Watch the Skyline Clean Energy Fund Discussion
Wayne:
Welcome, valued investors. Thank you for your continued support of our investment strategies and for tuning in today to get a quick update on Skyline Clean Energy Fund, its portfolio, and its strategies.
Though it’s the youngest of Skyline’s investment funds, launched in 2018, Skyline Clean Energy Fund is already recognized as a leader in Canada’s growing renewable infrastructure space.
I’m joined today by Rob Stein, President of the Fund, to share highlights from 2024 and what’s ahead for this dynamic and evolving asset class. Thanks very much, Rob, for joining me.
Rob:
Thank you.
Wayne:
Let’s jump right into things here, [and] look back on 2024. Can you walk us through the highlights?
Rob:
Absolutely. 2024 was a strong year for Skyline Clean Energy Fund. The Fund’s 1-year return from January 1, 2024, to January 1, 2025, was 9.46%, supported by four unit value increases throughout the year. These results underscore the strength of the long-term strategy and the resilience of our portfolio.
Much of the Fund’s success in 2024 came from the integration of the SkyPower portfolio that we acquired at the end of 2023. These utility-scale ground-mounted projects drove solar revenue to increase 177% from $14.7 million in 2023 to $40.74 million in 2024. This transaction also made a significant impact on the Fund’s bottom line, with total income increasing by over 66.6% to $59.35 million in 2024.
Net operating income also surged by over 1,000%, reaching just over $17.37 million. This wasn’t just about scale—it was about improving efficiency. Our NOI margin climbed 29.3%, up more than 2,100 basis points year over year.
On the biogas side, we continue to see progress as well. The Lethbridge [Alberta] biogas facility increased throughput by 7.56%, and we signed a bunch of new contracts in 2024 which are expected to come online in 2025.
We’re also advancing expansion plans at our Elmira [Ontario] biogas facility, and we continue to work with the Canadian Biogas Association to advocate for policy changes—specifically, expanding the federal investment tax credit to include biogas infrastructure.
Wayne:
Looking further at financial performance, how did the Fund manage its balance sheet during the year?
Rob:
We remain in a strong financial position. Our loan-to-value as of January 1, 2025, was 42.92%, and we ended the year with just over $14 million in cash, which we’ll be putting to good use in 2025. Having a solid amount of cash gives us flexibility to reinvest in existing assets, upgrade technology, and support higher energy output.
Additionally, our long-term debt remains well-structured and aligned with the FIT contract terms, minimizing refinancing risk and interest rate exposure.
Our weighted average interest rate [decreased] slightly to 4.82%.
Wayne:
With such strong results, how is SCEF (Skyline Clean Energy Fund) preparing for future growth within the renewable landscape in Canada?
Rob:
We’re focused on upgrading asset technology, increasing generating capacity, and [continuing] selective acquisitions that enhance portfolio efficiency.
On the biogas side, new feedstock contracts will boost output. And if the investment tax credit is expanded, we could see 20-30% cost savings on future developments.
We’re also exploring technologies that support long-term, stable cash flows for unitholders, like battery energy storage systems. The Independent Electricity System Operator, or as we call it, IESO, is planning on procuring 2,500 megawatts of new storage capacity. So, battery storage will be central to addressing supply gaps as aging nuclear and gas assets retire and the demand grows due to electrification.
The outlook in the renewable energy space itself is extremely promising. According to IESO, Ontario’s electricity demand is expected to grow by 75% by 2050. That means an increasing need for renewable infrastructure and battery energy storage.
With strong government incentives and the urgent need to scale low-carbon infrastructure, Skyline Clean Energy Fund is well-positioned to continue to deliver attractive returns while contributing meaningfully to the Canadian energy future.
Wayne:
Thanks, Rob. Before we wrap up, are there any closing thoughts for our investors?
Rob:
Yes, we are proud of the results we’ve achieved and the impact we’re making. Since launching in 2018, our goals have been to create long-term value for investors while advancing Canada’s transition to a net-zero economy.
As one of Canada’s few dedicated renewable energy funds, we’re not just participating in the clean energy transition—we’re helping to power it.
Wayne:
Thanks again, Rob. And to our investors: SCEF continues to show what’s possible at the intersection of innovation and performance.
If you’d like to learn more about the Fund’s strategy or how it fits your portfolio, connect with your Relationship Manager. As always, we’re grateful for your support.
Disclaimer
The presentation is an overview of the operations and conditions for the year ended December 31, 2023 and should be read in conjunction with the Management’s Discussion and Analysis (“MD&A”) and the Skyline Clean Energy Fund (“Skyline Clean Energy” or the “Fund”) audited consolidated financial statements. Certain statements in this presentation could be considered forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Fund’s control, which could cause actual results to differ materially from those disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, general and local economic and business conditions, the financial condition of tenants, our ability to refinance maturing debt, rental risks, including those associated with the ability to rent vacant suites, our ability to source and complete accretive acquisitions, and interest rates. The information in this presentation is based on information available to Management as of April 30, 2024, except where otherwise noted. Skyline Clean Energy Fund does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. In some instances, forward-looking information can be identified by the use of terms such as “may”, “should”, “expect”, “will”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potentially”, “starting”, “beginning”, “begun”, “moving”, “continue”, or other similar expressions concerning matters that are not historical facts. Forward-looking statements in this presentation include, but are not limited to, statements related to acquisitions or dispositions, development activities, future maintenance expenditures, financing and the availability of financing, tenant incentives, and occupancy levels.
Commissions, trailing commissions, management fees and expenses all may be associated with investments in exempt market products. Please read the confidential offering documents before investing. The indicated rate of return is the annualized return including changes in unit value and reinvestment of all distributions and does not consider sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. There is no active market through which the securities may be sold, and redemption requests may be subject to monthly redemption limits. Exempt market products are not guaranteed, their values change frequently, and past performance may not be repeated.