JLEN.L Regulatory News (JLEN)

29 January 2020

JLEN ENVIRONMENTAL ASSETS GROUP LIMITED

("JLEN" or the "Company")

Net Asset Value and Dividend announcement

NAV

JLEN, the listed environmental infrastructure fund, announces its unaudited Net Asset Value ("NAV") as at 31 December 2019 and interim dividend for the quarter ended on that date.

The Company's unaudited NAV as at 31 December 2019 was £505.8 million or 101.8 pence per share, compared to £520.2 million or 104.7 pence per share as at 30 September 2019.

Portfolio update

In aggregate, energy generation from the renewables portfolio is 1.8% below budget for the financial year to date.

The AD portfolio continued its track record of out-performance, with energy generation 3.0% above budget for the year to date. The Vulcan upgrade project to double the capacity of the plant has completed in the quarter to 31 December and it is now consistently meeting expected levels of increased gas output.

The wind portfolio is 5.5% down on budget for the financial year to date. October and November were low wind speed months which impacted upon generation. Availability has improved since the half year, with the sites previously serviced by Senvion returning to expected levels. The Carscreugh wind farm has also demonstrated sustained increased availability following an improvement programme initiated in 2018.

The solar portfolio is 2.5% down on budget for the financial year to date, having experienced two outages in the quarter to 31 December, one of which was unplanned due to a lightning strike and is covered by insurance, and one of which was to allow a contractor to carry out improvements under warranty. Allowing for these events which will not reoccur, the financial year to date variance to budget is 1.3% down.

The water and wastewater processing assets continue to perform strongly against contractual targets and to deliver distributions in line with expectations.

JLEN has continued to diversify its portfolio during the quarter to 31 December, having acquired a 70% stake in Bio Collectors Holdings Limited in December which holds the rights and operational assets of a food waste fed AD plant and Bio Collectors waste collections business. This is the Company's first investment into the food waste AD sector and builds on management experience in both the AD and waste sectors.

Portfolio valuation

The largest impact on portfolio valuation has come from the update of power price forecasts from the previous quarter. JLEN uses a blended curve informed by the central case forecasts from two established market consultants, with adjustments for project-specific arrangements as appropriate. Electricity price forecasts have reduced by c. 7.5% from the Half Year report on a fairly uniform basis across the forecast curve, reflecting the consultants' views on continuing deployment of off-shore wind and strong supply of natural gas. This has reduced the portfolio valuation by £21.6m (4.3p per share) compared to the Half Year valuation.

JLEN's diversified portfolio has one of the lowest exposures to wholesale power prices in the sector, with 64% of the Fund's underlying revenues coming from subsidies and concession-based payments that are fixed in nature and have explicit inflation linkage. Of the remaining 36% of revenues that come from sale of wholesale electricity and gas, JLEN currently has fixed price or floor arrangements covering 55% of electricity generation for the remainder of the current Winter Season, 46% for the upcoming Summer 20 season and 44% for Winter 20.

Value enhancements have been recognised in respect of the Vulcan upgrade project, improved long term availability at the Carscreugh wind farm, and improved PPA terms across the wind portfolio. These added £4.1m to the portfolio valuation (0.8p per share) in the period to 31 December.

Discount rates have been reduced on selected AD projects that have now shown a consistent pattern of out-performance as well as having good potential for upgrades that increase output, improve efficiency or earn ancillary revenues. The Investment Adviser is also aware of increased market competition for established operating assets with strong track records. This has added £7.4m to the portfolio valuation (1.5p per share).

The weighted average discount rate for the portfolio as a whole is 7.5% (30 September 2019: 7.6%), and the discount rate range remains unchanged at 6.5%-9.2%.

Dividend

The Company announces a quarterly interim dividend of 1.665 pence per share for the quarter ended 31 December 2019, in line with the dividend target of 6.66p per share for the year to 31 March 20201, as set out in the 2019 Annual Report. The Company reiterates its expectation of meeting that target.

Dividend TimetableEx-dividend date 13 February 2020Record date 14 February 2020Payment date 13 March 2020

This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.

For further details contact:

Foresight Group +44(0)20 3667 8100

Chris Tanner

Chris Holmes

Winterflood Investment Trusts +44(0)20 3100 0000

Neil Langford

Chris Mills

Newgate Communications +44 (0)20 3757 6880

Elisabeth Cowell

Ian Silvera

Praxis Fund Services +44(0)1481 755530

Matt Falla

Gemma Woods

About JLEN

JLEN's investment policy is to invest in environmental infrastructure projects that have the benefit of long-term, predictable, wholly or partially inflation-linked cash flows supported by long-term contracts or stable regulatory frameworks.

Environmental Infrastructure is defined by the Company as infrastructure projects that utilise natural or waste resources or support more environmentally-friendly approaches to economic activity. This could involve the generation of renewable energy (including solar, wind, hydropower and biomass technologies), the supply and treatment of water, the treatment and processing of waste, and projects that promote energy efficiency.

JLEN aims to provide investors with an annual dividend that is sustainable and increases in line with inflation. The target dividend for the year to 31 March 2020 is 6.66 pence per share (1). The dividend is payable quarterly.

Further details of the Company can be found on its website www.jlen.com

LEI: 213800JWJN54TFBMBI68

(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.)