LEI: 213800ZPHCBDDSQH5447
15 May 2024
NextEnergy Solar Fund
Limited
("NESF"
or the "Company")
11th Dividend Target
Increase
NextEnergy Solar Fund, a leading
specialist investor in solar energy and energy storage, is pleased
to announce the Board has approved a dividend target of
8.43p per ordinary share
for the financial year ending 31 March 2025.
In line with the Company's
progressive dividend policy, the Board considers that a 1% increase
in the dividend target appropriately balances the interests of the
Company, investors and other stakeholders whilst taking into
account the strength of the prior year's dividend and the Company's
attractive c.11% dividend
yield, which is currently one of the largest amongst renewable
investment companies as at closing share price on 14 May
2024.
The target dividend cover is
forecasted to be between 1.1x-1.3x, supported by a high degree
of visibility of the Company's revenues. The Company's RPI-linked
subsidised revenues represent approximately 50% of total revenues.
The remaining revenues are derived from budgeted electricity
generation, of which prices for 82% of revenues have already been
fixed to 31 March 2025 through the Company's active power hedging
strategy.
The Company has declared total
ordinary dividends since inception of £345m or 67.8p per ordinary share. This
announcement represents NextEnergy Solar Fund's eleventh
consecutive dividend target increase, in line with the Company's
progressive annual dividend policy. The Company has an impressive
track record having achieved all its dividend targets whilst
maintaining a covered dividend throughout the last ten years and
continues to target a covered dividend beyond the current financial
year.
In deciding the target dividend, the
Board considers projected future power prices and associated price
hedges, inflation in renewable markets, historic and budgeted
technical, financial and operational performance of NESF's
portfolio, and the ratio of cash cover to proposed dividend
payments.
Helen Mahy, Chairman of NextEnergy
Solar Fund, commented:
"We are proud to announce NextEnergy Solar Fund's eleventh
consecutive year of dividend growth which evidences the strong
position the Company finds itself in despite a challenging
macroeconomic backdrop for the wider sector. NextEnergy Solar
Fund's dividend per ordinary share is one of the highest among the
listed renewable energy investment company sector demonstrating its
resilience, which offers investors an attractive dividend yield
through access to a high-quality portfolio of solar energy and
battery storage assets. The Company continues to service its
progressive dividend by securing future revenue flows, maintaining
a robust operational asset base, and continually looking for
attractive growth prospects. We look forward to continuing to
deliver on plans like the Capital Recycling Programme, which should
leave NextEnergy Solar Fund in a stronger position than
ever."
Notes:
The dividend target stated in this
announcement is a target only and not a profit forecast. There can
be no assurance that this target will be met, and it should not be
taken as an indication of the Company's expected future
results. Potential investors should not place any reliance on
this target and should decide for themselves whether or not the
target dividend is achievable.
For further information:
NextEnergy Capital
Michael Bonte-Friedheim
|
020 3746 0700
ir@nextenergysolarfund.com
|
Ross Grier
|
|
Stephen Rosser
|
|
Peter Hamid (Investor
Relations)
|
|
RBC Capital Markets
|
020 7653 4000
|
Matthew Coakes
|
|
Elizabeth Evans
Kathryn Deegan
|
|
Cavendish
|
020 7397 1909
|
James King
|
|
William Talkington
|
|
H/Advisors Maitland
|
020 7379 5151
|
Neil Bennett
|
|
Finlay Donaldson
|
|
|
|
Ocorian Administration (Guernsey)
Limited
|
01481 742642
|
Kevin Smith
|
|
Notes to
Editors1:
About NextEnergy Solar
Fund
NextEnergy Solar Fund is a
specialist solar energy and energy storage investment company that
is listed on the premium segment of the London Stock Exchange and
is a FTSE 250 constituent.
NextEnergy Solar Fund's investment
objective is to provide ordinary shareholders with attractive
risk-adjusted returns, principally in the form of regular
dividends, by investing in a diversified portfolio of utility-scale
solar energy and energy storage infrastructure assets. The
majority of NESF's long-term cash flows are inflation-linked via UK
government subsidies.
As at 31 March 2024, the Company had
an unaudited gross asset value of £1,155m. For further
information please visit www.nextenergysolarfund.com
Article 9 Fund
NextEnergy Solar Fund is classified
under Article 9 of the EU Sustainable Finance Disclosure Regulation
and EU Taxonomy Regulation. NextEnergy Solar Fund's
sustainability-related disclosures in the financial services sector
are in accordance with Regulation (EU) 2019/2088 and can be
accessed on the ESG section of both the NextEnergy Solar Fund and
NextEnergy Capital websites.
About NextEnergy Group
NextEnergy Solar Fund is managed by
NextEnergy Capital, part of the NextEnergy Group. NextEnergy
Group was founded in 2007 to become a leading market participant in
the international solar sector. Since its inception, it has
been active in the development, construction, and ownership of
solar assets across multiple jurisdictions. NextEnergy Group
operates via its three business units: NextEnergy Capital
(Investment Management), WiseEnergy (Operating Asset Management),
and Starlight (Asset Development).
· NextEnergy
Capital: has over 17 years of
specialist solar expertise having invested in over 400 individual
solar plants across the world. NextEnergy Capital currently
manages four institutional funds with a total capacity in excess of
3GW+ and has assets under management of $4.3bn.
More information is available at
www.nextenergycapital.com
· WiseEnergy®:
is a leading specialist operating asset manager in
the solar sector. Since its founding, WiseEnergy has provided
solar asset management, monitoring and technical due diligence
services to over 1,500 utility-scale solar
power plants with an installed capacity in excess of
2.5GW. More
information is available at www.wise-energy.com
· Starlight:
has developed over
100 utility-scale projects internationally
and continues to progress a large pipeline of c.10GW of both green
and brownfield project developments across global
geographies. More information is available at www.starlight-energy.com
Notes:
1: All financial data is
unaudited at 31 March 2024, being the latest date in respect of
which NextEnergy Solar Fund has published financial
information