TRIG – Renewables Infrastructure Group

Kepler Disclaimer
Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by TRIG – Renewables Infrastructure Group. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
TRIG’s portfolio continues to evolve, despite equity capital markets being closed…
Overview
The Renewables Infrastructure Group (TRIG) is one of the ‘haves’ in the renewable energy infrastructure universe, with mature assets generating significant cash alongside a decent development pipeline. It has scale, which has allowed it to assemble a high quality, institutional portfolio. This puts it in a good position relative to smaller, more nascent peers.

Whilst the board is prioritising the repayment of more expensive short-term borrowings with surplus cash and capital, the portfolio is not standing still by any means. Wind and solar assets continue to make up the bulk of the portfolio by value, but batteries (or ‘flexible capacity’) now increasingly feature. We discuss TRIG’s recent acquisition of Fig Power, a specialist developer of battery assets in the UK, in more detail in the Portfolio section. Portfolio diversification leads to significantly smoother cash flows from which to pay the Dividend than might otherwise be the case.

TRIG’s approach to borrowings insulates shareholders from changes in interest rates, and given each project is also paying down debt every year, in time reduced asset level gearing will allow the managers to regear, meaning TRIG will have cash to reinvest and further build the portfolio. Elsewhere in the portfolio, the managers have been selectively selling assets, which enables TRIG to pay down the more expensive floating-rate debt, but at the same time enhance the overall portfolio construction and performance.

One significant initiative the team are working on is enhancing the ability of existing wind farms to generate power through retrofitting enhancements to wind turbine blades. RES’s trials at two of TRIG’s sites demonstrated an energy yield uplift of up to 5%, which has now been fully deployed at one site. The team are progressing well with a phased installation on four more sites, and an appraisal of a further three sites is underway.

Analyst’s View
TRIG’s manager, InfraRed Capital Partners, has a background in traditional infrastructure, which in our view has had an important influence on how the portfolio has been assembled. TRIG’s managers aim to minimise risks across the portfolio, by spreading investments across six European countries (including the UK). This means that revenues are diversified across different political regimes and across weather systems.

In absolute terms, TRIG’s prospective total returns are attractive, in line with long-term total returns from equities. Taking the weighted average discount rate of 8.1%, deducting ongoing charges of c. 1% per annum (see Charges) to get a simple estimate of NAV total returns going forward, investors stand to achieve NAV total returns of c. 7.1% per annum on a simplistic basis. As we have discussed in the Portfolio section, these returns should correlate with inflation , meaning that a good proportion of these returns can be considered real. The risks investors are taking to achieve these returns are minimised through diversification, and currently there is a potential for tailwinds to these returns from interest rates falling, with valuations already having taken the hit from inflation falling.

Sentiment towards TRIG and the renewable energy infrastructure peer group has waned, leading to a disconnect between the NAV and the share price. In our view, this serves to highlight the potential opportunity, especially given the attractive long-term income profile of TRIG, and the potential for capital growth with Fig Power and the trust’s development activities. TRIG remains a quality offering amongst the peer group. Any narrowing of the discount would serve as an accelerant to shareholder returns, over and above the NAV returns generated.

Bull
A high yield of 7.4%, with the potential for NAV growth from reinvestment of surplus cash
Has a pure exposure to diversified assets, technologies and subsidy regimes, which are uncorrelated to equity markets, and scores well on ESG matters
Inflation-link has been positive, building on the historical stability of TRIG’s cash flows

Bear
Discount to NAV may persist for some time
Dividend cover not as high as that of funds which are not amortising, i.e. paying down debt
Macro uncertainty (e.g. lower power price forecasts and high interest rates) have provided a headwind to the NAV, and may persist

eharmony special coupon code 2024 robertelmore.org lenoraedmunds@terra.com.br 191.96.150.49

I’ll immediately seize your rss as I can not to find your e-mail subscription link or newsletter service. Do you’ve any? Kindly permit me recognise in order that I may subscribe. Thanks.my website … eharmony special coupon code 2024

At present there is no email subscription and the only contact at present, is via post a comment. Best wishes.

One. Make a plan and stick to it thru thick and thin, as there will be plenty of thin.

Two. Set a figure and write it down and how u intend to get to the figure.

Three. Accept that the amount invested may fall as u re-invest your dividends.

Four. Have some cash in your ‘safest’ position as u wait for the next market crash.

Five. Watch for the news from your Trust about their next dividend and their forecast for the next year.

One. To buy a portfolio of higher yielding Investment Trusts to provide a yield of 7% as this doubles your income in ten years.

Two. The income after ten years will be 14-16k on a starting portfolio of 100k. The amount is not in question although depending on the market the time scale could slip.

Three. As u don’t want to kill the goose that lays the golden eggs* u never intend to sell any of your Trusts. Over time the amount invested will start to rise as compound interest starts to make a big difference to your portfolio.

Four. It may mean having an investment in a Government gilt pair traded with a higher yielder to maintain a blended yield of 7%.

Five. If one of your Trusts drastically changes their dividend policy, the Trust must be sold.

* In an emergency one of your Trusts could be sold the equivalent of withdrawing x amount of dividends years in advance.

Young Caucasian woman holding up four fingers© Provided by The Motley Fool

How I built £4,000 of passive income starting with £0

Story by Tom Rodgers

I started investing late in life, but I’ve still managed to develop thousands of pounds in passive income.

And I think it’s easier than most people believe. Like a lot of readers, I also started with next to nothing.

I had the money I made from freelance writing

But without passive income, I had no safety net to simply enjoy my leisure time.

So this is how I started.

Zero to hero

Depositing small, regular amounts into a tax-advantaged account like a Stocks and Shares ISA or SIPP is a great way to get up and running.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

It soon grows into a decent stake without you really noticing. Today I’m 42 years old and I have about £4,000 of passive income banked.

Almost exactly half of this comes from share price increases in the growth stocks I own.

The rest is from regular dividend payments from income stocks.

But not all companies pay dividends.

Thirst for growth

It can be frustrating to find a stock you like, and see it doesn’t pay dividends. However, it’s not always a binary choice between dividends or growth forever.

For example: one of my best investments did not pay a dividend when I first bought the shares.

However, it will start sending me free dividend cash this year.

This is the £200m market cap viral medicine testing company Hvivo (LSE:HVO).

It trades on the AIM market.

Buying shares in what was then an unknown 12p-per-share penny stock was quite scary. But I did a huge amount of research before buying in.

Hvivo’s sales shot up from £3.3m in 2019 to £55.5m in 2023.

From losing £5m a year, the company is now raking in £8m a year in profits.

It is vastly more cost-effective for big pharma companies to use Hvivo’s models than any other method. That’s why Hvivo’s pay-up-front clinic model has seen such explosive growth.

So I’ll hold this alongside my other dividend-paying shares.

I’ll use compound growth to my advantage here: reinvesting any dividend payments into buying more shares. For me, that includes 7.5% dividend renewables fund Greencoat UK Wind and the low-cost 13.8% dividend yield metals producer Sylvania Platinum.

Building passive income is a way I’ve used to make my money work for me, rather than the other way around. Given my results to date, I can’t see myself stopping any time soon.

Caution required ahead of the bank holiday.

Cash for re-investment £1,122.17, maybe not today though.

The emotional benefits of dividend re-investment.
In fact: with this investment strategy you can actually welcome falling share prices.

There seems to be some perverse human characteristic that likes to make easy things difficult.
WB

A working example of NTAV

Yesterday’s figures.

Capital & Regional plc

Response to Press Speculation

The Board of Capital & Regional plc (“Capital & Regional” or the “Company”) notes the recent press speculation.

The Board of Capital & Regional confirms that on 19 April 2024 it received a non-binding indicative proposal from Vukile Property Fund Limited (“Vukile”) regarding a possible cash and share offer for the entire issued, and to be issued, share capital of Capital & Regional (the “Vukile Proposal”).

In addition to the Vukile Proposal, the Board of Capital & Regional confirms that it is aware that its majority shareholder Growthpoint Properties Limited (“Growthpoint”) which holds 68.13% of the Company’s issued share capital, has also received a preliminary expression of interest from NewRiver REIT plc (“NewRiver”) in relation to a possible offer in cash and shares for the entire issued, and to be issued, share capital of Capital & Regional (the “NewRiver Expression of Interest”). The Board of Capital & Regional confirms that it has received no offer proposal from NewRiver at this stage.

There can be no certainty that any firm offer will be made for the Company, nor as to the terms on which any offer will be made.

The Board of Capital & Regional will issue a further statement if and when appropriate.

Rule 2.6(a) of the Code requires that each of Vukile and NewRiver, by no later than 5.00 p.m. on 20 June 2024, being the 28th day following the date of this announcement, either announce a firm intention to make an offer for Capital & Regional in accordance with Rule 2.7 of the Code or announce that they do not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Takeover Panel, in accordance with Rule 2.6(c) of the Code.

This announcement is being made without the consent of Growthpoint, Vukile or NewRiver

£££££££££££

Congrats if u own the Trust.

By Royston Wild

Motley Fool

What do I need to do to become a Stocks and Shares ISA millionaire? With the right investment strategy, creating life-changing wealth with UK shares doesn’t need to be a pipe dream.

Handily, Hargreaves Lansdown analysts are on hand to divulge the investing secrets of these ultra-rich investors. Here are three that have caught my eye.

1. Invest early

ISA investors have £20,000 to invest with each tax year. And the sooner they start investing, the quicker their money will start working.

Last year, 30% of Hargreaves Lansdown’s millionaires maxed out their allowance within the first month. Some 54% used their whole allowance within three months of the new tax year starting.

Analyst Sarah Coles concedes that “not everyone can lay their hands on £20,000 to invest every year.” But she adds that “the principle still works – investing what you can afford as soon as you can afford to.”

2. Be patient

We all love the idea of getting rich quickly. But, in reality, getting rich with stocks requires patience and a level-headed approach.

Coles notes that “there are some exceptions to the rule.” The youngest ISA millionaire on its books is aged 37.

3. Diversify

In keeping with this patient approach, Coles notes that successful investors “don’t take enormous risks. Instead, they’ve built diverse and balanced portfolios.“

She says this is one of the most important rules to follow. I agree.

Investing in a wide range of companies, spanning different industries and geographies, helps investors manage risk by ensuring that a large concentration of their wealth isn’t affected by adverse events that impact a single investment or market.

Here’s what I’m doing

I’m not saying these tactics will make me a millionaire. But I believe they’ll significantly increase my chances of building a big ISA nest egg by retirement.

This gives me a healthy level of diversification. And one of my plans for the new tax year is to increase my stake in financial services giant Legal & General (LSE:LGEN).

Why this particular share? As the chart below shows, the FTSE 100 firm has an excellent record of raising the annual dividend which, in turn, gives me an increasing passive income.

Legal & General’s long history of dividend growth. Created by TradingView© Provided by The Motley Fool

This is important as I reinvest these dividends to boost my long-term wealth. This phenomenon — known as compounding — means I make money on my initial investment as well as on those dividend payments.

And thanks to the huge dividends Legal & General regularly pays, it could turbocharge my wealth. This year, the company’s dividend yield sits at an enormous 7.2%.

Its share price performance could disappoint over the short term if economic conditions remain tough. But over the long term, I’m confident Legal & General will — like the other UK and US shares I own — deliver outstanding returns.