Nextenergy Solar Share Discussion Threads

[petewy] 21/5/2022 12:17

In the IC expert portfolios John Rosier features NESF.
Use Firefox

[woodhawk] 21/5/2022 10:23

Just normal ups and downs - nothing unusual here. I have no idea what 'out of kilter with the rest of the market' means - when does the market EVER move as one entity?

At 111p the shareprice values NESF at less than the last reported NAV. With an average sector premium, the share price should be nearer to 130p, so I'm tempted to add further on any weakness.

[gateside] 21/5/2022 10:00

It didn't go down much on Thursday when it went Ex-dividend.

Agree that any weakness here is a good buying opportunity.

[tuftymatt] 21/5/2022 09:30

I think it's simply a mixture of ex divi as you say and the fact that nothing ever goes up in a straight line. Not a concern in my opinion and should be viewed as a chance to buy in / add.

[janeann] 21/5/2022 07:13

why the fall in the price in the last cuple of days; i know its gone ex dividend but fridays move seems out of kilter with the rest of the market?

[woodhawk] 19/5/2022 10:42

Took some more this morning. Any significant falls and I will be topping up. Still well below average premium for the sector and great quarterly divi. ContourGlobal taken over a few days ago for 36% premium to then current s.p.

[nimbo1] 18/5/2022 12:08

looking forward to the divi in this environment

[panshanger1] 17/5/2022 14:19

Ex dividend Thursday for 1.79p

[marktime1231] 11/5/2022 15:27

Splendid NAV progress as anticipated. We should expect the share price to regain its premium because there is still more NAV gain to come but maybe not at this exceptional rate. For example from the surplus income. And, I think, the coupling of solar with battery storage will add value by allowing assets to participate more in the evening peak. And ongoing developments of course.

My mistake jumping the gun on the dividend which will not increase to 1.88p until next quarter.

Yes NESF is pretty fully geared and rightly considers expansion beyond the current pipeline would need a capital raise, hopefully by when the share price will have regained a healthy premium to NAV. Repaying some debt from the fund raising, using the rest to increase GAV by expanding, while the cash flow sustains the yield. Nothing too much to worry about. Given the dreadful investment landscape right now punters would be happy buying some at say 115p when the share price hits 120p. Wouldn't you?

Expansion is always to be welcomed, value is created by investing in developments at an early stage so long as execution risks are well controlled, focus turning to those ventures into shovel-ready projects which include long duration storage in the design. Producing incremental NAV gains once they are commissioned. As NESF increases in scale its ability to add value will just get better. Who knows, it might be able to emulate the performances of UKW and GRID.

Even with a fund raise looming there are compelling arguments to invest sooner rather than later.

[masurenguy] 11/5/2022 14:50

Added @113.6p (showing as a Sell) to take my average cost price up to 107.3p as I expect to see the shareprice reach 120p later this year. This also gives me a yield of 6.75%, which is slightly less than my holding in FSFL but slightly higher than my holding in BSIF.

[woodhawk] 11/5/2022 12:19

Exactly, I don't see it as any problem. NESF still currently valued at little over NAV.

[scrwal] 11/5/2022 12:18

The capital raise shouldn't be a problem - it wasn't for JLEN earlier this year.

[williamcooper104] 11/5/2022 11:44

Any successful REIT or YieldCo will seek to use their cheap equity cost to grow It's positive The question is at what price to NAV equity is being raised

[llef] 11/5/2022 11:10

I think its fair to point out that potential capital raising might depress the price short term. The managers wont worry too much about that, as ultimately, the managers want more assets to manage, as they make more money that way.

Its overall a very good update, but perhaps this NAV is a little over-egged, as they have included all the positivea, (higher inflation, higher power prices, higher output), but ignore the flip-side of higher inflation which is higher interest rates and thus higher discount rates, viz

"There has been no change to the discount rate assumptions used to value the assets."

[woodhawk] 11/5/2022 10:56

1senn.

Yeah, yeah ignore all the positives and find something you could possibly construe as a negative if so inclined. Your first post here, I see.

[1senn] 11/5/2022 10:34

Good company

But the bit about the poss of capital raising may cast a shadow short term??

[tuftymatt] 11/5/2022 08:28

Fantastic bit of positive news is amongst so much negativity right now 👍🏻

[woodhawk] 11/5/2022 07:49

Excellent update. With sector average premium on increased NAV of 113.5p should be trading around 130p.

[nimbo1] 11/5/2022 07:36

nice update NextEnergy Solar Fund, the specialist solar power renewable energy investment company, is pleased to announce its unaudited Net Asset Value ("NAV") as at 31 March 2022, and latest operational update.

Financial Highlights

-- +9.1p (+8.7%) increase in unaudited NAV per ordinary share to 113.5p (31 December 2021: 104.4p).

-- Increase in unaudited Ordinary shareholders' NAV to GBP669m (31 December 2021: GBP615m).
-- Ordinary shareholders' unaudited Gross Asset Value ("GAV") of GBP1,150m ( 31 December 2021: GBP1,094m).

-- Ordinary shareholder cumulative total return since IPO of 53.6% ( 31 December 2021: 50%)
-- Gearing (including preference shares) of 42% (31 December 2021: 44%).
-- 5.0% increase in target dividend to 7.52 pence per ordinary share (FY21/22 7.16 pence per ordinary share).

-- The Company is predicting a dividend cover of between 1.3x and 1.5x for the current financial year.

[gateside] 10/5/2022 13:48

Sorry - getting this mixed up with FSFL which will very likely get promoted with JLEN

[scrwal] 10/5/2022 13:43

It's very unlikely to get promoted as it is under the automatic entry point by £90M with 20 companies between NESF and that point.

[gateside] 10/5/2022 07:03

It looks like it will be.

JLEN looks like it is an almost certainty to rejoin the FTSE250

[panshanger1] 10/5/2022 06:38

Is this heading back into the footsie 250 ?

[spectoacc] 09/5/2022 16:19

Nuts. Pacific Horizon (PHI) good too - was over 10% - and LTI (Nick Train) got over 80% premium, based on (presumably) an assessment of the L-T business being much more valuable than it was in the NAV for.

Have never gone far wrong by not buying at a premium - tho JLEN's RNS this morning is well worth a read, with read-across to NESF.

[hindsight] 09/5/2022 16:10

Think BGCG was the best example of Ballie Gifford mania, went to 20% premium