Reflecting that the year-end NAV had already been released, updates were non-financial. Key items of news include an increase in the asset disposal programme, that the board’s is actively considering sector consolidation and the management team’s report that ready-to-build GB Solar is being traded on c8.5% discount rates. Our read of the news & results is that the board is fully engaged on the discount (assisted by discontinuation vote) and that there is reasonable evidence (albeit indirect) that the valuation marks are decent. Given this, our conclusion is that the fund’s valuation (27% discount to NAV, 9.8% yield) is unwarranted and will be addressed. The key uncertainty is timing asset disposal processes and/or corporate actions take time. In the meantime, investors are paid to wait. The next quarterly xd date (2pps) is 25 April 2025.
