@rambutan2 - PE ITs, surely? |
Thanks for the comments. Nothing fundamentally wrong with ORIT's business. In fact with Octopus as managers, the business is probably higher quality than some of its peers. |
 CDV, the whole sector (link below) is deeply out of favour, in fact in my decades of following investment trusts I cannot remember a sector in which the lowest discount was over 25%. And as you hint, most of the trusts are not distressed, but delivering the div they promised. Yes, the navs have slipped a bit, but not disastrously. And many of the trusts are a decent size. One can wonder up all sorts of reasons for the discounts but i think that it is simply that there are more sellers than buyers. Wealth managers, multi managers and other assorted institutions couldn't get enough of the sector a few year's ago, illustrated by how easily all the trusts could issue new equity whenever they fancied it, but when the tide turned, apart from private investors, there were no buyers. And of course, the assets the trusts hold are not very liquid, not growth assets, and the income they produce is nearly all accounted for via debt/interest payments and the div. So little room for manoeuvre by the boards. Having always avoided investing in the sector, in the last few weeks I've bought a basket of them and will collect the handsome divs and wait for something to happen, which it will, sooner or later. Also, should be fairly insulated from Trump induced geopolitical etc madness. |
Just celebrate the excellent reliable income that this currently unloved share is providing ! |
I don't understand at all why the share price here is so awful. We have sky high energy prices in the UK. Surely ORIT should be making good money? |
Possibly a bit oversold on 38% discount? Ssems to have lagged the mini recovery across many of its peers. Not looked at this closely, but seems to have decent track record and well diversified. Thought this morning's announcement sounded positive. Probably also a good size for a potential take. |
"...Because the previous buy back went so well.".
A definite feeling it's done for NAV-supporting reasons. NAV doesn't support the share price much, in part because it's such a moveable feast.
Prefer the asset sales, reduction in gearing, and divi. |
Nice finance deal announced today, should have saved £1 million + in costs :-
>>>>>>>>>>>>>>
Octopus Renewables Infrastructure Trust plc, the diversified renewables infrastructure company, announces it has signed a new five-year term loan facility (the "Facility") with three of its existing lenders. The £100 million Facility will be used to pay down a portion of the existing and more expensive Revolving Credit Facility ("RCF") debt.
The Facility comprises equal commitments from Santander, National Australia Bank and Allied Irish Banks and is secured against ORIT's UK onshore wind and solar assets which benefit from a high level of fixed revenues. ORIT has secured an all-in hedged interest rate of 5.3%, representing a material decrease in costs from the existing RCF, which has an all-in rate of approximately 6.5%.
As at today's date, the Company had drawn £151.2 million on the RCF, a portion of which will be paid down using the net proceeds from the Facility, reducing the drawn amount to c.£53 million.
In addition, the Company is currently in the process of extending the tenor of the RCF and reducing its commitment size from £270.8 million in order to decrease commitment fees and further reduce costs. |
Might make a good AIC target - insufficient self-help, big discount, plenty of value to unlock. |
Thanks for that |
XD for 1.51p this morning and pay day is 28/2 |
Thanks Skinny like the idea of the double discount with PMGR,need to read up on the splits first,do they make much of a difference to asset value. |
CWA1 - like the sector, it hasn't been the best performer over the last few years - but a reasonable way to gain access to a few companies.
As for XD day :-
"The day of the week changed from Wednesdays to Thursday back in 2014 to reflect a faster share trading settlement process."
But then you knew that :-) |
Cheers Skinny, thanks for that |
Thought it was a mistake on the ex div as usually Wed so also bought a few for the dividend
XDs are almost always Thursdays(exceptions if there's a stock market holiday during the XD week or a handful of other very rare occurences) |
This may (or not) be of interest, but I've held for some years.
It yields @8.4% and holds ORIT & UKW amongst others. |
Thought it was a mistake on the ex div as usually Wed so also bought a few for the dividend. |
Joined your merry(I hope you're merry!) throng this morning with a maiden purchase pre it going XD tomorrow. Paid just shy of 67.9p for them.
Fingers firmly crossed for better times... |
Appears like a good deal for ORIT today :-
Increased Commitment to Finnish Wind and Solar Developer Asset
Follows significant progress of the investment to date and will support progression of pipeline
Deal to be restructured to provide ORIT with a direct stake in the developer
Octopus Renewables Infrastructure Trust plc, the diversified pan-European renewable energy infrastructure impact company, announces it has committed an additional €3.4 million (£2.8 million equivalent) to Nordic Generation ("Norgen"), a specialist developer focused on the Finnish wind and solar market, to build on the strong progress already achieved by the asset and to support its Phase 2 pipeline.
As part of the transaction, ORIT's existing 50% holding in Nordic Renewables will convert into a direct 30% stake in the integrated Norgen development business. The new structure is expected to be value accretive for ORIT, with a base case increase of between £1.0 and £1.5 million, and should allow for greater range of upside for ORIT over the life of the asset.
The initial commitment of €3.4 million (c. £2.9 million) was made in April 2022 and at today's date is €2.5 million drawn. The value of ORIT's holding in Nordic Renewables was valued at €4.8 million (£4.0 million) as at 31 December 2024 - an increase of £2.0 million over the quarter. The additional funding takes ORIT's total maximum commitment to approximately €6.8 million (£5.6 million) and means that the total capacity of projects expected to reach Ready to Build stage increases to 845MW - more than double the anticipated combined capacity of 400MW originally projected.
ORIT's investment is being made alongside another fund managed by Octopus Energy Generation ("Sky" or "ORI SCSp"), which held the remaining 50% stake in Nordic Renewables and will also be taking a 30% stake in Norgen on the same terms as ORIT. The remaining 40% stake is held by the management team.
Phil Austin, Chair of Octopus Renewables Infrastructure Trust plc, commented:
"We are delighted to announce this follow-on commitment and restructuring of the Norgen investment. The Finnish developer has already made positive progress to date, with a number of projects expected to reach construction phase this year and next, having secured key permits. We believe the additional funding in this transaction will enhance generation capacity, providing much-needed clean energy. We also believe the updated ownership structure has the potential to deliver greater upside and opportunities for ORIT in future." |
I'm not sure if this has been posted :-
. |
The dividend is covered by the return from assets but the operating costs and interest charges aren't. This leaves me feeling slightly uncomfortable that the NAV is on a path of slow decline, also bearing in mind that wind and solar assets have a design life of perhaps 20 years and don't last for ever. This may explain the discount but even so I think it is a bit overdone, a price of 80p feels more reasonable to me. |
Offshore wind component is 14%, adam - doesn't seem overly large? |
High financial gearing and fees to investment manager based on NAV. Large offshore wind component. The discount may offer significant protection but equally is it entirely unwarranted? I don’t own but have it on the radar FYI |
A near 9% covered yield. And the shares drop. Weird. |
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