The Company will seek to generate stable returns, principally in the form of income distributions, by investing in a diversified portfolio of global sustainable energy infrastructure assets, predominantly in countries that are members of the EU, OECD, OECD Key Partner Countries or OECD Accession Countries.
The Company invests in sustainable energy infrastructure investments that align with the UN Sustainable Development Goals where energy and energy infrastructure investments are a direct contributor to the acceleration of the energy transition towards a net zero carbon world. The Company categorises investments into 4 different “Pathways” that relate directly to the acceleration and achievement of the energy transition, these are: (i) Addressing Climate Change; (ii) Energy Access; (iii) Energy Efficiency; and (iv) Market Liberalisation.
The Company will look to achieve NAV growth by investing in a mix of stable yielding sustainable energy infrastructure investments that are in operation, in construction or “ready-to-build” but will not invest in projects that are under development or are in pre-consent stages.
By targeting a diversified portfolio across different proven technologies, the Company will seek to spread, and therefore reduce, some of the key underlying risks relating to its sustainable energy infrastructure investments. The geographic diversification in the portfolio will further reduce the exposure of the Company to a particular energy market and specific “change in law” risks related to specific market renewables and broader energy market legislation.
Dividend 8.0% there’s better.
Cover 1.1 again there’s better
Debt 2% you will struggle to find debt that low in renewable Infrastructure.
Discount 41%. Ludicrous high and nothing to suggest why. Specially when there’s lots of assets yet to come onstream. These assets are valued at cost. Recently an investment trust sold a “shovel ready” assets at twice its nav value. It was also valuing at cost.
If you buy land without planning permission receive planning permission then its value increses materially. But they continue to value at cost.
Which means the real discount is probably higher and there’s considerably more income yet to come on stream.
Also worth noting very diversified across geographys and assets.
I Need to add to this.
From factsheet Q4 23
“Income from the portfolio remained robust during the quarter from the 58% of the portfolio that
is operational, with the dividend already 1.1x covered. As further projects reach operational status,
the dividend coverage is set to strengthen. The Company’s operational assets continue to benefit
from over 90% of contracted and inflation-linked revenues.
Leverage
Total leverage of the Company is 1.9% of NAV, which comprises asset-level leverage at its US asset.
The Company does not currently employ short-term leverage at the fund level”
Emailed GSEO to see if they will need to borrow to complete all the projects they are building.
The answer was no
In reference to emailing them
The reply
“All the projects that are currently in construction are fully funded. We do not require additional capital to fulfil these commitment”
Last check shows they have £74 million cash.
With some projects all ready completed but not yet providing an income the £74 million represents a considerable increase in income and NAV.
Poviding everything is above board with their comments around funding and what hopefully should be tail winds for discount rates dropping, you would expect to see a rise in SP, a growing dividend and solid dividend cover!
I think there is a risk around how concentrated the revenue is to only a few assets, but I’m willing to take that risk which should reduce over time…again, providing no unforseen events occur!
