RCS - Foresight Solar Fund - Edison issues flash on Foresight Solar Fund (FSFL)
11/08/2023 07:15
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230811:nRSK9557Ia&default-theme=true RNS Number : 9557I Foresight Solar Fund Limited 11 August 2023 London, UK, 11 August 2023 Edison issues flash on Foresight Solar Fund (FSFL) Foresight Solar Fund (FSFL) released a strong operational trading update, with production 2.8% ahead of budget, cash receipts of £52.3m, 42% higher year on year, and forward power sales supporting a 1.5x dividend cover forecast by the company for the next three years. FSFL's Q2 NAV/share was down 4.3p (-3.4%) from Q1 at 119.9p, with 74% of this move due to 50bp rise in discount rate assumptions for UK assets to 7.5%. FSFL trades at an attractive 19% discount to NAV and 8% dividend yield, in our view. FSFL's June 30 NAV/share was 119.9p, down 4.3p (3.4%) from March 30. 3.2p of this move (74%) was due to 50bp rise in discount rate assumptions (levered rate assumption for UK assets was raised from 7% to 7.5%, other regions remained unchanged) reflecting rises in interest rates. Lower forward power price forecasts reduced NAV/share by 1.4p, offset by 0.9/share positive impact of lower tax payments under the UK generators levy. FSFL is trading at a 19% discount to NAV, and we believe that a higher interest rate environment is already more than reflected in its share price. FSFL represents an 8% yield and management has confidence in 1.5x dividend cover in the next three years, underpinned by forward power sales. Click here (https://www.edisongroup.com/research/q2-nav-trading-and-capital-recycling-update/32584/) to view the full report. All reports published by Edison are available to download free of charge from its website www.edisongroup.com (http://www.edisongroup.com) About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfYL6AAN) . Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Andrew Keen +44 (0)20 3077 5700 investmenttrusts@edisongroup.com Harry Kilby +44 (0)20 3077 5724 investmenttrusts@edisongroup.com Learn more at www.edisongroup.com (http://www.edisongroup.com) and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ (http://www.linkedin.com/company/edison-group-/) Twitter www.twitter.com/Edison_Inv_Res (http://www.twitter.com/Edison_Inv_Res) YouTube www.youtube.com/edisonitv (http://www.youtube.com/edisonitv) This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END NRAPMMMTMTTBBAJ