Q2 2026 Octopus Renewables Infrastructure Trust PLC Earnings Call

September 22, 2026

Speaker #2: Good afternoon, ladies and gentlemen, and welcome to the Octopus Renewables Infrastructure Trust PLC Investor Presentation. Questions are encouraged and can be submitted at any time via the Q&A tab, which is located in the right-hand corner of your screen.

Moderator: Good afternoon, ladies and gentlemen, and welcome to the Octopus Renewables Infrastructure Trust PLC Investor Presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab that is just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish our responses where it is appropriate to do so. Before we begin, we would just like to submit the following poll, and if you could give that your kind attention, I am sure the company would be most grateful. I would now like to hand you over to the team from ORIT. Chris, good afternoon, sir.

Operator: Good afternoon, ladies and gentlemen, and welcome to the Octopus Renewables Infrastructure Trust PLC Investor Presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab that is just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish our responses where it is appropriate to do so. Before we begin, we would just like to submit the following poll, and if you could give that your kind attention, I am sure the company would be most grateful. I would now like to hand you over to the team from ORIT. Chris, good afternoon, sir.

Speaker #2: Please simply type your questions and press send. The company may not be able to answer every question it receives during the meeting itself.

Speaker #2: However, the company can review all questions submitted today, and we'll publish our responses where it's appropriate to do so. Before we begin, we would just like to submit the following poll, and if you could give that your kind attention, I'm sure the company would be most grateful.

Speaker #2: And I would now like to hand you over to the team from AURIT. Chris, good afternoon, sir.

Speaker #3: Good afternoon, and good afternoon to everyone who has joined us today for this presentation of the interim results for AURIT. My name is Chris Skaden.

Chris Gaydon: Good afternoon, and good afternoon to everyone who has joined us today for this presentation of the interim results for ORIT. My name is Chris Gaydon. I am a Co-Fund Manager. I am joined by David Bird, the other Co-Fund Manager, and also Jen, our Senior Portfolio Manager, and Charlotte, who leads the Investor Relations. For those of you who are unfamiliar with our strategy, ORIT develops, buys, builds, and operates renewable energy infrastructure across wind, solar, and complementary technologies. Operating assets provide sustainable income while construction and developer exposures create opportunities for capital growth. Diversification, contracted revenue, active asset management, and capital recycling support long-term value creation. So the question of why ORIT now? First of all, the long-term tailwinds of affordability, security of supply, and mitigating the impacts of climate change remain firmly in place.

Speaker #3: I am the co-fund manager. I'm joined by David Bird, the other co-fund manager, as well as Jen, our senior portfolio manager, and Charlotte, who leads investor relations.

Speaker #3: Okay. For those of you who are unfamiliar with our strategy, AURIT develops, buys, builds, and operates renewable energy infrastructure across wind, solar, and complementary technologies.

Speaker #3: Operating assets provide sustainable income, while construction and developer exposures create opportunities for capital growth. Diversification, contracted revenue, active asset management, and capital recycling support long-term value creation.

Speaker #3: And so, the question of why AURIT now? Well, first of all, the long-term tailwinds of affordability, security of supply, and mitigating the impacts of climate change remain firmly in place.

Speaker #3: Second, we're also seeing a tangible improvement in the underlying performance of our assets, as our improvement projects are taking effect. Third, we think that AURIT, where it's priced today, is an attractive entry point given the opportunity ahead of it.

Chris Gaydon: Second, we are also seeing a tangible improvement in the underlying performance of our assets as our improvement projects are taking effect. Third, we think that ORIT, where it is priced today, is an attractive entry point given the opportunity ahead of it. What is really motivating us is the improvements in some of the macros. Across several of our markets, including the UK and Finland, we are starting to see increasing electricity demand as data centers and batteries are being built and electrification takes root. As these trends become established, we are hopeful that will lead to improvements in long-term power prices and reductions in capture price discounts. These are the themes that ORIT 2030 plays precisely into. The story of the H1 of this year is one of resilient cash performance.

Speaker #3: But what's really motivating us is the improvement in some of the macros. So across several of our markets, including the UK and Finland, we're starting to see increasing demand in starting to see increasing electricity demand as data centers and batteries are being built and electrification takes root.

Speaker #3: As these trends become established, we're hopeful that this will lead to improvements in long-term power prices and reductions in capture price discounts. These are the themes that AURIT 2030 plays precisely into.

Speaker #3: The story of the first half of this year is one of resilient cash performance. Both revenue and EBITDA were ahead of budget, and that has led to increased dividend cover of 1.38 times, which is net of scheduled debt amortization.

Chris Gaydon: Both revenue and EBITDA were ahead of budget, that has led to increased dividend cover of 1.38 times, which is net of scheduled debt amortization. The financial performance was driven by strong asset performance across both solar and offshore wind, while it was a poorer period for onshore wind, which fell short of its updated production forecast. NAV total return over the period was -5%, primarily driven by the reforecasting of those onshore wind production estimates, coupled with lower power price forecasts and higher discount rates. Onto the financial highlights. NAV was GBP 455 million, or 86.2 pence per share at 30 June. The share price total return was positive at 13.7%, while the discount narrowed during the period, it remains a key focus for us. Since IPO, NAV total return is 21.7%. Gross asset value at the period end was GBP 852 million.

Speaker #3: The financial performance was driven by strong asset management, as well as strong asset performance across both solar and offshore wind, while it was a poorer period for onshore wind, which fell short of its updated production forecast.

Speaker #3: NAV total return over the period was negative 5%, primarily driven by the reforecasting of those onshore wind production estimates, coupled with lower power price forecasts and higher discount rates.

Speaker #3: Onto the financial highlights. NAV was £455 million, or 86.2 pence per share at 30 June. The share price total return was positive at 13.7%.

Speaker #3: And while the discount narrowed during the period, it remains a key focus for us. Since IPO, NAV total return is 21.7%. Gross asset value at the period end was £852 million.

Speaker #3: And these figures underline the distinction between resilient operating cash flows and the reduction in long-term valuation assumptions. AURIT has a consistent record of increasing its dividend.

Chris Gaydon: These figures underline the distinction between resilient operating cash flows and the reduction in long-term valuation assumptions. ORIT has a consistent record of increasing its dividend. We remain on track to deliver the FY 2026 target of 6.23 pence per share, which itself was a 1% increase on 2025. H1 dividend cover has increased to 1.38 times after scheduled debt amortization, it would be 1.91 times gross of that scheduled debt amortization. Keeping the dividend fully covered remains a clear priority because we know just how much this matters to shareholders. Thank you, Chris, and good afternoon, everybody. I am going to cover the results for the company as a whole, looking at the entire portfolio, then I will dive into a little bit more detail on a technology-by-technology basis.

Speaker #3: We remain on track to deliver the FY 2026 target of 6.23 pence per share, which was itself a 1% increase on 2025. H1 dividend cover has increased to 1.38 times after scheduled debt amortization.

Speaker #3: And it would be 1.91 times the gross of that scheduled debt amortization. Keeping the dividend fully covered remains a clear priority, because we know just how much this matters to shareholders.

Speaker #3: Thank you, Chris, and good afternoon, everybody. I'm going to cover the results for the company, and then I'll dive into a little bit more detail on a technology-by-technology basis.

David Bird: Thank you, Chris, and good afternoon, everybody. I am going to cover the results for the company as a whole, looking at the entire portfolio, then I will dive into a little bit more detail on a technology-by-technology basis.

Speaker #3: And the figures you can see here are on an actual versus actual basis for the first six months of the year. And what that means is, although we sold the Crosstype wind farm and a 49% stake in the Breach solar farm at the end of last year, we have not adjusted the historic comparatives for that.

David Bird: The figures you can see here are on an actual versus actual basis for the first six months of the year. What that means is, although we sold the Crossdykes Wind Farm and a 49% stake in the Breach Solar Farm at the end of last year, we have not adjusted the historic comparatives for that. You can see that even with that reduction in capacity, that actually revenue and EBITDA in the first six months of the year was only very slightly below what we saw in the equivalent period last year. Total output, including the impact of compensated generation, was 614 gigawatt hours, which was around 1% below budget. Within that, solar was 3% ahead of budget. Offshore wind, 5% ahead. Whilst onshore wind was 6% below the updated budgets.

Speaker #3: And you can see that even with that reduction in capacity, revenue and EBITDA in the first six months of the year were actually only very slightly below what we saw in the equivalent period last year.

Speaker #3: Total output, including the impact of compensated generation, was 614 gigawatt-hours, which was around 1% below budget. Within that, solar was 3% ahead of budget.

Speaker #3: Offshore wind was 5% ahead, while onshore wind was 6% below the updated budgets. When I refer to updated budgets, the figures we are presenting here are reported against budgets that have been updated to reflect revised onshore wind generation forecasts, which were incorporated into our valuations at the end of June.

Chris Gaydon: When I refer to updated budgets, the figures we are presenting here are reported against budgets which have been updated to reflect the revised onshore wind generation forecast, which were incorporated into our valuations at the end of June. Notwithstanding that output was very slightly below budget, the portfolio nevertheless delivered revenue that was 3% ahead of budget and EBITDA 6% ahead. That reflects the fact that parts of the portfolio were able to benefit from higher power prices and that costs were controlled well. Looking across the entire portfolio, what we can see year-on-year is a consistent improvement in the weather-adjusted compensated generation. So where we are able to control the performance of the assets, we are seeing that trend improve year-on-year, that continued into the first six months.

David Bird: When I refer to updated budgets, the figures we are presenting here are reported against budgets which have been updated to reflect the revised onshore wind generation forecast, which were incorporated into our valuations at the end of June. Notwithstanding that output was very slightly below budget, the portfolio nevertheless delivered revenue that was 3% ahead of budget and EBITDA 6% ahead. That reflects the fact that parts of the portfolio were able to benefit from higher power prices and that costs were controlled well. Looking across the entire portfolio, what we can see year-on-year is a consistent improvement in the weather-adjusted compensated generation. So where we are able to control the performance of the assets, we are seeing that trend improve year-on-year, that continued into the first six months.

Speaker #3: Notwithstanding that output was very slightly below budget, the portfolio nevertheless delivered revenue that was 3% ahead of budget, and EBITDA 6% ahead. That reflects the fact that parts of the portfolio were able to benefit from higher power prices and that costs were controlled well.

Speaker #3: Looking across the entire portfolio, what we can see year-on-year is a consistent improvement in the weather-adjusted compensated generation. So, where we're able to control the performance of the assets, we're seeing that trend improve year-on-year.

Speaker #3: And that continued into the first six months. Looking now specifically at solar, the portfolio generated 271 gigawatt-hours, which was 3% ahead of budget in the first six months.

Chris Gaydon: Looking now specifically at solar, the portfolio generated 271 gigawatt hours, which was 3% ahead of budget in the first six months, and that delivered revenue of just over GBP 30 million and EBITDA of GBP 22.3 million. The key driver of the above-budget generation was strong solar irradiance across all of our markets where we have assets, that being Great Britain, Ireland, and France.

David Bird: Looking now specifically at solar, the portfolio generated 271 gigawatt hours, which was 3% ahead of budget in the first six months, and that delivered revenue of just over GBP 30 million and EBITDA of GBP 22.3 million. The key driver of the above-budget generation was strong solar irradiance across all of our markets where we have assets, that being Great Britain, Ireland, and France.

Speaker #3: And that delivered revenue of just over £30 million, and EBITDA of £22.3 million. The key driver of the above-budget generation was strong solar irradiance across all of our markets where we have assets, that being Great Britain, Ireland, and France.

Speaker #3: But we also benefited from a significantly lower amount of grid constraint in Ireland than we had previously forecast—and certainly less than in the equivalent period last year.

David Bird: But we also benefited from a significantly lower amount of grid constraint in Ireland than we had previously forecast, and certainly less than in the equivalent period last year. What is important to note about our Irish valuations and forecasts is that we are not assuming any benefit from an ongoing European court case, which could lead to a greater proportion of both historical and future reduction from grid curtailment being compensated in the future. Overall, the performance of the solar portfolio demonstrates once again the value of our technological diversification, providing robust output when wind conditions have been more variable. Moving on to the onshore wind portfolio. The assets generated 263 gigawatt hours, including the effect of compensation. And here the weather patterns were more of a mixed bag. In Scotland, where our Cumberhead wind farm is located, the wind speeds were relatively strong.

Speaker #3: What's important to note about our Irish valuations and forecasts is that we are not assuming any benefit from an ongoing European court case, which could lead to a greater proportion of both historical and future reduction from grid curtailment being compensated in the future.

Speaker #3: Overall, the performance of the solar portfolio demonstrates, once again, the value of our technological diversification, providing robust output when wind conditions have been more variable.

Speaker #3: Moving on to the onshore wind portfolio, the assets generated 263 gigawatt-hours, including the effect of compensation. Here, the weather patterns were more of a mixed bag.

Speaker #3: In Scotland, where our Cumberhead wind farm is located, the wind speeds were relatively strong. However, this was more than offset by lower than forecast wind speeds.

David Bird: However, this was more than offset by lower than forecast wind speeds in France, Germany, and Finland. The main technical availability issues on the fleet arose in Finland at the Saunamaa and Suolakangas asset. However, those technical issues have now been resolved and the majority of lost production will be eligible for recovery from warranties we benefit through the long-term operations agreement with the turbine supplier. The single largest source of lost production on the onshore wind portfolio was economic and grid curtailment. However, this was largely compensated and compared with prior periods, we have seen significantly improved recoveries from this form of curtailment, particularly in Germany. On the offshore wind asset, which is the Lincs Wind Farm in the North Sea, we generated 80 gigawatt hours, which was 5% ahead of budget, mainly caused by particularly strong wind speeds in the North Sea in the six months.

Speaker #3: In France, Germany, and Finland, the main technical availability issues on the fleet arose in Finland. At the Saunemäe and Suolakangas assets, however, those technical issues have now been resolved.

Speaker #3: And the majority of lost production will be eligible for recovery from warranties we benefit from through the long-term operations agreement with the turbine supplier. The single largest source of lost production on the onshore wind portfolio was economic and grid curtailment.

Speaker #3: However, this was largely compensated. Compared with prior periods, we've seen significantly improved recoveries from this former curtailment, particularly in Germany. On the offshore wind asset, which is the Lynx Wind Farm in the North Sea, we generated 80 gigawatt-hours, which was 5% ahead of budget.

Speaker #3: Mainly caused by particularly strong wind speeds in the North Sea in this six months. And with that, I will hand over to Jen to talk through the valuations.

David Bird: And with that, I will hand over to Jen to talk through the valuations.

Speaker #4: Thanks, David. So I'll now turn to the portfolio valuation and step through the key movements. I'll be moving across left and right across the valuation.

[Company Representative] (ORIT): Thanks, David. I will now talk to the portfolio valuation and step through the key movements. I will be moving across left to right across the valuation bridge. The net asset value at 30 June was GBP 454.7 million or 86.18p per share, and that compared with GBP 494.89 and 93.79p at the start of the year. There were three principal values tracked during the period. They were the energy yield review, which reduced NAV by 5.8p per share, higher discount rates, which reduced NAV by 2p per share, and updated energy market assumptions, including power prices, which reduced NAV by 1.6p. I will cover each of these three in turn on the next couple of slides. These were also partly offset by 4.9p from the expected portfolio return and other asset level movements, together with a 1.1p uplift from revised end-of-life assumptions.

Jen Legg: Thanks, David. I will now talk to the portfolio valuation and step through the key movements. I will be moving across left to right across the valuation bridge. The net asset value at 30 June was GBP 454.7 million or 86.18p per share, and that compared with GBP 494.89 and 93.79p at the start of the year. There were three principal values tracked during the period. They were the energy yield review, which reduced NAV by 5.8p per share, higher discount rates, which reduced NAV by 2p per share, and updated energy market assumptions, including power prices, which reduced NAV by 1.6p. I will cover each of these three in turn on the next couple of slides. These were also partly offset by 4.9p from the expected portfolio return and other asset level movements, together with a 1.1p uplift from revised end-of-life assumptions.

Speaker #4: So, the net asset value at the 30th of June was £454.7 million, or 86.18 pence per share. That compares with £494.8 million and 93.79 pence at the start of the year.

Speaker #4: There were three principal values tracked during the period. They were the energy yield review, which reduced NAV by 5.8 pence per share; higher discount rates, which reduced NAV by 2 pence per share; and updated energy market assumptions, including power prices, which reduced NAV by 1.6 pence per share.

Speaker #4: I'll cover each of these three in turn on the next couple of slides. These were also partly offset by 4.9 pence on the expected portfolio return and other asset-level movements.

Speaker #4: Together with a 1.1 pence uplift from revised end-of-life assumptions. Updates to macroeconomic assumptions also provided a further small uplift of £1.5 million, or 3.3 pence per share.

[Company Representative] (ORIT): Updates to macroeconomic assumptions also provided a further small uplift of GBP 1.5 million or 0.03p per share. This was slightly near return assumptions and movements in the value of FX hedges being partly offset by adverse spot FX, higher interest rates, and revised French local tax assumptions. Before any PLC and holdco movement, the NAV was 90.7p per share. The dividend financing cost and running costs at the fund level then reduced this to 86.2p per share. After taking account of dividends paid in the period, the H1 NAV total return was -5%. Going into the onshore wind energy yield review in a little bit more detail, this was the largest movement, and it did reflect comprehensive review of long-term energy yield assumptions across the operational onshore wind portfolio.

Jen Legg: Updates to macroeconomic assumptions also provided a further small uplift of GBP 1.5 million or 0.03p per share. This was slightly near return assumptions and movements in the value of FX hedges being partly offset by adverse spot FX, higher interest rates, and revised French local tax assumptions. Before any PLC and holdco movement, the NAV was 90.7p per share. The dividend financing cost and running costs at the fund level then reduced this to 86.2p per share. After taking account of dividends paid in the period, the H1 NAV total return was -5%. Going into the onshore wind energy yield review in a little bit more detail, this was the largest movement, and it did reflect comprehensive review of long-term energy yield assumptions across the operational onshore wind portfolio.

Speaker #4: And this was slightly near return inflation assumptions and movements in the value of effect hedges, being partly offset by adverse spot effects, higher interest rates, and revised French local tax assumptions.

Speaker #4: So, before any PRC and HoldCo movements, the NAV was 90.7 pence per share. Then, the dividend, financing costs, and running costs at the fund level reduced this to 86.2 pence per share.

Speaker #4: And after taking account of dividends paid in the period, the H1 NAV total return was minus 5%. Going into the onshore wind energy yield review in a little bit more detail, this was the largest movement, and it did reflect a comprehensive review of long-term energy yield assumptions across the operational onshore wind portfolio.

Speaker #4: These assets now have significantly more operating history than when they were first acquired and brought through construction. So, we therefore reassess the long-term generation using actual performance data, updated technical analysis, long-term weather information, and engineering judgment from our internal asset management team.

[Company Representative] (ORIT): These assets now have significantly more operating history than when they were first acquired and brought through construction. We therefore reassess the long-term generation using actual performance data, updated technical analysis, long-term weather information, and engineering judgment from our internal asset management team. The reduced forecast long-term onshore wind generation reduced by 10.1%, and this is equivalent to 4.7% of forecast generation across the entire operating portfolio, or 5.8p per share. The update to the long-term yield, though it does reflect a structural long-term generation expectations rather than an adjustment for the weaker wind experienced during H1. The largest reductions did relate to the Finnish and German wind portfolios. It is worth noting that now the entire onshore wind fleet is now valued using their actual operating history and latest technical evidence.

Jen Legg: These assets now have significantly more operating history than when they were first acquired and brought through construction. We therefore reassess the long-term generation using actual performance data, updated technical analysis, long-term weather information, and engineering judgment from our internal asset management team. The reduced forecast long-term onshore wind generation reduced by 10.1%, and this is equivalent to 4.7% of forecast generation across the entire operating portfolio, or 5.8p per share. The update to the long-term yield, though it does reflect a structural long-term generation expectations rather than an adjustment for the weaker wind experienced during H1. The largest reductions did relate to the Finnish and German wind portfolios. It is worth noting that now the entire onshore wind fleet is now valued using their actual operating history and latest technical evidence.

Speaker #4: So the reduced forecast long-term onshore wind generation decreased by 10.1%. And this is equivalent to 4.7% of forecast generation across the entire operating portfolio, or 5.8 pence per share.

Speaker #4: The update to the long-term yield, though, does reflect structural long-term generation expectations rather than an adjustment for the weaker wind experience during H1.

Speaker #4: The largest reductions did relate to the Finnish and German wind portfolios. It is worth noting that the entire onshore wind fleet is now valued using their actual operating history and the latest technical evidence.

Speaker #4: No equivalent update was made for our onshore wind asset, where mature operating assumptions were already used, and all for solar, where performance remains broadly in line with or slightly above the current yield forecasts.

[Company Representative] (ORIT): No equivalent update was made for our onshore wind asset, where mature operating assumptions were already used, and all for solar, where performance remains broadly in line with or slightly above the current yield forecast. The reduction is disappointing, but this does give us a much more robust basis for valuing the portfolio going forward and much more reflective forecasts. A separate review of end-of-life assumptions in the valuations provided a partial offset elsewhere in the NAV bridge, and this increased value by GBP 5.7 million or 1.1p per share. Of that 5.7, GBP 3.3 million came from extending the assumed operating life of some of the onshore wind assets. Where we have extended those lives, we have applied an additional 500 basis point discount rate premium to those cash flows. A further GBP 2.1 million came from updated decommissioning assumptions, again, for selected assets.

Jen Legg: No equivalent update was made for our onshore wind asset, where mature operating assumptions were already used, and all for solar, where performance remains broadly in line with or slightly above the current yield forecast. The reduction is disappointing, but this does give us a much more robust basis for valuing the portfolio going forward and much more reflective forecasts. A separate review of end-of-life assumptions in the valuations provided a partial offset elsewhere in the NAV bridge, and this increased value by GBP 5.7 million or 1.1p per share. Of that 5.7, GBP 3.3 million came from extending the assumed operating life of some of the onshore wind assets. Where we have extended those lives, we have applied an additional 500 basis point discount rate premium to those cash flows. A further GBP 2.1 million came from updated decommissioning assumptions, again, for selected assets.

Speaker #4: The reduction is disappointing, but this does give us a much more robust basis for valuing the portfolio going forward, and much more reflective forecasts.

Speaker #4: A separate review of end-of-life assumptions in the valuations provided a partial offset elsewhere in the NAV bridge. This increased value by £5.7 million, or 1.1 pence per share.

Speaker #4: Of that £5.7 million, £3.3 million came from extending the assumed operating lives of the onshore wind assets. Where we have extended those lives, we have applied an additional 500 basis point discount rate premium to those cash flows.

Speaker #4: And a further £2.4 million came from updated decommissioning assumptions, again for selected assets. Turning quickly to power prices and other energy market assumptions, changes to these reduced NAV by a net £8.6 million, or 1.64 pence per share.

[Company Representative] (ORIT): Talking quickly to power prices and other energy market assumptions, changes to these reduced NAV by a net GBP 8.6 million or 1.64p per share. As shown on the slide, that was an GBP 11.2 million reduction from the combined effect of lower medium to long-term power price forecasts, and this was mostly in the UK and Ireland and other energy market assumptions such as updates to green certificates and capacity market forecasts. This was partially offset by a GBP 2.6 million uplift from higher short-term forward prices. On discount rates, these were updated following a review of the latest market and transactional evidence, transaction benchmarks, and the current financing conditions. Rates increased by 25 basis points across the Irish, French, and German assets and by 50 basis points for the Finnish wind portfolio. This reduced NAV by GBP 10.6 million or 2p per share.

Jen Legg: Talking quickly to power prices and other energy market assumptions, changes to these reduced NAV by a net GBP 8.6 million or 1.64p per share. As shown on the slide, that was an GBP 11.2 million reduction from the combined effect of lower medium to long-term power price forecasts, and this was mostly in the UK and Ireland and other energy market assumptions such as updates to green certificates and capacity market forecasts. This was partially offset by a GBP 2.6 million uplift from higher short-term forward prices. On discount rates, these were updated following a review of the latest market and transactional evidence, transaction benchmarks, and the current financing conditions. Rates increased by 25 basis points across the Irish, French, and German assets and by 50 basis points for the Finnish wind portfolio. This reduced NAV by GBP 10.6 million or 2p per share.

Speaker #4: As shown on the slide, there was an £11.2 million reduction from the combined effect of lower medium- to long-term power price forecasts. And this was mostly in the UK and Ireland.

Speaker #4: And other energy market assumptions, such as updates to green certificates and capacity market forecasts. This was partially offset by a £2.6 million uplift from higher short-term forward prices.

Speaker #4: Regarding discount rates, these were updated following a review of the latest market and transactional evidence, transaction benchmarks, and the current financing conditions. As a result, rates increased by 25 basis points across the Irish, French, and German assets, and by 50 basis points for the Finnish wind portfolio.

Speaker #4: And this reduced NAV by £10.6 million, or 2 pence per share. The portfolio weighted average discount rate, using the valuations, increased from 7.8% to 8.3%.

[Company Representative] (ORIT): The portfolio weighted average discount rate using the valuations increased from 7.8% to 8.3%, and after allowing for the expected returns from development stage investments and the additional leverage from the RCF, the adjusted average discount rate increased from 8.2% to 8.8%. With that increase, the immediate effect is a lower NAV, but the higher rates also indicate a higher expected return from the portfolio at the time of valuation. Lastly, on debt and gearing. The valuation movements have had an effect on the gearing percentages shown on this slide. On a look-through basis, the total debt reduced by GBP 5.3 million during the period to GBP 396.8 million. Project-level term debt reduced by approximately GBP 20 million through scheduled amortization and prepayments, but this was more than offset by an increase in RCF drawings, while the UK Holdco facility remained unchanged.

Jen Legg: The portfolio weighted average discount rate using the valuations increased from 7.8% to 8.3%, and after allowing for the expected returns from development stage investments and the additional leverage from the RCF, the adjusted average discount rate increased from 8.2% to 8.8%. With that increase, the immediate effect is a lower NAV, but the higher rates also indicate a higher expected return from the portfolio at the time of valuation. Lastly, on debt and gearing. The valuation movements have had an effect on the gearing percentages shown on this slide. On a look-through basis, the total debt reduced by GBP 5.3 million during the period to GBP 396.8 million. Project-level term debt reduced by approximately GBP 20 million through scheduled amortization and prepayments, but this was more than offset by an increase in RCF drawings, while the UK Holdco facility remained unchanged.

Speaker #4: And after allowing for the expected returns from development stage investments, and the RCF, the adjusted average discount rate increased from 8.2% to 8.8%. With that increase, the immediate effect is a lower NAV, but the higher rates also indicate a higher expected return from the portfolio at the time of valuation.

Speaker #4: Lastly, on debt and gearing, the valuation movements have had an effect on the gearing percentages shown on this slide. On a look-through basis, the total debt reduced by £5.3 million during the period to £396.8 million.

Speaker #4: Project-level term debt was reduced by approximately £20 million through scheduled amortization and prepayments. However, this was more than offset by an increase in RCF, while the UK Holdco facility remained unchanged.

Speaker #4: However, despite the reduction in absolute debt, gearing has increased from 44.8% to 46.6%. This was mainly because of the reduction in the portfolio's growth asset value.

[Company Representative] (ORIT): However, despite the reduction in absolute debt, gearing have increased from 44.8% to 46.6%, and this was mainly because of the reduction in the portfolio's gross asset value. The debt in place remains predominantly long-term project finance, and so the average cost of debt is 3.5%. The remaining average term is 9.3 years, and approximately 72% of the total debt is hedged. It is worth noting that gearing is currently above our approximately 40% medium-term anchor. Reducing the gearing levels does remain a priority, and future asset sale proceeds will principally be applied towards debt repayment alongside the natural amortization on the project-level debt. We are also considering a wider refinancing of certain project-level term loans, and we will be looking to start this process moving through the remainder of 2026 into 2027. This should improve flexibility for the management team in delivering the ORIT 2030 strategy.

Jen Legg: However, despite the reduction in absolute debt, gearing have increased from 44.8% to 46.6%, and this was mainly because of the reduction in the portfolio's gross asset value. The debt in place remains predominantly long-term project finance, and so the average cost of debt is 3.5%. The remaining average term is 9.3 years, and approximately 72% of the total debt is hedged. It is worth noting that gearing is currently above our approximately 40% medium-term anchor. Reducing the gearing levels does remain a priority, and future asset sale proceeds will principally be applied towards debt repayment alongside the natural amortization on the project-level debt. We are also considering a wider refinancing of certain project-level term loans, and we will be looking to start this process moving through the remainder of 2026 into 2027. This should improve flexibility for the management team in delivering the ORIT 2030 strategy.

Speaker #4: The debt in place remains predominantly long-term project finance. The average cost of debt is 3.5%. The remaining average term is 9.3 years, and approximately 72% of the total debt is hedged.

Speaker #4: It's worth noting that gearing is currently above our approximately 40% medium-term anchor. Reducing the gearing level does remain a priority, and future asset sale proceeds will principally be applied towards debt repayment, alongside the natural amortization of the project-level debt.

Speaker #4: We are also considering a wider refinancing of certain project-level term loans. We'll be looking to start this process moving for the remainder of 2026 into 2027, and this should improve flexibility for the management team in delivering the Orbit 2030 strategy.

Speaker #4: And with that, I will hand back to Chris.

[Company Representative] (ORIT): With that, I will hand back to Chris.

Jen Legg: With that, I will hand back to Chris.

Speaker #1: Great, thanks, Jen. So turning to the portfolio, I will cover its diversification, revenue protection, active management, and the role of our developer investments. As at 30 June, ORIT owned 39 assets with 740 megawatts of capacity across five countries and five technologies.

Chris Gaydon: Great. Thanks, Jen. Turning to the portfolio, I will cover its diversification, revenue protection, active management, and the role of our developer investments. At 30 June, ORIT owned 39 assets with 740 megawatts of capacity across five countries and five technologies. Diversification by geography, technology, and asset stage reduces reliance on any single market or renewable resource. These figures exclude the Irishtown project, which is the last part of our Ballymacani solar complex in Ireland, which remained a conditional acquisition at the end of the period and will be added to the portfolio in the months ahead. The total value of investments was GBP 856 million at 30 June. The portfolio is diversified across the UK and continental Europe, with solar representing 50%, onshore wind 32%, and offshore wind 13%.

Speaker #1: Diversification by geography, technology, and asset stage reduces reliance on any single market or renewable resource. These figures exclude the Irish Town project, which is the last part of our Balamakani solar complex in Ireland. It remained a conditional acquisition at the end of the period and will be added to the portfolio in the months ahead.

Speaker #1: The total value of investments was £856 million at 30 June. The portfolio is diversified across the UK and continental Europe, with solar representing 50%, onshore wind 32%, and offshore wind 13%.

Speaker #1: Operational assets account for 95% of the portfolio, and developer investments make up 5%, preserving a strong income base alongside the future growth opportunities that our developer investments bring.

Chris Gaydon: Operational assets account for 95% of the portfolio and developer investments at 5%, preserving a strong income base alongside the future growth opportunities that our developer investments bring. 86% of forecast revenue over the next two years is fixed or contracted. This provides strong near-term cash flow visibility and reduces exposure to short-term power price movements. The remaining variable exposure preserves some participation in future power price upside. Over the next 10 years, 42% of forecast revenue is inflation-linked. This provides a degree of protection against rising costs and supports ORIT's progressive dividend policy. Together with the high level of contracted revenue, it strengthens the resilience of. Good performance and reduced costs across the portfolio. At our Leeskow wind farm in Germany, proactive curtailment management secured compensation for an additional 1.2 gigawatt hours in the H1 of this year, a 95% improvement on previous periods approach.

Speaker #1: Approximately 86% of forecast revenue over the next two years is fixed or contracted. This provides strong near-term cash flow visibility and reduces exposure to short-term power price movements.

Speaker #1: The remaining variable exposure preserves some participation in future power price upside. Over the next 10 years, 42% of forecast revenue is inflation-linked. This provides a degree of protection against rising costs and supports ORIT's progressive dividend policy.

Speaker #1: Combined with the high level of contracted revenue, it strengthens the resilience of performance and reduced costs across the portfolio. At our least-scale wind sites, proactive curtailment management secured compensation for an additional 1.2 gigawatt-hours in the first half of this year, a 95% improvement on the previous period's approach.

Speaker #1: At Breach, lower network tariffs are expected to reduce FY26 import electricity costs by around 16%. We're also assessing aerodynamic upgrades, power uprates, reserve services, battery collocation, hybridization, and repowering across the portfolio.

Chris Gaydon: At Breach, lower network tariffs are expected to reduce FY 2026 import electricity costs by around 16%. We are also assessing aerodynamic upgrades, power-up rates, reserve services, battery co-location, hybridization, and repowering across the portfolio. Our developer investments are capped at 5% of the portfolio and give ORIT earlier, often preferential, access to future projects. ORIT currently has preferential rights over a pipeline of around 3 gigawatts across several technologies and markets. Just as a reminder, we do not have the obligation to invest into those projects, rather the option should have worked for our capital allocation strategy. In terms of performance in the underlying platforms, our solar developer in the UK, BLC, has achieved planning success on its first project and with another four projects expected to receive their decisions shortly. We are currently working with the grid operator in order to secure an attractive grid connection date.

Speaker #1: Our developer investments are capped at 5% of the portfolio, and give Orbit earlier, often preferential access to future projects. Orbit currently has preferential rights over a pipeline of around 3 gigawatts, across several technologies and markets.

Speaker #1: And just as a reminder, we don't have the obligation to invest in those projects. Rather, the option should align with our capital allocation strategy, should it work for our capital allocation strategy.

Speaker #1: In terms of performance in the underlying platforms, our solar developer in the UK, BLC, has achieved planning success on its first project, and another four projects are expected to receive their decisions shortly.

Speaker #1: And we're currently working with the grid operator in order to secure an attractive grid connection date. So these development platforms support access to construction-ready opportunities from 2027, while allowing capital to be deployed selectively and only when the expected return justifies that risk.

Chris Gaydon: These development platforms support access to construction-ready opportunities from 2027 while allowing capital to be deployed selectively and only when the expected return justifies that risk. Lastly from me is impact. ORIT is an Article 9 impact fund and positive environmental and social impact continues to be integral to the investment approach. During the period, the portfolio generated enough clean electricity to power an estimated 153,000 homes over a year and avoided around 154,000 tons of carbon emissions. Of all the impact work we do, it is the local community projects that we find the most motivational. During the period, we established Lab 45, an educational program designed to inspire kids to engage with the energy transition. We have worked with over 1,000 students at secondary schools near our wind farms, helping them develop and pitch their own sustainability-focused ideas.

Speaker #1: And lastly from me, is impact. Orbit is an Article 9 impact fund and positive environmental and social impact continues to be integral to the investment approach.

Speaker #1: During the period, the portfolio generated enough clean electricity to power an estimated 153,000 homes over a year, and avoided around 154,000 tons of carbon emissions.

Speaker #1: But of all the impact work we do, it’s the local community projects that we find most motivational. During the period, we established Lab 45, an educational program designed to inspire kids to engage with the energy transition.

Speaker #1: We've worked with over 1,000 students at secondary schools near our wind farms, helping them develop and pitch their own sustainability-focused ideas. And it's worked so well that all the participating schools have asked us to come back next year to repeat the programme.

Chris Gaydon: It has worked so well that all the participating schools have asked us to come back next year to repeat the program. With that, I am going to hand back to David to conclude.

Speaker #1: And with that, I'm going to hand back to David to conclude.

Speaker #2: Thanks, Chris. So, before we wrap up, I just wanted to step back and reflect on how we see the renewables market more broadly. Clearly, in the listed sector, there is still an issue with deep discounts for now, although discounts have improved over the course of this year.

David Bird: Thanks, Chris. Before we wrap up, I just wanted to step back and reflect on how we see the renewables market more broadly. Clearly in the listed sector, there is still an issue with deep discounts. While discounts have improved over the course of this year, they are still wide and something needs to change there. If you look at the sector more broadly, the underlying case for renewable infrastructure remains very strong. Renewables, together with battery storage, remain the lowest cost source of new electricity across almost all markets, and energy security and electrification continue to mean that bringing that new supply of electricity is going to be essential. Electrification and also the increasing level of demand from data centers, particularly with the high consumption required for AI, mean that there is going to be a continued increase in demand.

Speaker #2: They are still wide, and something needs to change there. But if you look at the sector more broadly, the underlying case for renewable infrastructure remains very strong.

Speaker #2: Renewables, together with battery storage, remain the lowest-cost source of new electricity across almost all markets. And energy security and electrification continue to mean that bringing that new supply of electricity is going to be essential.

Speaker #2: So, electrification and also the increasing level of demand from data centers, particularly with the high consumption required for AI, mean that there is going to be a continued increase in demand.

Speaker #2: And as Chris mentioned earlier, after a number of years where electricity demand has been fairly flat or declining with energy efficiency, we are now starting to see demand tick up as electrification of heat, transport, and new demand from data centers starts to ramp up.

David Bird: As Chris mentioned earlier, after a number of years where electricity demand has been fairly flat or declining with energy efficiency, we are now starting to see demand tick up as electrification of heat transport and that new demand from data centers starts to ramp up. To meet that new demand, we are going to need significant investment in this essential lowest cost infrastructure, which is renewable generation and storage. That aligns entirely with the strategy for ORIT 2030. Moving on to the ORIT 2030 strategy and the 9% to 11% returns that form a core pillar of the strategy require us to deliver capital growth through making new investments, as well as managing gearing through very active approach to asset recycling.

Speaker #2: So, to meet that new demand, we're going to need significant investment in this essential, lowest-cost infrastructure, which is renewable generation and storage. And that aligns entirely with the strategy for Orbit 2030.

Speaker #2: Moving on to the Orbit 2030 strategy. The 9% to 11% returns that form a core pillar of the strategy require us to deliver capital growth through making new investments, as well as managing gearing through a very active approach to asset recycling.

Speaker #2: It's fair to say that, in the first half of the year, progress on both of these fronts has taken a little longer than we would have liked.

David Bird: It is fair to say that in the H1 of the year, progress on both of these fronts has taken a little longer than we would have liked, but we have been progressing a number of opportunities behind the scenes. We have had to be disciplined, and a couple of opportunities that we took a long way through diligence ended up raising findings that meant that the risk-adjusted returns were not where we needed them to be. We were not able to successfully renegotiate the deal to make the numbers work for our investors. So we showed that discipline. We walked away from some of those opportunities, but we still do have a very active pipeline, and indeed, there are new acquisitions focused on that construction stage and the capital growth that can come with it that we hope to share news with the market on in the very near future.

Speaker #2: But we have been progressing a number of opportunities behind the scenes. We have had to be disciplined, and a couple of opportunities that we took a long way through diligence ended up raising findings that meant the risk-adjusted returns weren't where we needed them to be.

Speaker #2: And we weren't able to successfully renegotiate the deal to make the numbers work for Orbit investors. So we showed that discipline; we walked away from some of those opportunities.

David Bird: We walked away from some of those opportunities, but we still do have a very active pipeline, and indeed, there are new acquisitions focused on that construction stage and the capital growth that can come with it that we hope to share news with the market on in the very near future.

Speaker #2: But we still do have a very active pipeline. And indeed, there are new acquisitions focused on that construction stage and the capital growth that can come with it, which we hope to share news about with the market in the very near future.

Speaker #2: Meanwhile, on the asset sale side of things, we have a number of processes underway. Those proceeds will not only allow us to invest in new construction opportunities, but will also enable us to bring gearing down below that 40% anchor point.

David Bird: Meanwhile, on the asset sales side of things, we have a number of processes underway. Those proceeds not only will allow us to invest in those new construction opportunities, but will also enable us to bring gearing down below that 40% anchor point. Moving on to dividends, the 6.23p per share target dividend for FY 2026 remains on track to be met and to be fully covered by the operational cash flows from the portfolio. Overall, the foundations that we are laying here in 2026, which is really a transitional year for the ORIT 2030 strategy, should put us in a good place to be able to support continued NAV growth as construction stage investments move into operation from 2027 onwards.

Speaker #2: Moving on to dividends. The 6.23 pence per share target dividend for FY 2026 remains on track to be met, and to be fully covered by the operational cash flows from the portfolio.

Speaker #2: And overall, the foundations that we're laying here in 2026—which is really a transitional year for the Orbit 2030 strategy—should put us in a good place to be able to support continued NAV growth as construction stage investments move into operation from 2027 onwards.

Speaker #2: So, in summary, looking at the period, the operating portfolio has shown resilient output, with generation broadly on budget and revenue and EBITDA ahead of budgets.

David Bird: In summary, looking at the period, the operating portfolio has shown resilient output, with generation broadly on budget and revenue and EBITDA ahead of budgets, leading to the cash performance that covered the dividend 1.38 times after all scheduled debt amortization. Meanwhile, on the valuation side of things, clearly the energy yield review has had a negative impact, but this does now mean that the valuations have a more robust basis, allowing us to deliver stable and growing NAV from here on in through our construction work. Conviction in ORIT 2030 has not changed. We still believe this is the right thing for investors over the medium to long term. Our immediate focus is now on delivery, on completing these growth investments, completing the asset sales, allowing us to reduce gearing towards that 4% anchor and continue to grow and cover the dividend.

Speaker #2: Leading to the cash performance that covered the dividend 1.38 times after all scheduled debt amortization. Meanwhile, on the valuation side of things, clearly the energy yield review has had a negative impact.

Speaker #2: But this does now mean that the valuations have a more robust basis, allowing us to deliver a stable and growing NAV from here on in through our construction work.

Speaker #2: And conviction in Orbit 2030 has not changed. We still believe this is the right thing for investors over the medium to long term. Our immediate focus is now on delivery: on completing these growth investments, completing the asset sales, allowing us to reduce gearing towards that 40% anchor, and continue to grow and cover the dividend.

Speaker #2: And with that, I think we are ready for questions.

David Bird: With that, I think we are ready for questions.

Speaker #3: Perfect, guys. I may just answer your questions by using the Q&A tab that's situated on the right-hand corner of your screen. But just while the company takes a few moments to review those questions that have been submitted already, I'd just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can all be accessed via your investor dashboards.

Moderator: Perfect. Guys, if I may just your questions just by using the Q&A tab that is situated on the right-hand corner of your screen. Just while the company take a few moments to review those questions that have been submitted already, I would just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A can all be accessed via your investor dashboards. Guys, we have received a number of questions, so Charlotte, at this stage, if I may hand over to you to chair the Q&A with the team, and if I pick up from you at the end, that would be great. Thank you.

Operator: Perfect. Guys, if I may just your questions just by using the Q&A tab that is situated on the right-hand corner of your screen. Just while the company take a few moments to review those questions that have been submitted already, I would just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A can all be accessed via your investor dashboards. Guys, we have received a number of questions, so Charlotte, at this stage, if I may hand over to you to chair the Q&A with the team, and if I pick up from you at the end, that would be great. Thank you.

Speaker #3: Guys, we have received a number of questions. So, Charlotte, at this stage, if I may, I'll hand over to you to chair the Q&A with the team.

Speaker #3: And if I pick up from you at the end, that would be great. Thank you.

Speaker #1: Thanks, Jake, and thanks, team. I'm going to read out the questions one by one. The first one: The performance of Orbit has been disappointing versus our peers.

[Company Representative] (ORIT): Thanks, Jake, and thanks, team. I am going to read out the questions one by one. The first one. The performance of ORIT has been disappointing versus our peers. At what point does the board and manager consider that combining with a larger operator will deliver more shareholder value?

Charlotte Edgar: Thanks, Jake, and thanks, team. I am going to read out the questions one by one. The first one. The performance of ORIT has been disappointing versus our peers. At what point does the board and manager consider that combining with a larger operator will deliver more shareholder value?

Speaker #1: At what point does the board and manager consider that combining with a larger operator will deliver more shareholder value?

Speaker #2: Should I start on that one? I think we recognize that the share price performance has been disappointing. I wouldn't agree that the broader operational and financial performance has been an outlier in the peer group.

David Bird: Shall I start on that one?

[Company Representative] (ORIT): Yeah.

Charlotte Edgar: Yeah.

David Bird: I think we recognize that the share price performance has been disappointing. I would not agree that the broader operational and financial performance has been an outlier in the peer group. I think it is fair that our share price discount is not the widest, but it is towards the wider end of those vehicles that are in ongoing operations and not in wind down. Obviously, the board, we cannot speak for the board here, but I do know from not only the regular board meetings we have with them, but the very frequent conversations we have with the board on almost a weekly basis that the discipline at the board on thinking about what is the right thing for investors and what are all the options available to them has not wavered over the past couple of years.

Speaker #2: I think it is fair that our share price discount is not the widest, but it is towards the wider end of those vehicles that are in ongoing operations and not in wind-down.

Speaker #2: Obviously, we can't speak for the board here, but I do know, from not only the regular board meetings we have with them, but also the very frequent conversations we have with the board almost on a weekly basis, that the sort of discipline at the board in thinking about what is the right thing for investors, and what are all the options available to them, has not wavered over the past couple of years.

Speaker #2: Now, they are also very happy to hear feedback from investors as to what might be the right thing to do. From our point of view as a manager, when we launched the Orbit 2030 strategy 12 months ago, that was on the basis that we think it is what allows us to deliver the best medium- to long-term outcomes for shareholders.

David Bird: No, they are also very happy to hear feedback from investors as to what might be the right thing to do. From our point of view as a manager, when we launched the ORIT 2030 strategy 12 months ago, that was on the basis that we think it is what allows us to deliver the best medium to long-term outcomes for shareholders. We have always had a focus within ORIT and within ourselves, Octopus Energy Generation as manager, on having a portfolio that is diversified across a range of technologies and geographies, and on delivering investments not just by acquiring them once they are operational, but by actually adding value through construction and through development. That is something that we have delivered historically. We have also delivered a very significant proportion of successful recycling out of the portfolio compared with the peer group.

Speaker #2: We have always had a focus, within Orbit and within ourselves, on synergy generation as managers, having a portfolio that is diversified across a range of technologies and geographies.

Speaker #2: And on delivering investments, not just by acquiring them once they're operational, but by actually adding value through construction and through development. And that's something that we have delivered historically.

Speaker #2: We've also delivered a very significant proportion of successful recycling out of the portfolio compared with the peer group. So I don't feel that the ability of the manager is a constraint on shareholder outcomes.

David Bird: I do not feel that the ability of the manager is a constraint on shareholder outcomes. Ultimately, what happens in the long term will be something that the board will continue to consider. But I do not think it is fair to say that operational or financial performance has been behind the peer group.

Speaker #2: Ultimately, what happens in the long term will be something that the Board will continue to consider. But I don't think it's fair to say that operational or financial performance has been behind the peer group.

Speaker #4: And if I might just add, Octopus Energy Generation we manage about we manage just shy of $9 billion across various renewable energy and energy transition-focused strategies that we have.

Chris Gaydon: If I might just add, Octopus Energy Generation, we manage just shy of GBP 9 billion across the various renewable energy and energy transition-focused strategies that we have. We have a team of around 160 people, and ORIT benefits from the deep technical knowledge that we are able to have in that team because of the scale of our fund management business, and it also benefits from the buying power that that size portfolio provides.

Speaker #4: We have a team of around 160 people. And our benefits from the sort of deep technical knowledge that we're able to have in that team, because of the scale of our fund management business, and it also benefits from the buying power that that size portfolio provides.

Speaker #1: Thank you. Moving to the NAV bridge chart, we have some feedback that's a little confusing. We'll take that feedback away and look at the presentation of that.

[Company Representative] (ORIT): Thank you. Moving to the NAV bridge chart, we had some feedback that is a little confusing. We will take that feedback away and look at a presentation of that. There is one question on the NAV bridge chart, which is, can you explain what balance of portfolio return means in that NAV bridge?

Charlotte Edgar: Thank you. Moving to the NAV bridge chart, we had some feedback that is a little confusing. We will take that feedback away and look at a presentation of that. There is one question on the NAV bridge chart, which is, can you explain what balance of portfolio return means in that NAV bridge?

Speaker #1: There is one question on the NAV bridge chart which says, can you explain what balance of portfolio return means in that NAV bridge?

Speaker #5: Yeah, I can take that. So the balance of portfolio return, that line chart on the bridge is a few things. The majority of that, 3.6 pounds out of that 4.9 pounds, is what we call the expected return on the portfolio.

[Company Representative] (ORIT): Yeah, I can take that. Balance of portfolio return, that line chart on the bridge is a few things. The majority of that, 3.6% out of that 4.9 there, is what we call the expected return on the portfolio. Most of our operating assets are valued on a discounted cash flow, where we are discounting future cash flows. So that valuation movement primarily represents time value of money as the asset is moved six months closer to the repeat of those future cash flows. The remaining amount within that bucket is a number of much smaller minor asset-level adjustments to OpEx and CapEx that are not material enough to bring out on their own.

Jen Legg: Yeah, I can take that. Balance of portfolio return, that line chart on the bridge is a few things. The majority of that, 3.6% out of that 4.9 there, is what we call the expected return on the portfolio. Most of our operating assets are valued on a discounted cash flow, where we are discounting future cash flows. So that valuation movement primarily represents time value of money as the asset is moved six months closer to the repeat of those future cash flows. The remaining amount within that bucket is a number of much smaller minor asset-level adjustments to OpEx and CapEx that are not material enough to bring out on their own.

Speaker #5: Most of our operating assets are valued on a discounted cash flow basis, where you are discounting future cash flows. So that valuation movement primarily represents the time value of money, as the assets moved six months closer to the receipt of those future cash flows.

Speaker #5: The remaining amount within that bucket is a number of much smaller, minor asset-level adjustments to OPEX and CAPEX that are material enough to bring out on their own.

Speaker #1: Great, thanks, Jen. Question: return thresholds. What return threshold does the final-stage investment need to achieve to justify investing rather than reducing debt?

[Company Representative] (ORIT): Great. Thanks, Jen. Question on return thresholds. What return thresholds does the final stake investment need to achieve to justify investing rather than reducing debt?

Charlotte Edgar: Great. Thanks, Jen. Question on return thresholds. What return thresholds does the final stake investment need to achieve to justify investing rather than reducing debt?

Speaker #2: So I'll start on this one. So we've been very clear with Orbit 2030 that we're looking to deliver a 9 to 11% total return.

David Bird: I will start on this one. We have been very clear with ORIT 2030 that we are looking to deliver a 9% to 11% total return over the medium to long term. The majority of that return will be underpinned by dividends, but there will also be an element of capital growth that will be needed to deliver that. We obviously have the running cost of the vehicle that run at a little over 1%, so we need to be delivering 10% to 12% from the portfolio in order to hit that. When we are looking at new investments, that is the target that we have in mind. We also have to bear in mind, firstly, what is the return on the assets we already have, because ultimately, to fund those new investments without increasing gearing in the long term, we will need to recycle out of older investments.

Speaker #2: Over the medium to long term, the majority of that return will be underpinned by dividends, but there will also be an element of capital growth that will be needed to deliver that.

Speaker #2: We obviously have the running costs of the vehicle that run at a little over 1%. So we need to be delivering 10% to 12% from the portfolio.

Speaker #2: In order to hit that. So when we're looking at new investments, that's sort of the target that we have in mind. And we also have to bear in mind, firstly, what's the return on the assets we already have.

Speaker #2: Because ultimately, to fund those new investments without increasing gearing in the long term, we will need to recycle out of older investments. So we have to be delivering a higher return than the, on average, around 8.8% we're getting from the current portfolio.

David Bird: We have to be delivering a higher return than the, on average, around 8.8% we are getting from the current portfolio. It has to be high enough that over a medium-term hold period, we can expect to deliver 10% to 12%. It is important to note that here we are looking at medium to long-term returns, but we are not necessarily looking at an asset that has to deliver 10. By focusing on those assets that their long-term hold-to-maturity returns might still be in the high single digits, but there is a lot of gains that we can crystallize in the first three, four, five years of investment through successfully delivering construction or perhaps by improving the revenue contracting of the asset.

Speaker #2: It has to be high enough that, over a medium-term hold period, we can expect to deliver 10 to 12%. But it is important to note that here we are looking at medium- to long-term returns; we're not necessarily looking at an asset that has to deliver 10%.

Speaker #2: So by focusing on those assets that they're long-term hold to maturity returns might still be in the high single digits, but there's a lot of gains that we can crystallize in the first three, four, five years of investment through successfully delivering construction, or perhaps by improving the revenue contracting of the asset, those are the ones that should be able to meet that hurdle and on a, say, a five-year time horizon, deliver that 10 to 12 that's needed to hit the 9 to 11% return target.

David Bird: Those are the ones that should be able to meet that hurdle and on a, say, a five-year time horizon, deliver that 10% to 12% that is needed to hit the 9% to 11% return target.

Speaker #1: And David?

[Company Representative] (ORIT): Thanks, David. Couple questions on discount. I will read each of them. I realize that the discount issue is an industry problem as much as it is yours. If this is a solvable problem, realistically, what can be done both by you and by the industry and perhaps regulators to reduce the discount? A separate question, but on the same topic. Is there a plan for reducing the large discount or share price NAV per share? Share buybacks? Allowing shareholders to sell via quarterly tender offers at a price close to NAV per share.

Charlotte Edgar: Thanks, David. Couple questions on discount. I will read each of them. I realize that the discount issue is an industry problem as much as it is yours. If this is a solvable problem, realistically, what can be done both by you and by the industry and perhaps regulators to reduce the discount? A separate question, but on the same topic. Is there a plan for reducing the large discount or share price NAV per share? Share buybacks? Allowing shareholders to sell via quarterly tender offers at a price close to NAV per share.

Speaker #3: Common questions on discount—I’ll read each of them. I realize that the discount issue is an industry problem, as much as it is yours.

Speaker #3: Is this a solvable problem? Realistically, what can be done—both by you and by the industry, and perhaps by regulators—to reduce the discount? It's a separate question, but on the same topic.

Speaker #3: Is there a plan for reducing the large discount on share pricing versus asset value per share, such as share buybacks? Allowing shareholders to sell via quarterly tender offers at a price closer to net asset value per share?

Speaker #2: So I'll start off again. Yeah, I think we've seen discounts improve a little bit over the past nine months or so.

David Bird: Shall I start off again? Yeah. I think we have seen discounts improve a little bit over the past nine months or so. There is still clearly room for a lot of further improvement. One of the challenges there has been in the sector for some time now is a lot of investors who first came into the sector when fixed income really wasn't delivering much in the way of yield, and now there are other ways that you can get income beyond this sector. That has created a bit of a supply and demand mismatch where a lot of people who invested in the period of very low interest rates have now been looking to cycle out of the sector. So there is probably more to be done still in closing that supply and demand gap.

David Bird: Shall I start off again?

Charlotte Edgar: Yeah.

David Bird: I think we have seen discounts improve a little bit over the past nine months or so. There is still clearly room for a lot of further improvement. One of the challenges there has been in the sector for some time now is a lot of investors who first came into the sector when fixed income really wasn't delivering much in the way of yield, and now there are other ways that you can get income beyond this sector. That has created a bit of a supply and demand mismatch where a lot of people who invested in the period of very low interest rates have now been looking to cycle out of the sector. So there is probably more to be done still in closing that supply and demand gap.

Speaker #2: There's still clearly room for a lot of further improvement. One of the challenges there has been in the sector for some time now is a lot of investors who first came into the sector when fixed income really wasn't delivering much in the way of yields.

Speaker #2: And now there are other ways that you can get income beyond this sector. So that's created a bit of a supply and demand mismatch where a lot of people who invested in the period of very low interest rates have now been looking to cycle out of the sector.

Speaker #2: So, there is probably more to be done still in closing that supply and demand gap. That likely means that there needs to be further reduction in the size of the sector in terms of how many vehicles there are out there.

David Bird: That likely means that there needs to be further reduction in the size of the sector in terms of how many vehicles there are out there. That is something we have started to see already. It is something that, again, we have been clear on with our ORIT 2030 strategy, that we see a role for ORIT as being one of the consolidators in combining with other vehicles to form a larger, more liquid vehicle, but also with some capital exiting the sector to close that supply and demand gap. There is no guarantee that that will happen. We think that we can, from the starting point we are at now, still deliver compelling returns to investors, even if those sort of bigger sectoral challenges don't resolve themselves. To do that, clearly, we need to keep paying an attractive dividend and grow NAV.

Speaker #2: That is something we've started to see already. It's something that, again, we've been clear on with our Orbit 2030 strategies—that we see a role for Orbit as being one of the consolidators, combining with other vehicles to form a larger, more liquid vehicle. But also, with some capital exiting the sector to close that supply and demand gap.

Speaker #2: There's no guarantee that that will happen. We think that, from the starting point we're at now, we can still deliver compelling returns to investors, even if those sort of bigger sectoral challenges don't resolve themselves. To do that, clearly, we need to keep paying an attractive dividend and grow NAV, and then, even if the discount doesn't narrow in the way we hope it would, investors are still seeing attractive returns from where we are.

David Bird: Even if the discount doesn't narrow in the way we hope it would, investors are still seeing attractive returns from where we are right now. In terms of regulators, there have definitely been challenges over the past few years, things around cost disclosure, which do seem to be improving now. There is also broader question marks around the UK listed sector outside just investment trusts. So conversations around removing stamp duty that maybe would help attract more capital into the sector. We have seen a lot of work from government trying to encourage UK pension schemes to invest more in UK real assets and in UK stock markets. And vehicles like ORIT would be a way that they can achieve both of those things. Even with our diversification, we have around 40% of the portfolio in the UK, and we are a UK-listed entity.

Speaker #2: Right now, in terms of regulators, there have definitely been challenges over the past few years. Things around cost disclosure, which do seem to be improving now.

Speaker #2: There are also broader question marks around the UK listed sector, beyond just investment trusts. There are conversations around removing stamp duty that might help attract more capital into the sector.

Speaker #2: We've seen a lot of work from government trying to encourage UK pension schemes to encourage to invest more in UK real assets. And in UK stock markets.

Speaker #2: And vehicles like Orbit would be a way that they can achieve both of those things, even with our diversification. We have around 40% of the portfolio in the UK, and we are a UK-listed entity.

Speaker #2: So there are some things out there that could improve things for the sector. But I think from our point of view, the focus is on delivering the best returns we can from the portfolio and from our active management of that portfolio.

David Bird: There are some things out there that could improve things for the sector. I think from our point of view, the focus is on delivering the best returns we can from the portfolio and from our active management of that portfolio as much as sort of the externalities. When it comes to the second question around buybacks and tender offers, clearly those forms of capital allocation are things that the board is constantly reviewing as to whether they are a better option compared with what we have set out as our ORIT 2030 strategy. Where things stand with the discount level as it is. Over a three, four, five-year period, we still see investing for sustainable capital growth as a better long-term outcome for shareholders than buybacks.

Speaker #2: As much as the sort of externalities. When it comes to the second question around buybacks and tender offers, clearly those forms of capital allocation are things that the Board is constantly reviewing as to whether they are a better option compared with what we have set out as the Orbit 2030 strategy.

Speaker #2: Where things stand with the discount level as it is, over a three-, four-, or five-year period, we still see investing for sustainable capital growth as a better long-term outcome for shareholders than buybacks.

Speaker #2: Principally because the buybacks would still need to be funded either by increased gearing or asset sales, which eventually leads either to a shrinking of the vehicle or an increase in gearing—which challenges the ability to keep paying out well-covered dividends.

David Bird: Principally because the buybacks would still need to be funded either by increased gearing or asset sales, which eventually leads either to a shrinking of the vehicle or an increase in gearing, which challenges the ability to keep paying out well-covered dividends. If the discount was 40% or 50%, that dynamic could shift. But at where we are today, at high 20s of discount, the strategy that we set out with our ORIT 2030, we still think offers better overall shareholder returns than the alternatives, such as buybacks.

Speaker #2: So, if the discount was 40 or 50%, that dynamic could shift. But at where we are today, at sort of high 20s of discount, the strategy that we've set out with Orbit 2030, we still think offers better overall shareholder returns than the alternatives, such as buybacks.

Speaker #3: Great, thank you, David. Question on subsidy contracts. What is the maturity schedule of subsidy contracts—i.e., ones that may move to merchant pricing?

[Company Representative] (ORIT): Great. Thank you, David. Question on subsidy contracts. What is the maturity schedule of subsidy contracts, ones that may move to merchant pricing?

Charlotte Edgar: Great. Thank you, David. Question on subsidy contracts. What is the maturity schedule of subsidy contracts, ones that may move to merchant pricing?

David Bird: Oh, sorry. Slight technical issue there. Were you trying to jump in with that?

Speaker #2: Sorry, slight technical issue there. Were you trying to jump in? Was that—no, no, no. Okay, sorry. So, if you look at our subsidized assets, those are principally the UK ROC solar assets.

Chris Gaydon: No.

David Bird: Okay. Sorry. If you look at our subsidized assets, those are principally the UK ROC solar assets. We also have French feed-in tariff solar assets and wind farms in France and Germany that benefit from 20-year CFDs. You can see from the shape of the slide that I have put up, hopefully that people can see what the profile of those is. The first time that subsidies start to roll off is for our French portfolio, where the feed-in tariff comes to an end in around 2032 for most of those assets. Then for our UK ROC assets, the Lincs Wind Farm is at a similar time, and then our solar could be more merchant in the mid-2030s. But you can see we still have a decent base of fixed revenues there because we have got some of those 20-year CFDs.

Speaker #2: We also have French feed-in tariff solar assets. And wind farms in France and Germany that benefit from 20-year CFDs. And you can see from the shape of the size that I've put up, hopefully that people can see what the profile of those is.

Speaker #2: So, the first time that subsidies start to roll off is for our French portfolio, where the feed-in tariff comes to an end in around 2032 for most of those assets.

Speaker #2: And then, for our UK ROC assets, the Lynx offshore wind farm is at a similar time. And then our solar, more merchant, in the mid-2030s.

Speaker #2: But you can see we still have a decent base of fixed revenues there, because we've got some of those 20-year CFDs. And also, we have a track record of putting in long-term corporate PPAs.

David Bird: Also we have a track record of putting in long-term corporate PPAs. So we have put in place 10 and 15-year PPAs on our portfolio, and that is something that we would expect to keep under review and be able to keep extending out that base of fixed revenues into the future to give us confidence on dividend cover. We would expect to keep some level of merchant exposure because it does create, we think, quite a nice natural hedge with some of the drivers of other things, such as inflation and discount rates. Excuse me.

Speaker #2: So we've put in place 10- and 15-year PPAs on our portfolio, and that's something that we'd expect to keep under review and be able to continue extending out that base of fixed revenues into the future, to give us confidence on dividend cover.

Speaker #2: We would expect to keep some level of merchant exposure because it does create, we think, quite a nice natural hedge with some of the drivers of other things, such as inflation and discount rates.

Speaker #2: Excuse me.

Speaker #3: David, question on asset recycling. You said that further asset recycling is a priority for the second half, and that proceeds will principally be used to reduce gearing towards 40%.

[Company Representative] (ORIT): Sorry. Question on asset recycling. You said that further asset recycling is a priority for the H2, and that proceeds will principally be used to reduce gearing towards 40%. Can you give us some indication of the timing of the current sales processes? Importantly, what level of pricing relative to the June NAV you would regard as acceptable? Given the NAV has just been revised using higher discount rate and updated operating assumptions, should shareholders reasonably expect disposal to validate NAV at around book value?

Charlotte Edgar: Sorry. Question on asset recycling. You said that further asset recycling is a priority for the H2, and that proceeds will principally be used to reduce gearing towards 40%. Can you give us some indication of the timing of the current sales processes? Importantly, what level of pricing relative to the June NAV you would regard as acceptable? Given the NAV has just been revised using higher discount rate and updated operating assumptions, should shareholders reasonably expect disposal to validate NAV at around book value?

Speaker #3: Can you give us some indication of the timing of the current sales processes? And importantly, what level of pricing relative to the June NAV you would regard as acceptable?

Speaker #3: Given the NAV has just been rebased using higher discount rates and updated operating assumptions, should shareholders reasonably expect disposals to validate NAV at around book value?

Speaker #2: Okay, so as part of our active management of the portfolio, we are running more than one sales process for some of the assets in our portfolio.

Chris Gaydon: Okay. As part of our active management of the portfolio, we are running more than one sales process for some of the assets in our portfolio. In terms of the timing, I would expect to see fairly frequent asset sales over the months and years ahead. But for the initial ones, we are hoping that we will have the first one done well within the next six months. Let us just go through this question. In terms of the pricing of those asset sales, I think it is fair to assume that the June NAV is the benchmark price that we are targeting across all of those sales. We do, of course, seek to beat NAV wherever possible. We have done that multiple times in the past. So I think that covers off that question there.

Speaker #2: In terms of timing, I would expect to see fairly frequent asset sales over the months and years ahead. But for the initial ones, we are hoping that we will have the first one done well within the next six months.

Speaker #2: In terms of well, let's just go through this question. In terms of the pricing of those asset sales, so I think it's fair to assume that the June NAV is the benchmark price that we will be that we are targeting across all of those sales.

Speaker #2: We do, of course, seek to beat NAV. Wherever possible, we've done that multiple times in the past. So, I think that covers off that question there.

[Company Representative] (ORIT): Yep.

Charlotte Edgar: Yep.

Speaker #2: Yeah.

Chris Gaydon: Yep.

Speaker #3: Thanks, Chris.

[Company Representative] (ORIT): That is it.

Charlotte Edgar: That is it.

Speaker #2: Thanks.

Chris Gaydon: Yes.

Speaker #3: Question. What is the rationale for considering floating wind and biofuels or e-fuels in Canada which seem higher risk and where Orbit is not currently present?

[Company Representative] (ORIT): Question: what is the rationale for considering floating wind and biofuels or e-fuels in Canada, which seem higher risk and where ORIT is not currently present?

Charlotte Edgar: Question: what is the rationale for considering floating wind and biofuels or e-fuels in Canada, which seem higher risk and where ORIT is not currently present?

Speaker #2: Yeah, sure. So, we put in place, say, a 5% allocation towards developers. And the two sort of headline rationales for that were: attractive return and risk-adjusted return on that spend.

Chris Gaydon: Yeah, sure. We put in place a 5% allocation towards developers. The two headline rationales for that were the attractive return, risk-adjusted return on that spend. We want to get access to the pipeline. The third reason why we invest in developers is because we can put a relatively small amount of capital at play in those technologies that we think will be particularly important in a decarbonized energy system of the future. We invested into Wind 2 back in 2020. Simply Blue back in 2021, and at that time, Nova Sustainable Fuels was actually part of that same business. The attractiveness of floating offshore wind, we still strongly believe in that thematic today.

Speaker #2: We want to get access to the pipeline. But the third reason why we invest in developers is because we can put a relatively small amount of capital at play in those technologies that we think will be particularly important in a decarbonized energy system of the future.

Speaker #2: So, we invested into wind, I think, back in 2020—sorry, wind to Simply Blue back in 2021. At that time, Nova Sustainable Fuels was actually part of that same business.

Speaker #2: The attractiveness of floating offshore wind—we still strongly believe in that thematic today. You can get bigger turbines, you can maintain them in a port, and you can put them further out at sea where they don't impact the landscape and they can access higher wind speeds.

Chris Gaydon: You can get bigger turbines, you can maintain them in a port, and you can put them further out at sea where they do not impact the landscape, and they can access higher wind speeds. Development continues at pace. We have recently taken on investment from a big Japanese utility. The team have recently won a CFD in the recent AR7 allocation round for a project in the Celtic Sea. There is good progress. We have also looked to minimize our, or slow down our spend in that platform because we feel that the development timelines for floating offshore wind are probably longer than what we like within the ORIT portfolio. Nova Sustainable Fuels is a project that spun out of Simply Blue, and we retain a residual stake in that, and progress on that project continues fairly quickly, actually.

Speaker #2: And development continues at pace. We have recently taken on investment from a big Japanese utility. The team has recently won a CFD in the recent AR7 allocation round for a project in the Celtic Sea.

Speaker #2: So, there is good progress, but we have also looked to sort of minimize or slow down our spend in that platform because we feel that the development timelines for floating offshore wind are probably longer than what we'd like within the Orbit portfolio.

Speaker #2: Nova Sustainable Fuels is a project that's spun out of Simply Blue, and we retain a residual stake in that. Progress on that project continues fairly quickly, actually.

Speaker #3: Thanks, Chris. Final question has come in. It's a board or management team buying shares with the current discount to NAV. Don't think there have been any board-directed declarations.

[Company Representative] (ORIT): Thanks, Chris. A final question has come in. Is the board or management team buying shares with the current discount to NAV? I do not think there have been any board director declarations. Do the team want to comment on this?

Charlotte Edgar: Thanks, Chris. A final question has come in. Is the board or management team buying shares with the current discount to NAV? I do not think there have been any board director declarations. Do the team want to comment on this?

Speaker #3: Does the team want to comment on this?

Speaker #2: Certainly, I have bought shares within the last 12 months. I have a I don't think we disclosed any sort of specifics on team holdings, but certainly a material chunk of my investment portfolio outside my sort of private domestic property is in Orbit shares.

David Bird: Certainly I have bought shares within the last 12 months. I do not think we have disclosed any sort of specifics on team holdings, but certainly a material chunk of my investment portfolio outside my private domestic property is in ORIT shares. Certainly, I have bought at discount levels lower than this back when discounts first appeared in 2022 and 2023 as well. From a personal point of view, I have seen value in the shares at this discount levels. We also actually have other products managed within Octopus Energy Generation that have also invested in ORIT shares as well. The short answer to the question is yes, there has been buying at even narrower discount levels than this from the board and management team historically.

Speaker #2: And certainly, I've bought it discount levels lower than this back when discounts first appeared in 2022 and 2023 as well. So from a personal point of view, I have seen value in the shares at this discount levels.

Speaker #2: We also actually have other products managed within Doctrine Energy Generation that have also invested in Orbit shares as well. So, yeah, the short answer to the question is yes, there has been buying at even narrower discount levels than this from the board and management team historically.

Speaker #2: Yeah, and I would only add that those comments apply to me as well.

Chris Gaydon: Yeah, and I would only add that those comments apply to me as well.

Speaker #3: Great, thank you. That does end the questions. So with that, I'll just hand it to Chris to wrap up.

[Company Representative] (ORIT): Great. Thank you. That does end the questions. With that, I will just hand to Chris to wrap up.

Charlotte Edgar: Great. Thank you. That does end the questions. With that, I will just hand to Chris to wrap up.

Speaker #2: Okay. Thanks, Charlotte. So really, I just wanted to say thank you for taking the time to attend. We always appreciate hearing directly from our investors.

Chris Gaydon: Okay. Thanks, Charlotte. So really, just wanted to say thank you for taking the time to attend. We always appreciate hearing directly from our investors, so if you do have any questions, please email us at orit@octopusenergygeneration.com. All of our contact details are on our website. With that, we hope you found this session useful, and I hope you enjoy the rest of your day. Thank you very much.

Speaker #2: So, if you do have any questions, please email us at orit@octopusenergygeneration.com. All of our contact details are on our website. With that, we hope you found this session useful.

Speaker #2: And I hope you enjoy the rest of your day. Thank you very much.

Speaker #1: Perfect. I may just jump back in there. And thank you very much indeed for addressing all of those questions that came in and for updating investors at this afternoon.

Moderator: Perfect, guys. If I may just jump back in there, and thank you very much indeed for addressing all of those questions that came in and for updating investors this afternoon. Could I please ask investors not to close this session, as you will now be automatically redirected for the opportunity to provide your feedback.

Operator: Perfect, guys. If I may just jump back in there, and thank you very much indeed for addressing all of those questions that came in and for updating investors this afternoon. Could I please ask investors not to close this session, as you will now be automatically redirected for the opportunity to provide your feedback.

Browse all earnings call transcripts

Q2 2026 Octopus Renewables Infrastructure Trust PLC Earnings Call

Request TrialDemo

Octopus Renewables Infrastructure Trust

Earnings