18th Jun 2025 10:49
(Alliance News) - Gore Street Energy Storage Fund PLC on Wednesday set out plans to pay a special dividend after receiving proceeds from the sale of investment tax credits, as it cut its quarterly payout.
The London-based investor in utility-scale energy storage projects declared a 1.0 pence per share dividend for the quarter to the end of March, down 33% from 1.5p a year ago.
Gore Street said its net asset value at the end of March was 102.8p per share, down 3.9% from 107.0p a year ago.
Including dividends paid during the year, the NAV total return is 1.1%, Gore Street added.
It expects to pay a further 3.0p per share dividend once proceeds from the sale of the Big Rock investment tax credits are received, which is expected in the second half of 2025.
"This dividend distribution structure meets the expectations of shareholders, but without increasing the company's total debt and associated costs," Gore Street said.
The company said it has conducted a "comprehensive roadshow" with shareholders to seek feedback on the company.
The majority of investors prioritised the distribution of investment tax credit proceeds to shareholders, Gore Street added.
It said the sale of the credits from its operational Big Rock asset in California, when combined with those received from thee Dogfish project, are expected at the top end of previous USD60 million to USD80 million guidance.
In future, Gore Street will link dividend distributions to operational cash flow, rather than maintaining a fixed distribution target.
The firm said it has also engaged an independent external adviser to evaluate the potential of expansion opportunities.
Until the review is concluded, excess cash from the tax credit sale proceeds will be used to repay the company's revolving credit facility, while maintaining the flexibility to fund future capital expenditure.
"The financial year has been transformative for GSF. We have more than doubled our energised capacity and begun operations in our fifth energy market. We also take pride in the ongoing resilience of the company's valuations, which demonstrates the robust framework established over our years of operation and the appropriate assumptions used in the company's valuations," said Chair Pat Cox.
Gore Street said it has agreed to revise fees payable to its investment manager, Gore Street Investment Management.
It said these changes result in "significant savings and better long-term alignment with shareholders".
Under the current agreement, the investment manager receives 1.0% of adjusted net asset value per year.
From the start of the October, the fees will be calculated as an average of 1% of market capitalisation and adjusted net asset value.
The fees will be capped at the equivalent of 1% of adjusted net asset value.
"This, together with the appointment of an independent advisor to the board, alongside existing advisers, to advise on a mid-term strategy and a comprehensive capital allocation plan for the company are positive steps forward," Chair Cox said.
Gore Street will release its results for the full financial year to the end of March on July 17.
Shares in Gore Street Energy Storage Fund were up 4.0% at 62.22 pence in London on Wednesday morning.
By Michael Hennessey, Alliance News reporter
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