NextEnergy Solar Fund Ltd (LSE:NESF) said it had successfully delivered two phases of its capital recycling programme as it updated the market on its quarterly performance.
It has sold just over 95MW of capacity for £42.2 million at a premium to book value, allowing it to pay down £38.8 million of debt, and adding 1.84 pence per share to the company's net asset value.
To enhance shareholder returns, it signed off a £20 million buyback programme and bought £2.2 million shares.
Investors were rewarded with a 2.1p dividend, or an annualised 10% yield, making NESF one of the top-paying stocks in the FTSE 350.
For the three months ended June 30, the fund's net asset value was 101.3p, down marginally on the March quarter NAV.
"This has been a strong quarter for NESF as the Company continues to narrow its discount," said chairwoman Helen Mahy.
"This has been achieved through careful management of the portfolio, including the successful sale of assets as part of our capital recycling programme, and the initiation of the company's share buyback programme.
"We believe there are tailwinds which will continue to drive the growth of the UK solar market and that NESF is well-positioned to capitalise on these to deliver continued shareholder value."