NextEnergy Solar Fund Limited (LSE:NESF) reported a net asset value (NAV) of 91.7p per share as of June 30, reflecting a 3.6% drop from the prior quarter.
The decline was largely driven by lower power price assumptions, which reduced NAV by 2.2p per share, while adjustments to battery energy storage system (BESS) revenue expectations further shaved 0.9p per share. These effects were partly counterbalanced by updated inflation assumptions, adding 0.6p per share, and strong solar generation that exceeded budget forecasts by 7.6%, contributing another 0.5p per share.
Total gearing, including preference shares, rose slightly to 48.5% from 48.4% in March 2025. The fund’s £205 million revolving credit facility is drawn to approximately £152.9 million, up from £144.9 million earlier in the year.
NextEnergy Solar Fund reaffirmed its dividend guidance of 8.43p per share for fiscal 2026, expecting coverage of 1.1–1.3 times. Exceptional solar irradiation in the first quarter of FY26, 18.9% above budget, has already secured roughly 40% of the fund’s annual generation.
The fund’s asset disposal program continues, with 100MW of solar capacity currently in a third-party sales process. Meanwhile, the share buyback initiative paused during the quarter and remains 58% completed, totaling £11.5 million.
Looking ahead, about 91% of the fund’s FY26 revenue is already contracted, with roughly 70% secured for FY27, providing a strong foundation for near-term cash flow visibility.
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