Foresight Solar Share Discussion Threads

[llef] 20/4/2024 12:02

So a 6% rise in dividend for 2024 relative to 2023.

Given that FSFL will have bought back around 6% of shares in last year, that means that the annual net cost of the dividend to the company will be same.

At an almost 10% dividend yield, it makes sense for the company to keep on buying back more shares rather than paying down the floating debt.

[gateside] 18/4/2024 22:06

smidge21 - thanks

[orinocor] 18/4/2024 21:00

Good that makes the yield 9.6%. I looked at others in this sector but settled on FSFL because its gearing of 38% is lower than BSIF or NESF. Also the ex-dividend date next week was a factor.

[smidge21] 18/4/2024 20:13

Look at RNS on March 12th; 8p div target for 24

[gateside] 18/4/2024 19:25

Aleman, when did they announce the 2p quarterly dividend?

[aleman] 18/4/2024 17:49

Note to new investors - they've declared an intention to pay 2.0p per quarter for 2024.

[orinocor] 18/4/2024 15:32

Foresight Solar is pleased to announce the fourth interim dividend, for the period 1 September 2023 to 31 December 2023, of 1.895 pence per ordinary share. The shares will go ex-dividend on 25 April 2024 and the payment will be made on 24 May 2024 to shareholders on the register as at the close of business on 25 April 2024.

[fordtin] 26/3/2024 16:25

spoole5 - "All the renewables seem to fall after 2pm every day!"

Dog bless America!

[spoole5] 26/3/2024 15:26

All the renewables seem to fall after 2pm every day!

[nerja] 26/3/2024 14:34

Dropping through support, what gives now

[mwj1959] 12/3/2024 11:09

Note the Continuation Vote due at the June AGM as the average discount in 23 was well above the 10% threshold at 16%. I would be very surprised if there was a a vote to discontinue it, even though the current discount has widened even further to c.23%. Winding this up would certainly have its challenges. The Board seem confident that the discount will narrow. I'm less sure about that in the current environment, at least in a material way. There are plenty of factors that can impact the NAV, both positively and negatively (see p.42 of today's Annual Report), so I struggle to see the discount being structurally much below 10%, particularly in an environment where its hard to find meaningful buyers of such assets. That's clearly a better outturn than where we are currently, particularly if the NAV were to rise, but it's certainly not a return to the heady days when this traded at a premium. The 8.8% DY at current levels clearly has its attractions and provides an element of downside protection, so risk / reward is probably tilted in ones favour over the next 12m with a 20% TR not an unreasonable expectation.

[masurenguy] 12/3/2024 07:10

Foresight Solar Fund Limited Annual Results to 31 December 2023

· Net Asset Value (NAV) of £697.9m (31 December 2022: £771.5m). The uplift from the sale of the Lorca portfolio stake at a 21% premium to holding value, alongside an active price hedging strategy, mitigated negative impacts from higher discount rates and softening power price forecasts.

· Record electricity generation with 1,094GWh exported to the grid, enough to power over 400,000 UK households for a year - avoiding 390,000 tonnes of carbon dioxide emissions.

· Record cash distribution from the underlying assets of £120 million, the highest in Foresight Solar's 10-year history.

· FSFL delivered on the first phase of its divestment programme with the sale of a 50% stake in the Lorca portfolio. The proceeds from this transaction, alongside free cash, were used to pay down £40 million of variable rate debt on the RCF, bringing the drawn balance down to £75 million.

· Foresight Solar grew its proprietary pipeline with the acquisition of the rights to a 467MWp portfolio of development-stage solar projects in Spain. The move exemplifies the Company's capital allocation strategy, focused on new investments with limited upfront capital requirements to drive long-term growth and total shareholder returns.

· Foresight Solar returned £20 million to shareholders via share buybacks, deploying half of the £40 million allocation in the year and delivering 1.1 pence per share of NAV accretion.

· Total dividend of 7.55 pence per share declared for the full year, in line with the Company's target. Dividend cover for 2023 was 1.61x.

· Target dividend of 8.00 pence per share for 2024, an increase of 6% compared to the previous year. The 2024 target is expected to be 1.50x covered from cash generated in the period, with around 1.35x cover for 2025 - assuming current revenue forecasts.

· The sale of several large ROC-backed solar portfolios in the UK offers reliable market benchmarks for the Company's assets. The price at which the latest deal closed indicates a value per megawatt approximately 15% above Foresight Solar's £1.17m/MW valuation of its UK portfolio.

Alexander Ohlsson, Chairman of Foresight Solar, said: "Foresight Solar delivered resilient performance with record electricity production and cash distribution against a challenging market backdrop. Our operational strength, the powerhouse behind our progressive dividend, enabled us to comfortably meet our dividend target of 7.55p per share for 2023 and allows us to propose an above inflation increase of 6.0% for the 2024 target dividend of 8.0p per share.

During the year, we have remained focused on initiatives to address the discount to NAV at which the Company's shares have traded and to place the fund in the best possible financial position to support shareholders' interests. We paid down £40 million of variable rate RCF debt, reducing financing costs, and returned £20 million to investors via share buybacks. The Board is adhering to its disciplined approach to capital allocation and the only new project investments currently under consideration are modest investments to expand the development stage pipeline.

In the year Foresight Solar celebrated its 10th anniversary, we successfully completed the Company's first divestment. The partial sale of the Spanish Lorca portfolio at a 21% premium to holding value validates our valuation methodology and supports our investment model. Bringing projects through development to construction and then into operation offers optionality and allows the Company to capture financial upside, a strategy we intend to replicate through our development pipeline. The Lorca transaction was also a key driver of NAV uplift, and the Investment Manager continues to make progress on the next phases of the divestment programme. We look forward to providing more details to shareholders in due course.

By leveraging the Investment Manager's local networks in Spain, Foresight Solar purchased the rights to six development-stage solar projects, totalling over 460MWp. Over the medium-term, we will expand this growing proprietary development pipeline and focus on the huge potential for solar and storage to be unlocked throughout Europe. As power price forecasts softened across markets during the year, Foresight Solar's active hedging strategy enabled the fund to lock in higher prices. These favourable terms will help insulate the NAV against market fluctuations in 2024 and beyond, providing greater visibility on dividend cover.

After a challenging year for markets, we believe there are reasons for optimism. The energy transition is one of the biggest investment themes of our generation. The solar power opportunity alone is immense. Industry fundamentals remain attractive and solar generation continues to be one of the cheapest and most reliable sources of electricity available. This promising outlook, coupled with Foresight Solar's improved financial position and clear strategy to deliver income and growth, positions the fund well to capitalise on the opportunities ahead."