DAVY VIEW

Greencoat UK Wind’s (UKW) NAV is virtually unchanged in Q2 2024 at 159.3p/share (160.0p/share at the end of Q1 2024). Power generation was 15% behind budget, which resulted in lower cash generation for the period and for H1 2024 overall (underlying net dividend cover is 1.5x). Cash generation remains the key pillar of our positive investment thesis – its dividend cover guidance over the 2024-2029 period corresponds to an estimated £2.6bn net cash generation. Equating to c.115p/share, c.80% of current share price, it provides a strong base for continued equity value creation over the medium term. The stock is trading on 0.89x price/last reported NAV and a dividend yield of 7.0%.