind-down phase has led to higher per-share running costs.
The board, chaired by Miriam Greenwood, remains committed to further capital returns as realisations allow, although it warns that cash distributions may become smaller and less frequent as the more liquid assets are sold. Negotiations are ongoing to accelerate the exit from the two remaining Superbonus investments. Despite the challenges, AEET continues to target cost reductions and careful management of the remaining portfolio as it progresses its run-off strategy.
