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

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

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

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(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.)