Greencoat well placed for further acquisitions, says Davy

Newly listed energy group Greencoat Renewables is well placed to acquire further wind farm assets in Ireland, according to Davy Stockbrokers.

The company, which raised €270 million when it floated in London and Dublin last year, just recently acquired Dromadda More wind farm in Co Kerry for €88.4 million.

Greencoat also operates wind farms in Cork and Tipperary. Davy said the company had made encouraging progress in its first 12 months as a public company.

“It has grown assets under management by over 40 per cent and has already settled into its quarterly dividend cycle,” the brokerage said.

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Attractive assets

“The group is well positioned to acquire attractive wind farm assets in Ireland, delivering enticing investor returns in the process,” it added.

Davy said it expected Greencoat to continue to build out its portfolio over the coming period.

“At just a 6.5 per cent premium to what we perceive as early-stage net asset value (NAV), we reiterate our ‘outperform’ recommendation,” Davy said.

The company recently announced a maiden dividend of 2.61 cent per share with respect to the period from its IPO in July to December 31st, 2017.

In January, it had a net asset value of €260.8 million or 96.6 cent on a per share basis.