Octopus Renewables Infrastructure (ORIT)

Octopus Renewables Infrastructure (ORIT) is a renewable energy infrastructure specialist, diversified by geography, technology and stage, and investing in projects from development stage to operational. Although predominantly invested in operational assets, ORIT owns equity stakes in developers, giving it access to projects at an early stage, with the potential to generate higher returns. ORIT’s Manager, OEGEN, is one of the largest, most experienced and well-resourced managers of renewables assets in Europe, with assets under management of £8.8bn.

In the first half of ORIT’s current financial year, to 30/06/2026, net assets declined from £495m to £455m, or approximately 8%. The main factor in this was a reduction in the value of ORIT’s onshore wind assets following a review of the long-term energy yield assumptions. In simple terms, the onshore wind assets, which are relatively new, were previously valued using technical assumptions and forecasts which, now that a meaningful set of actual operational data has been collected, have been updated to reflect that. Clearly this is a disappointing outcome, but it means that the vast majority of ORIT’s assets are now valued against operational data.

Despite this, ORIT remains on track to increase its annual dividend once again, with dividend cover in the first half slightly higher than for the same period last year at 1.38x. If ORIT meets its full-year target, that will represent a 4.3% annualised dividend growth rate since 2021. With ORIT currently trading at a near-30% discount, the dividend yield is 10%, which is a significant premium to government bond yields, although the gap has narrowed more recently as government bond yields in the UK and Europe have risen.

ORIT’s weighted average discount rate is now 8.3%, an increase from 7.8% at the beginning of 2026, but one that the team believes is rooted in growing transaction evidence in private markets, where it sees a stronger pickup in investor interest than in public markets. Factor in ORIT’s holdings in developers and the figure rises to 8.9%, which means that ORIT is well on track to reposition the portfolio to achieve the revised return targets it set in 2025 of 9-11%.