Overview Key strengths Key risks High cash flow predictability spurred by overall contractedness. High reliance on distributions from Antelope Valley Solar Ranch (AVSR). Fully renewable portfolio. Resource risk associated with wind and solar generation. Closed-end portfolio with robust cash sweep. Highly leveraged. The vast majority of its cash flows are contracted through power purchase agreements until 2027, which we believe results in high cash flow predictability. We believe renewable resources have extended operational lifespans and are supported by favorable regulations. However, wind and solar facilities might face challenges related to resource availability, potentially affecting their overall energy generation. During the first half of 2023, power generation from the company?s wind assets was lower than budgeted due to lower wind resources.
