NextEnergy Solar Fund Ltd (LSE:NESF) has reaffirmed its dividend target after reporting a dip in net asset value for the June quarter, as falling long-term UK power price forecasts weighed on valuations.
The London-listed renewables investor said its net asset value per share slipped to 91.7p at the end of June, down from 95.1p three months earlier. The ordinary shareholders’ NAV stood at £527 million, with gross assets of just over £1 billion.
Dividend payments remain firmly in line with guidance. A total of 2.10p per share has been declared for the quarter, matching the payout this time last year.
The fund continues to target 8.43p for the current financial year, a yield of around 11%, expected to be covered 1.1 to 1.3 times by earnings after debt amortisation. Since launch, NESF has paid out £407 million in dividends.
Operationally, the 101-asset portfolio benefited from strong sunshine in the UK, with irradiation nearly 19% above budget.
This pushed generation 7.6% ahead of plan and delivered a 0.5p uplift to NAV. Installed capacity remains steady at 937MW.
The fund’s capital recycling programme has now sold three assets totalling about 145MW, raising £72.5 million and adding nearly 3p per share to NAV. Debt stands at £497 million, about 69% fixed, with the remainder floating.
Chairman Paul Le Page said the portfolio’s resilience and cost-cutting measures, including a reduction in investment management fees, underpinned the board’s confidence in meeting dividend guidance.