Foresight Solar Fund (FSFL) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was £74.5m, only 6.5–6.6% below budget despite record low irradiation and adverse weather, demonstrating portfolio resilience.

• Share buyback programme increased to £50m, with over £36m repurchased since 2023, delivering 1.9p/share NAV accretion.

• Initiated full divestment of the Australian portfolio, with proceeds to reduce debt and refocus on UK and Europe.

• Maintained a strong development pipeline, targeting 2–3GW of new assets, especially in Spain and the UK, including a 400MW BESS framework in Spain.

• Total shareholder return over the last 12 months exceeded 10%, with distributions up 46% year-over-year.

Financial highlights

• NAV at 30 June 2024 was £656.8m (114.9p/share), down from £697.9m (118.4p/share) at year-end, mainly due to weather and power price forecasts.

• EBITDA for H1 2024 was £60.6m (H1 2023: £79.1m); operating revenue was £74.5m.

• Dividend yield at 8.5% on current share price, with 4.00p/share declared for H1 and 8.00p/share target for 2024.

• Shareholder distributions reached £38.6m (+46% YoY), with buybacks and dividends delivering NAV accretion.

• Total outstanding debt reduced to £428.4m, with long-term debt at £354.0m.

Outlook and guidance

• On track to pay the 8.00p/share dividend for 2024 with 1.4x cover; 2025 dividend expected to be at least 1.3x covered.

• Proceeds from Australian asset sales will be used to reduce debt and gearing.

• Focus on UK and Spain, leveraging a proprietary pipeline of nearly 1GW in Spain and 2–3GW overall.

• Anticipates further interest rate cuts and stable power prices, supporting sector growth.

• Optionality to sell development rights or recycle capital into new projects.