DAVY VIEW

Greencoat UK Wind’s (UKW) Q3 performance is along expected lines, with net asset value (NAV) declining modestly to 140.7p/share due to lower generation. Historically, Q3 has contributed around 15% of full-year net cash generation (2020-2024), underscoring the seasonal nature of output. While market conditions are challenging, we believe UKW’s valuation remains attractive. Adjusting for the current 22% discount to Q3 NAV, portfolio returns at the current share price are 14.1%. This corresponds to an 8.7% premium over the UK risk-free rate – the top end of the sector range.