DAVY VIEW

Following recent announcements, TRIG’s financial performance and strategic progress in the first half of 2024 are already understood. Several asset disposals – adding modestly to its net asset value but also rightsizing its balance sheet to reflect the current capital markets environment – are the highlight from the period. Its interim results confirm its underlying financial performance, with net cash generation falling 31% to £100m (net dividend cover 1.1x) the most notable detail. At current levels, the stock is trading at 0.81x P/NAV and a dividend yield of 7.5%. Its 8.1% levered discount rate equates to a net equity risk premium of 4.1%, or 6.0% adjusting for the share price discount to NAV – both below the sector average of 4.4% and 6.5% respectively.