JLEN Environmental Assets (LSE:JLEN) financial results demonstrate its reliance in a challenging year for the listed renewable investments sector, chair Ed Warner said in a statement.
The investment firm, in its financial results for the year ended 31 March, announced a Net Asset Value (NAV) per share of 113.6 pence, down from 123.1 pence at the end of the previous year.
Nevertheless, JLEN noted its strong annualised NAV total return of 8.0% since its initial public offering (IPO).
JLEN also declared a dividend of 7.57 pence per share, meeting its annual target.
It marks a record year of cash generation from underlying assets, with a dividend cover of 1.30x, which is JLEN’s second highest since IPO.
The company noted it had maintained prudent balance sheet management with low levels of gearing.
"As we celebrate JLEN's 10th anniversary as a listed company, this year's performance is a testament to our resilience, despite it being a challenging year for the listed renewable investment company JLEN,” Ed Warner said.
“We have delivered consecutive years of record distributions received from investments, resulting in a dividend cover of 1.30 times - the second highest since IPO."
He added: “In the current difficult operating environment, we have maintained our disciplined approach to investment activity during the year.
“Future cash flows remain robust, with comfort provided from near-term fixes, such that the board has set a dividend target of 7.80 pence per share for the current year, an increase of 3%.
“We have also taken steps to strengthen our balance sheet, completing a successful refinancing of our RCF post-period end.”
JLEN highlighted that it is pursuing several asset disposal opportunities, with sales proceeds expected to provide flexibility to pay down debt and consider share buybacks.
"We are progressing several asset sales processes,” Warner added.
“We hope to complete the first transaction in the coming months.”
JLEN also reported that it has agreed a new fee structure with its investment manager and, as a result, it expects the new arrangement will deliver excellent value for shareholders.