DAVY VIEW

Greencoat Renewables’ (GRP) twinset of announcements marks a meaningful reset of the GRP equity story. The material disposal of six Irish onshore assets (€156m total proceeds) and the proposed secondary listing on the Johannesburg Stock Exchange provide longer-term strategic clarity. The disposals are consistent with its capital allocation strategy and improve the contracted cashflow mix of the portfolio by c.2%. Currently trading at 0.72x price/net asset value (NAV), and a dividend yield of 9.0%, we believe the announcements are strongly supportive of GRP’s current portfolio valuation.