RCS - NextEnergy Solar Fnd - Update note from QuotedData

NextEnergy Solar FundAnnouncement

17/01/2025 11:45

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RNS Number : 8010T  NextEnergy Solar Fund Limited  17 January 2025

NextEnergy Solar Fund - Update note from QuotedData

17(th) January 2025

Well covered, growing, double-digit yield

Despite having many attractive features, NextEnergy Solar Fund (NESF) has seen
its share price derate significantly during the last two years (driven largely
by macroeconomic headwinds, such as the impact of higher interest rates on
income-producing assets, which has affected the whole renewable energy sector
and has been a factor again very recently). A hefty and, in our view
irrational, discount (https://quoteddata.com/glossary/discount-rate/)
 to net asset value (NAV)
(https://quoteddata.com/glossary/net-asset-value-per-share-nav-per-share/)
 has opened up, bringing with it significant yield
(https://quoteddata.com/glossary/yield/)  expansion - NESF now has the
second-highest dividend (https://quoteddata.com/glossary/dividend/)  yield
in the FTSE 350 - despite its dividend being 1.3x cash-covered during its
financial year ended 31 March 2024 (FY2024), with a coverage target of 1.1x -
1.3x for the year ending 31 March 2025 (FY2025) on a higher target dividend.

NESF has been making progress with its capital recycling programme (a strategy
that involves selling assets and reinvesting the proceeds into
higher-returning opportunities) (see page 8), with the proceeds used to reduce
debt and fund share repurchases
(https://quoteddata.com/glossary/share-buybacks-2/)  that, at current
discount to NAV levels, are very NAV (https://quoteddata.com/glossary/nav/)
-accretive. The final phase for 100MW of assets could prove transformational.

Full Research:

https://quoteddata.com/research/nextenergy-solar-fund-well-covered-growing-double-digit-yield-qd/
(https://quoteddata.com/research/nextenergy-solar-fund-well-covered-growing-double-digit-yield-qd/)

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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
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