The Renewables Infrastru... Share Discussion Threads

[masurenguy] 22/3/2019 15:47

Last reported NAV was 111.6p XD on 28 February.

[stewart64] 22/3/2019 13:20

Thought this might start to pick up after the noon deadline. We are close to nav, hard to see it falling much lower and thought the smart bets would be coming in on the post share issuance rally. But sometimes things go counter-intuitive. Fwiw Greencoat fell to 128p on it's recent share issuance of 127p but has since bounced back to 137p. The nav chart looks like a screaming buy as every dip to +3% has been met by a big bounce in the share price of more than 5%.

[stewart64] 21/3/2019 11:51

The sector looks cheap to me. Trig's on a p/e of 10 based on the EPS, Greencoat just 7 (flattered by the one off 5 year extension on turbine amortisation of course). These have a fairly predictable income stream, unlike REITs you have no voids either, just a 24/7 output which is variable depending on weather but with very little movement from year to year. Something is wrong when proxy bonds are sub 10 p/e and risky bets like pharmas are valued three times more valuable. Look at Astra Zeneca price going to the moon, very unprofitable the last few years, growth zero. But folk will buy into the yarn of an outstanding future even though profits have got to triple on EPS to match these.

Guess UK assets just nailed down to the floor pricewise. May still struggle with the Corbyn threat as a general election is always a possibility.

[masurenguy] 21/3/2019 08:22

Interesting article !

Renewables Infrastructure Group
There’s plenty of heat and light in the market for investing in alternative energy sources, such as wind and solar power, with the added benefit for any potential buyer of knowing that they are not backing a polluting fuel. The Renewables Infrastructure Group is one of a handful of listed investment vehicles that offer investors exposure to the stable long-term revenues provided by power projects that should sustain dividend payments and provide some capital appreciation along the way.

Continued:

[jonwig] 17/3/2019 06:32

The Offshore Wind Sector Deal will lead to another burst of investment. TRIG is barely (if at all) invested here, yet:

[tcuc3e] 17/3/2019 01:04

Thankfully modern turbines are less affected by too much wind. See tweet from boss of RenewableUK

[topvest] 16/3/2019 21:39

Maybe. There is a case of too much wind though. If wind speeds are two high the wind farms are locked down to stop them catching fire!

[stewart64] 16/3/2019 12:33

One of the best weeks ever for wind generation after a series of South Westerlies...36% of total generation.

Greencoat shares looking a tad toppy, I sold at 138.16 pm yesterday, will hope to buy back on a pullback.

The share issuance not weighing on the share price here as much as I thought but there is next week. If it stays at 117 the share issuance will be massively oversubscribed. They could roll share issuance tranche one and two (of the three they intend) into one to meet the demand?

[carpingtris] 14/3/2019 18:19

Thanks people for explaining process abit more as not had this come up before on other holdings.

Have now seen I have a corporate action and have elected to take the offer.

Cheers..

[gateside] 14/3/2019 18:04

Got my documents today. Will take up the Offer. Nice that there are no dealing charges.

[cwa1] 14/3/2019 11:31

Just taken mine up and applied for an excess amount.

[stewart64] 14/3/2019 05:52

a000257...Think I might try for extra if allowed. Edit...indeed it is allowed, the shares are now purchasable up to noon, 22nd March. Seems to be a no brainer with the open offer almost at nav, obviously the share price will struggle between 115 to 117 imo. until the offer is done and dusted if you have a chance at 114.

[steve73] 14/3/2019 03:50

..and to answer the other bit of your question, carpingtris, once the new shares are admitted to the official list, any that you subscribe for will rank pari-pasi with the existing shares, and will eventually be added to your existing holding.

So you will be able to sell all at once (if you so desire). Usually takes a few days until this happens, which can be a problem if you're trading them around the OO date.

[a0002577] 13/3/2019 22:32

If your broker allows it, you will be able to apply for more shares at this price as well.

[carpingtris] 13/3/2019 20:00

Ah ok thanks for clarifying.

[getscenic] 13/3/2019 19:05

@carpingtris.

This is an open offer, not a bonus issue, you are being offered new shares at £1.14p each, depending on your broker they should advise you how much you are able to take up and at what cost, you don't have to apply the offer, you can just ignore it if you do not want to take up the offer, hope that helps

[stewart64] 13/3/2019 10:11

Hargreaves have added a Corporate action to my ISA of 1334 share allocation, a ratio of 1 share per 9 shares. The price is not stated but I believe it to be 114p. It is not actionable yet but I sold 1600 quids worth of Regional Reit to cover this morning. Yep Isa trouble.

Fwiw I bought 10,000 shares also at 116p recently on my share account in Trig, these have not attached Corporate action rights..so no late comers allowed. I didn't do that anyway to get more discount priced shares just taking advantage of the share issuance price dip.

[gateside] 07/3/2019 21:09

Agreed.TRIG are in my ISA, which means selling part of a holding if I want to take part in the Open Offer. Pity they couldn't wait till the new tax year.

[jonwig] 07/3/2019 14:53

"The dates of the OO look tight" - it's doubly annoying that they're doing this before the end of the current tax year. This is a typical "ISA stock" for many PIs and applying for any reasonable number could mean selling something. (Includes me, even 1:9 means that.)

Not the first time this sort of thing has happened - I wonder if the tax year end is more important?

[toppix] 07/3/2019 14:43

The dates of the OO look tight and somewhat obfuscate....

[neilyb675] 05/3/2019 21:51

Should get OO news soon

[a0002577] 05/3/2019 15:00

Jonwig - to be even fairer, TRIG was already giving solar a 30 year life as at December 2018.

See

"At IPO in 2013, the assumed operating life of an asset was 25 years. Assumptions adopted in the December 2018 NAV typically ranged from 25 years to 30 years from the date of commissioning, with an average of 26 years for the wind portfolio and 30 years for the solar portfolio. The overall average across the December 2018 Portfolio was 27 years (31 December 2017: 27 years)."

with kind regards - BBB

[jonwig] 05/3/2019 14:47

A000... - but to be fair, TRIG left its solar portfolio alone, and just revalued the wind.

[a0002577] 05/3/2019 14:43

It is all well and good just to play follow my leader (UKW) and increase the life of the assets by x years. Would that it were that simple!

To get an idea of the complexity have a look at the BSIF half year report here :

look for "Value Enhancement Initiatives" where you will find this:


"As previously reported, the Investment Adviser continues to focus on initiatives that seek to enhance and create additional value for the portfolio, through the optimisation of both operations and revenues.

The most significant of these initiatives is a wide ranging asset life extension programme, which seeks to allow the SPVs to extend the available tenure of the PV plants (above 2MWp of installed capacity) up to 40 years (with the majority of the assets' leases and planning approvals currently envisaging an average term of c.25 years).

The project is progressing well, and the Investment Adviser is pleased to report that over 75% of the BSIF portfolio (by installed capacity) is now being actively engaged. To date, contractual terms have been agreed with the landowners on nearly half of these assets, with formal lease variations now executed on solar farms with a total combined capacity of approximately one quarter of the portfolio.

These variations allow the lease tenure to be increased up to 40 years."

It goes on to say

"To date, no allowance has been made within our valuation models for the benefit of any lease extensions and whilst there is a high degree of confidence that a PV plant could operate for 30 years, assuming the equivalent increase in planning, in the absence of formal consent, would require a more fully substantiated position to be detailed before adoption within the Director's valuation."

I have seen none of these problems or actions detailed in either the UKW or TRIG reports - which worries me. As a consequence I am very heavily overwieght in BSIF and underweight in TRIG with nothing at all in UKW as I can see that when BSIF does account for these factors within the NAV, it will give a very substantial boost. Put another way - UKW's and TRIG's NAV increase is already n their price. It is not yet in BSIF's price which is currently the hghest yielder anyway.

It is well worth continuing to read on as the report discusses other things that the manager is doing to enhance value - and nowhere does he mention 're-powering" a site whihc could have a tremendous impact on NAV. The only other company I have heard even mention "repowering" is Ventus.