Greencoat Renewables - Efficient capital allocation and increasing demand

Greencoat Renewables' (GRP's) large and diversified pan-European portfolio of renewable energy assets generated net cash of €113.6m in H124 (H123: €125.5m). This equated to gross dividend cover of 3x at end-H124 and a six-month return of 8.6% on its December 2023 net asset value (NAV). NAV per share remained flat at 112.1c, due to less impactful power price movements in the period and strong cash generation offsetting depreciation and dividend payments. GRP's weighted average cost of debt reduced from 3.3% to 3.1%, due to terming out of a more expensive RCF debt and refinancing a new €150m five-year debt facility in February 2024. The company's total aggregate debt stood at €1.3bn at end-H124, being 98% fixed or effectively fixed through interest rate swaps. GRP currently trades at a 16% discount to NAV with a 7.2% dividend yield.

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