REG - Foresight Solar Fund - Q1 2026 Trading Update and Net Asset Value

Foresight Solar FundAnnouncement

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RNS Number : 1303D  Foresight Solar Fund Limited  06 May 2026

6 May 2026

 

Foresight Solar Fund Limited

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

--

Trading Update, Q1 2026 Net Asset Value

 

Foresight Solar, the fund investing in solar and battery storage assets to
build income and growth, announces its unaudited net asset value (NAV) was
£543.0 million at 31 March 2026 (31 December 2025: £545.9 million). This
results in a NAV per Ordinary Share of 99.2 pence (31 December 2025: 99.2
pence).

 

Summary of key changes to NAV

 

 Item                     p/share movement
 NAV on 31 December 2025  99.2
 Interim dividends paid   -2.0p
 Time value               +1.9p
 Project actuals          -0.3p
 Power price forecasts    +0.1p
 Inflation assumptions    +0.4p
 Share buyback programme  +0.2p
 Other movements          -0.3p
 NAV on 31 March 2026     99.2p

 

Lower-than-expected irradiation in the UK in January and February led to
below-budget electricity generation. However, better weather in March improved
production, and the associated revenues will be recognised after the period
end due to the timing of cash receipts. Curtailment in Spain also weighed on
output. Taken together, these factors reduced NAV by 0.3 pence per share
(pps).

 

Power prices increased during the period, reflecting the impact of the
conflict in the Middle East. Updated forecasts from independent consultants
captured these changes, with higher price expectations in the UK to 2028. In
Spain, the record hydro availability and the high share of renewables in the
energy mix led to lower short-term price forecasts. Overall, these movements
contributed 0.1pps.

 

Short-term inflation assumptions also moved higher, with RPI and CPI now
expected to be 4.0% and 3.0% for 2026, respectively. This resulted in a
positive NAV impact of 0.4 pence per share. Longer-term assumptions remain
unchanged: RPI is forecast at 3% between 2027 and 2030 and 2.25% from 2031,
while CPI is expected to be 2.5% between 2027 and 2030, easing to 2.25% from
2031.

 

The Company continued to buy back its shares, adding 0.2pps to NAV in the
first quarter of 2026. Approximately £55 million of the £60 million
programme has been deployed, delivering a cumulative NAV uplift of 3.3pps
since repurchases began.

 

Other movements, including foreign exchange, power price hedges and minor
portfolio adjustments, resulted in a net negative impact of 0.3pps.

 

Policy changes

The investment manager reiterates its expectation that the removal of the
Carbon Price Support (CPS) mechanism will have a limited effect on NAV,
estimated between 0.5pps and 1.0pps. A more precise assessment will be
available once independent forecasters update their power price assumptions in
the second quarter. The move has, therefore, not been adopted in this update.

 

The UK government's announced changes to the Electricity Generator Levy do not
impact Foresight Solar's NAV since the net power price the Company expects to
receive for its electricity production is lower than the established
threshold.

 

The investment manager awaits details on the Wholesale Contracts for
Difference mechanism and will continue to assess the potential for further
revenue optimisation, as well as engage with industry groups and the
government to deliver the best possible outcome for shareholders.

 

As previously announced, the policy changes as stated so far are not expected
to affect Foresight Solar's 8.10pps dividend target or its anticipated 1.1x
dividend cover for 2026.

 

Trading update

Lower irradiation in the UK during the first quarter - a seasonally weaker
period for generation - was partly offset by better weather and above-budget
output in Australia. Overall, global production was 11.2% below forecast, with
solar resource 5.9% under expectations.

 

The investment manager continued to actively manage the Company's power price
hedging strategy during the period. Global contracted revenues are now 87% for
2026, 75% for 2027 and 63% for 2028 of forecast total revenues for each year,
with average UK prices at £75.76/MWh, £70.51/MWh and £74.27/MWh for those
years, respectively.

 

Gearing

The gross asset value (GAV) on 31 March 2026 was £931.5 million (31 December
2025: £928.2 million), with total outstanding debt of £388.5 million, which
represented 41.7% of GAV (31 December 2025: £382.3 million and 41.2%) -
comfortably within the 50% limit. Seasonal working capital requirements
resulted in the RCF balance being £86.7 million drawn (31 December 2025:
£72.7 million).

 

Investment manager update

As announced in the annual report in March 2026, Will Morgan has now joined
Foresight Group as a Managing Director to lead Foresight Solar's investment
management team. He brings over 20 years of experience in renewables, having
built teams, scaled platforms and deployed more than £1.5 billion in
equity across solar and wind projects.

 

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)

 Jefferies International Limited  +44 (0)20 7029 8000

 Gaudi Le Roux

 Harry Randall-Knowles

 Singer Capital Markets           +44 (0)20 7496 3000

 Mark Bloomfield

 Sodali & Co                      +44 (0)20 7100 6451

 Gilly Lock

 Madeleine Gordon-Foxwell

 JTC                              +44 (0)15 3470 0000

 Claire Brazenall

 

LEI: 213800VO4O83JVSSOX33

 

 

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