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Foresight Solar Fund Q3 NAV per share falls as discount rates increase

By Reuters News


Overview

  • UK solar and battery asset investor's Q3 NAV per share declined to 93.8p from 94.9p

  • NAV decline partly due to higher discount rates amid rising government bond yields

  • Q3 portfolio generation and EBITDA were above budget


Outlook

  • Company says 81% of 2026 revenues are contracted, 82% for 2027, 65% for 2028

  • Company expects revenue visibility from power price hedging, with some exposure to market upside

  • Foresight Solar is reviewing UK government proposals that could affect future revenue certainty


Result Drivers

  • ABOVE-BUDGET GENERATION - Q3 portfolio generation exceeded budget, mainly due to stronger solar resource in the UK and Australia

  • HIGHER REALISED POWER PRICES - UK portfolio achieved realised power prices well above budget in Q3

  • DISCOUNT RATE INCREASE - Higher government bond yields led to increased discount rates, reducing NAV


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Asset Value

GBP 511.10 mln

Q3 Net Asset Value Per Share

GBP 0.94


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the closed end funds peer group is "buy."

  • Wall Street's median 12-month price target for Foresight Solar Fund Ltd is GBp76.00, about 13.3% above its November 3 closing price of GBp67.10

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 3 - Sweden's Flat Capital Q3 NAV falls as Klarna share decline weighs

  • Nov 3 - Neostellar Capital Q3 NAV per share falls 6%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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