In This Article:
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Net Asset Value (NAV) per Share: 90.6p, stable compared to 90.5p in March.
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Total Portfolio Value: GBP1.5 billion, with GBP1 billion net asset value and GBP0.5 billion debt.
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Investment Cash Flows: GBP48 million for the period, in line with the previous year.
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Dividend Coverage: Dividends fully covered by cash flow, with a 13% dividend yield at current share price.
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Earnings per Share: 3.2p, covering the dividend paid of 3.1p.
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Annualized NAV Total Return: 8.9% after adjusting for FX impacts.
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Weighted Average Discount Rate: 9.4% levered, unchanged from previous valuations.
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Profit After Tax: GBP35 million, reflecting stable valuation and operational performance.
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Investment Activity: GBP100 million invested since March 2024, mainly into Onyx and EVN.
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Gearing: About a third of enterprise value, with plans to reduce short-term borrowings.
Release Date: December 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SDCL Energy Efficiency Income Trust PLC (LSE:SEIT) has a large and diversified portfolio valued at GBP1.5 billion, with operations in 10 countries, primarily in the United States.
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The company reported stable operations and performance, with net asset value per share slightly increasing to 90.6p from 90.5p in March.
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SEEIT's portfolio is generating total returns of about 9.4% to 11%, with a 13% dividend yield fully covered by cash flow.
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The company is actively managing its gearing levels, maintaining low levels of leverage compared to its peers, and has plans to reduce short-term debt.
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SEEIT is focused on shareholder value, with strategies in place to address the discount to net asset value and improve share price through potential share buybacks and capital recycling.
Negative Points
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SEEIT shares are trading at a significant 45% discount to net asset value, reflecting market distress and dislocation in price versus value.
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The investment trust market is currently distressed, impacting SEEIT's share price and market conditions.
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SEEIT faces macroeconomic headwinds, including higher interest rates and inflation, which could affect future performance.
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The company experienced negative FX movements, which impacted net asset value despite positive portfolio valuation movements.
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Operational challenges were noted in some assets, such as Red Rochester, which faced lower demand and higher maintenance costs, affecting EBITDA.
Q & A Highlights
Q: Is there potential to refinance the revolving credit facility (RCF) with longer-term debt? A: Yes, there is an opportunity to refinance the RCF with longer-term debt. SEEIT's leverage currently combines short-term financing through its RCF and longer-term project-level debt. We are continuously exploring opportunities to align the duration of our liabilities with our assets, and we expect several opportunities to arise in the first half of 2025. - Jonathan Maxwell, CEO