12th Mar 2026 10:27
/**//**//**//**/h1{margin-top:18.0pt;margin-right:0cm;margin-bottom:4.0pt;margin-left:0cm;line-height:106%;font-size:20.0pt;font-family:"Aptos Display","sans-serif";color:#0F4761;font-weight:normal;}h2{margin-top:8.0pt;margin-right:0cm;margin-bottom:4.0pt;margin-left:0cm;line-height:106%;font-size:16.0pt;font-family:"Aptos Display","sans-serif";color:#0F4761;font-weight:normal;}h3{margin-top:8.0pt;margin-right:0cm;margin-bottom:4.0pt;margin-left:0cm;line-height:106%;font-size:14.0pt;font-family:"Aptos","sans-serif";color:#0F4761;font-weight:normal;}h4{margin-top:4.0pt;margin-right:0cm;margin-bottom:2.0pt;margin-left:0cm;line-height:106%;font-size:11.0pt;font-family:"Aptos","sans-serif";color:#0F4761;font-weight:normal;font-style:italic;}h5{margin-top:4.0pt;margin-right:0cm;margin-bottom:2.0pt;margin-left:0cm;line-height:106%;font-size:11.0pt;font-family:"Aptos","sans-serif";color:#0F4761;font-weight:normal;}h6{margin-top:2.0pt;margin-right:0cm;margin-bottom:0cm;margin-left:0cm;margin-bottom:.0001pt;line-height:106%;font-size:11.0pt;font-family:"Aptos","sans-serif";color:#595959;font-weight:normal;font-style:italic;}link{ color: #467886 }visited{ color: #96607D }.ao{size:595.3pt 841.9pt;margin:72.0pt 72.0pt 72.0pt 72.0pt;}div.ao{}p.ax{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:106%;font-size:11.0pt;font-family:"Aptos","sans-serif";line-height:150%}span.av{font-family:"Arial","sans-serif";color:black}p.ay{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:106%;font-size:11.0pt;font-family:"Aptos","sans-serif";line-height:200%}span.at{font-family:"Arial","sans-serif"}p.az{margin-top:0cm;margin-right:0cm;margin-bottom:8.0pt;margin-left:0cm;line-height:106%;font-size:11.0pt;font-family:"Aptos","sans-serif";text-align:justify;line-height:200%}span.aq{font-family: "Arial","sans-serif"}span.ap{font-family:"Arial","sans-serif"; color:windowtext} .fr-view-element{font-family: sans-serif;font-size: 12pt;line-height: 140%;padding: 20px;box-sizing: border-box;overflow-x: auto;min-height: 60px;text-align: left;margin-bottom: 10px;width: 837px;} .fr-view-element img{padding: 0 1px;} .fr-view-element .ao{margin: 63.8pt 1.6cm 62.35pt 1.6cm;} .fr-view-element p{font-size: 10pt;}/**//**//**//**/ RNS Number : 4303W NextEnergy Solar Fund Limited 12 March 2026 NextEnergy Solar Fund - Update from QuotedData12 March 2026New focus on total returnsFollowing its strategic review, NextEnergy Solar Fund's (NESF's) board plans to refocus on delivering both income and capital growth, aiming for long-term total returns of 9%-11%. This year's dividend target of 8.43p will be met, but future dividends will be set at 75% of operating free cashflows after debt and expenses. For the year ending 31 March 2027 (FY27), the estimated dividend range is 4.0p-4.6p.Lowering the dividend should release around £40m over five years, which will be used to strengthen the balance sheet, with a loan-to-value (LTV) target of 40%-45%, and fund new investments to grow NAV. Plans include upgrading existing solar assets and adding energy storage, with a goal for storage to make up 30% of the portfolio.NESF has finished its capital recycling programme with the sale of The Grange and South Lowfield solar farms for £46.2m, and will use the proceeds to pay down its revolving credit facility. Further asset sales totalling 120MW, plus the sale of NESF's private solar fund investment and two co-investments from 2027 onwards, will release more capital.As we explain in this note, NESF has found itself in a difficult place. No bidders emerged during the strategic review and a wide discount to NAV lowers its enterprise value, which limits its ability to buy back shares under the USS preference share covenant. While asset sales have helped reduce debt, weak demand for mature assets means this is not a quick solution and a managed wind down is not possible. As NESF needs cash, reducing the dividend is seen as the best option. The board and advisers believe this approach, which conserves cash, can deliver the targeted 9%-11% total returns.Full Research:https://quoteddata.com/research/nextenergy-solar-fund-new-focus-on-total-returns-qd/This research is also available free on our website www.quoteddata.com where you will also find news, performance data and factsheets on every London listed Investment Company. QuotedData writes and distributes research on a number of quoted companies, facilitates meetings between those companies and existing and potential investors and assists in raising additional capital where required.NB: Marten & Co was paid to produce this note NextEnergy Solar Fund Limited, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.QUOTEDDATA50 Gresham Street | London EC2V 7AYTel: +44 (0) 20 3691 9430www.quoteddata.com | [email protected] | www.martenandco.com This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. 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