Foresight Solar Fund Ltd (LSE:FSFL) reported strong cash distributions thanks to above-budget electricity production for the past quarter, thanks to UK solar assets, but net asset value was dented by weaker UK power price forecasts.
The investment trust continued its share buyback programme during the period, repurchasing around three million shares to provide NAV support of 0.2p per share.
A further £10 million was allocated to the buyback programme in July, with cumulative buybacks having added 2.8p per share since inception.
Net asset value dipped to £603.8 million as at 30 June 2025, down from £620.9 million at the end of March, with NAV per share of 108.5p compared to 111p at the end of the prior quarter, primarily due to a 2.3p a share reduction linked to UK power forecasts.
Other headwinds included a 0.3p/share impact from rising Australian government bond yields, which led to a valuation adjustment, and 0.1p/share in grid-related costs tied to the pre-construction Lunanhead battery storage project.
"The divestment process for the Australian assets is ongoing and, while bids are expected, they have not yet been received," Foresight said.
Despite the NAV decline, strong operating performance and higher-than-expected cash distributions have supported the company’s 1.3x dividend cover target for 2025.
Electricity production across the portfolio was 5.5% above budget in the second quarter, helped by 11.3% higher-than-expected irradiation.
The UK assets outperformed, delivering 10.3% more electricity than forecast. Generation in Spain lagged, while Australia delivered an 8% upside.
Gearing remained stable at 40% of gross asset value, within the 50% limit.
Foresight Solar expects to publish its interim results on 18 September.