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Foresight Solar Fund Ltd on Thursday said it is ‘well on track’ to achieve its target annual dividend despite net asset value decreasing. It also announced a new 200 megawatt divestment programme. The Jersey-based investment firm, which is focused on solar panels and battery storage assets, said its NAV at June 30 was 119.9 pence per share, down from 123.8p at the same time one year prior and from 126.5p at December 31. Foresight Solar said its annualised total NAV return, since its initial public offering in 2013, was 8.3% for the first half of 2023, down from 8.9% the prior year. Foresight Solar declared a 3.775p total dividend for the half year, up from 3.56p the year before. It said it ‘remains well on track’ to deliver its target of a 7.55p per share total dividend for the full year, up from 7.12p for 2022. Foresight Solar also said it is commencing a divestment programme to sell operational assets with approximately 200 megawatts total power. It intends to use the proceeds ‘to reduce debt and recycle capital into yield-accretive opportunities.’ Chair Alexander Ohlsson said these divestments ‘will allow the full funding of our expected pipeline until the end of 2025 without the need for additional external capital.’ The investor further noted that its acquisition announced in March, of rights to a 467 megawatts peak development-stage pipeline in Spain, had provided further opportunities to recycle capital. ‘Looking forward, the scale of growth opportunities for Foresight Solar is considerable,’ commented Ohlsson. ‘The impetus to achieve Net Zero targets is driving even more investment into renewable generation, and solar and battery storage are major beneficiaries, with both being comparatively low cost and quick to deploy. ‘With measures in place to shore up the balance sheet in a volatile macro environment, a highly cash-generative portfolio, and a laser-like focus on returns-accretive pipelines, Foresight Solar is well placed to continue delivering steady, resilient income with an element of NAV growth for decades to come.’ Foresight Solar shares were up 0.1% at 92.89 pence in London on Monday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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