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Jan 31 2019, 12:45 GMT
The increase in net asset value (NAV) (from 96.9c in September 2018 to 103.4c in December 2018) demonstrates the value of the Greencoat Renewables (Greencoat) portfolio in a couple of ways. It confirms that progress made by the company in 2018 is now translating into organic NAV momentum (adding 0.5c per share). Further, its decision to extend the useful life of assets following a third party technical review crystallises the inherent portfolio value, which has been unrecognised to this point (adding 6c per share). With its portfolio, balance sheet and ambitions maturing nicely, we expect NAV momentum to continue. The stock is no longer trading at a premium to NAV (average premium of close to 9% since IPO). We therefore reiterate our ‘Outperform’ recommendation.
Jan 31 2019, 12:45 GMT