NextEnergy Solar Fund Ltd (LSE:NESF) declared a first interim dividend of 2.08p for the past quarter as it targets an 11% increase in the shareholder payout for the current year.
The FTSE 250-listed solar farm developer said it had increased the unlevered discount rate 0.75% to 8.0% in response to increases to short-term base interest rates, long-term risk-free rates and macro-economic outlook, and was also focused on progressing its capital recycling programme.
Net asset value per share was 109.3p at the end of June, down from 114.3p at the end of March, with the increase in the discount rate the main factor.
There were no significant updates on the capital recycling programme, but NESF said it continues with the competitive process to sell five subsidy-free assets. These include the 36MW Whitecross solar farm in Lincolnshire, which was energised since the end of the quarter.
The company, which reiterated its intention to seek shareholder approval to increase the share of its portfolio invested in energy storage assets from 10% to 25% of gross asset value, said energisation of its first standalone 50MW battery storage asset in Fife has been delayed after a new contractor was appointed following the insolvency of the firm formerly carrying out the work.
A new head of storage with 14 years' experience in the industry has been appointed by investment adviser NextEnergy Capital.
In a separate statement published late yesterday, after its annual shareholder meeting, the company confirmed Kevin Lyon has stepped down as chair after serving his full nine-year tenure, with Helen Mahy succeeding him.
Analysts at Stifel noted that the discount rate increase is slightly above the trend of 50bps increases seen in other trusts, but is in line with fellow solar investor Bluefield.