TIDMNESF
RNS Number : 1799Z
NextEnergy Solar Fund Limited
12 May 2023
LEI: 213800ZPHCBDDSQH5447
12 May 2023
NextEnergy Solar Fund Limited
("NESF" or the "Company")
11% Dividend Target Increase
NextEnergy Solar Fund, the specialist solar+ fund, is pleased to
announce its dividend target for the financial year ending 31 March
2024. The Board of NESF has approved a dividend target of 8.35p per
ordinary share, representing an 11% increase from the previous
year's dividend of 7.52p per ordinary share.
The Company has declared total dividends since IPO of GBP305.8m
or 55.72p per share. This announcement represents NESF's tenth
consecutive dividend target increase, in line with the Company's
progressive annual dividend policy. The Company has achieved all of
its dividend targets whilst maintaining a covered dividend
throughout the nine years since IPO and continues to target a
covered dividend beyond the current financial year.
The dividend target is forecasted to be 1.3x-1.5x covered,
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. Remaining revenues are derived
from budgeted electricity generation, prices for 88% of which have
been fixed through to 31 March 2024 through the Company's active
power hedging strategy.
The dividend target increase is not dependent on the completion
of the Company's recently announced Capital Recycling Programme and
dividend cover forecasts do not assume revenues from, or sale
proceeds connected with, the Capital Recycling Programme.
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.
The Company continues to offer ordinary shareholders a scrip
dividend alternative.
Kevin Lyon, Chairman of NESF, commented:
"We are proud to announce NESF's tenth consecutive year of
dividend growth with a target dividend of 8.35p per ordinary share
for the financial year ending 31 March 2024. This represents an 11%
increase from the previous year's dividend of 7.52p per ordinary
share, and we are pleased, given the current macroeconomic
environment, to offer shareholders an increase to their dividend.
This announcement reflects the strong position of the Company, its
secured revenue flows, robust operational asset base and attractive
growth prospects. It also demonstrates the resilience of NextEnergy
Solar Fund, which continues to offer investors an attractive
dividend yield through access to a high-quality portfolio of solar
and battery storage assets."
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 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 020 3746 0700
Michael Bonte-Friedheim ir@nextenergysolarfund.com
Ross Grier
Stephen Rosser
Peter Hamid (Investor Relations)
RBC Capital Markets 020 7653 4000
Matthew Coakes
Elizabeth Evans
Kathryn Deegan
Cenkos Securities 020 7397 8900
James King
William Talkington
Camarco 020 3781 8334
Owen Roberts
Eddie Livingstone-Learmonth
Ocorian Administration (Guernsey) Limited 014 8174 2642
Kevin Smith
Notes to Editors(1) :
About NextEnergy Solar Fund
NESF is a specialist solar+ fund listed on the premium segment
of the London Stock Exchange and is a constituent of the FTSE 250.
NESF'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.
The NESF portfolio has a combined installed power capacity of
865MW (excluding NextPower III MW on an equivalent look-through
basis). NESF may invest up to 30% of its gross asset value in
non-UK OECD countries, 15% in solar-focused private infrastructure
funds, and 10% in energy storage assets. As at 31 March 2023, the
Company had an unaudited gross asset value of GBP1,218m. For
further information on NESF please visit www.
nextenergysolarfund.com
Article 9 Fund
NESF is classified under Article 9 of the EU Sustainable Finance
Disclosure Regulation and EU Taxonomy Regulation. NESF's
sustainability-related disclosures in the financial services sector
in accordance with Regulation (EU) 2019/2088 can be accessed on the
ESG section of both the NESF & NEC website.
About NextEnergy Group
NESF 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: Ha s over 16 years specialist solar
expertise having invested in over 350 individual solar plants
across the world. NextEnergy Capital currently manages four
institutional funds with a total capacity in excess of 2.4GW+ and
has asset under management of $3.3bn. www.nextenergycapital.com
-- WiseEnergy(R): Provides solar asset management, monitoring
and technical due diligence services to over 1,350 utility-scale
solar power plants with an installed capacity in excess of 1.8GW.
WiseEnergy clients comprise leading banks and equity financiers in
the energy and infrastructure sector. www.wise-energy.com
-- Starlight: H as d eveloped 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.
Notes:
(1:) All financial data is unaudited at 31 March 2023, being the
latest date in respect of which NESF has published financial
information
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