JLEN ENVIRONMENTAL ASSETS GROUP LIMITED

Net Asset Value and Dividend Announcement

Net Asset Value

JLEN Environmental Assets Group Limited (“JLEN” or the “Company“), the listed environmental infrastructure fund, announces that its unaudited Net Asset Value (“NAV“) at 31 December 2023 was £777.7m (117.6 pence per share). This reflects a decrease of 2.1 pence per share since 30 September 2023 after paying the quarterly dividend of 1.9 pence per share.

Highlights in the period

·    Solid operational performance with continued strong cash generation from investments

·    Near term price fixes achieved in excess of valuation assumptions, partially mitigating downward movements from updated power price forecasts and actual inflation

·    Continued focus on asset enhancements in the portfolio to increase operational efficiencies

·    Acquisition of the remaining 30% shareholding in Bio Collectors Holdings Limited creating the potential for JLEN to deliver operational synergies across its portfolio of food waste anaerobic digestion plants

·    Steady progress on development and construction assets in line with expectations

·    Prudent balance sheet management maintaining low levels of gearing

Summary of changes in NAV:

Item	Pence per share movement
NAV at 30 September 2023	119.7p
Dividends paid in the period	-1.9p
Power prices (downward revision from forecasts offset by value accretive price fixes)	-1.5p
Battery storage revenue forecasts	-0.6p
Actual inflation	-0.7p
Other movements (including actual performance)	+2.6p
NAV at 31 December 2023	117.6p

Valuation factors

Key valuation movements include the negative impact from reductions in independent power forecasts (-2.3p), partially offset by the subsequent Electricity Generator Levy movement and favourable price fixes secured in the period (+0.8p). In addition to this, reductions in the gross margin forecasts for battery storage assets, prompted by independent consultants reappraising the available revenue opportunities, led to a -0.6p reduction. Lastly, there was also downward revision from the recognition of actual quarterly inflation finishing the calendar year below forecasts (-0.7p). The Investment Manager continues to monitor macroeconomic markers, including UK gilt yields, and consequently discount rates remain unchanged this period.

Gearing

At 31 December 2023 project level gearing was 17% and overall fund gearing was 30%, with the Company’s Revolving Credit Facility (“RCF“) £148.1m drawn from a total facility size of £200m. The Company continues to maintain sufficient headroom in its RCF to finance its firm commitments relating to construction assets held within the portfolio and earmarked follow-on investments.

Capital allocation strategy

The Investment Manager continues to make good progress on selective asset disposals with several credible opportunities being pursued, in line with the Company’s capital allocation strategy.

As stated in previous announcements, surplus capital generated from the portfolio and from asset sales will be prioritised towards existing commitments, compelling follow-on investments and value enhancements, alongside managing the RCF to maintain a robust balance sheet and the potential for share buybacks.

Dividend

The Company also announces a quarterly interim dividend of 1.9 pence per share for the quarter ended 31 December 2023, in line with the dividend target of 7.57p per share for the year to 31 March 2024, as set out in the 2023 Annual Report.

Dividend timetable

Ex-dividend date:    29 February 2024

Record date:            1 March 2024

Payment date:         22 March 2024

Bluefield Solar Income Fund Limited

(‘Bluefield Solar’ or the ‘Company’)

NAV Update and £20m Share Buyback Programme

 Dividend Guidance Reaffirmed with Earnings Cover for the Full Year of Approximately Two Times

Bluefield Solar (LON: BSIF), the London listed UK income fund focused primarily on acquiring and managing solar energy assets, has today announced the Unaudited Directors’ Valuation as at 31 December 2023, equivalent to a Net Asset Value (“NAV”) of £831.3 million, or 136.0 pps (September 2023 136.4 pps, June 2023 139.7 pps).

Unaudited Net Asset Value as of 31 December 2023

Key movements in the NAV since 30 September 2023 include recognition of value from the Company’s Renewable Energy Guarantees of Origin certificates (“REGOs”) until 2030, which have been included in the valuation for the first time owing to sustained market prices over the last 12 months and expectations of future value from forecasters. In addition, the Company has recognised a slight uplift in expected power prices due to a small increase in long term power forecasts whilst short term hedging has predominantly offset reductions from near term power price weakness. There was additionally a minor negative adjustment due to operational cost updates and working capital movements.

The discount rate being applied remains unchanged at 8.0% (30 September 23: 8.00%) and inflation assumptions also remain unchanged from 30 September 23 (2024:3.5%, 2025-2029:3.0%, 2.25% thereafter). All other core assumptions also remain unchanged.

		Pence per Ordinary Share
	Unaudited NAV as at 30 September 2023	136.4
	REGOs	0.9
	Power prices	0.4
	Operational cost update	-1.0
	Other movements	-0.7
	Unaudited NAV as at 31 December 2023	136.0

Full details on the movements for the 6 month period to 31 December 2023 will be outlined in the Company’s Interim Statement due for release on 28 February 2024.

Share Buyback Programme

The Board notes the recent weakness in the Company’s share price and the significant discount that the current share price represents to the value of the Company’s assets. Adjusting for the first interim dividend , the closing price of 99 pence per share (as at 14 February 2024) represents a discount of 26% to the 31 December 2023 NAV.

The Board of the Company keeps its capital allocation policy under regular review, evaluating the relative merits of further investment (into both new and existing assets), the management of debt and returning value to shareholders via dividends or through other methods such as share buybacks. As part of this review, and in the context of addressing what the Board views as the excessive discount at which the Company’s shares currently trade relative to the underlying NAV, the Board announces its intention to commence a share buyback programme. In the first instance it has allocated £20 million for the purchase of its own shares.

Share repurchases will be carried out under the existing shareholder authority granted at the last Annual General Meeting, held on 28 November 2023, which allows for purchases of Ordinary Shares by the Company in the market for up to 14.99% of the Company’s issued share capital. Any share repurchases will be funded from a combination of available liquidity, excess operating cash flows from the portfolio and the proceeds from any asset sales as already announced. It is expected that any share repurchases will be accretive to NAV per share.

The Company expects to announce its interim results for the half year ended 31 December 2023 on Wednesday, 28 February 2024. Until such announcement, the Company remains in a closed period in respect of those results and thus unable to buy its own shares, but the Board intends to commence share buybacks following the release of the interims and while the Company’s shares continue to trade at an excessive discount to NAV.

Dividend Guidance Reaffirmed

Shareholders will be aware that the Board of Bluefield Solar has recently declared a first interim dividend for the current financial year of 2.20 pps and has reiterated its target dividend for the full year of not less than 8.80 pps. This represents a dividend yield of 8.9%  based on the closing share price of 99p per share on 14 February 2024. The Company’s operations remain robust, trading conditions are attractive, and the Board expects this year’s dividend to be approximately two times covered.

JP Morgan China will be leaving the watch list on

the reduction in dividend.

Dividend

In line with the Company’s dividend policy, for the year ended 30th September 2023, four quarterly dividends of 3.42 pence were paid to shareholders. For the year to 30th September 2024, in the absence of unforeseen circumstances, a quarterly dividend of 2.76 pence per share will be paid. This represents an annual dividend of 4% of the Company’s NAV as at 29th September 2023.

Watch to see if the share can close above 100p.

Note: it wasn’t able to the last time it tried.

The Motley Fool

Here’s how I could turn £15K into a £478K retirement pot by investing in FTSE 100 shares

Story by Sumayya Mansoor 

I reckon it’s possible to build a retirement pot by investing in quality FTSE 100 shares.

Let me explain a method as to how I could do this with an initial £15,000 investment.

Breaking down the numbers

Since 1984, the UK’s premier index has returned 7.5% annually. This is a pretty good return, in my view. It’s much more than a low-yielding savings account that I could leave my money in. By the time I’m ready to retire, I would have nowhere near having enough money to retire on if I did that!

The first thing I would do is put £15K into a tax-efficient Stocks and Shares ISA

Next, I’d invest this amount into quality FTSE 100 shares

As well as my lump sum, I’m going to add £250 a month for 30 years

If I were to receive dividends, I would reinvest these too

I’m going to put a time frame of 30 years on my plan

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The chart below shows how my investment could pan out.

Source: thecalculatorsite.com

It’s worth mentioning that dividends aren’t guaranteed and I’m conscious that past performance isn’t a guarantee of the future, so a 7.5% return may not come to fruition. Conversely, the rate of return could be higher!

Investing the right stocks is key. I would focus on diversification. So I would buy quality stocks from a number of sectors. For example, some banking and financial stocks, tech stocks, house builders, defence stocks, and more.

One pick I like

BAE Systems (LSE: BA.) is one of the world’s biggest defence businesses.

The shares have been on a great run recently. Over a 12-month period they’re up 38% from 888p at this time last year, to current levels of 1,234p.

I reckon a big reason for the recent rise has been geopolitical tensions across the world pushing up defence spending. I’m wishing for speedy and peaceful resolutions across all conflicts. However, it’s worth mentioning that defence spending covers much more than wars and weapons.

According to Statista, global defence spending is at all-time highs, and could continue on this trajectory. BAE’s excellent track record, reputation, and deep-seated relationships with leading governments puts it in a great position to boost performance and returns for years to come.

Next, the fundamentals at present look good. The shares trade on a price-to-earnings ratio of 19. This isn’t the lowest, but I’m willing to pay a fair price for a wonderful business. In addition to this, a dividend yield of 2.3% would boost my passive income.

All investments come with risks and BAE is no different. There is a chance defence spending could be scaled back if conflicts come to a resolution, impacting performance and BAE’s share price. However, defence covers much more than wars, such as cyber security, so I’m not too worried here. Another risk is if a BAE product were to fail, it could cause financial and reputational damage to the business.

I don’t have £15K right now but using the maths and method above, I could employ this to help me retire comfortably.

The Motley Fool

How I plan to retire early with £1,000

a month of passive income

Story by Mark David Hartley 

Passive income is the perfect way to continue receiving an income after retirement. My pension will only stretch so far, so if I want to retire early, I’ll need something extra.

I think the best way to do this is with a portfolio of shares that pay dividends.

How dividends work 

A dividend is like a small gift that companies pay their shareholders every year as a thank-you for investing in them. A 5% dividend yield on a £1 share would pay me 5p for each share I hold. This is in addition to any returns made if the share price increases.

Once the passive income stream has been established, I can begin withdrawing my returns as needed.

Dividend yields change regularly, so it’s impossible to know how much I’ll receive each year. But with a portfolio of well-selected stocks, I can aim for a conservative average of around 5%.

How my strategy could work

I’ll use the small-cap iron casting and machinery firm Castings(LSE:CGS)  as an example.

Its 5% dividend yield is lower than many other UK stocks but it has an excellent track record of making regular payments. I’d aim for a good mix of reliable low-yield dividend shares and less reliable high-yield shares.

Furthermore, it’s currently estimated to be trading at 58%   below fair value so could go up from here. I don’t want to dive into an overvalued dividend stock that could lose value and negate any returns I make from dividends.

On the downside, Castings earnings are forecast to grow at only 3.1%, slower than the UK average of 12.6%. Still, the dividend payments make it worthwhile.

I’ve calculated that I could reach my goal of £1,000 a month in passive income in 20 years with the following strategy.

My outcome is based on a 5% dividend yield with semi-annual payments and an expected 0.2% annual dividend increase. I’ve also calculated an expected 6% annual share price increase. This is based on the past performance of an average basket of well-performing FTSE stocks.

• First, I’d invest £12,000 into a portfolio of shares similar to Castings

• I’d use a dividend reinvestment plan (DRIP) to put any dividends earned back into the investment

• I’d contribute an additional £200 a month to the investment

In 20 years, my investment could have grown to £257,395. At this point, my average annual returns with dividend payments could be £12,081 – just over £1,000 a month.

Risks

There are risks involved with such a strategy. I can’t guarantee the dividend payments will be consistent, or remain at 5%. The share price of any stocks I include could also fall, resulting in financial losses.

For this reason, I need to carefully research all the stocks I add to my portfolio. I should ensure they have a solid history of growth potential and a track record of making reliable dividend payments.

GAVIN LUMSDEN, CITYWIRE INVESTMENT TRUST INSIDER

Refinancing risk sinks shares in Regional Reit

Shares in Regional Reit plunge 39% year to date as investors fret about office investor’s enlarged debt burden and falling occupancy.

BYMICHELLE MCGAGH

Shares in Regional Reit (RGL) have tanked 39% this year despite a lower-than-expected decline in the value of the regional office portfolio.

At the start of this month, Regional reported a 5.9% like-for-like fall in its assets outside of the M25 orbital road in the six months to 31 December.

This was better than the 11% decline in the MSCI UK Monthly Property index but failed to reassure investors, who worry about the trust’s debt and falling occupancy. They have have continued to dump the shares, resulting in a fall of 24%, or 6.8p, this month.

Shares began the year at 35p and now sit at 21.5p. They have plunged from 44.7p last September, leaving Regional on a 64% discount to Deutsche Numis’ estimated net asset value (NAV) per share of 59.6p. The last NAV from the company was 64.4p per share in June.  

The yield on the shares has also widened to 22%, despite the dividend suffering a 27% cut in September as the fund paid just 1.2p in the second quarter, down from 1.65p in the previous three months.

At the heart of investors’ concern is the weight of Regional’s debt burden, as the fall in valuation increased its net loan-to-value (LTV) to 55.1%, although the company says debt remains fully hedged at an average cost of 3.5% with an weighted average maturity of 3.5 years.

Management sold six assets over the second half of 2023 in a bid to pay down debt and reduce its LTV, receiving proceeds of £26.1m before costs.

This took the total number of disposals for 2023 to 10, and further sales are expected as Stephen Inglis, chief executive of London and Scottish Property Investment Management, battles to bring the LTV back to its 40% target.

Deutsche Numis analyst Andrew Rees said a ‘near-term priority’ for the Reit will be the £50m retail bond due for repayment in August this year.

‘Reducing debt will therefore require an acceleration of disposal activity from current levels although we note this remains a challenging market to sell regional offices,’ he said.

‘Without an improvement, or even stabilisation, in occupier appetite, we believe the outlook for Regional remains uncertain and this is reflected in the share price.’

Occupancy has been another area of concern since lockdown prompted a shift to working from home, which left many companies without the need for expensive offices.

While Regional had been confident that local offices – which make up 92% of the fund – would be part of the work-from-home trend that would allow employees access to office facilities closer to home rather than travelling into major cities, the theory has yet to play out.

There are also significant costs in upgrading properties to the top EPC energy certificate rating of B.

The number of properties in the portfolio dropped to 144 in 2023 from 154 in 2022, while the number of occupiers has reduced from 1,076 to 978. On top of lower levels of both offices and occupiers, occupancy overall has fallen from 83% in 2022 to 80% in 2023.

Inglis (pictured) said 2023 was ‘one of the most challenging years for Reits in recent memory’ and Regional was not immune.

He said valuations have been impacted but his asset management initiatives ‘continued to mitigate some of the impact on the portfolio’.

‘The leasing market was slower than anticipated largely due to the uncertainty around working patterns and the geopolitical situation impacting inflation and interest rates, but with some stability we are witnessing increasing numbers of enquiries for our assets,’ said Inglis.

RGL declined to comment on the fall in the share price.