Bluefield Solar Income Fund (LSE:BSIF) has allocated £20 million to a share buyback programme to narrow the discount between the share price and its asset value.
Chair John Scott also bemoaned the lacklustre performance of the group’s shares.
“No matter how brightly the sun shines nor however hard the wind blows, our share price is becalmed at levels which are significantly below net asset value,” he stated.
As of 31 December, the discount to NAV was 14%, while it widened to as much as 25% throughout the period.
Though this has little tangible effect on dividends, Scott said it “constrains our ability to raise the new equity capital needed to fund our further development… It also acts to the detriment of shareholders who wish to exit and who have been facing a discount of more than 25% to the underlying value of their investment”.
Bluefield Solar’s share price discount suggests a “serious disconnect” between “how the company is valued by public markets and the prices being paid by institutional investors for portfolios of solar PV and wind assets”, he added.
The trust reported a net asset value (NAV) of £831.3 million as of December 31, slightly down from £854.2 million on June 30, 2023.
Underlying earnings saw a 14.5% decrease to £43.9 million.
The dividend target for the fiscal year has been set at no less than 8.8p per share at two-times cover, up from 8.6p in the previous fiscal year.
Operational milestones during the period included the signing of a Memorandum of Understanding (MOU) with GLIL Infrastructure, it said, marking a strategic partnership poised to fortify Bluefield Solar's investment and operational capabilities.
Planning consents were also received for 137MW of solar projects and 90MW of battery projects, with the pipeline expanding to approximately 968MW of solar and 563MW of battery storage.