Foresight Solar (FSFL)

In case you missed it: Foresight Solar’s 2024 results showcased the resilience of our operational portfolio. Our fund managers, Ross Driver and Toby Virno, sat down to talk through the financial year’s highlights. Watch the video to learn how we have optimised the portfolio, doubled our proprietary development pipeline, sought to deliver value to investors, and strengthened shareholder engagement.   While 2024 brought challenges, FSFL remains focused on delivering income and growth over the long term.

Tripling the UK’s installed solar capacity to meet 2030 decarbonisation goals will occupy up to 0.4% of the country’s land—less space than is currently used for golf courses.   A study from researchers at Lancaster University found the impact could be even smaller since many panels will be built on rooftops of homes and businesses. Even if they were all mounted on the ground, they’d take up less than 1% of the country’s farmland.   Electricity generators’ commitment to sustainability also means solar farms can contribute to biodiversity enhancements and to the improvement of local wildlife.   At Foresight Solar’s sites, for example, we’ve planted wildflowers and installed bird nesting houses and beehives, as well as partnered with local farmers to allow sheep to graze. The initiatives are good stewardship of the projects and generate positive environmental outcomes.   You can read The Times' article on the research here: https://lnkd.in/edUHhtmb

Ross Driver spoke to a room of current and prospective shareholders at the Proactive One2One Investor Forum last Thursday.   In his overview, he described Foresight Solar’s operational and financial performance and the outlook for the fund.   It was a great opportunity to answer questions and meet some of our shareholders.   A tip of the hat to the other investment trusts and their representatives who made equally compelling presentations: Octopus Renewables Infrastructure Trust (ORIT)'s David Bird; International Public Partnerships Ltd's Chris Morgan; Downing Renewables & Infrastructure Trust (DORE)'s Tom Williams; and Foresight Environmental Infrastructure (FGEN)'s Edward Mountney.   See Ross’ slides below. Leave a comment or get in touch if you have any questions.   #ProactiveInvestors #InvestmentTrusts #RenewableEnergy

Ross Driver is one of the speakers at the upcoming Proactive One2One Investor Forum this Thursday, 10 April, at The Chesterfield in London.   He’ll talk about Foresight Solar’s operational and financial performance and the outlook for the fund.   Follow the QR code below and sign up to join us. It’s free. It’ll be an opportunity to hear from Ross and to meet the rest of the investment team. Toby Virno and Matheus Fierro will also be there.   #ProactiveInvestors #InvestmentTrusts #RenewableEnergy

The risk of a tit-for-tat trade war is roiling equity markets around the world. Operating companies and investment trusts have been hit indiscriminately over the past few days. As infrastructure investors, we believe it’s important to look past short-term shocks.   Bigger picture, the move to a lower carbon world should be beneficial for Foresight Solar and its shareholders. As policy fosters the switch from fossil fuels to green energy sources, economies around the globe will need more clean electricity.   Almost two thirds of the 1,009GWh of renewable electricity FSFL produced in 2024 were destined for UK homes and businesses. As we advance the sale of the Australian portfolio, we’ll refocus on our home market and mainland Europe, geographies committed to electrification and emissions reduction.   Foresight Solar’s portfolio proved its resilience in 2024, generating cash despite record poor weather. The 8.10pps target dividend for 2025 is expected to be 1.3x covered, and we’ll continue to hedge production at attractive prices for years to come. At current share prices, the fund is offering an 11% prospective yield.   #InvestmentTrusts #RenewableEnergy

Foresight Solar (FSFL) has been included in The Association of Investment Companies (AIC)'s list of next dividend heroes, trusts that have increased their dividends for 10 consecutive years. We’re the only renewable energy infrastructure name on the roster.   At our annual results last year, the board announced an increased target of 8.10pps for 2025. At the current share price, that’s a ~10% prospective dividend yield. If confirmed, the target represents 35% growth since the fund listed in October 2013.   The recognition validates Foresight Solar’s commitment to providing progressive income to shareholders.   You can see the full list and read through the selection methodology in the AIC’s post below.   #InvestmentTrusts #RenewableEnergy

Foresight Solar announced its 2024 results this morning, confirming its Q4 NAV of £634.4m (112.3pps). In a year marked by record poor weather, the portfolio proved its operational excellence—and the benefits of geographic diversification. Resilient operational performance: Produced 1,009GWh of renewable energy, enough to power more than 367,000 UK households for a year. Reliable cash generation: Robust performance gave directors confidence to confirm the 8.00pps target dividend. Between dividends and buybacks, we returned ~£67m to investors in 2024.   Progressive, sustainable dividend: The quality of our assets, combined with an active power price hedging strategy, gave directors confidence to increase the dividend target for 2025 to 8.10pps. That’s a ~10% prospective yield considering yesterday’s closing price. Growing development pipeline: Doubled our proprietary pipeline in Spain. The first solar development site in the country is expected to be ready to build later this year. Expanded divestment target: Extended our sales programme, committing to dispose of at least another 75MW of operational capacity. Proceeds from further sales will be used to facilitate greater liquidity for investors. Strategic option consideration: With support from the Investment Manager, the board is exploring all options to deliver long-term solutions for shareholders. New brand and colours: The new design highlights Foresight Solar's core solar generation business and brings out the commitment to sustainability. Let us know what you think in the comments. You can read all the details of today’s announcement in the annual report here: https://lnkd.in/eVgWUac9 #FYresults #InvestmentTrusts #RenewableEnergy

The government will make a big decision for the UK’s electricity system in the next few months. The outcome could upend markets and investment. The Review of Electricity Market Arrangements (REMA) has been going for three years, and a potential move to zonal pricing, in which energy costs are set according to local supply and demand, is one of the biggest changes under consideration. There’s plenty of nuance for regulators to consider, and there are pros and cons to both sides of the argument. A timely decision is important to end uncertainty for the industry and, perhaps more importantly, unlock private capital needed to meet decarbonisation goals. A revolution in existing market structures, however, could scare investors and delay a successful transition to a low-carbon economy. In a The Guardian article, Nils Pratley captures the subtleties in the discussion and why they matter for consumers and investors. Read the full piece here: https://lnkd.in/dMh9qmpE #RenewableEnergy #REMA

In an interesting conversation with Luca Pedretti, of Pexapark, Laurent Segalen and Gerard Reid, the hosts of 🎙Redefining Energy, discuss the market for power purchase agreements in 2024 and project the future of these deals. One thing is clear: scale and data are increasingly important as the market matures, the number of participants grows, and the complexity of deals increases. PPAs are key to infrastructure investors like Foresight Solar, who seek to provide income visibility over the long term. It’s through these agreements that we build our proportion of contracted revenues, providing clarity over the fund’s expected dividend cover. You can listen to the full discussion in the link below. #RenewableEnergy #PowerPurchaseAgreement #InvestmentTrusts

In this edition of "Meet the team", we catch up with Jesús Alberto de la Torre López, a Development Manager in the Foresight Solar team. He tells us about how he’s helping the fund deliver on its income and growth strategy, working directly with our proprietary development pipeline—and a bit about his time as a professional basketball player. The "Meet the team" series goes behind the scenes to introduce you to the individuals that make Foresight Solar possible. We talk to the experts who make the investment decisions, manage the assets, calculate the portfolio's valuation, drive financial success, work on our long-term sustainability, and more.