Foresight Solar Fund Ltd fund manager Ross Driver takes Proactive's Stephen Gunnion through a fourth-quarter NAV (net asset value) update, providing an optimistic overview of the fund's performance and strategies amidst challenging macroeconomic conditions.
Throughout 2023, the fund achieved record electricity production, exporting over a terawatt of green energy across its UK, Australia, and Spain portfolios, and distributed a record 120 million in cash from its portfolio.
Notably, the fund's NAV benefited from 20 million of share repurchases, part of a 40 million share buyback program, one of the largest in the renewable infrastructure sector. This boosted shareholder value by 1.1 pence per share. The divestment of a 50% stake in its Lorca portfolio in Spain contributed further to the NAV uplift, with proceeds used to reduce debt by 30 million.
Despite economic challenges, Driver said Foresight Solar remains focused on closing the discount between its share price and NAV, leveraging asset sales and share buybacks to underline the fund's value. The sale of assets, such as the Lorca stake at a 21% premium to NAV, demonstrates the robust valuation of its holdings.
The fund is actively pursuing a total shareholder return strategy, balancing high-quality yield with NAV growth. Driver highlighted the sale of the Toucan portfolio in the UK as a significant benchmark, showcasing the fund's conservative yet effective valuation approach.
Looking ahead, Foresight Solar plans to focus on development stage opportunities, aiming for sustainable growth and continued NAV improvement.
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Foresight Solar Fund Ltd