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LONDON - Octopus Renewables Infrastructure Trust (LSE:ORIT) has introduced a new five-year "ORIT 2030" strategy targeting a £1 billion net asset value by 2030, according to a press release statement issued Thursday.
The investment trust reported a negative NAV total return of 0.2% for the half-year ending June 30, 2025, compared to a positive 2.0% in the same period last year. The NAV per share declined to 99.5p from 102.6p at the end of December 2024, primarily due to lower power price forecasts, higher discount rates and dividend payments.
The new strategy outlines four key priorities: growing through higher-growth investments with an increased allocation to construction assets, scaling to a £1 billion net asset value, targeting medium-to-long-term total returns of 9-11%, and building approximately 100 MW of new renewable capacity annually.
As part of the strategic shift, ORIT plans to increase its allocation to construction assets to approximately 20% while maintaining its current 5% allocation to developers. The company also intends to focus more on asset improvement and disciplined capital recycling.
The board is recommending that the continuation vote cycle be shortened to three years from the current five years. This proposed change will be put to a vote at the 2026 AGM, with the next continuation vote scheduled for the 2028 AGM if approved.
ORIT plans to maintain its progressive dividend policy while preserving full dividend cover and targeting long-term gearing below 40%. The trust will continue its diversification across core technologies and geographies.
The company currently trades at a discount of over 30% to its net asset value, according to the press release.
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