|John Laing Environmental Assets offers income minus a hefty premium (8/9/16) - HTTP://www.investorschronicle.co.uk/2016/09/08/tips-and-ideas/fund-tips/john-laing-environmental-assets-offers-income-minus-a-hefty-premium-pum2mN3RqqdUANfEqZhFbO/article.html [subscription required]
"...But JLEN is better valued than broad infrastructure investment trusts, and pays a consistently rising and well-covered dividend, so it still looks like a good way to get an attractive income without a hefty premium. Buy."|
|Appears electricity price fears have receded and the diversified nature of their assets is attractive. Not much in the way of negative commentary seen recently. Happy to hold.|
|any views on this as a long term low(?) risk income hold ...|
|Annual Report published today.|
|Good to see them diversifying into France. Solid 6% yield with very low risk to share price.|
|Acquisition of Pylle Southern Solar Park
Commissioning of Pylle Southern Solar, located near Shepton Mallet in Somerset, was completed in December 2015 and it has a total generating capacity of 4.99MW. The Solar Park will benefit from the UK feed-in tariff for 20 years from the date of commissioning. This tariff is linked to an annual increase in the UK Retail Price Index. The electricity price assumptions underpinning the project are based on export tariff levels in the short term, and over the long term are in line with JLEN's current view on electricity prices. JLEN has purchased the entirety of the shares from the founding shareholders and Green Nation, the developers of the park. Green Nation was also responsible for the development of the Monksham Solar Park in which the Company invested in July 2015.
The acquisition was funded by a draw-down under the Company's revolving credit facility. This facility, originally secured in October 2014 at a level of £50 million, has been extended, on the same terms, to £65 million.|
|Half-year results out:
XD : 26 November
Pay: 18 December|
|ELWA facility as of 20th Aug is fully operational
|John Laing Environmental Assets Group seals £20 million solar park purchase.
Asset management firm John Laing Environmental Assets Group (JLEA) has continued to grow its solar portfolio by purchasing stakes in two solar farms for £20.37 million.
JLEA has acquired the remaining 36% stake in the Branden Solar project in Bodmin, Cornwall, which comprises two separate solar farms with a total generation capacity of 14.7MW. The company acquired a 64% stake in the project earlier this year and has exercised its first offer agreement to own the asset outright.
John Laing has also purchased the entirety of ‘B’ shares in the 10.7MW Monksham Solar farm in Frome, Somerset, as well as other interests from the park’s developer Green Nation. Holders of ‘A’ shares are to remain invested in the project, but JLEA will take over operational management of the farm and provide a loan to repay finance used in its construction.
While JLEA confirmed that both assets are unaffected by recent announcements by the Department for Energy and Climate Change to Renewables Obligation support, it did note that acquisition prices had been amended to reflect the removal of the Climate Change Levy exemption for renewable energy. After the exemption was removed as part of Chancellor George Osborne’s summer budget, a host of asset management firms said it would dent revenues by around 3-4%.
The acquisitions were financed using proceeds from JLEA’s recent fundraising and Richard Morse, chairman at JLEA, said it was “pleasing̶1; to secure the deals shortly after financing.
“They [the acquisitions] demonstrate the company’s ability to acquire assets from parties other than John Laing in parallel with the continuing successful operation of our first offer agreement with John Laing,” Morse added.
The deals take JLEA’s renewable energy asset portfolio past the 100MW barrier, representing a “significant milestone” for the company according to Morse.
Finlay Colville, head of market intelligence at Solar Intelligence, said: “John Laing’s current portfolio of UK solar farms accounts for approximately 1.5% of completed solar assets built in the UK since 2011. According to the Solar Intelligence Report 4 – Completed Assets, John Laing is ranked at position number 21 for completed MW portfolios of UK solar farm assets|
|Happy to see the Budget had a minimal impact on JLEN, at least. Not so lucky with some of the other renewables I hold:
RNS Number : 5622S
John Laing Environmental Assets Grp
09 July 2015
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR SOUTH AFRICA.
9 July 2015
John Laing Environmental Assets Group Limited
Response to Budget
The Board of John Laing Environmental Assets Group Limited ("JLEN" or the "Company") notes the Chancellor's statement in the Budget in relation to the removal of the Climate Change Levy exemption for renewable electricity. The impact of this measure is that certain assets held by JLEN will no longer receive additional revenue from Levy Exemption Certificates ("LECs").
The Board also notes the Chancellor's statement in the Budget regarding the reduction in the corporation tax rate to 19% in 2017 and 18% in 2020.
The net impact of these changes on the Company's NAV as at 31 March 2015 is estimated to be a reduction of approximately 0.6 pence per share with any loss of revenue from LECs being broadly offset by a reduction in the corporation tax rate. The Company dividend target remains unchanged, being 6.054 pence per share for the year to 31 March 2016, and increasing with inflation thereafter(1) , although the loss of revenues from LECs is likely to have a minor impact on dividend cover in the near term.
The limited impact on JLEN from the Budget reflects the benefits of diversification in the Company's portfolio with a number of assets being net beneficiaries of the changes announced in the Budget.
(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.|
|Certainly no effect on share price as yet. Sometimes big brokers like A J Bell make offers so we will have to wait and see.|
|Equity raise will be above latest NAV but below current share price They'll already have some idea of the price they can command. Ordinary PIs won't be invited.
If it's a 'C' share offer it might be open to all shareholders on a proportional basis. Issue at 100p, conversion later (not 1:1 ratio).
Hard to say what effect this will have on the sp: not much either way I think.|
|And what effect will the pre notice of a placing have on the share price - and is there any easy way in to the placing.|
|Results from late last week confirmed a maiden dividend of 3.0p, ex-div 27th Nov.|
|Strange price spike. Their dividend announcement is due some time this month, wondering if its linked?|
|Shanks RNS confirms Frog Island has permission for partial recommencement and will be fully re-opened within the year.
Insurance will cover costs and still offering service as contracted.|
|Spangle - no, I haven't bought, though I'm not altogether against this portfolio. I just haven't the spare cash at the moment!|
|Hi Jonwig - did you decide to dip a toe into this after the IMS, or do you still feel that the enviornmental aspect of the investments are too dodgy?|
|Great to read this morning's update - portfolio has been built quickly and efficiently and is already in a position to support the promised 6p dividend.
22 April 2014
JOHN LAING ENVIRONMENTAL ASSETS GROUP LIMITED ("JLEN")
Completion of Initial Portfolio acquisitions
John Laing Environmental Assets Group Limited (JLEN), which manages a balanced portfolio of environmental infrastructure projects, is pleased to announce the completion of the acquisition of the East London Waste Authority Waste project from John Laing Group.
JLEN has now completed the acquisition of 100% of the Initial portfolio set out in the IPO Prospectus. The Company is fully invested in a balanced portfolio of seven operational UK based solar, onshore wind, waste processing and wastewater projects. This news follows its successful placing, offer for subscription and admission to the main market of the London Stock Exchange on Monday 31 March 2014.
The projects in the portfolio are all fully operational with long-term, predictable, wholly or partially inflation-linked revenues supported by long-term government backed contracts or stable regulatory frameworks. JLEN will seek to pay an annualised dividend of 6p per share, increasing in line with inflation. The first dividend (for the six month period to September 2014) is intended to be paid in December 2014.
Richard Morse, Chairman of JLEN, said:
"Today's announcement represents the successful delivery on our promise to Shareholders to deploy the funds raised from our listing quickly to invest in a portfolio of seven fully operational Environmental Infrastructure projects. We now own and manage a diverse, low risk Environmental Infrastructure portfolio, and plan to deliver a strong and predictable dividend yield, and an IRR target of 7.5% to 8.5% over the longer term."|
|cyfran - a bit late, but done.
I don't hold this, and the onshore wind sector does look insecure.|
Can you put the link to prospectus in the header? Easier to refer back to in future.
I'm encouraged by the diversified environmental assets but a little discouraged by not hitting their higher fund raising targets.
Any ideas on that? Recent political headwinds on wind assets?
Looking at the possible John Laing pipeline there are some more wind (One in Sweden)/solar farms, Greater Manchester Waste Disposal Authority and Kinnegar Waste (Belfast).
|Definitely can, I've just bought some in my ISA.|
|Link to Prospectus:
|Yes to ISA.
Prospectus p 115:
It is expected that the Shares will be eligible
for inclusion in an ISA (except where they are
allotted under the Placing).
The Shares should also qualify as a permissible asset for inclusion in a SIPP.|