DAVY VIEW

Greencoat’s (GRP) robust H1 2020 performance was already understood. Through an unprecedented period, its performance was predictable – it generated strong cashflow (over 6c/share on a gross basis) and paid a further c.3c/share dividend. NAV also fell modestly in Q2 (also already disclosed) by 1c/share to 102.2c. At the same time, its opportunity set continues to expand, suggesting a strong runway for future growth. With the stock trading on a 5% dividend yield and c.8.5% free cashflow yield (both highly secure), we remain attracted to its risk:reward profile. We reiterate our ‘Outperform’ recommendation.