DAVY VIEW

Greencoat’s (GRP) net asset value (NAV) fell modestly in Q1 (to 100.1c/share). The decline has been driven by a further reduction in long-term power price forecasts (power price revisions have now impacted NAV/share by over 10c since IPO). The Q1 performance is at odds with the continued growth in the portfolio – it has invested €285m year-to-date, with a further €185m committed on a forward sale basis. It is successfully growing its platform, both in Ireland and in Continental Europe, while maintaining several attractive characteristics for investors. It benefits from a highly contracted revenue base, significant and secure cashflow, and attractive dividends (the stock is currently trading on a c.5% dividend yield). The return of inflation should help ultimately translate this progress into growth in NAV/share.