Octopus Renewables Infrastructure Trust Reports Strong H1 Performance Despite NAV Decline
Octopus Renewables Infrastructure Trust (ORIT) reported first-half revenue and EBITDA that exceeded budget, driven by strong solar and offshore wind output. Revenue was 3% above expectations while EBITDA outperformed by 6%, supporting a dividend cover of 1.91 times before debt amortization. The trust remains on track to meet its FY2026 target dividend of 6.23 pence per share, representing a modest increase from the previous year. Despite this positive operational performance, ORIT's net asset value (NAV) declined by 5% over the first half due to revised long-term assumptions for onshore wind generation and higher discount rates. The reassessment of its Finnish and German wind portfolios led to a £30.4 million NAV reduction alone. Management plans to reduce gearing from 46.6% toward its target of around 40%, using proceeds from asset sales expected within six months. The trust is also evaluating project refinancing while maintaining dividend coverage, with the reassessment intended to provide more accurate and robust portfolio valuations going forward.
Topics: debt reduction dividend performance NAV changes renewable energy