Foresight Solar Fund Ltd (LSE:FSFL) has said it is committed to “finding acceptable solutions in a difficult market for alternative investment trusts” as it reported steady half-year results.
The fund’s chair, Tony Roper, added that directors would continue active engagement with shareholders “to ensure we understand your views” amid a period of sustained pressure on listed renewable funds.
The trust, which invests in solar farms and battery storage projects, said its net asset value fell to £604 million in June, from £634 million at the end of 2024.
The drop reflected lower long-term power price forecasts, even as operational performance exceeded expectations.
Electricity generation across its global portfolio was 4% ahead of budget in the first six months of the year, helped by strong sunshine in the UK, its largest market.
Output from British assets was almost 9% higher than expected.
The company said this, alongside an active hedging programme to lock in prices, gave the board confidence in meeting its target of 1.3 times dividend cover for 2025.
A dividend of 4.05p a share was declared for the half year, and £29 million was returned to investors through dividends and share buybacks. The buyback programme has been increased to a potential £60 million.
Foresight Solar is also pushing ahead with portfolio changes, including the planned sale of its Australian assets and the disposal of 75 megawatts of UK solar capacity.
The trust said cash released from these transactions would be reinvested into its pipeline of new projects, including battery storage in Spain.
Roper said: “With a clear strategy, a strong track record, and a committed team, we are confident the company is well positioned to benefit from the global transition to a low-carbon economy.”