SDCL Energy Efficiency Income (SEIT ) has received a number of ‘credible’ offers for some of its assets as fund manager Jonathan Maxwell prioritises disposals to generate capital for reinvestment and to prove why its shares should not trade at a massive discount.

The £966m portfolio of operational projects delivering energy to commercial, industrial, and public sector buildings remains focused on offloading assets in a bid to rerate shares that have fallen to 40% below net asset value and put the shares on an 11% dividend yield.

Sustainable Development Capital’s Maxwell said he had received ‘a number of credible proposals in relation to multiple assets which are within its range of pricing expectations and thereby support the most recently published net asset value (NAV)’.

Although there is no certainty the proposals will go through, Maxwell is ‘focused on progressing these processes expediently’ and further details will be provided in due course.

In a short update, the investment trust, which survived a continuation vote in September, said operational cashflows in the last quarter of 2023 had been in line with expectations despite ‘some variability in individual asset performance’.

It also reported that one of SEIT’s US energy assets had signed the renewal of a long-term contract to supply steam and energy to a steel mill. Cokenergy – a project that sits within the ‘primary energy’ portion of the trust – renewed a long-term contract with steel producer Cleveland Cliff that operates at an Indiana Harbor Works East steel mill. The  contract will provide onsite supply of steam and electricity using waste heat from the onsite coke ovens.

Maxwell said the renewal ‘de-risks elements of the contract by passing through certain costs and introducing improved inflation correlation of revenues’.