Renewables Infrastructure backs payout target, pauses new investments

(Alliance News) - Renewables Infrastructure Group Ltd on Monday backed its 2026 dividend target, whilst noting plans to pause new third-party investments as it grapples with a trading discount.

The Guernsey-based renewable energy investor, also known as TRIG, backed its 2026 goal for a dividend of 7.55 pence per share, projecting net dividend cover between 1.1 times and 1.2x.

Over the next 12 months, TRIG plans to realise GBP400 million, mainly from asset sales, but also from debt issuance. This target includes the GBP100 million aggregate goal outlined in 2025, plus an additional GBP300 million.

"The most advanced of these disposal processes is in relation to a UK offshore wind asset, where the company is in exclusivity with an experienced international infrastructure investor, due diligence is materially progressed and an acceptable price has been agreed. Disposals will be targeted to preserve the portfolio composition required to deliver the medium-term," TRIG noted.

Chair Richard Morse added: "We intend to use proceeds to promptly complete the announced share buyback programme; reduce the company's [revolving credit facility] borrowings, and invest in internal, proprietary investments where they demonstrably exceed the net return hurdle implied by share buybacks."

As of Friday, TRIG has completed GBP101 million of its GBP150 million buyback plan. It plans to repay GBP240 million drawn under its RCF and invest about GBP50 million in its existing portfolio.

TRIG is also eyeing approximately GBP75 million in cash available following repayment of the RCF, completion of the share buyback programme and investment funding.

"Use of surplus liquidity will be determined by the board as the proceeds of disposals are received and in line with the board's capital allocation priorities. At the prevailing share price this would likely be to extend the share buyback programme. New external investments, where the company acquires third-party assets, are not being pursued at the prevailing share price discount to NAV," TRIG said.

The company's shares rose 2.4% to 70.66 pence each on Monday morning in London, but are down 11% over the past year.

Its net asset value stood at 104.0 pence at the end of December, down 10% from 115.9p a year earlier.

Last month, TRIG flagged an expected reduction in its net asset value of 0.5p per share as a result of UK carbon policy changes.

Morse continued on Friday: "The medium-term growth opportunity for TRIG is compelling for those shareholders looking to benefit from resilient income and capital growth, backed by visible cash flows from a high quality portfolio of wind, solar, and battery storage.

"Whilst we maintain a high conviction in TRIG's investment case, it is clear that we must go further in our actions to manage the company's persistent share price discount."

TRIG added on Monday that, conditional on the passing of the continuation vote at the upcoming annual general meeting, effective July 1, investment and operations management fees will be based on market capitalisation.

"Under the new arrangements, the total fees paid to the managers for Q1 2026 would have been GBP3.68 million, compared to the GBP4.53 million actually paid, representing a saving of GBP0.85 million," the company said.

By Holly Munks, Alliance News reporter

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Renewables Infrastructure Group