SDCL Energy Efficiency Income Trust — A deep dive into key assets
22/04/2025
SDCL Energy Efficiency Income Trust (SEEIT) currently trades at a significant 46% discount to net asset value (NAV). This discount to NAV is larger than that of the company’s wider peer group, which stands at c 34% (weighted average of 19 peers), and its 13% dividend yield is the second highest in the AIC Renewable Energy Infrastructure sector. SEEIT is possibly misunderstood as it has a unique mandate (energy efficiency) and a diverse set of assets, which make comparison to peers difficult. In this note we take a closer look at its five key assets, which made up c 75% of its gross asset value at 30 September 2024. Its assets are diversified by technology and are focused almost entirely on delivering energy efficiency as a decentralised service behind the meter, rather than supplying energy to the broader grid. Both features are arguably deserving of a premium, rather than a discount valuation compared to peers.
Vantage: SEEIT – Investing in the world’s most valuable energy resource
16/12/2024
With 70% of global energy being wasted and energy efficiency emerging as a critical pathway to net zero, our latest Vantage interview explores an often-overlooked investment opportunity. SDCL Energy Efficiency Income Trust (SEEIT) targets investments in energy efficiency projects that deliver cheaper, cleaner and more reliable energy. Currently trading at a 40% discount to NAV with a 12% dividend yield, this UK 250 company offers exposure to: 1) a £1.5bn portfolio of assets operating across 10 countries; 2) 50 commercial projects from electric vehicle charging to district energy; 3) long-term contracted revenues from creditworthy counterparties; and 4) growing policy support. In this interview, fund managers Tamsin Jordan and Ben Griffiths explain how SEEIT is positioned to capitalise on what the International Energy Agency identifies as essential for achieving 2030 emissions targets.
SDCL Energy Efficiency Income Trust — Robust performance in H125
05/12/2024
SDCL Energy Efficiency Income Trust (SEEIT) reported robust H125 results. Its net asset value (NAV) increased marginally to 90.6p (90.5p at 31 March 2024), demonstrating resilience and stability despite the challenging market conditions. NAV was positively affected by portfolio valuation changes, but offset by FX movements. SEEIT paid a dividend of 3.16p in the six-month period (31 March to 30 September), 1.1x covered by cash inflows. Management also stated that the company is on track to deliver its FY25 dividend target of 6.32p (while maintaining its fully covered status). Based on the current share price, SEEIT offers a c 12% dividend yield and trades at a significant discount to NAV of c 43%.