REG - Foresight Envr - Net Asset Value and Dividend Announcement

Foresight Environmental InfrastructureAnnouncement

27/05/2026 07:00

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RNS Number : 7804F  Foresight Environmental Infrastruct  27 May 2026

Wednesday 27 May 2026

 

FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED

 

("FGEN" or the "Company")

 

Net Asset Value and Dividend Announcement

 

The Board of FGEN, a leading investor in private environmental infrastructure
assets across the UK and mainland Europe, announces that its unaudited Net
Asset Value ("NAV") at 31 March 2026 was £655.5 million (105.2 pence per
share). After paying the quarterly dividend of 1.99 pence per share, the
Company delivered a positive NAV Total Return of 2.5% for the quarter and 6.2%
for the full financial year.

 

FY27 Dividend Target

 

The Board is pleased to announce the Company's 12(th) consecutive dividend
increase since IPO, with a dividend target of 8.04 pence per share for the
year to 31 March 2027, representing a 1.0% uplift from the year to 31 March
2026.

 

Highlights in the period

 

·   Delivering resilient NAV growth: NAV of £655.5 million as at 31 March
2026 (31 December 2025: £651.7 million), with NAV per share of 105.2 pence,
representing an increase of 0.6 pence over the quarter.

·   Dividend in line with target: Quarterly dividend of 1.99 pence
declared, in line with the Company's full-year target of 7.96 pence per share.

·   Diversification underpinning resilience: Portfolio diversification
supports stable NAV and robust cash generation, with dividend cover of 1.25x
for the year, post project debt amortisation.

·   Prudent balance sheet maintained: Gearing remains conservative at 29.8%
as at 31 March 2026 (30.9% at 31 December 2025), supporting financial
flexibility and disciplined capital allocation.

·   Well positioned for organic NAV growth: the Board remains focused on
delivering the Company's progressive dividend strategy, alongside NAV growth
through consistent operational performance, value enhancements and selective
capital recycling.

 

Ed Warner, Chair of FGEN said:

"The Company has delivered another quarter of stable NAV performance,
reflecting the resilience of our diversified environmental infrastructure
portfolio and its ability to generate robust cashflows. This underpins our
confidence in maintaining a progressive dividend, which has consistently
increased since IPO, with cover expected to remain within our target range of
between 1.2x - 1.3x in the coming years.

 

We remain focused on maintaining a prudent balance sheet and disciplined
capital allocation, positioning the Company to deliver sustainable and organic
NAV growth."

 

Summary of changes in NAV:

                                                                       NAV per share
 NAV at 31 December 2025                                               104.6p
 Dividends paid in the period                                          -2.0p
 Power price forecasts                                                 +1.6p
 Inflation                                                             +0.3p
 Anaerobic Digestion life extensions - phase one                       +1.4p
 Other movements (including discount rate unwind less fund overheads)  -0.7p
 NAV at 31 March 2026                                                  105.2p

 

Valuation factors

 

Power price forecasts

Short-term power price forecasts provided by independent third-party
consultants have increased since the prior valuation date, primarily driven by
higher observable gas and power pricing following the escalation of conflict
in the Middle East. In addition, updated forecasts now reflect the expected
impact of the UK Government's proposed abolition of the Carbon Price Support
mechanism from April 2028, alongside updated GWA assumptions across the UK
wind and solar portfolio.

 

Overall, the net effect of updated power price forecasts was an increase in
NAV per share of 1.6 pence.

 

Inflation

Inflation assumptions for 2026 have been increased by 50bps to reflect updated
independent forecasts, with RPI and CPI now modelled at 4.0% and 3.5%
respectively.

 

Inflation assumptions beyond 2026 remain unchanged.

 

Anaerobic Digestion ("AD") life extension - phase one

As outlined in prior reporting periods, the Company has long held the view
that AD infrastructure will continue to play an important role in the UK
energy mix beyond the 20-year Renewable Heat Incentive ("RHI") support period.

 

As such, the Investment Manager has worked with a specialist independent
consultant to assess the potential value of biomethane from 2035 onwards,
informed by current and expected evolution of biomethane policy in the UK and
Europe. The consultant has applied this assessment across the FGEN AD
portfolio, including revenue stack analysis and cost requirements, taking into
account the technical specifications of each facility.

 

As a result, the Company has recognised a 1.4 pence per share NAV uplift from
extending the lives of the six ADs with the most compelling extension
potential, with work ongoing to further assess the remaining ADs in the
portfolio.

 

More details will be provided along with the full Annual Report.

 

Other NAV movements

Other NAV movements include the usual positive discount rate unwind net of
fund operating costs of +1.3 pence, alongside a number of other offsetting
lower value movements. These include an allowance for additional boiler
maintenance at Cramlington Biomass totalling -0.7 pence, refinement of cost
assumptions across the wind and solar portfolio of -0.9 pence and an allowance
of -0.5 pence at Project Rjukan related to slower than planned ramp up
progress during the period.

 

Gearing

In line with the Company's stated approach to capital allocation, FGEN
continues to maintain one of the lowest levels of gearing in the sector. As at
31 March 2026, total gearing was 29.8% (31 December 2025: 30.9%), with the
Company's Revolving Credit Facility ("RCF") £123.1 million drawn.

 

Portfolio performance

 

The quarter ending 31 March 2026 has seen positive performance, with
generation 2.6% ahead of budget. This was supported by particularly strong
performance from the anaerobic digestion portfolio. Whilst wind, solar and
biomass underperformed during the period, March saw excellent performance
across those sectors.

 

As communicated at the Company's Capital Markets Day on 12 May 2026, ramp up
continues across the growth assets:

-      CNG: gas volumes dispensed grew again during the period, and the
RTFC business continues to be highly cash generative.

-      The Glasshouse: continuing the trend of increasing sales,
management also made further progress against its longer-term objective of
export opportunities into European markets.

-      Rjukan: production volume growth has been slower than expected in
the period, reflective of the early operational stage, with works ongoing to
continue optimising performance.

 

Dividend

 

The Company declares a quarterly interim dividend of 1.99 pence per share for
the quarter ended 31 March 2026, consistent with the full-year target of 7.96
pence per share for the year to 31 March 2026, as set out in the 2025 Annual
Report. This equates to a yield of 10.5% on the closing share price on 26 May
2026.

 

As mentioned, the Board has also set a dividend target of 8.04 pence per share
for the year to 31 March 2027, the 12(th) consecutive dividend increase since
IPO.

 

Dividend Timetable

 

Ex-dividend date              4 June 2026

Record date                       5 June 2026

Payment date                   26 June 2026

 

This announcement contains information that is inside information for the
purposes of the Market Abuse Regulation (EU) No.596/2014.

 

Contacts

 

For further information, please visit www.fgen.com or contact:

 

Foresight
Group
+44(0)20 3667 8100

Chris Tanner
 
fgenir@foresightgroup.eu

Edward Mountney

Charlie Wright

Wilna de
Villiers

 

Winterflood Securities
Limited
+44(0)20 3100 0000

Neil Langford

 

FTI Consulting
 
+44 (0)7703 330 199

Ambrose
Fullalove
fgen@fticonsulting.com

Zac Lewis

 

Apex Fund and Corporate Services (Guernsey)Limited  +44 (0)20 3530 3600

Matt
Lihou
fgen@apexgroup.com

 

About FGEN

 

FGEN invests into environmental infrastructure to deliver stable returns, long
term predictable income and opportunities for growth, whilst driving
decarbonisation and sustainability.

 

Investing across renewable generation, other energy infrastructure and
sustainable resource management, it targets projects and businesses with an
emphasis on long term stable cash flows, secured revenues, inflation linkage
and the delivery of essential services. FGEN's aim is to provide investors
with a sustainable, progressive dividend per share, paid quarterly, alongside
the potential for capital growth.

 

The target dividend for the year to 31 March 2027 is 8.04 pence per share¹.

 

FGEN is not formally subject to the EU Sustainable Finance Disclosure
Regulation, but voluntarily discloses against the requirements of an Article 9
SFDR fund. It further discloses voluntarily against the UK's Sustainability
Disclosure Requirements regime as a 'Sustainability Focus' fund.  Beyond its
alignment with evolving regulation, FGEN prides itself on its transparent and
award-winning approach to ESG.

 

Further details can be found on FGEN's website http://www.fgen.com
(http://www.fgen.com) and LinkedIn page
(https://www.linkedin.com/showcase/foresight-environmental-infrastructure-limited)
.

 

(1) These are targets only and not profit forecasts. There can be no assurance
that these targets will be met or that the Company will make any distributions
at all.

 

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