Foresight Solar Fund Ltd (LSE:FSFL) hiked its dividend and announced it is making more divestments as it looks to be proactive about the share price discount to net assets.
The investment trust confirmed an 8p per share dividend for the 2024 calendar year, covered 1.4 times, and announced a target dividend of 8.1p for 2025, reflecting a 1.25% increase.
Including buybacks as well, Foresight Solar returned £66.5 million to shareholders in 2024, even though net asset value (NAV) finished the year £634.4 million, down from £697.9 million a year earlier amidst lower irradiation levels and reduced power price forecasts.
Over the year, 1,009GWh of renewable electricity was generated, enough to power 367,504 UK homes and offset 351,451 tonnes of CO2, though generation was 7% below budget.
The company has hedged 88% of its 2025 revenues at £86/MWh, securing future income.
The planned sale of the Australian portfolio remains in progress, with a deal now targeted for Q3 2025. The company has also earmarked at least 75MW of additional assets for sale, aiming to return capital to shareholders.
Chair Alex Ohlsson said: "Addressing the discount remains our top priority. We have implemented actions to confirm valuations, generate cash, return capital and reduce leverage.
"As we progress the sale of the Australian portfolio, we recognise the need to do more. That is why we are expanding the divestment programme to dispose of at least another 75MW of operational assets. Proceeds from these further divestments will be prioritised for the return of capital to investors."
A new fee structure was introduced last month, linking fees to market capitalisation and NAV, leading to an expected 19% cost reduction.
Ohlsson said it was a "resilient performance in a year marked by poor weather and persistent macroeconomic headwinds in the UK".
He said the returns of capital will inevitably lead to a reduction in the listed renewables asset class, meaning "we are likely to see examples of successful consolidation".
"The directors are fully aware of the potential value this can bring, and it is a critical part of the board's ongoing strategic considerations.
"Ultimately, our intention is to explore all options available to provide the best outcome for the majority of our shareholders in an efficient and effective manner."
Outside of this, he said the development pipeline will be the "growth engine" of the business, with a capital-light model enabling opportunities to improve total returns for shareholders over time.
This includes replicating the success of the Lorca portfolio in Spain with the solar and battery storage projects coming through in the country.