Bluefield Solar Income Fund reports strong half-year results; commences £20mln share buyback
London, UK
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March 08, 2024 05:56 AM Eastern Standard Time
The Bluefield Solar Income Fund (BSIF), advised by Bluefield Partners, has reported strong half-year results and has set its dividend target for the fiscal year at no less than 8.8p per share at two-times cover, up from 8.6p in the previous fiscal year.
The fund, focusing solely on UK solar investments, boasts stable, largely index-linked revenues leading to close to record returns.
Bluefield Partners' Managing Partner James Armstrong told Proactive's Stephen Gunnion that despite these strong performances, the fund is currently trading at a discount to its Net Asset Value (NAV).
Armstrong highlighted the fund's defensive capital structure and a proprietary pipeline of approximately 1.5 gigawatts of solar developments expected to come online in the coming years as key drivers of value and sustainability. This approach has contributed to BSIF being the highest-performing fund of its kind listed in London.
A strategic partnership with GLIL Infrastructure was announced last November, aimed at advancing the fund's development pipeline and addressing the discount to NAV by enabling the fund to proceed with developments and sell down assets, thereby creating liquidity.
BSIF has laid out capital allocation priorities focusing on reducing the Revolving Credit Facility (RCF), maintaining business momentum, and addressing the discount to NAV through measures such as a £20 million share buyback program initiated on 14 February. Although the share buyback is not expected to significantly alter the share price in the short term, it represents a prudent allocation of capital.
Looking forward to the second half of the year, BSIF does not anticipate making acquisitions due to market conditions. The focus will be on progressing the strategic partnership with GLIL, optimizing portfolio performance, and managing the discount to NAV through continued share buybacks.
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