NextEnergy Solar Fund Limited Update from QuotedData

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NextEnergy Solar Fund Limited

12 July 2023

NextEnergy Solar Fund - Update from QuotedData

12(th) July 2023

Recycling champion

From an operational standpoint, NextEnergy Solar Fund (NESF) is doing well. As we discuss on page 5 of this note, the board, encouraged by a high proportion of predictable revenue, has felt comfortable in declaring an inflation-matching 11% increase in NESF's dividend per share, and is confident that this will be well-covered by earnings.

In the face of a difficult market for fundraising (expanding the fund by issuing new shares), NESF's managers propose recycling capital from its portfolio of subsidy-free solar assets. In the short term, the proceeds would be used to reduce borrowings (gearing) and fund a potential share buyback. Longer-term, the proceeds would be used to secure new solar and energy storage opportunities that present a suitable return profile.

After a good 2022/23 financial year, new investments could boost the NAV and cashflows further. Share buybacks could turn the tide on NESF's share price discount to net asset value (NAV) and lower debt levels could calm investors' nerves. Combine this with a prospective dividend yield of 9.1% and NESF's future looks bright.

Full Research:

https://quoteddata.com/research/nextenergy-solar-fund-recycling-champion-qd/

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July 12, 2023 12:14 ET (16:14 GMT)