Greencoat UK Wind capacity passes 2GW but still "has to be patient"
December 12, 2023 at 03:34 am EST
Share
(via NewsDirect)
Greencoat UK Wind PLC (LSE:UKW) Investment co-Manager Stephen Lilly speaks to Thomas Warner from Proactive after the company announced it has completed the acquisition of a 49.9% interest in Kype Muir Extension wind farm from Banks Renewables.
Lilly provides more detail about this latest step in a long-term deal and says it has propelled Greencoat's capacity to over two gigawatts. Lilly also addresses Greencoat's cautious capital allocation strategy, acknowledging the challenges in raising equity and the importance of judicious investment decisions.
Despite opportunities for expansion, current market conditions limit their ability to acquire new assets. The company has prioritised shareholder value through strategies like buybacks and dividend increases, with the recent dividend being raised to 10 pence.
Furthermore, Lilly expresses frustration over the market's perceived undervaluation of Greencoat's return on investment. He stressed the significance of returns over yields, especially in a rising interest rate environment. Lilly believes the market has not fully appreciated the combined value of Greencoat's dividends and reinvestments but says Greencoat UK Wind is "well placed... so we're not unduly worried - we just have to be patient."
The interview also touched on personnel changes within Greencoat, specifically the transition of Laurence Fumagalli, a long-time colleague of Lilly. Matt Ridley, a familiar face in the UK wind sector and current Head of Private Markets at Schroders Greencoat, is set to succeed Fumagalli, ensuring continuity in the company's leadership.
Contact Details
Proactive UK Ltd
+44 20 7989 0813
uk@proactiveinvestors.com
Copyright (c) 2023 TheNewswire - All rights reserved.
Copyright (c) 2023 TheNewswire - All rights reserved., source Press Releases
Greencoat UK Wind PLC is a renewable infrastructure fund, invested in United Kingdom wind farms. The Company's objective is to provide investors with an annual dividend that increases in line with retail price index (RPI) inflation while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow. The Company invests in United Kingdom wind farms, predominantly with a capacity of over 10 megawatts (MW) and maintains a balanced exposure to power prices. The Companyâs portfolio comprises interests in approximately 45 operating wind farms totaling 1,610MW capacity. The Company's portfolio includes Andershaw, Bin Mountain, Braes of Doune, Carcant, Church Hill, Crighshane, Deeping St Nicholas, Douglas West, Drone Hill and various others. The Company's investment manager is Schroders Greencoat LLP.