DAVY VIEW

Despite more challenging operating conditions, Greencoat UK Wind (UKW) delivered solid shareholder returns in 2023. Net asset value (NAV) declined by 3p/share. However, returns totalled 7p/share when its 10p/share dividend is considered. This means that capital plus dividend growth since IPO, +66% and +65% respectively, remains comfortably in excess of UK inflation (cumulatively +52%). Looking forward, it looks set to continue generating significant cash (five-year dividend cover expected to be >2x; excess cash generation >£1bn), thereby sustaining shareholder returns despite the constraints of the current macro backdrop and its balance sheet position. It will host a conference call at 09:30.