DAVY VIEW

TRIG’s results confirm the trends evident in its NAV update. Asset disposals of c.£200m – supportive to its net asset value but also rightsizing its balance sheet to reflect current capital markets conditions – are the highlight from the year and similar transactions will likely repeat in 2025. Net cash generation fell to c.£184m or 35%, due to lower power prices and below budget generation (net dividend cover 1.0x). At current levels, the stock is trading at 0.63x price/NAV and a dividend yield of 10.4%. Its 8.6% levered discount rate equates to a net equity risk premium of 3.8%, or 8.9% adjusting for the share price discount to NAV –the sector averages are 4% and 8.1% respectively.