DAVY VIEW

Greencoat’s net asset value (NAV) is broadly unchanged at the end of Q3 (stands at 101.9c/share). It continues to hold reasonably steady as modest headwinds such as long-term power prices and the weaker near-term inflation environment persist. Cash generation was strong (ahead of budget in Q3). The heavily contracted nature of the group’s revenue base means that this should continue to be the case going forward (we expect the company to generate effective free cash of c.€65m this year, c.9% of current market cap). This, alongside the corresponding capacity to pay dividends (current yield of over 5%), remains the key reason to own the stock.