NextEnergy Solar Fund Ltd (LSE:NESF) reported a stable third-quarter performance and said it continued to focus on narrowing the share price discount.
The board reaffirmed its full-year dividend target of 8.43p per share for the year to end-March 2025, with cover expected to be in the range of 1.1–1.3x by earnings giving a dividend yield of around 12%.
Net asset value stood at 97.4p at the end of December versus 97.8p three months earlier, the investment trust said in its quarterly update.
On the discount narrowing efforts, the quarter saw circa £7.80 million of purchases under the £20 million share buyback programme, resulting in a 0.4p NAV per share uplift. As of 19 February 2025, total repurchases had reached 12.48 million shares for £9.40 million.
Meanwhile, as of this week, £72.5 million has been raised in total capital under a capital recycling programme, with three asset sold totalling circa 145MW of capacity from the 245MW programme, contributing an estimated 2.76p NAV uplift per share
Financial debt gearing was reduced to 28.6% from 30.2% at the end of September.
The quarter also included the publication of the fund's first Nature Strategy Report in November, outlining a strategic plan for nature and nature targets, which includes commitments to strong nature-related governance, evidence-led action plans, use of science-based targets, and ongoing transparent disclosures.
Chairwoman Helen Mahy hailed the performance "given the backdrop of financial markets, global politics, and adverse weather conditions".
Ross Grier, chief investment officer of NextEnergy Capital, the trust's investment manager, said: "NextEnergy Solar Fund continues to deliver reliable returns to shareholders through well-covered quarterly dividends derived from strong cash flows.
"There is a lot to be positive about looking forward, with multiple political and macroeconomic tailwinds that we expect to benefit NextEnergy Solar Fund, its shareholders, and the renewable energy sector as a whole."
He flagged the manager's bolstered leadership and senior management team, which includes his own promotion to CIO, with recent hires to "help drive growth across all its platforms and directly strengthen NextEnergy Solar Fund".
NextEnergy Solar Fund's portfolio included 101 operating assets, with an installed capacity of 934MW and remaining weighted average asset life of 25 years.