SDCL Energy Efficiency Income Trust Shows Resilience in H125 Report

Edison Investment Research Limited has released its latest analysis on SDCL Energy Efficiency Income Trust (SEIT). The report highlights SEIT's stable performance, with its net asset value (NAV) marginally increasing to 90.6p, up from 90.5p as of March 2024. This demonstrates resilience in the face of challenging market conditions.

The NAV increase was attributed to positive portfolio valuation changes, countered by foreign exchange movements. SEIT declared a dividend of 3.16p for the six-month period ending 30 September, comfortably covered by cash inflows at a ratio of 1.1x. The management remains optimistic about fulfilling the FY25 dividend target of 6.32p, maintaining full coverage.

Currently, SEIT trades at a significant discount of approximately 43% to its NAV and delivers a dividend yield of about 12%, according to the current share price.