John Laing Environmental Assets Group – Life extensions to boost NAV?
John Laing Environmental Assets Group (JLEN) says its NAV per share at the end of December 2018 was 102.8p, up 2.4p over three months. The quarterly dividend payments remain on-track to match the target of 6.51p for the year. The company’s revenue generation was on budget, reflecting above-budget power generation from JLEN’s anaerobic digestion and solar power assets. This offset the negative impact on generation from low wind speeds on its wind farms.
In advance of its 31 March year-end, JLEN is examining the possibility of extending the assumptions around the economic lives of its wind and solar assets that are used in the calculation of its NAV. It suggests that this could have a positive impact. In addition, JLEN is engaged in refinancing activity across its portfolio (securing new debt facilities) which could help improve returns. Also, the regulator, Ofgem, is engaged in a consultation, its ‘Targeted Charging Review’, looking at the embedded benefit revenues that make a small contribution to JLEN’s returns (see page 7 of QuotedData’s last note for an explanation).
Progressive dividend from investment in environmental infrastructure assets
JLEN aims to provide its shareholders with a sustainable dividend, paid quarterly, that increases progressively in line with inflation. It also aims to preserve the capital value of its portfolio, when adjusted for inflation, over the long term. It invests in environmental infrastructure assets with predictable, wholly or partially index-linked cash flows, supported by long-term contracts or stable regulatory frameworks.
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JLEN : John Laing Environmental Assets Group – Life extensions to boost NAV?