NextEnergy Solar Fund is a buy for Liberum, which has included it as a top pick in an overview of the UK’s energy transition and infrastructure.
“The portfolio is comprised of around 100 solar assets which are mostly UK-based alongside small co-investments in private funds and joint venture partnerships in battery storage (BESS) under construction.
“Solar is de-risked through fixed agreements on 83% of generation for the next three years.
“The solar portfolio is 100% operational and high-power pricing results in a 1.3-1.5 times cash-covered dividend in fiscal 2023 at an attractive 6.7% yield.”
Current gearing is 42% and fixed until at least 2026, adds the broker.”
“Buy at 125p given the attractive valuation, covered dividend and potential for NAV upside”.
Shares today were 109p, down 0.6%.