Reinvestment in asset growth

Ellomay Capital is a renewable power asset owner, operator and developer. Currently, most of its operating cash flows come from 30.5MW of solar power plants in Italy and Spain (at a cash yield of 10% pa). A 9.375% stake in the gas-fired Dorad Power Plant in Israel also contributes to EBIT. The company has just completed the acquisition of a 9MW solar plant in Israel in October 2017. In 2018, management seeks to generate additional revenue streams with the completion of two waste-to-energy plants in the Netherlands. Our updated fair value per share of $11.3 takes into account existing and new revenue streams, a higher level of leverage required to fund its growth and a 20% discount due to the limited free float.