Octopus Renewables Infrastructure Trust (ORIT) H2 2024 earnings summary

Executive summary

• Celebrated fifth anniversary, delivering a 31.9% total return and £128.2m returned to shareholders over five years.

• Delivered strong operational and financial performance in FY 2024, with portfolio growth, increased generation, and a fully covered, progressive dividend.

• Portfolio diversified across five countries and five technologies, with 41 assets at year-end and a balance between solar and wind assets.

• Portfolio generation rose 7% year-over-year to 1,240 GWh, and the dividend was increased for the fourth consecutive year, in line with CPI.

• Strong focus on impact, community engagement, and environmental initiatives, including powering 284,000 homes and displacing 300,000 tons of carbon in 2024.

Financial highlights

• Generation increased to 1,240 GWh, driven by new solar assets in Ireland and the UK.

• Dividend per share increased to 6.02p (2023: 5.79p), up 4% year-over-year, with a 1.24x cover; FY25 target dividend is 6.17p.

• NAV per share at year-end was 102.6p, with a NAV total return of 2.5% for FY24.

• Revenue increased to £129.4m (+10% year-over-year), and EBITDA rose to £85.2m (+15% year-over-year).

• Total shareholder return was -18.3% due to sector-wide share price pressures.

Outlook and guidance

• FY25 dividend target set at 6.17p per share, a 2.5% increase, expected to be fully covered by operational cash flow.

• Committed to reducing gearing below 40% of gross asset value by end of 2025, with a focus on lowering interest costs.

• Buyback program increased to £30m to address share price discount.

• Targeting at least £80m of asset sales in 2025 to support capital returns and deleveraging.

• High level of fixed (84%) and inflation-linked (48% over 10 years) revenues provides protection against power price volatility.