Aquila European Renewables Share Discussion Threads

[mwj1959] 22/12/2023 16:00

With the September 24 continuation vote as a backstop combined with Octopus' proposals there is every reason to think that the discount will / need to shrink over the coming 12m, albeit hopefully not through the NAV falling to the share price (and there are plenty of reasons why that could happen given sensitivities to power price, production etc.), but rather vice versa. Conservatively, taking the share price from 66p to 75p, still a substantial discount, would see a near 14% rtn, add in a dividend of 5.5p and you get a 22% TR. So a pretty good risk / reward on a one year basis. Given this I'm happy to be adding around current levels.

[gopher] 22/12/2023 13:32

There appears to be logic in the Octopus proposal and since their trust trades on a narrower discount an obvious way out for the Aquila board discount conundrum, perhaps one they don't want to take however.

[alan pt] 21/12/2023 15:12

Well, I sold up gradually during the rest of March, thankfully. Would like to say that I had the foresight to anticipate the falls, but really it was more a liquidity concern. I hate holding things that I can't buy and sell on limit orders

However, I'm now back in, via my euro bond, so buying the AERI version. By my calcs it is marginally over a 7.5% covered yield, vs 5-6% for a lot of others now that most infra has rebounded significantly. Can't see any obvious fatal flaw here, so you'd think that it should catch up eventually?

[alan pt] 12/3/2023 13:31

Seems to have steadied after that fall, though some worry whether it's only the continued buying keeping it at that level, they can't keep buying forever...

Still, given the meltdowns in pretty much everything else exposed to interest rate uncertainty, it's all remarkably calm here

[cc2014] 21/2/2023 16:23

Probably down as 10 year gilt up to 3.6% and US 10 year now over 3.9%

Maybe some profit taking?

[gopher] 21/2/2023 16:12

Now trading at a discount to NAV compared with Par 11 months ago but have been doing relatively well v the sector with decent news flow and some share buy backs. See no reason for todays fall?

[jonwig] 03/2/2023 16:07

Thanks for replies everyone.

[alan pt] 03/2/2023 12:47

Nice article, dividend cover looks very solid

I shall now congratulate myself on my highly skilled timing aka random luck!

[alan pt] 03/2/2023 12:34

Yes, the chart is for AERS, which is UKP, there is also AERI which is euros

Haven't looked in detail, but as far as I can understand it's essentially an administrative convenience, much like EBOX/BOXE

[cc2014] 03/2/2023 12:33

AERS is in GBP and yes you trade in GBP.

[jonwig] 03/2/2023 12:17

Silly question (sorry!): is the share price in the charts pence (GBX) or €cents? If GBX presumably that'swhat you trade in.

Citywire has an article today:

[alan pt] 27/1/2023 18:09

Yes, the new taxes in Spain and Norway are a bit of an annoyance, though seem to have pretty limited actual impact. The EU wide proposals seem fairly reasonable too

Given the EU (and especially Germany) need for renewables, I'm more confident that the government interference level will be low than in the UK where government policy changes with the direction of the wind :)

AERS hasn't really had the operational assets or contract model to capitalise on the power price peaks, so I'm not too worried about price falls doing much damage. If anything, it may have been able to fix some decent forward contracts recently as assets became operational, so there may be an upside there

I did also have a look at AEET (and TEET) - great concept, terrible execution so far. But, as we have seen with AERS, proceeding with typical German caution and patience can be frustrating but may turn out well in the end!

I guess one problem with efficiency is that you need a really strong differentiation to attract money when you have SEIT sitting there. Still, if AEET doesn't go anywhere then you'd think it should be easy enough for Aquila to just liquidate it? It must be a flea bite compared to their private funds?

[cc2014] 27/1/2023 15:58

Keep talking. I find it useful.

I don't think there is any flaw, although I think the NAV is going to impacted by an increase to the discount rate, lower energy prices in Europe and sadly more taxation on renewable assets.

On the other hand some of that is going to get compensated for by the movement in the exchange rate.

I don't think the adjustments are going to be material as a whole and even if the NAV does fall a bit (they can't go up every quarter!) you're still left with a decent discount to NAV.


I've owned this one before but not at the moment. I continue to watch with interest


The other Aquila fund AEET, which I am invested in, is struggling even more. That's running at 29% discount to NAV. Some reasons but 29% is too much. I have to wonder about the common link, although Aquila have about £12b under management in the energy sector IIRC so one would think they know what they are doing.

[alan pt] 27/1/2023 15:36

I may be talking to myself here, but let's see :)

I was invested about three years ago, soon after launch, but I sold out because of the glacial pace of investment

I was prompted to take a look again by this article, flagging the discount:
www.trustnet.com/news/13355955/the-alternatives-trusts-to-snap-up-at-a-bargain-price

Sitting around 76p/86c for AERS/AERI at the moment, for a discount of about 22% and a yield of just over 6%

The interesting thing for me is that it seems to finally be fully invested in generating assets (having invested in some big construction projects which I think have now all completed). Not fully investigated this, but that might imply potential for future dividend increases

Anyway, I bought in again, wondering if there was some fatal flaw which I had missed. But was somewhat reassured today by the news that BG had invested:
www.londonstockexchange.com/news-article/AERS/holding-s-in-company/15812733

Potential negatives
A little small for an infra trust at £450m
Maybe not many retail holders, certainly a bit low on daily trades
How does it grow? Need that discount to narrow a lot to realistically raise

[alan pt] 20/1/2023 13:46

Some good news for Sagres
hxxps://www.theportugalnews.com/news/2023-01-19/hydro-production-hits-new-high/73977

[cc2014] 26/9/2022 10:47

Sold mine Friday. Didn't get a great price but things looking vulnerable. Made a small turn on my buy price and collected some dividends so investment ok if not exciting.

Weak pound should be helping.

[gopher] 31/3/2022 15:02

I have bought a few recently as pretty much the only renewables trust trading around NAV. Aquila are also involved with AEET where non investment of funds is a problem and this may be impacting sentiment here.

[ccr1958] 05/12/2020 09:44

Not much interest here but I having a look .. thx for putting up other renewables Typo56.

[typo56] 29/8/2019 14:58

Could enter the FTSE SmallCap index next month, if sufficient liquity record.

[steve73] 28/8/2019 14:58

IPO - May 2019

Aquila European Renewables Income Fund ("AERIF" or the "Company") is a recently established, London-listed renewable energy infrastructure investment company with the aim to provide investors with an attractive long-term, income-based return in EUR through a diversified portfolio of hydropower, onshore wind and solar PV investments across continental Europe and Ireland. Through the diversification of generation technologies, the seasonal production patterns of these asset types complete each other to balance the cash flow, while the geographic diversification serves to reduce exposure to one single energy market. AERIF is targeting an aggregate annual yield of 5.0% once fully invested.

Further details can be found on AERIF 's website at

Other similar Renewable Investment Funds listed in London are: (approx. m-cap, MMGBP, as at 29 Aug 2019)
The Renewable Investment Group - TRIG - (1872)
Greencoat UK Wind - UKW - (1709)
Contourglobal plc - GLO - (1182)
Foresight Solar Fund Ltd - FSFL - (678)
Bluefield Solar Investment Group - BSIF - (483)
Nextenergy - NESF - (394)