DAVY VIEW

TRIG’s Q1 2024 NAV performance is broadly as expected. The quarterly NAV bridge (-2.7p to 125.0p/share since the end of 2023) is of a similar shape to others in the sector, reflecting a decrease in short-term power prices and below budget generation in the period. Evidence of its disposal programme, selling assets at a premium to NAV with proceeds used to reduce debt, is apparent and consistent with its stated capital allocation strategy. At 99p, the stock is trading on 0.79x P/NAV and a dividend yield of 7.5%. Its 8.1% levered discount rate equates to a net equity risk premium of 3.5%, or 5.6% adjusting for the share price discount to NAV – both below the sector average of 4% and 6.6% respectively.