Foresight Environmental Infrastructure (FGEN) H2 2024 earnings summary

Executive summary

• Achieved consecutive years of record cash generation, with a dividend cover of 1.30x and resilient earnings despite a challenging macro environment.

• Portfolio remains diversified across 42 assets and 10 technology sectors, with a high degree of inflation linkage and a focus on sustainability.

• Annualised NAV total return since IPO stands at 8.0%, with a progressive dividend policy and a 3% increase in the FY25 dividend target.

• Ongoing asset sales and disciplined capital allocation provide flexibility for debt reduction and potential share buybacks.

• Strong ESG credentials, with net zero by 2050 target and 96% EU Taxonomy alignment by value.

Financial highlights

• Net Asset Value (NAV) at £751.2m, down from £814.6m in 2023; NAV per share at 113.6p, down from 123.1p.

• Portfolio value at £891.9m, slightly down from £898.5m year-over-year.

• FY24 dividend declared at 7.57p (+6% YoY); FY25 dividend target increased to 7.80p (+3%).

• Adjusted earnings per share at 7.5p, up from 6.7p; reported EPS at (2.1)p due to fair value losses.

• Dividend cover at 1.30x (second highest since IPO), with adjusted cover (excl. EGL) at 1.41x.

Outlook and guidance

• FY25 dividend target set at 7.80p, reflecting a 3% increase and a 14.7% rise over the past three years.

• Dividend cover expected to remain above 1.0x even under severe downside power price scenarios.

• Asset sales expected to close later in the year, providing flexibility for debt repayment and share buybacks.

• Highly selective approach to new investments, with focus on existing commitments and value enhancements.