Greencoat UK Wind (UKW) CMD 2026 summary

Core proposition and capital generation

• Since the 2013 listing, GBP 2.6bn of net cash generated: GBP 1.5bn paid as dividends and GBP 1.1bn reinvested; dividends have grown with inflation and the policy remains unchanged.

• Over 2027-31, potential self-generated capital of GBP 0.9bn-GBP 1.4bn after GBP 1.3bn of CPI-linked dividends; five-year forecasts also include GBP 3.3bn-GBP 4bn EBITDA and GBP 2.2bn-GBP 2.7bn net cash generation.

• Dividend cover is forecast at 1.7x-1.8x over the next five years, with the range reflecting wind-speed and power-price sensitivities.

• Portfolio: 49 operating wind farms with 1,942 MW capacity and 37.4 TWh cumulative generation by 30 June 2026.

• Since IPO to 30 June 2026, annualised NAV total return was 8.6% and average annual dividend cover was 1.7x; projected long-term annual investor return is 10.5%, subject to execution and market risks.

Broader investment toolkit

• Operating assets remain the portfolio core; capital can also fund construction, life extension and repowering, introduced gradually and allocated selectively according to risk-adjusted returns and portfolio fit.

• Four routes compete on yield, NAV effect, levered return and cash-flow profile; illustrative levered returns are 10%-11% for operating assets, 50-200 bps above base case for construction, 300-500 bps above for life extension, and 200-400 bps above for repowering.

• Construction trades near-term yield for NAV appreciation and higher returns, with no yield during the build; life extension offers continued yield, low-to-no capex and NAV appreciation.

• Life extension opportunities span more than 20 existing projects and over 800 MW; extending all identified assets by five years could add GBP 0.04 to NAV and GBP 100m per year to cash flows during the 2040s.

• Broader reinvestment is projected to support NAV growth, longer portfolio cash generation and a higher fixed-cashflow share.

Market opportunity and execution

• The UK wind market is expected to double over the next decade; UK wind was assessed as the most attractive focus against risk-adjusted returns and existing expertise.

• The investment team has worked on over 70 projects delivering 1.8 GW; the manager has deployed GBP 2.3bn in development and construction.

• Onshore CfD construction pipeline: AR5-AR7 supported ~3.8 GW of projects; over 350 MW reviewed or priced YTD, with ~100 MW remaining in advanced consideration.

• Operating asset market sees 2-3 GW traded annually in the UK; over 250 MW of operational opportunities reviewed YTD, with acquisitions selected for pricing, portfolio fit and life-extension or repowering potential.

• Grid constraints remain a broad challenge requiring substantial investment; electrification and flexible demand may support power demand.