DAVY VIEW

We have long viewed Greencoat UK Wind (UKW) as one of the higher quality operators in the listed renewables space. As a sector pioneer, it has consistently been at the forefront of industry developments, from buybacks to market-based fee structures. However, after several years of net asset value (NAV) revisions driven by higher yields and weaker power prices, investors have been waiting for the operating backdrop to improve. We believe the H1 2026 update may provide the first signs of that turning point; with c.35% merchant exposure in 2026 (55% over the next decade), UKW is well placed to benefit from sustained strength in UK power prices over the next 12 months.