SDCL Efficiency Income Trust (SEIT) investor relations material

Executive summary

• Net asset value per share at 90.6p, marginally up from 90.5p last year, with a 7.1% total NAV return and stable operational performance despite macroeconomic pressures and increased discount rates.

• Portfolio diversified across 10 countries, with 70% in the US and the remainder in high-quality European markets, focusing on energy efficiency for buildings, industry, and transport.

• Dividends fully covered by cash generation, with aggregate dividends of 6.32p per share paid and new guidance of 6.36p per share for FY2026.

• Shares trade at a 40–45% discount to NAV, with a 13% dividend yield; management is focused on closing this gap through strategic initiatives and active management.

• No new acquisitions made during the year; focus remained on supporting and growing existing investments, with c.£172m invested in organic growth.

Financial highlights

• Cash inflows of £97m, up 4% year-over-year, fully covering the dividend; aggregate EBITDA for the portfolio was £86m for 2024.

• Profit after tax for the year was £70m, reflecting stable valuations.

• NAV total return for the year was 7.1%.

• Investments at fair value stood at approximately €1.2bn, with net assets around €980m.

• Ongoing charges ratio rose to 1.16% from 1.02% year-over-year.

Outlook and guidance

• Dividend guidance for FY2026 set at 6.36p per share, with average cash cover for dividends projected to remain above 1.1x.

• Management maintains a progressive dividend policy and expects continued robust operational performance.

• Focus on reducing short-term borrowings and managing gearing within company limits, with structural debt facilities expected to further reduce reliance on revolving credit.

• Active pursuit of capital recycling, including disposals and strategic partnerships, to support liquidity and substantiate valuations.

• Focus on realizing returns from existing investments rather than new capital deployment.