JLEN Environmental Assets (JLEN) recently added two new revenue streams, hydropower and battery storage, to its already-diverse portfolio. It’s clear from the 16.5% premium to NAV, that investors are drawn to JLEN and its asset mix. In an environment where interest rates are falling, JLEN’s dividend yield (which is well-covered by cash flow) and the relative predictability of its earnings are attractive. Premiums in the sector may look high, but the advisers highlight the conservative nature of JLEN’s NAV.
Opportunities to add to hydroelectric exposure are limited, but battery storage facilities could be applied across much of JLEN’s portfolio. Sensibly, the advisers will be using their experience with the new Thrybergh battery unit (see page 16) to evaluate the potential benefit to JLEN before committing to a more significant investment in this area.
Progressive dividend from investment in environmental infrastructure assets
JLEN aims to provide its shareholders with a sustainable dividend, paid quarterly, that increases progressively in line with inflation. It also aims to preserve the capital value of its portfolio on a real basis over the long term. It invests in environmental infrastructure assets with predictable, wholly or partially index-linked cash flows, supported by long-term contracts or stable regulatory frameworks.