This investment trust invests in wind and solar energy projects in Europe and Australia.
Looking into this for dividend in energy sector. 
1 Like
Just just received an interest payment AND a dividend for ORIT for different amounts. Is this usual?
I thought normally dividends were from stocks and interest was from bonds. This is the first time, I’ve heard of getting both.
I found a reference to it here:
1 Like
I think so… Tempted to just use t212 just for this stock
1 Like
I’ve got what appears to be two dividends for Octopus Renewables today. I wonder why?
Same number of shares, different amount per share.
This payment is part dividend and part interest distribution so you will get 2 notifications, 1 for each. Check out the RNS for more info.
3 Likes
1 Like
Price keeps dropping. I’m hoping it’s a good dip to buy rather than other bigger problems.
ORIT seems to have had a been of an erratic dive this last year especially when compared to other renewable infrastructure trusts. Not sure why though? I’ve not looked into it, has anyone already looked to why they lost 20% in 6 month?
Dividend increased in line with inflation. Most newsflow seems positive:
So probably just normal market price fluctuations?
I think most infrastructure/property investment trusts have seen falls recently and discounts widening -
Could be, though Orit seems to be fairing worse than some of the others. UK wind, bluefield, trig are all around 5-6% discount.
orit is nearly 3 times that. hence wondering if there is any other issues causing it slower recovery. Maybe it’s just down to the smaller number of assets and large number of assets not fully operational yet.
Yes, you are right - larger discount and bigger share price fall over past 6 months. Not sure why though…
Sorted by share price total return (SPTR) over 6 months as of last Friday:
1 Like
Good information there thanks, puts it into a little more perspective
1 Like
There are half a dozen investment trusts in the renewable energy sector whose discounts hit 12-month highs over the course of the week ended Friday 17 March 2023, including ORIT.
Obviously they vary in size, holdings, geography etc, so not directly comparable with each other - but it’s an out of favour sector in general at the moment along with other infrastructure trusts, commercial property etc as the yields become less attractive due to decent risk free returns now available from cash etc, plus lower energy prices also probably a factor for the renewables?
From the investment video above ORIT is in the FTSE250 which has seen a similar drop. Could a higher exposure to other indexes be a factor for the drop compared to some others?
I doubt it, Bluefield Solar, TRIG, Greencoat Wind are all also in the FTSE 250 I think and two have seen a slight rise in share price over the 3 months to mid February for example, whereas ORIT is down -6.1% over the same period. TRIG is also down slightly over 3 months but by around half as much (-3.2%).
The index is just a market cap weighted aggregate of all the share prices in it, so one individual company isn’t going to make much difference, especially those with a lower market capitalisation.
(For some reason Citywire is showing 3 months to 15 Feb, here is Trustnet which should show be up to date, however it doesn’t include ORIT, I don’t know why…).
2 Likes
Ignoring the alternative trusts which have the highest discounts, the market seems to be discounting the trusts at a broadly equivalent rate (roughly 9-10% at first glance). Here are the levered WACCs in order of discount to NAV:
- US Solar Fund: c. 7.2% (exact not announced)
- Ecofin: 7.5%
- Octopus: 7.5%
- Aquila: 7.2%
- Downing: 7.7%
- NextEnergy: 7.3%
- Foresight: 7%
- Gore Street: 9.3%
- VH Global: 8.8%
- TRIG: 7.2%
- UKW: 10%
- Harmony: 10%
- BSIF: 7.25%
- Atrato: c. 8.5% (levered back up)
- JLEN: 8.4%
- ThomasLloyd: c. 11%
- Gresham: 10.8%
- Greencoat: 9%
Only outliers look like TRIG and BSIF, which are both mature and large with low OCF which might explain it.
2 Likes
Selling the Polish wind farms for £90m at a 14-9% premium to NAV. Pushes the discount to almost 30%.