NextEnergy Solar Fund Ltd (LSE:NESF) told investors its portfolio continues to perform in line with expectations, with a reliable and visible stream of cash flows from electricity generation.
Irradiance in the first three months of 2025 was lower than seen in recent years, but NextEnergy highlighted that in the brighter current quarter has benefited from excellent weather, which is expected to be reflected in future updates.
“To date, NextEnergy Solar Fund has deployed approximately 11% of the UK's total ground-mount solar operating capacity, making it a key vehicle in helping to increase UK energy security whilst contributing heavily towards net zero goals,” said chief investment officer Ross Grier.
NAV estimate for Q4
The investment company reported that its quarter-on-quarter calculated NAV per share had reduced to 95.1p from 97.4p, amid sector volatility, whilst on the London Stock Exchange, the current share price of 69.44p gives a ‘market valuation’ of around £400 million.
In terms of gross asset value, the portfolio was marked at £1.06 billion. Whilst the firm’s gearing, excluding preference shares, stood at 29.7%.
NextEnergy noted that its Capital Recycling Programme contributed £72.5 million in proceeds from asset sales, and delivered a NAV uplift of 2.76p per share. At the same time, share buybacks amounted to 15.6 million shares, at a cost of £11.5 million, adding 0.5p per share to NAV.
Sector and macro volatility
“Geopolitics and macroeconomic events continued to create uncertainty over the quarter,” Helen Mahy, NextEnergy Solar chair said.
“In addition, we have seen a reduction to short-term power prices which contributed to a slight reduction to the company's NAV … Despite this volatility, NextEnergy Solar Fund continues to show resilience as a company, and solar as a reliable and tested asset class.”
“Maximising shareholder value and return remains a key priority and we are pleased that good progress has been made with the share buyback programme with the purchase of £3.4 million worth of ordinary shares in the period.”
NextEnergy Solar also today declared its fourth interim dividend, bringing the total declared dividends for the financial year to 8.43p per share, in line with guidance.
Looking ahead, it maintained dividend target of 8.43p per share for the new financial year, notably, based on the prevailing share price that represents a dividend yield of 12%.