Greencoat Renewables (GRP)
Company Notes
A pivotal year; more attractive European vehicles available
Annual Results Summary
Portfolio: As at 31 December 2022, Greencoat Renewables’ (GRP) portfolio comprised 34 operational wind farms and a co-located battery storage project, with an aggregate net capacity of 1,164MW. The fund is also committed to acquire a further 327MW, giving a pro forma net capacity of 1,491MW on a committed basis. The portfolio is predominantly in onshore wind, with c.90MW committed to solar assets currently under construction and due for completion by the end of 2023 (c.6% of the portfolio on a committed basis). The regional portfolio split on a MW basis is: Ireland (53%); France (8%); Spain (5%); Nordics (19%); and Germany (15%). c.71% of portfolio revenues are contracted to 2032, of which 80% are index-linked.
Track Record: The fund is targeting a +7% IRR with a policy to increase dividends each year at a rate of between zero and Irish CPI. Since IPO to 31 December 2022, GRP has delivered a total shareholder return of +49% (+7.6% CAGR). GRP delivered a +13.0% NAV total return over the year to 31 December 2022, with the NAV per share increasing by +6.9% to €1.124. This increase is attributable to higher power prices in the near term and adjustments to short-term inflation assumptions in Ireland and Continental Europe. The target dividend for 2023 is expected to increase by 4% to 6.42c.
Portfolio Performance: Electricity generation increased +63% YoY to 2,487GWh (2021: 1,522GWh), but was 9% below budget due to lower wind resource as well as the ongoing adverse impacts from higher grid constraint and curtailment in the Irish portfolio.
Balance Sheet: €1,056m was invested or committed across Europe during 2022 (c.590 MW). Aggregate group debt increased +50% YoY to €945m, equivalent to 42% of GAV. Term debt stands at €750m with bullet payments due between 2025 and 2028. Aggregated pro-rated cash balances stood at €188m and €100m was drawn under the RCF at the year-end. A new €350m RCF was agreed post year-end with the maturity extended to February 2026. A further €150m was drawn under the RCF and €40m of cash was utilised for the Butendiek acquisition, resulting in group borrowing increasing to 46%. This leaves €100m of headroom under the RCF and an estimated net cash position of €148m.
To see this content in full, please log in to your account.
Client log in
Please note that this website is part of Winterflood's research service and therefore only available to MiFID II compliant research clients. For further information please e-mail research@winterflood.com