Investec view: UKW announced a strong year-end NAV of 133.5p/share which represents an increase of 4.5p/share (3.5%) over the quarter. The increase in NAV reflects strong cash generation and increased forward power prices, although there has been no material change to long-term forecasts. In late November 2021, UKW raised £450m through a heavily oversubscribed and up-sized equity raise at an issue price of 132.0p/share. Whilst we now estimate that this capital raise might have added c.0.3p/share to the 31 December 2021 NAV, we understand that some investors already had reservations about the pricing of this raise given that the strength in NAV was at least partially expected as a result of strong prevailing power prices. This NAV may confirm their concerns. In a busy Q4, Greencoat Capital was acquired by Schroders. In our view, the company should benefit from the larger institutional platform afforded by Schroders and, we hope, could act as a catalyst for greater transparency and improved disclosure. In the short-term, the company continues to be a beneficiary of its exposure to higher power prices, supporting the growth in the dividend. Dividend increase in line with RPI: UKW announced a dividend target of 7.72p/share for FY22, which represents an increase of 7.5% compared to FY21 (7.18p/share). The company has maintained its commitment to increase its dividend in line with RPI. The 2021 full year dividend was covered 1.9x, which reflects both low generation (20% below budget) and high power prices which were significantly above budget. Acquisitions Earlier this month, UKW announced the commissioning and resultant acquisitions of Windy Rig (43.2MW) and Glen Kyllachy (48.5MW) wind farms. The acquisitions were first announced in Q4 2019. Both assets are subsidy-free and take the number of subsidy-free assets to three out of 43. Gearing: UKW entered into an agreement with AXA to provide an 8-year £200m facility, which will be used to repay the RCF. At 31 December, UKW had aggregate group debt of £950m. Total gearing is c.23% of GAV. Acquisition of Greencoat Capital: In December, it was announced that Schroders had agreed to acquire a 75% shareholding in Greencoat Capital for an enterprise value of £358m. The deal includes a potential earn out, payable three years after completion, which is subject to stretch revenue targets, the continued employment of senior management and is capped at £120m. There are a series of options, exercisable by Schroders or the Greencoat management shareholders in place for Schroders to acquire the remaining 25% shareholding over time at a price based on a fair market valuation at the time of the option exercise.