TRIG seeking to realise £400m over next 12 months

(Sharecast News) - The Renewables Infrastructure Group said on Monday that it would seek to realise £400m over the next 12 months, mainly through asset disposals, as it intensifies efforts to address the persistent discount of its shares to net asset value.

The FTSE 250 renewable energy investment company said the proceeds would be used in line with its capital allocation policy, with priorities including share buybacks, reducing revolving credit facility borrowings and funding higher-return internal opportunities within its existing portfolio.

It said it was not pursuing new third-party investments at the current share price.

TRIG reaffirmed its target dividend of 7.55p per share for 2026, alongside its progressive dividend policy, and said it expected sustainable net dividend cover of between 1.1 times and 1.2 times.

The company was also targeting compound annualised growth in distributable cash flow per share of about 4% in the five years to 2030, driven by active asset management, internal investment opportunities and share buybacks where those represent the best use of capital.

The £400m target comprised £100m to complete the aggregate objective set in 2025 and a further £300m.

TRIG said the most advanced disposal process related to a UK offshore wind asset, where it was in exclusivity with an experienced international infrastructure investor, due diligence was materially progressed and an acceptable price had been agreed.

Chairman Richard Morse said TRIG retained high conviction in its medium-term growth opportunity, supported by visible cash flows from a diversified portfolio of wind, solar and battery storage assets, but acknowledged the need for further action on the discount.

"TRIG intends to raise £400m from asset disposals and optimising the portfolio's structural gearing in the next 12 months to free up capital to support the Company's investment case," Morse said.

"We intend to use proceeds to promptly complete the announced share buyback programme; reduce the company's RCF borrowings, and invest in internal, proprietary investments where they demonstrably exceed the net return hurdle implied by share buybacks."

TRIG said it had completed £101m of its £150m announced share buyback programme between 9 August 2024 and 8 May 2026, leaving £49m outstanding.

It also planned to repay about £240m drawn under its RCF as at 31 March, invest £50m in internal asset enhancements, and create surplus liquidity of an estimated £75m after those actions.

Internal opportunities include aerodynamic hardware upgrades for wind turbines, onshore wind repowering, greenfield batteries at proprietary sites and co-location of batteries at existing generation assets.

TRIG said surplus liquidity would likely be used to extend the buyback programme if the current share price discount persisted.

The company also announced revised investment and operations management fee arrangements, conditional on shareholders approving the continuation vote at its upcoming annual general meeting.

From 1 July, fees would be based solely on market capitalisation.

TRIG said the new basis would have reduced first-quarter fees to £3.68m from £4.53m, a saving of £0.85m, or £3.4m annualised.

That represented a 19% reduction, in addition to about £8m of annual management fee savings secured by the board in 2025.

The board said it had reviewed its investment and operations management arrangements, including whether to internalise management or tender the mandates.

It said a minority of consulted shareholders favoured in-housing or tendering, but most remained supportive of the current structure, and the board concluded that InfraRed Capital Partners and RES Group remained the best managers to execute the strategy.

TRIG said its portfolio had continued to generate resilient cash flows, with the 2025 dividend of 7.55p fully covered in cash.

Over the past year it repaid £192m of project-level debt and said buybacks had delivered 1.2p per share of NAV accretion.

The company also noted that it had raised £200m of private placement debt on favourable terms in early 2026.

Following that issuance, long-term structural gearing was 41% of look-through enterprise value, while around 90% of debt was fixed rate and repaid over the term of the portfolio's fixed-price revenues.

Construction was underway on more than 200MW of capacity, including the 78MW two-hour Ryton battery project, which was expected to be energised towards the end of the second quarter, the 25MW Cuxac onshore wind repowering project due in the second half, and the 100MW two-hour Spennymoor battery project expected to be energised in 2027.

At 1103 BST, shares in The Renewables Infrastructure Group were up 2.41% at 70.66p.

Reporting by Josh White for Sharecast.com.

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