DAVY VIEW

Like others in the sector, TRIG has recorded a modest decline in Q3 NAV (-1.8p to 121.6p/share) – primarily driven by lower portfolio output versus budget and a weakening in forward power price and other macroeconomic assumptions. The resulting reduction in H2 2024 cashflows will impact dividend cover (still expected to be fully covered; Davy existing forecast c.1x) and means drawn RCF borrowings will remain slightly higher at year end than previously anticipated. Notwithstanding the latter point, TRIG’s progress in strengthening its balance sheet across the year overall should not be overlooked. At the current share price of 97p, it is trading at 0.8x its Q3 reported NAV. That discount means its 8.3% levered discount rate equates to a share price adjusted equity risk premium of 5.9%, marginally below the 6.4% sector average.