TRIG Interim Results: 10% Yield Backed by Better Cover as £400 Million Disposal Plan Advances

The Renewables Infrastructure Group has delivered a more reassuring set of interim results, with dividend cover recovering and its capital realisation programme making an encouraging start.

The renewable energy investment company generated £209 million of operational cash during the six months to 30 June 2026. After £111 million of scheduled project-level debt repayments, distributable cash flow of £99 million covered the £90 million cash dividend 1.1 times.

That restores net dividend cover to TRIG's long-term target, up from 1.0 times in 2025. The 2026 dividend target has therefore been maintained at 7.55p per share, representing a yield of around 10% based on the 78.1p share price on 5 August.

Still, these are not spotless results. Net asset value, or NAV, fell by 2.9p to 101.1p per share, generation was below budget and the value enhancement target has been reduced.

TRIG interim results at a glance

Key figure	H1 2026 result
Operational cash generation	£209 million
Distributable cash flow	£99 million
Cash dividends paid	£90 million
Net dividend cover	1.1 times
Gross cash cover before debt repayments	2.3 times
2026 dividend target	7.55p per share
NAV per share	101.1p
Portfolio valuation	£2,817 million
Electricity generated	2.9TWh
Generation versus budget	3.1% below
RCF borrowings	£276 million

Investors can read the original company announcement for the full interim report.

The dividend looks better supported

The improvement in dividend cover is probably the most important feature of the results for income-focused shareholders.

Gross operational cash flow covered the dividend 2.3 times. After project-level debt repayments and other costs, net cover was 1.1 times. This matters because TRIG's project debt is designed to amortise, meaning it is gradually repaid over the lives of the assets rather than left for refinancing at maturity.

Approximately 90% of group debt is long-term, fixed-rate and amortising. This limits exposure to changing interest rates and reduces refinancing risk.

Revenue visibility also remains meaningful. Following completion of the Beatrice disposal, 64% of projected portfolio revenue per megawatt hour is fixed over the next ten years. Of total projected revenue over that period, 51% is directly linked to inflation through government-backed contracts.

The dividend is therefore supported by a combination of contracted revenue, diversified assets and debt that is being steadily paid down. However, the 1.1 times cover leaves less room for operational disappointments than the 2.3 times gross figure might initially suggest.

Asset sales are central to the plan

TRIG set a target in May 2026 to realise £400 million by May 2027, principally through asset disposals and supplemented by modest debt issuance.

The first major step arrived in July, when TRIG agreed to sell its 17.5% interest in the Beatrice offshore wind farm for approximately £155 million. The exit price represented a 4% discount to the asset's previous carrying value, but the sale process attracted several bidders.

The proceeds are expected during the second half and will be used principally to reduce the £276 million revolving credit facility, or RCF. This is a flexible bank borrowing facility, but it represents TRIG's main exposure to floating interest rates and refinancing risk.

Long-term gearing is expected to represent 39% of look-through enterprise value after the disposal, compared with 41% at 30 June.

Further disposal processes are underway, although the board acknowledged that the asset-sale market remains challenging. Delivering the remainder of the £400 million target at acceptable prices will be an important test.

Buybacks are creating value per share

TRIG had deployed £123 million of its £150 million share buyback programme by 6 August, repurchasing 158 million shares.

During the first half alone, it spent £39 million buying back 56 million shares. These repurchases added 0.7p to NAV per share because the shares were acquired below their underlying asset value.

The board expects buybacks to continue beyond the current programme at the prevailing share price, subject to progress against the capital realisation target.

This approach makes financial sense while the shares remain substantially below the reported NAV of 101.1p. It also establishes a demanding hurdle for new investment. Any development project must offer a better risk-adjusted return than simply repurchasing discounted shares.

Why NAV fell to 101.1p

NAV declined from 104.0p at the end of 2025 to 101.1p at 30 June 2026. Earnings per share were just 0.1p because the reported result reflects movements in the portfolio valuation.

The main pressure came from lower third-party forecasts for future electricity prices and declining expectations for green certificate income.

Forecasters expect increased global liquefied natural gas supply to weigh on medium-term gas and electricity prices. Faster renewable construction in markets including Spain and Germany is also expected to increase cannibalisation. This describes the tendency for renewable generators to receive lower prices when large volumes of wind or solar power enter the grid simultaneously.

TRIG also experienced outages at Hornsea One and Mid Hill. The Beatrice valuation was reduced to match the agreed disposal proceeds.

Some operational progress partly offset these pressures, with commercial and technical initiatives adding approximately £8 million to the portfolio valuation during the half.

Operational performance was mixed

The 2.3GW portfolio produced 2.9TWh of renewable electricity, but generation was 3.1% below budget and revenue was 2% below budget.

UK onshore wind generation performed well, while France and Sweden were weaker. Hornsea One suffered a 19-day grid outage, and the Mid Hill outage continued into the second quarter. Low Spanish power prices also affected the solar portfolio.

TRIG has revised its 2025 and 2026 value enhancement target from £70 million to £55 million. The reduction reflects delayed turbine upgrades, grid connection delays and capital allocation decisions. A total of £40 million had been delivered by 30 June 2026.

Construction progress also carries execution risk. Energisation of the 78MW Ryton battery project has moved to autumn 2026 following grid delays and a contractor change, using up its construction contingency. The 100MW Spennymoor battery project is reviewing its supplier arrangements, although management expects the budget to remain unchanged if a replacement is required.

More positively, the Cuxac wind farm repowering is expected to increase capacity from 12MW to 25MW, with commissioning targeted by year-end.

What investors should watch next

TRIG's interim results show genuine progress where it matters most. Dividend cover is back at 1.1 times, the Beatrice disposal should reduce short-term borrowing and buybacks are adding NAV per share.

Costs are moving in the right direction too. From 1 July, management fees became based solely on market capitalisation, representing a further 19% reduction after the 28% cut secured in 2025. The pro forma operating expense ratio is expected to fall to 0.83%.

The key uncertainties are whether TRIG can complete further disposals at sensible valuations, maintain dividend cover despite lower power-price forecasts and deliver delayed construction projects without additional costs.

For now, the 7.55p dividend target looks better supported than it did, but the investment case still depends heavily on disciplined balance sheet management and successful execution of the £400 million capital plan. Investors comparing renewable funds may also find the recent analysis of Greencoat Renewables' interim results useful context.