SDCL Energy Efficiency Income Trust PLC
LSE:SEIT
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SDCL Energy Efficiency Income Trust PLC
SDCL Energy Efficiency Income Trust PLC is a United Kingdom-based investment company. The firm is focused on investing in the energy efficiency sector for the betterment of environment and infrastructure. The firm's objective is to generate return for investors comprising stable dividend income and capital preservation. Its projects are primarily located in the United Kingdom, Europe and North America and include a portfolio of cogeneration assets in Spain, a portfolio of recycled energy and cogeneration projects in the United States, a regulated gas distribution network in Sweden and a portfolio of commercial and industrial solar and storage projects in the United States. The firm makes its investments through its principal holding company and subsidiary, SEEIT Holdco Limited, and intermediate holding companies. The firm's investment manager is Sustainable Development Capital LLP.
SDCL Energy Efficiency Income Trust PLC is a United Kingdom-based investment company. The firm is focused on investing in the energy efficiency sector for the betterment of environment and infrastructure. The firm's objective is to generate return for investors comprising stable dividend income and capital preservation. Its projects are primarily located in the United Kingdom, Europe and North America and include a portfolio of cogeneration assets in Spain, a portfolio of recycled energy and cogeneration projects in the United States, a regulated gas distribution network in Sweden and a portfolio of commercial and industrial solar and storage projects in the United States. The firm makes its investments through its principal holding company and subsidiary, SEEIT Holdco Limited, and intermediate holding companies. The firm's investment manager is Sustainable Development Capital LLP.
Dividend Maintained: SEIT declared a 3.18p interim dividend for the period, with full-year target of 6.36p confirmed. Dividend cover is strong at 1.2x.
Portfolio Performance: Operational performance remains stable and in line with expectations. EBITDA and investment cash flow are up year-on-year.
Gearing Reduction Focus: Management's top priority is to reduce gearing, currently at 72% of NAV (or 42% loan-to-value), with no further debt available until gearing is below 65%.
Valuation Slightly Down: Net asset value (NAV) decreased modestly to 87.6p from 90.6p, mainly due to market risks and caution over future cash flows, especially for Onyx.
Disposals Underway: The company is progressing with significant asset disposals to lower debt, and has achieved a recent sale at a premium to NAV.
Growth Opportunities: Despite capital constraints, the company sees substantial growth potential in decentralized energy, especially in Onyx, RED-Rochester, Driva, and Primary Energy.
Strategic Review: SEIT and its Board are actively considering all strategic options to maximize shareholder value amid market and sector-wide challenges.
