REG - Octopus Renewables - Launch of 'ORIT 2030' strategic roadmap for growth

Octopus Renewables Infrastructure TrustAnnouncement

23/09/2025 07:00

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RNS Number : 3348A  Octopus Renewables Infra Trust PLC  23 September 2025

23 September 2025

 

LEI: 213800B81BFJKWM2JV13

 

Octopus Renewables Infrastructure Trust plc

("ORIT" or the "Company")

 

Launch of 'ORIT 2030' - A strategic roadmap for growth

Existing capital allocation commitments remain in place for 2025

Core focus on NAV growth through investment into construction and developer
assets

A clear plan to create further impact through adding new renewable capacity

Proposing a continuation vote every three years

 

Octopus Renewables Infrastructure Trust plc, the diversified renewables
infrastructure company, today announces the launch of ORIT 2030, a defined
five-year strategy designed to deliver substantial net-asset-value ("NAV")
growth, scale the company to £1 billion and generate attractive
medium-to-long-term shareholder returns. The Board is also recommending that
the Company's continuation vote moves to every three years, from the current
five-year cycle.

 

The three core goals of the 2025 Capital Allocation Update
(https://www.londonstockexchange.com/news-article/ORIT/capital-allocation-update/16934083)
in March remain unchanged for this financial year.

 

2025 Capital Allocation Objectives and Update

 

1.    An extended share buyback programme totalling £30 million

·    £21.6 million shares repurchased to 15 September 2025

·    Balance to be retained to make further purchases as required

2.    A commitment to reduce debt to under 40% of Gross Asset Value ("GAV")

·    47% at 15 September 2025; asset sales anticipated to bring this
figure down

·    On track to reduce debt to below 40% of GAV by year end

3.    A pledge to sell at least £80 million of assets to pay down debt and
make a small number of selective investments where they are deemed to be
accretive

·    Several sales processes advanced; on track to realise the £80m
target by year end

·    Selective investments made into developers Nordic Generation, BLC
Energy, and conditional acquisition of Irishtown

 

Thereafter the Board and Octopus Energy Generation (the "Investment Manager")
will execute ORIT 2030, which is focused on the four strategic priorities set
out below:

 

1.    Grow: Invest for NAV growth

·    Deploy capital into higher returning investments

o  Increase target portfolio allocation to ~20% in construction assets

o  Maintain 5% allocation to developer assets

·    Accelerate NAV growth through a repeatable process of recycling,
investment, improving operational performance and enhancing the value of
assets

 

2.    Scale: Build a larger, more investable company

·    Target £1 billion net asset value by 2030, to create a more liquid
and investable company

·    Achieved through disciplined capital deployment and organic NAV
growth, alongside potential value-accretive corporate M&A

·    Share buybacks as a tool subject to market conditions and capital
allocation priorities

 

3.    Return: Deliver attractive risk-adjusted total returns

·    Target medium-to-long-term total returns of 9-11% through a
combination of capital growth and income

·    Maintain existing progressive dividend policy, while preserving full
cover

·    Prudent balance sheet management, with leverage anchored at <40%
GAV with the flexibility to move temporarily above this for value-accretive
opportunities and strategic recycling

·    Retain diversification across core technologies and geographies

 

4.    Impact: Scale with purpose and resilience

·    Aim to build approximately 100 MW of new renewable capacity per annum

·    Sustain ORIT's mandate, enabling new clean energy generation and
supporting the energy transition

 

Continuation Vote

In addition to the above, the Board is recommending that the continuation vote
moves to a cycle of every three years, from the current five. A resolution to
this effect will be put to shareholders at the 2026 AGM and, if approved, the
next continuation vote will take place at the Company's 2028 AGM. The change
is intended to give shareholders more frequent opportunities to assess the
future of the Company, while reinforcing ORIT's commitment to accountability
and alignment with investor interests.

 

Phil Austin, Chair of Octopus Renewables Infrastructure Trust plc, commented:
"ORIT 2030 marks the next phase in the Company's development. This clear
five-year strategy aims to scale ORIT significantly, drive NAV growth through
investment into construction and development assets and - underpinned by
resilient cash flows - maintain progressive fully-covered dividends.

 

"More than 90% of shareholders backed the Company at its continuation vote in
June, indicating strong support for ORIT's future, yet it has also been made
clear from our active dialogue with investors that they want the Company to
become larger, more investable and to stay true to its purpose. ORIT 2030
addresses this directly with a plan that balances yield, growth and impact,
ensuring the Company delivers for shareholders, while supporting the energy
transition.

 

"With disciplined capital management and the expertise of our Investment
Manager, we believe we are well placed to execute ORIT 2030 and to pursue our
ambition of building a £1 billion renewables vehicle by 2030."

 

Capital Markets Session and Investor Meet Company

The details of ORIT 2030, together with the interim results update, will be
presented at today's in-person Capital Markets Session for sell-side analysts
and institutional investors in London. A recording of the event will be made
available on the Company's website soon after.

 

Additionally, there will be an online presentation via the Investor Meet
Company platform on Wednesday 24 September 2025 at midday for all existing and
potential shareholders. Investors who already follow ORIT will automatically
be invited. Investors can sign up to Investor Meet Company for free via:
https://www.investormeetcompany.com/octopus-renewables-infrastructure-trust-plc/register-investor
(https://www.investormeetcompany.com/octopus-renewables-infrastructure-trust-plc/register-investor)
.

 

For further information please contact:

 

 Octopus Energy Generation (Investment Manager)                     Via Burson Buchanan or

 Chris Gaydon, David Bird                                           orit@octopusenergygeneration.com (mailto:orit@octopusenergygeneration.com)

 Charlotte Edgar (Investor Relations)

 Peel Hunt (Broker)                                                 020 7418 8900

 Liz Yong, Luke Simpson, Huw Jeremy (Investment Banking)

 Alex Howe, Chris Bunstead, Ed Welsby, Richard Harris (Sales)

 Burson Buchanan (Financial PR)                                       020 7466 5000

 Charles Ryland, Nick Croysdill, Jude Stokes

 Apex Listed Companies Services (UK) Limited (Company Secretary)     020 3327 9720

 

Notes to editors

 

About Octopus Renewables Infrastructure Trust

 

Octopus Renewables Infrastructure Trust ("ORIT") is a closed-ended investment
company incorporated in England and Wales admitted to the closed-ended
investment funds category of the official list and to trading on the London
Stock Exchange plc's main market for listed securities, focused on providing
investors with an attractive and sustainable level of income returns, with an
element of capital growth, by investing in a diversified portfolio of
renewable energy assets in Europe and Australia. As an impact fund, ORIT
is helping accelerate the transition to net zero by investing in green energy,
whilst also contributing to a broader set of UN Sustainable Development Goals
through its impact initiatives. ORIT's investment manager is Octopus Energy
Generation.  

 

Further details can be found at www.octopusrenewablesinfrastructure.com
(http://www.octopusrenewablesinfrastructure.com/) . 

 

About Octopus Energy Generation

 

Octopus Energy Generation is driving the renewable energy agenda by building
green power for the future. Its specialist renewable energy fund management
team invests in renewable energy assets and broader projects helping the
energy transition, across operational, construction and development stages.
The team was set up in 2010 based on the belief that investors can play a
vital role in accelerating the shift to a future powered by renewable energy.
It has a 14-year track record with approximately £7.0 billion of assets under
management (AUM) (as at 30 June 2025) across 21 countries and with a total 4.9
GW of capacity managed. Octopus Energy Generation is the trading name of
Octopus Renewables Limited.

 

Further details can be found at www.octopusenergygeneration.com
(http://www.octopusenergygeneration.com/) . 

 

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