Gore Street En. Share Chat (GSF)

Cheers Ry

Yields that investments such as GSF must offer in order to compete with very low risk investments has had to rise. That drives down the share prices on higher yield investments as money moves to lower risk ones. The tide is turning in most high yielding sectors, where I expect higher share prices and lower yields in the future.

I'm not saying that is the only factor that will impact share price here. It is however, IMO, one quite significant factor.

"As interest rates fall this will soar back over £1" - forgive my thickness - fairly new to renewables - how does fall in ir affect GSF?

Would it coz DCF calcs via lower WACC? Or is it fall in ir leads to yield from risk-free assets falls?

Thanks.

Nat Gas prices in USA are squeezing … expect the same in Europe along with electricity prices.

Clis, yes you've correctly answered your own question. The NAV per share won't double once assets become operational. They have the same NAV whether they are operational or not. So the NAV won't be affected, & therefore neither will the dividend, unless the basis for NAV calculations changes, which seems unlikely.

Closing in fast on full dividend cover. As interest rates fall this will soar back over £1 IMO. Maybe by end 2024. I agree with others that this is a bargain ATM

Possibly the best bargain in the whole renewables. sector

Very happy with those results. The double diversification by both geography and season should blend nicely as further assets come on in the US

Very much so. The update contains some quite detailed info on GSF’s revenue models across the markets in which it operates. This is a very welcome development. It will be interesting to see how analysts and the market react.

Dividend commitment is unequivocally reaffirmed also.

Solid set of results there. Should be plenty to calm the market that GSF is capable of paying it’s dividend.

PW66, I'm not saying that Japan isn't a potential market for GSF but as it currently stands GSF is a separate entity from Gore Street Japan (GSJ) and has no investment in GSJ or any involvement in any of its proposed projects.

Down the road that might change, e.g. GSF could enter into a JV with GSJ perhaps or acquire its own assets, but it would require additional capital and, at this juncture, GSF is not about to do another equity issue (given the discount to NAV) or raise additional debt.

Https://www.argusmedia.com/en/news-and-insights/latest-market-news/2564397-battery-storage-stands-out-in-japan-clean-power-auction

https://www.ekuenergy.com/news/hirohara-240424

I’m joining the dots. Rightly or wrongly. Battery storage on the move in Japan and Alex is a director of a new gore street Japan company incorporated Jan this year.

My take = Japan has either happened or will happen for GSF

Diversification (hopefully) saved Gsf from the recent uk issues. So this is good news.

Good luck all.

It’s a grid supply and BTY storage fund

"Gore Street Capital is the fund manager e.g. like Fidelity. The only thing GSF and Gore Street Japan have in common is that they have the same fund manager."

And the directors. Alex etc.

To try to answer my own question, the NAV already reflects projects under construction, so a doubling of operational capacity in say the next year won't double the NAV? But how does that relate to revenue and ability to pay dividends? A doubling of operational capacity could well double revenue. If the dividend is covered now, then if revenue doubles, GSF could afford to pay twice the current dividend?

I'm expecting GSF's new projects to take a bit longer than they predict, and commercial operation seems to follow many months after energisation. However, at some point in 2025 GSF's operational capacity will be roughly double what it is now, so if revenue forecasts stay roughly as they are now, NAV per share will be roughly double what it is now, so if GSF continue to pay 7% of NAV, the quarterly dividend will be roughly double what it is now? This sounds too good to be true. What's wrong with my reasoning?

Gore Street Capital is the fund manager e.g. like Fidelity. The only thing GSF and Gore Street Japan have in common is that they have the same fund manager.

Check out companies house. Some new incorporations end of Jan, inc Gore Street Japan

Gore Street Capital (GSF's fund manager) was appointed co-manager of a Japanese storgae fund in December (https://www.gsenergystoragefund.com/content/news/archive/2019/041223) but that does not mean that GSF is itself expanding into Japan (at this juncture).

What leads you to that conclusion Pearlwhite66?

Looks like Japan may be the next stop on the diversification map.

As long as there are no more false starts!

At around 12% yield, this is an incredible bargain for the future. As soon as interest rates take z stro down this will climb quickly. The rise here is already starting with that anticipation IMO. However, I believe lots of trusts will move sharply up when that happens. Should be in the next 2 months. Fingers crossed!

GLA

Will be disappointed if this hasnt reached 90p by this time next year! AIMHO.

Seriously hope that’s the end of the 50’s but recent history limits that somewhat!