RCS - NextEnergy Solar Fnd - Update from QuotedData

NextEnergy Solar FundAnnouncement

Today 10:30

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260312:nRSL4303Wa&default-theme=true

RNS Number : 4303W  NextEnergy Solar Fund Limited  12 March 2026

 

NextEnergy Solar Fund - Update from QuotedData

12 March 2026

New focus on total returns

Following its strategic review, NextEnergy Solar Fund's (NESF's) board
(https://quoteddata.com/glossary/board/) plans to refocus on delivering both
income (https://quoteddata.com/glossary/income/) and capital
(https://quoteddata.com/glossary/capital/) growth, aiming for long-term total
returns of 9%-11%. This year's dividend target of 8.43p will be met, but
future dividends (https://quoteddata.com/glossary/dividend/) will be set at
75% of operating free cashflows after debt and expenses. For the year ending
31 March 2027 (FY27), the estimated dividend range is 4.0p-4.6p.

Lowering the dividend should release around £40m over five years, which will
be used to strengthen the balance sheet
(https://quoteddata.com/glossary/balance-sheet/) , with a loan-to-value
(https://quoteddata.com/glossary/loan-to-value) (LTV) target of 40%-45%, and
fund new investments to grow NAV. Plans include upgrading existing solar
assets and adding energy storage, with a goal for storage to make up 30% of
the portfolio (https://quoteddata.com/glossary/portfolio/) .

NESF has finished its capital recycling programme with the sale of The Grange
and South Lowfield solar farms for £46.2m, and will use the proceeds to pay
down its revolving credit facility
(https://quoteddata.com/glossary/revolving-credit-facility-or-rcf/) . Further
asset sales totalling 120MW, plus the sale of NESF's private solar fund
investment and two co-investments from 2027 onwards, will release more
capital.

As we explain in this note, NESF has found itself in a difficult place. No
bidders emerged during the strategic review and a wide discount to NAV
(https://quoteddata.com/glossary/discount-to-nav/) lowers its enterprise value
(https://quoteddata.com/glossary/enterprise-value) , which limits its ability
to buy back shares under the USS preference share covenant
(https://quoteddata.com/glossary/covenant) . While asset sales have helped
reduce debt, weak demand for mature assets means this is not a quick solution
and a managed wind down is not possible. As NESF needs cash, reducing the
dividend is seen as the best option. The board and advisers believe this
approach, which conserves cash, can deliver the targeted 9%-11% total returns.

Full Research:

https://quoteddata.com/research/nextenergy-solar-fund-new-focus-on-total-returns-qd/
(https://quoteddata.com/research/nextenergy-solar-fund-new-focus-on-total-returns-qd/)

This research is also available free on our website www.quoteddata.com
(http://www.quoteddata.com) where you will also find news, performance data
and factsheets on every London listed Investment Company. QuotedData writes
and distributes research on a number of quoted companies, facilitates meetings
between those companies and existing and potential investors and assists in
raising additional capital where required.

NB: Marten & Co was paid to produce this note 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.
QuotedData is a trading name of Marten & Co Limited which is authorised
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.

QUOTEDDATA

50 Gresham Street | London EC2V 7AY

Tel: +44 (0) 20 3691 9430

www.quoteddata.com (http://www.quoteddata.com) | research@quoteddata.com
(mailto:research@quoteddata.com) | www.martenandco.com
(http://www.martenandco.com)

 

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  NRAAKBBBKBKDNND



            Copyright 2019 Regulatory News Service, all rights reserved