In this note we examine five key questions investors have raised regarding SDCL Energy Efficiency Income Trust (SEEIT), prior to the release of its full-year results (for the year ended March 2024) at the end of June 2024 and provide our answers and analysis. The questions focus on dividend security, discount to NAV, management’s strategies for closing the discount, asset valuations and where SEEIT differs to its peers. SEEIT is an investment trust focused on delivering energy and energy efficiency as a decentralised service directly to end users, rather than supplying into the broader power grid. Its income comes from a range of services and is driven by cutting losses in energy generation, transmission and use. SEEIT offers an attractive dividend yield (9.15%) and upside from narrowing of the discount (c 26% or c 35% upside if closed).
