Sdcl Ef. Inc Tr Company Research (SEIT)

SDCL Efficiency Income Trust (SEIT) has agreed the sale of a diversified portfolio of operational and yielding energy efficiency infrastructure assets to Kyotherm for a total enterprise value of up to c £105m. The disposal is consistent with the company’s stated priority of reducing gearing through asset sales and, together with near-term project-level debt reductions, is targeted to bring pro forma aggregate gearing to c 65% of NAV, based on 30 September 2025 (down from 71.9%). The agreed price is at a c 9% discount to carrying value and is expected to reduce NAV by c 1.2p. Given the currently difficult private market environment, this discount represents a reasonably tight discount. Completion is expected by mid-April 2026, and there is no change to the company’s target dividend of 6.36p for the current financial year.