RCS - NextEnergy Solar Fnd - Update from QuotedData

NextEnergy Solar FundAnnouncement

11/03/2024 12:15

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RNS Number : 3685G  NextEnergy Solar Fund Limited  11 March 2024

 

NextEnergy Solar Fund - Update from QuotedData

11(th) March 2024

High- and growing-income opportunity

NextEnergy Solar Fund (NESF) is almost 10 years old. Since launch, it has
built a £1.2bn, 933MW portfolio of 100 operating solar assets, powering the
equivalent of over 330,000 homes, declared dividends totalling £333m, and
avoided the emission of about 2.2 Mt CO2e.

NESF is on track to pay 8.35p in dividends, with forecast dividend cover of
about 1.3x. Share price weakness that has afflicted the whole sector means
that dividend translates to a dividend yield of 11.1%, one of the highest in
its sector, and the share price's near 30% discount to net asset value (NAV)
provides the prospect of attractive capital appreciation when sentiment
towards the sector recovers.

Interest rates look to have peaked, which is improving sentiment, but there is
further to go. We find it hard to comprehend why any stock with a nine-year
track record of growing covered dividends in line with inflation would not
trade on a much lower dividend yield.

NESF also has one of the largest capital recycling programmes of its peer
group, which is aimed at freeing up cash to slash debt, and fund share
buybacks and existing and potential construction projects. Those projects
should be both NAV- and earnings-enhancing. A re-rating of NESF's shares is
overdue.

Full Research:

https://quoteddata.com/research/nextenergy-solar-fund-high-growingincome-opportunity-qd/
(https://quoteddata.com/research/nextenergy-solar-fund-high-growingincome-opportunity-qd/)

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NB: Marten & Co was paid to produce this note on NextEnergy Solar Fund
Limited, and it is for information purposes only. It is not intended to
encourage the reader to deal in the security or securities mentioned in this
report. Please read the important information at the back of this note.
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and regulated by the Financial Conduct Authority. Marten & Co is not
permitted to provide investment advice to individual investors categorised as
Retail Clients under the rules of the Financial Conduct Authority.

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