Foresight Solar Income Fund, the UK-listed renewables vehicle, saw its net asset value (NAV) increase from £148.6 million (€187.1 million; $254.3 million) to £155.43 million in the second quarter.
This represents a 4.52p uplift in NAV per ordinary share, which at the end of June stood at 103.62p. The company says it is on target to deliver its projected dividend of 6p per ordinary share for the first financial year and plans to announce its maiden interim dividend in August.
Its portfolio, now fully operational, comprises seven UK solar assets with a total generating capacity of 111 megawatts (MW). Its latest plant to be connected to the grid was the 10.7MW Hunters Race solar farm in West Sussex.
The fund’s assets will grow to £250 million once the Kencot and Bournemouth plants, which it agreed to acquire in May, will become operational. With a capacity of 74MW, these will be bought using a £100 million bank facility. They are due to be connected to the grid later this year and will benefit from the UK’s Renewable Obligation Certificate (ROC) regime.
Foresight Solar’s parent company Foresight Group launched the Jersey domiciled, London-listed solar vehicle in late October through an IPO that raised £150 million. The fund, which bills itself as the largest UK-listed solar investment company, describes its approach as “lower risk”. Its objective is to avoid development, construction and accreditation risk in its purchase of assets.
“This deliberate strategy minimises the exposure of its investments to changes in regulation such as the recent accelerated introduction of a cliff-edge deadline in March 2015 for ROC projects greater than 5MW,” Foresight Solar said in a statement.