Created in February 2002, Boralex Power Income Fund (the “Fund”) is an unincorporated open-ended trust that indirectly owns ten power generating stations with a total installed capacity of 190 megawatts (MW). Eight of these power stations are located in Quebec, Canada, and two are in the State of New York in the United States.
Market value $202.49 MM
Balance sheet
Assets
Current 33.55
Total 405.78
Liabilities
Current 17.47
Total 161.43
Equity 244.35
P/B 0.83
Yield 8.94%($0.033/month)
Q4 Cash flows
From operations 8.36 MM
Investing -1.12 MM
Distributions to unitholders -10.34 MM
Notes:
84% of generation capacity is renewable
51% of generation capacity is hydro
stable cashflow of roughly $10 MM per quarter
possible buy-out by Boralex?
The distribution seems to sustainable and the yield should be around 5.5-6% after the trust converts to a corporation:
the Fund is announcing a reduction of its distributions to unitholders from $ 0.70 to $ 0.40 per trust unit on an annualized basis, starting with the distribution to be declared in January 2010 and payable in February 2010. This decrease, representing an annual saving of nearly $18 million, will allow the distributions to be maintained at a level lower than the distributable cash for several years.
Not much identifiable downside at this point, yet some upside if the economy picks up pace in the future.
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