Gore Street Energy Storage Fund PLC on Wednesday said its net asset value has fallen at the end of its second quarter, but expects to reach full-year dividend targets as its three assets that are still under construction near completion.

The investor in utility-scale energy storage projects announced a net asset value of 104.40 pence per share on June 30, representing a 2.4% decrease from 107.00p at March 31.

Total net asset value return, including dividends paid, amounts to 47% since the company’s initial public offering in May 2018, Gore Street Energy Storage noted.

The company said it remained ‘well-capitalised’, with £66.1 million in cash or cash equivalents. As of June 30, it had drawn £56.4 million from its borrowing facilities, with additional debt headroom of £39.8 million.

Gore Street Energy declared a dividend of 1.00p per share for the second quarter ended June 30, and it reaffirmed its commitment to its 7.00p dividend target for 2024.

Chief Executive Officer & Investment Manager Alex O’Cinneide said: ‘The portfolio is now materially de-risked, with just three assets left in construction. Once the three assets are completed, we expect the portfolio to reach a steady state, able to meet its dividend targets from cash generation. Furthermore, we expect a material increase in contracted revenue contribution to portfolio cashflow through the resource adequacy contract, for which the 200 megawatt Big Rock asset is eligible once operational.

‘Additionally, we expect a cash inflow of between $60 million and $80 million under the investment tax credit regime for the 275 megawatt of US construction assets. This influx of cash adds optionality to de-lever the portfolio, build further assets, or reward shareholders through dividends or buybacks. We remain committed to providing strong returns through the unique exposure across multiple uncorrelated markets and delivering value for all stakeholders.’

Shares in Gore Street Energy were down 1.2% at 57.30 pence each in London on Wednesday morning.

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