Renewables investor Foresight Solar Fund (LON:FSFL) is stepping up efforts to address a stubbornly-wide share price discount to net asset value (NAV). In today’s H1 results, the board insisted change needs to be accelerated. As such, it is ‘considering all strategic options’ to maximise value for shareholders in ‘an effective and timely manner’.
For the uninitiated, Foresight Solar is a renewable energy infrastructure fund with roughly £1 billion deployed into solar and battery storage assets. H1 results revealed a 4.3% drop in NAV from 99.2p at the end of December to 94.9p as of 30 June 2026.
This fall primarily reflected higher discount rates, regulatory changes and reductions to UK electricity price forecasts. In addition, mixed operating conditions across the global portfolio meant production was 5.6% below forecast.
On the bright side, irradiation was marginally above budget as strong solar resource in the UK helped offset weaker performance in other markets.
Taking decisive action
Last year, Foresight Solar launched a strategic review. This was in response to its wide NAV discount and differing shareholder demands.
In today’s statement, chair Tony Roper said: ‘The board does not believe that a meaningful change in market sentiment is likely within any reasonable timeframe given the persistent structural and macroeconomic challenges affecting the alternative asset segment of the UK investment trust market’.
| Key financial highlights | H126 | H125 |
| Net asset value (£m) | 517.9 | 603.8 |
| NAV per share (p) | 94.9 | 108.5 |
| Dividend per share (p) | 8.10 | 8.10 |
| Cash flow from operations (£m) | 0.6 | 14.8 |
Source: Foresight Solar, H1 results
Accordingly, the board believes it ‘must now act decisively to address the challenges faced by the company.’
Eighteen months after launching its strategic review, Foresight Solar continues to languish on a 25.6% NAV discount. Disappointingly, NAV has continued to decline. Additionally, a recent unsuccessful attempt to sell the Australian portfolio demonstrated just how tough it is to sell assets at acceptable prices.
Winterflood analyst Ashley Thomas assumes the strategic review will result in a NextEnergy Solar Fund (LON:NESF) style formal sale process.
Furthermore, Thomas suggests the review could prompt the offer of consolidation with a larger wind player such as Greencoat UK Wind (LON:UKW) or The Renewables Infrastructure Group (LONTRIG). Watch this space for further updates.
