REG - JLEN Environmental - Net Asset Value, Dividend and FY25 Dividend Target

JLEN Environmental AssetsAnnouncement

29/05/2024 07:00

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RNS Number : 1711Q  JLEN Environmental Assets Group Ltd  29 May 2024

29 May 2024

JLEN ENVIRONMENTAL ASSETS GROUP LIMITED

("JLEN" or the "Company")

 

Net Asset Value, Dividend Declaration and FY25 Dividend Target

 

Net Asset Value and dividend target
JLEN, the listed environmental infrastructure fund, is pleased to announce an
unaudited Net Asset Value ("NAV") of £751.2 million at 31 March 2024 (31
December 2023: £777.7 million). This results in a NAV per Ordinary Share of
113.6 pence (31 December 2023: 117.6 pence) after payment of the target
quarterly dividend of 1.90 pence.

The Board is pleased to announce the Company's 10(th) consecutive dividend
increase since IPO, with a dividend target of 7.80 pence per share for the
year to 31 March 2025, representing a 3.0% uplift from the year to 31 March
2024.

Summary of changes in NAV:

                                                       NAV per share
 NAV at 31 December 2023                               117.6p
 Dividends paid in the period                          -1.9p
 Power prices                                          -2.1p
 Battery revenue outlook                               -1.6p
 Discount rate changes                                 0.4p
 Other movements (including actual asset performance)  1.2p
 NAV at 31 March 2024                                  113.6p

Power prices

The portfolio continues to benefit from a high degree of protection from short
term price hedges as well as revenues from subsidies and long-term contracts
that are not derived from power prices. As a result the portfolio has been
resilient despite a significant reduction in near term electricity and gas
price expectations.

Once reflecting the compensating impact from the Electricity Generator Levy,
downward power price forecasts have resulted in a reduction in NAV of 2.1
pence compared to 31 December 2023.

Battery revenue outlook

Near term battery revenue projections have reduced significantly in recent
months. Whilst the portfolio only has one operational asset, this backdrop has
impacted pricing and valuations in the market for assets at all stages of
their lifecycle.

The impact of changes to revenue forecasts is to decrease the NAV by 1.6 pence
compared to 31 December 2023.

Since April 2024, revenues have started to rise, and independent market
analysis suggests this trend to continue through 2024 and 2025 as well as
continued strong fundamentals for the long term outlook of the sector.

Discount rates
Discount rates have been reviewed across the portfolio to ensure they remain
in line with evidence of recent market transactions seen by the Investment
Manager and assessment from JLEN's independent valuation advisor. There have
been no material changes to discount rates in the period, and the overall
Weighted Average Discount Rate remains at 9.4%. The net effect of changes to
discount rates is to increase the NAV by 0.4 pence compared to 31 December
2023.

Update on asset sales
The Investment Manager continues to progress several credible selective asset
disposal opportunities. The Board expects to update shareholders in due
course.

Dividend

Financial performance of the portfolio has been satisfactory, with dividend
cover of 1.30x for the year to 31 March 2024.

 

The Company also announces a final quarterly interim dividend of 1.89 pence
per share for the period from 1 January 2024 to 31 March 2024.

Together with the interim dividends paid during the financial year to date of
5.68 pence per share, the Company will have paid total dividends of 7.57 pence
per share in respect of the year ended 31 March 2024, in line with the
dividend target set out in the 2023 Annual Report.

Dividend Timetable

 Ex-dividend date                   6 June 2024
 Record date                        7 June 2024
 Payment date                       28 June 2024

 

This announcement contains information that is inside information for the
purposes of the Market Abuse Regulation (EU) No. 596/2014.

For further information, please visit www.jlen.com (http://www.jlen.com/)
 or contact:

 Foresight Group                                      +44(0)20 3667 8100

 Chris Tanner                                         institutionalir@foresightgroup.eu

 Edward Mountney

 Wilna de Villiers
 Winterflood Securities Limited                        +44(0)20 3100 0000

 Neil Langford

 SEC Newgate                                          +44 (0)20 3757 6882

 Elisabeth Cowell                                     Jlen@secnewgate.co.uk

 Alice Cho

 Harry Handyside

 Apex Fund and Corporate Services (Guernsey) Limited  +44(0)20 3530 3600

 Matt Lihou

 Matt Falla

 

About JLEN

JLEN's investment policy is to invest in a diversified portfolio of
Environmental Infrastructure. Environmental Infrastructure is defined by the
Company as infrastructure assets, projects and asset-backed businesses that
utilise natural or waste resources or support more environmentally friendly
approaches to economic activity, support the transition to a low carbon
economy or which mitigate the effects of climate change. Such investments will
typically feature one or more of the following characteristics:

 

·       long-term, predictable cash flows, which may be wholly or
partially inflation-linked cash flows;

·       long-term contracts or stable and well-proven regulatory and
legal frameworks; or

·       well-established technologies, and demonstrable operational
performance

 

JLEN's aim is to provide investors with a sustainable, progressive dividend
per share, paid quarterly and to preserve the capital value of the portfolio
over the long term on a real basis. The target dividend for the year to 31
March 2025 is 7.80 pence per share¹.  The dividend is payable quarterly.

 

JLEN is an Article 9 fund under the EU Sustainable Finance Disclosure
Regulation and has a transparent and award winning approach to ESG.

 

Further details of the Company can be found on its website www.jlen.com
(http://www.jlen.com)

 

LEI: 213800JWJN54TFBMBI68

 

(1) These are targets only and not profit forecasts.  There can be no
assurance that these targets will be met or that the Company will make any
distributions at all.

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