ORIT: Resilient Half Year Results

Octopus Renewables Infrastructure Trust (LON:ORIT) reported resilient operating performance in the first half of 2026. Revenue and EBITDA from the operational portfolio were ahead of budget at £67.2m and £42.1m respectively, while dividend cover strengthened to 1.38 times after debt amortisation, supporting the company’s full-year dividend target of 6.23p a share. The trust generated 614GWh of electricity during the period, with solar and offshore wind outperforming expectations, although onshore wind production was 6% below its revised budget. Management said it had reduced total debt by £5.3mn to £396.8mn, but gearing rose to 46.6% of gross asset value as the portfolio valuation fell. A reassessment of its onshore wind assets, weaker long-term power price assumptions and higher discount rates pushed NAV down 5% to 86.2p a share.

The group is now seeking to recycle capital through asset disposals, with several sales processes under way, while pursuing selective new investments and targeting a reduction in gearing towards 40%. The results underline the tension facing listed renewable infrastructure funds: ORIT continues to generate relatively predictable cash flows, with 86 per cent of revenues over the next two years fixed or contracted, but remains exposed to higher financing costs, changing power-price assumptions and the persistent discount at which the sector trades to its underlying assets