Edison review on Foresight Solar Fund (FSFL)

RNS Number : 5584X

Foresight Solar Fund Limited

30 August 2022

 

London, UK, 30 August 2022

Edison issues review on Foresight Solar Fund (FSFL)

Foresight Solar Fund (FSFL) is the largest solar investor listed in the UK by total net peak capacity of c 1.07GW (when operational). We believe that the global and UK climate change policies will remain renewable energy friendly, creating further solar and battery storage growth opportunities for FSFL. FSFL provides investors with a covered, sustainable and growing dividend (even in 2020 amid depressed power prices). It is focused on further strengthening its dividend cover (1.21x in FY21, targeting a minimum of 1.5x in FY22) over the next four years. FSFL has recently secured further exclusive positions in ready-to-build battery storage projects totalling c 60MW targeted for completion in the coming months. FSFL expects these to be accretive to the portfolio NAV and target yields.

Rising commodity prices in 2021 and H122 led to higher power prices, allowing FSFL to enter new short- and medium-term fixed contracts at attractive prices. This resulted in higher merchant revenues and NAV. The manager believes the dividend cover will strengthen over the next four years, at the current contract levels. In H122 and FY21, the UK portfolio (72% of total installed capacity) performed strongly and ahead of budget. While the Australian assets (16% of capacity) held FSFL's electricity generation back during FY21, the managers expect the Australian portfolio to make an improved operational contribution in FY22. conservative.

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Victoria Chernykh [phone] [e-mail]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-group-/

Twitter    www.twitter.com/Edison_Inv_Res

YouTube         www.youtube.com/edisonitv

 

END

 

 

NRAFIFLDTLIIVIF