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01 Mar 2023

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.