Downing Renewables and Infrastructure Trust hikes dividend payouts despite value drop

Green energy project developer Downing Renewables and Infrastructure Trust has increased its dividend for 2023 despite a drop in net asset value (NAV).

At the end of the year, the investment trust’s NAV per share was 117.7p, down from 118.6p at the end of 2022. The firm’s total net asset value fell from £219m to £212m.

However, the company hiked its dividend per share for the year from 5p to 5.28p, giving shareholders an extra £1.7m.

In its financial results published today, the company said it completed buybacks of £13.8m during the period and would be open to considering more in an effort to drive up NAV per share.

Despite the misses, Tom Williams, Downing Renewables and Infrastructure Trust’s head of Energy and Infrastructure, hailed a 26 per cent year-on-year jump in operating profit for the company’s underlying portfolio.

“It is testament to the strength of our in-house asset management team, and their ability to identify accretive growth opportunities for our assets,” he said.

“Although electricity markets have returned to normalised levels more quickly than anticipated in some of the regions in which DORE is invested, the strategic investments the Company has made in grid and grid stability assets have mitigated our exposure to this volatility and we continue to see opportunities for further diversification and incremental growth in the portfolio.”

Hugh Little, the company’s chair, added: “The board remains pleased that during the period DORE continued to build significantly on its key objective of diversification by geography, technology, revenue, and project stage, namely through its investments in electricity grids and grid stability infrastructure projects.

“We are confident that DORE is well positioned to navigate the ongoing transformative period of both the macroeconomic and the global energy landscapes, and to continue delivering sustainable returns for our shareholders,” he said.

Related posts

Taiwan is being excluded from international climate agreements – against its will

More than 5,000 Woodford investors sue Hargreaves Lansdown

M25 operator nets record profit despite traffic jams and weekend closures