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Oct 30 2019, 12:00 GMT
Greeencoat Renewables’ (Greencoat) Q3 performance is along expected lines. Net asset value (NAV) was flat in the period despite further pressure on long-term power price forecasts, while it has announced a further 1.5075c quarterly dividend. Looking forward, ample balance sheet capacity looks set to underpin further portfolio expansion. The stock continues to perform strongly, now up 21% since its 2017 flotation. It is currently trading at a 16% premium to NAV, that re-rating consistent with the UK peer group (which we estimate currently trades at an average premium of 20%). Combined with over 13c of dividend paid to shareholders over the same period, total shareholder return is now approaching 35%. We reiterate our ‘Outperform’ rating.