Downing Renewables and Infrastructure Trust – Powering ahead

Downing Renewables and Infrastructure (DORE) set out to build a portfolio of renewable energy assets diversified by geography and asset type, and has succeeded in that. In doing so, it alighted upon an opportunity to build a portfolio of hydropower assets in Sweden. As is described in this note, the management team has identified a number of ways in which it believes that it can significantly enhance the returns of these assets. These initiatives may have the potential to add meaningfully to both DORE’s NAV and revenues, and in a potentially short timeframe.

In common with peers, DORE’s discount has widened. This may be to be linked in part to rising interest rates and their potential impact on valuations. DORE’s board has been proactive, authorising share buybacks which have the additional benefit of enhancing the NAV for ongoing shareholders. The discount has been narrowing in recent weeks.