15 October, 2013
GREENCOAT UK WIND PLC
Interim Management Statement
Greencoat UK Wind ("UK Wind" or the "Company"), a listed
infrastructure fund invested solely in operational UK wind farms,
today announces its interim management statement for the period
since 1 July 2013. The Company's September 2013 Factsheet will be
available on the Company's website, www.greencoat-ukwind.com.
- Operational performance continues to be in line with management
- Net Asset Value (NAV) increased from £262.4m to £263.8m on 30
- Dividend of 1.5p per share, announced on 19th August 2013, was
paid on 20 September 2013. This is consistent with the
Company's objective of distributing a 6.0p per share annual
- The acquisition of two new onshore wind farms, for a net
consideration of £63.6m, was completed on 2 October 2013Increases
UK Wind's portfolio to 8 wind farm investments with a total
generation capacity of 153.1MW
- Acquisitions were funded by cash from operations and the
Company's acquisition debt facility
Tim Ingram, Chairman of Greencoat UK Wind,
"We are pleased to announce the continued good performance of
our portfolio. Since the announcement of our interim results
we have paid our maiden dividend, grown net asset value to £263.8m
million and, importantly, we have completed our first acquisitions
"The opportunities lying ahead for Greencoat UK Wind are very
exciting. There is a substantial pipeline of future
acquisition opportunities in the UK market. We believe that
the independent model the Company has adopted, together with no
leverage at the asset level, positions us well with utility and
private vendors alike and will enable us to continue to add further
wind farms to our portfolio at prices accretive to value. We
look forward to delivering further growth whilst ensuring
sustainable returns to our investors."
Laurence Fumagalli, Partner of Greencoat Capital LLP,
"We recently acquired 100% stakes in Cotton Farm and Earl's Hall
Farm onshore wind farms taking the size of our portfolio from 126.5
MW to 153.1MW. These additions demonstrate our ability to
source and then efficiently execute new investment in operating UK
During the period UK Wind acquired 100% shareholdings in two
wind farms: Cotton Farm, a 16.4MW onshore wind farm in
Cambridgeshire; and Earl's Hall Farm, a 10.25MW onshore wind farm
in Essex. The total consideration, net of cash, was £63.6m,
which was funded by cash from operations and the Company's
acquisition debt facility.
Investment Performance and Dividends
The Net Asset Value increased from £262.4m to £263.8m,
equivalent to a NAV per share increase from 100.9p at 30 June 2013
to 101.4p at 30 September 2013. Adding back the dividend
payment, NAV per share growth was 2.0p in the period.
UK Wind paid a dividend of 1.5 pence per share on 20 September
2013 in respect of the period from 27 March 2013 to 30 June 2013.
This is consistent with the Company's objective of distributing a
6.0p per share annual dividend.
UK Wind has the ability to raise debt at the fund level as
stated in the Company's investment policy. The limit on total
short-term acquisition financing and long-term debt is 40% of gross
asset value ("GAV") at drawdown. UK Wind drew down on its
acquisition debt facility to make its recent acquisition. The
outstanding debt of £60m was equal to 19% of GAV at
Outlook and Pipeline of Future Acquisitions
The Company anticipates substantial growth in the UK wind
farm market, providing further investment opportunities at an
attractive yield. The Company believes its approach of
maintaining no leverage at the asset level and ability to act
independently positions it competitively in the market to
acquire operational assets and makes it an attractive partner for
The Investment Manager has identified a short to medium term
pipeline of over 400MW of operating UK wind farm investments and is
currently actively evaluating, performing due diligence on and
negotiating a number of interesting opportunities.
The Government's Electricity Market Reform and subsequent Energy
Bill are currently being finalised and moving through Parliament.
Importantly, the current proposals maintain the long established
principle of grandfathering the current Renewable Obligation regime
for existing operational projects.
Investment Management Fee - Share Issuance
In order to reduce issuance costs
associated with the equity element of the management fee, it has
been agreed between the Company and the Investment Manager that
such fees are paid on a half-yearly as opposed to a quarterly
basis. As a result, the equity element of future fees will be
paid in January and July for the prior and current quarter.
The number of accrued shares to be issued in January 2014 in
respect of Q4 2013 is 130,134.
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