Transeastern currently owns and operates wind generation assets comprised of 3 turbines with total capacity of 17 MW, hydro-electric generation facilities comprised of 11 run-of-river hydroelectric power plants with a total capacity of over 5.1 MW and two photovoltaic solar power production plants with a total capacity of over 16 MW.
Transeastern’s strategy is to create shareholder value through the accretive acquisition and integration of existing renewable generation operations. By acquiring existing power generating assets, Transeastern has effectively eliminated permitting, construction, and commissioning risk.
Experienced Management Team
The management and the board of the Trust are comprised of individuals from relevant and complementary backgrounds offering experience in the ﬁnancial, capital markets and energy sectors and have a substantial track record operating in emerging markets.
Attractive Yield and Tax Structure
Transeastern Power Trust is a Foreign Asset Income Trust (FAIT). The Trust is therefore a non-taxable entity that is structurally optimized to maximize potential distributions to unitholders.
The Trust has paid quarterly distributions to unitholders, since the third quarter of 2014. The current distribution rate is $0.021875 per unit, resulting in a current annualized distribution of $0.0875 per unit.
Growth through Acquisition
The core strategy of the Trust is growth through the acquisition of operating power assets. The Trust aims to achieve a advantage by leveraging its listed issuer status to complete acquisitions that will increase production capacity and the base for revenue and then to maximize profit margins through the financial and technical expertise of its management team. The management team believes that by focusing on mid-sized assets that can be acquired through direct negotiation, versus through a competitive auction, it can negotiate acquisitions that are accretive to the Unitholders.
Transeastern has the potential to grow by continuing to complete accretive acquisitions across a number of sources of power generation. The management of Transeastern research and assess potential target acquisitions within Romania and across Europe in the renewable energy sector and believe that there are numerous acquisition opportunities for Transeastern. Management believes that the European market offers lower risks than most jurisdictions as the market value of energy assets are being said at or below multiples found in many emerging markets, thereby offering the opportunity for the trust to potentially earn superior risk-adjusted returns.
When considering future acquisitions, Transeastern searches to diversify its base of operations geographically and across various energy sources. Management believes that this will maximize stability in energy generation output and minimize risk factors related to a more focused portfolio. Developing sustainable after-tax cash flow to the Trust is the primary consideration for all acquisitions.