Downing Renewables & Inf... Share Discussion Threads

[spangle93] 13/4/2024 09:07

Citywire comment



concludes...

Given the shares are trading well below par, the fund cannot raise cash through the public market, so Downing is considering finding a co-investor for the Swedish hydro portfolio, which totals 20 assets, validating the NAV and helping also to drive a rerating in the shares.

Williams said they could sell other assets to generate more cash, but solar in the UK is pretty well marked to market already.

Debt stands at 40% of gross asset value, costing 5%-6%, Williams said, pointing out that they could use excess cash to pay it off within two years, but the cash was better used investing in hydropower.

Deutsche Numis analyst Colette Ord said the addition of the non-generating assets was a point of difference versus peers and highlighted both the breadth of DORE’s mandate and focus on diversification of both technology and revenue stream.

She added that the 36% discount was 16% below its sector peers, ‘which in-part reflects the fund being viewed as sub-scale’.

[mwj1959] 12/4/2024 18:40

There is clearly a sector wide issue in terms of share price performance and the scale of some of the discounts. There are clearly more buyers than sellers, even with a (modest) buyback in place. The relatively low dividend has clearly not helped and even at the current high 30s discount the yield is "only" 7.7%. This is a 300bp+ pick-up relative to a 10yr Gilt, which I think is now reasonable in a vehicle that is geared and has NAV sensitivity to a number of factors. I'm happy to buy for the yield and wait and hope that there will be some discount narrowing on the back of future rate cuts / lower government bond yields. Even a share price recovery to 85p (where it was under a month ago), still a high 20s discount, gives you a 20%+ TR. Risk / Reward looks tilted in investors' favour at current levels, but there is definitely a need to be patient. An add for me.

[spangle93] 12/4/2024 16:55

Recording and Q&A from yesterday's presentation is available here



About half the asset value is UK solar, but the other half is European, primarily Swedish hydropower, where the NAV actually increases with time.

While I'm certainly not an expert, this does seem to be a well run company, with inflation-linked revenue for years to come, and a long time before debt needs renewing. Perhaps this is a real bargain because it's in an unloved sector? Otherwise, I'm not sure why the discount is widening so much

[mwj1959] 11/4/2024 10:09

At 75p now on a 36% discount to end 2023 NAV. I'm guessing NAV will have moved lower in Q1 on weaker power prices. Will be interesting to hear what the managers say about this on today's call.

[spangle93] 04/3/2024 11:52

Also the dividend (1.345p) was less than half the drop

[gateside] 03/3/2024 17:45

It went ex dividend on Thursday.The big drop was late on Friday.

[gateside] 02/3/2024 21:28

Why the big fall late on Friday?

[gateside] 20/2/2024 08:13

Yield is currently around 6.3%

[spangle93] 20/2/2024 08:05

Next dividend schedule



The Board of DORE is pleased to declare a dividend in respect of the period from 1 October 2023 to 31 December 2023 of 1.345 pence per Ordinary Share. The dividend will be paid on or around the 28 March 2024 to shareholders on the register on 1 March 2024. The ex-dividend date will be 29 February 2024.

[mwj1959] 09/2/2024 09:09

Listened to the presentation and all seems sensible. I guess where DORE loses out relative to other renewable ITs is the lower dividend, which compresses the gap with Gilts.

[spangle93] 30/1/2024 18:19

I watched the investor meet presentation yesterday - it probably didn't add much if you already know company, but I was cheered by the diversification of exposure, by renewable type, and geographical region.

Slides are here


Presentation is here

[pavey ark] 23/1/2024 07:20

These guys just keep moving along.
Using the cheap finance available to them from their other hydro investments.
Heading out so will look more closely later but it looks good to me.

[riverman77] 08/1/2024 11:46

Just bought in here as noticed it's completely missed the bounce that pretty much all its peers have enjoyed since mid October. Looks a solid well diversified fund with a 1.4x covered dividend and decent 3y NAV growth. Trading on a 27% discount (most of its peers now back in the 10-15% range).

[pavey ark] 04/1/2024 09:18

Like others I was impressed by the research note so topped up today.

I hold a number of renewables but like this for the Swedish hydro/diversity.

Note that they have used their cash but still have c. £15m loan available against further hydro investment at 2.3% for seven years !!!

Not the largest dividend but it will grow.

[wirralowl] 16/11/2023 16:37

Excellent research note. Thanks for sharing, jonwig.

[jonwig] 16/11/2023 08:04

Comprehensive research note (14/11):



And dividend:

1.345 pence per Ordinary Share. The dividend will be paid on or around 29 December 2023 to shareholders on the register on 1 December 2023. The ex-dividend date will be 30 November 2023.

[apfindley] 30/10/2023 20:05

It's great that the company are buying the shares, because if you discount the trades they made today buying back shares, then the rest of the market traded a negligible ammount.

[gbcol] 29/9/2023 13:59

Lovely divi landed today. I expect many are reinvesting it, I certainly am.

[gateside] 29/9/2023 13:57

Excellent to see Downing Renewables heading upwards

[the deacon] 20/9/2023 09:46

Recording of the Investor Meet Company presentation. A lot to like..https://youtu.be/J0689pSYrvM?si=o6fhgggWOUYyF4g2

[gbcol] 18/9/2023 07:30

Yes another set of solid results. NAV at 118p, more or less unchanged which makes a farce of the huge share price discount but that’s how many of the funds are at the current time. Probably need interest rates to peak/start falling and that will reverse.

In the mean time I will continue to reinvest dividends and top up when I can.

[jonwig] 18/9/2023 07:21

H1 results:



Swedish hydro seems fine, and the rest, too.
Presentation tomorrow at 11:00.

[jonwig] 08/9/2023 07:22

I see the gov't is failing to get bids for new offshore wind projects, as the power prices on offer are too low, but construction costs are inflated.

DORE has zero exposure to this, but if power prices are raised, it should help the solar portfolios. UK gov't is in a bind, as it doesn't want high consumer pricss and doesn't want to subsidise.

I'm concerned about stresses with Swedish hydro. Has drought affected generation?