Results analysis from Kepler Trust Intelligence

Octopus Renewables Infra Trust PLC

02 April 2026

 

Octopus Renewables Infrastructure (ORIT)

02/04/2026

Results analysis from Kepler Trust Intelligence

·    Octopus Renewables Infrastructure's (ORIT) annual results to 31/12/2025 show a NAV total return of -2.8%. At an operational level, ORIT's power generation and revenues grew by 5% and EBITDA by 3% with total shareholder returns of -1.5%.

·    ORIT met its dividend target, 1.14x covered by operating portfolio cash flows, which was an increase of 2.5% over 2024, in line with UK CPI for a fourth consecutive year. The target dividend for next year is an increase of 1% and is expected to be fully covered.  

·    The NAV decline was a result of adjustments for power prices and green certificates, RoC indexation changes, adjustments to developer valuations and an increase in discount rates.

·    Fixed revenues rose, reducing ORIT's exposure to short-term power price fluctuations. In addition, about half of revenues are inflation-linked over ten years.

·    ORIT was geared 45% LTV or 82% as a percentage of NAV (2024: 45%), although the level of debt was reduced in absolute terms. This is partially fixed, with an average cost of 3.3% and an average remaining term of ten years. The medium-term goal is to reduce gearing to 40%.

·    ORIT defines itself as an impact fund and is classified under Article 9 of SFDR. The impact highlight from the financial year is 1,304 GWh of renewable energy generated. A detailed breakdown including the cumulative impact over five years is in the annual report.

·    Capital allocation policy update:

o  Disposals totaling £74.3m achieved at a weighted average uplift of 9%.

o  £26m of the £30m share buyback now executed.

·    ORIT 2030. In September 2025, the board announced its 'ORIT 2030' strategy, which sets out its four priorities for the next five years; grow, scale, return and impact

As part of the ORIT 2030 strategy, the board is also recommending that the continuation vote moves to a cycle of every three years. The change will be put to a vote at the 2026 AGM.

Chair Phil Austin said: "The ORIT 2030 strategic framework provides a clear structure for capital allocation and portfolio development over the medium term. The actions taken during FY 2025, particularly in relation to capital recycling, operational optimisation and capital structure discipline, are consistent with the early execution of this strategy."

Kepler View

Once again, at an operational level, ORIT delivered good performance, with an increase in power generation and revenues. The ORIT management team also note that at a technical level, the portfolio performed well, with less downtime than expected.

Further, ORIT completed its fourth consecutive year of dividend growth, essentially increasing its dividend in every full operational year since its IPO. ORIT's dividend increases have been in line with UK CPI inflation despite it not being an explicit target. As ORIT shifts to its ORIT 2030 strategy the progressive dividend goal remains, although strategy changes will make it harder to increase dividends in line with inflation. Overall, annual returns are up from the IPO goal.

Clearly though, the macro backdrop remains challenging, as this is an interest-rate sensitive asset class. ORIT's near-term power prices are 88% fixed (for two years) so a short-term spike in energy prices will have little impact, but half of ORIT's portfolio is inflation-linked meaning revenues could rise, providing partial protection to higher interest rates. However, ORIT's dividend yield as a spread over the 10-year gilts are at a lifetime-high gap and the valuation of assets that generate power without any reliance on global hydrocarbon supply chains seems like an anomaly investors should be paying more attention to.

CLICK HERE TO READ THE FULL REPORT 

Visit Kepler Trust Intelligence for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771.

 

END