NextEnergy Solar Fund (NESF) H1 2025 earnings summary

Executive summary

• Completed three phases of the Capital Recycling Programme, raising £72.5m from asset sales at significant premiums, and launched a share buyback programme repurchasing 8.6m shares for £6.8m, supporting NAV per share.

• Maintained strong shareholder support, with 94% voting for continuation at the AGM.

• Delivered resilient performance with an 11% dividend yield, increased dividend target to 8.43p, and continued focus on operational asset reinvestment and portfolio optimisation.

• Portfolio consists of 102 operational assets with 983MW installed capacity and a weighted asset life of 25.6 years.

• Maintained Article 9 Fund classification and advanced ESG reporting, adopting ISSB and TNFD standards.

Financial highlights

• Gross Asset Value at £1,104m (down from £1,155m at 31 March 2024); NAV per share at 97.8p (down from 104.7p).

• Generated £45m cash income and 595GWh portfolio generation in the period.

• Net income available for distributions was £37m, with £25m paid out in dividends and debt.

• Dividend yield at 11%, with cover at 1.5x for the period and forecasted 1.1–1.3x for FY25.

• Total gearing to gross asset value at 48.2%, with 70% of debt fixed rate and weighted average cost of debt at 4.9%.

Outlook and guidance

• On track to deliver target dividend of 8.43p per share for FY25, supported by a pipeline of over £500m in solar and energy storage opportunities.

• Ongoing focus on narrowing the share price discount to NAV, progressing capital recycling, and disciplined capital allocation.

• Supportive UK government policy and anticipated reductions in base rates expected to benefit renewables.

• Growth opportunities in solar and energy storage, with a proprietary pipeline and right of first offer on c.10GW Starlight pipeline.