REG - Foresight Solar Fund - Q2 2025 Net Asset Value and Trading Update

Foresight Solar FundAnnouncement

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RNS Number : 1222U  Foresight Solar Fund Limited  06 August 2025

6 August 2025

 

Foresight Solar Fund Limited

("Foresight Solar", "FSFL" or the "Company")

 

Q2 2025 Net Asset Value and Trading Update

 

Foresight Solar, the fund investing in solar and battery storage assets to
build income and growth, announces that its unaudited net asset value (NAV)
was £603.8 million at 30 June 2025 (31 March 2025: £620.9 million). This
results in a NAV per Ordinary Share of 108.5 pence (31 March 2025: 111.0 pence
per share).

 

Summary of key changes

 

 Item                                  p/share movement
 NAV on 31 March 2025                  111.0p
 Interim dividends paid                -2.0p
 Time value                            2.2p
 Power price forecasts                 -2.3p
 Project actuals                       0.3p
 Share buyback programme               0.2p
 Australian discount rate increase     -0.3p
 Lunanhead BESS additional grid costs  -0.1p
 Other movements                       -0.5p
 NAV on 30 June 2025                   108.5p

 

The primary driver for the reduction in NAV during the period was a fall in UK
power price forecasts. This impacted the curve for the country, bringing down
prices for all future years. The forecasts for Spain and Australia were also
lower in relation to the previous quarter. In combination, these moves led to
a reduction of 2.3 pence per share (pps) in net asset value.

 

Higher irradiation in the UK and Australia contributed to above-budget
electricity production, resulting in an upside of 0.3pps. (More information
below.)

 

The Company continued its buyback programme, repurchasing roughly 3 million
shares, returning £2.3 million to shareholders, and adding 0.2pps to NAV in
the second quarter of 2025. In July, Foresight Solar allocated up to £10
million more to its buyback programme. Since repurchases began, they have
delivered a cumulative 2.8pps increase in NAV.

 

A sustained rise in long-dated Australian government bond yields over the last
12 months resulted in a subsequent increase in the portfolio valuation's
discount rates by 30 basis points, resulting in a 0.3pps impact in NAV. The
divestment process for the Australian assets is ongoing and, while bids are
expected, they have not yet been received.

 

Additional grid costs led to a reduction in the valuation of the
pre-construction Lunanhead BESS facility totalling 0.1pps of net asset value.

 

Other movements include working capital and foreign exchange adjustments,
changes to inflation assumptions, power price hedges and modest tax savings.

 

Trading update

Electricity production from the global portfolio was 5.5% above budget in the
three months between April and June, with higher-than-expected irradiation of
11.3%. Distribution network operator outages were responsible for the bulk of
the underperformance relative to irradiation. Considering the first half of
2025, generation was 4.0% above forecast, while solar resource was 8.5%
higher.

 

The UK assets were the main contributors to the overall outperformance,
producing 10.3% more electricity than budgeted in the quarter. The numbers
were mixed in FSFL's other markets, with production roughly 15% below in
Spain, and generation more than 8% above in Australia.

 

The strong operational performance, allied to the Company's active power price
hedging strategy, culminated in above-expectations cash distributions from
investments in the first half of 2025. The result gives the board confidence
in Foresight Solar's 1.3x dividend cover target for the year.

 

Gearing

The Gross Asset Value (GAV) on 30 June 2025 was £1,005.6 million (31 March
2025: £1,035.3 million), with total outstanding debt of £401.8 million
representing 40.0% of GAV (31 March 2025: £414.4 million and 40.0%) -
comfortably within the 50% limit.

 

The RCF balance was £75.9 million drawn (31 March 2025: £88.9 million).

 

Interim results date

Foresight Solar expects to publish its interim results for the six months to
30 June 2025 on 18 September 2025. A Notice of Results with more details will
be released in due course.

 

For more information, follow Foresight Solar on LinkedIn
(https://www.linkedin.com/showcase/foresight-solar/) or contact:

 

 Foresight Group                                                 +44 (0)20 3911 2318

 Matheus Fierro

 (fsflir@foresightgroup.eu (mailto:fsflir@foresightgroup.eu) )

 Jefferies International Limited                                 +44 (0)20 7029 8000

 Gaudi Le Roux

 Harry Randall

 Singer Capital Markets                                          +44 (0)20 7496 3000

 Alaina Wong

 Mark Bloomfield

 Sodali & Co                                                     +44 (0)20 7250 1446

 Gilly Lock

 Madeleine Gordon-Foxwell

 JTC                                                             +44 (0) 1534 700 000

 Hilary Jones

 

LEI: 213800VO4O83JVSSOX33

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