(Alliance News) - NextEnergy Solar Fund Ltd on Wednesday said net asset value declined in its latest six months, but said recent operations leave it "in an even stronger condition" for stable long-term returns.

The London-based renewable energy investment firm said its NAV fell to 108.3 pence per share at September 30, from 114.3p on March 31 and from 122.9p at September 30, 2022.

Shares in NextEnergy Solar Fund were up 0.4% at 85.90p on Wednesday morning in London.

NextEnergy Solar will pay a 4.18p per share dividend for the half year that ended on September 30, up from 3.76p the prior year. The FTSE 250 company is targeting a total dividend of 8.35p for the year ending March 31, up 11% from 7.52p.

Also on Wednesday, the company announced the completion of the first phase of its capital recycling programme through selling the 60 megawatt Hatherden solar project for GBP15.2 million.

NextEnergy said the asset was purchased by NextPower UK ESC Fund, a ten-year closed-ended private fund managed by NextEnergy Capital and backing new-build solar projects throughout the UK.

NextEnergy Solar said it will "immediately" use the sale proceeds to reduce its short-drawn debt via its revolving credit facilities.

Chair Helen Mahy said she was "pleased to announce another period of steady progress in the face of a series of geopolitical and macroeconomic challenges.

"In addition, your board is taking decisive action to help narrow the discount that the shares trade on in relation to the value of its underlying assets, and today we are announcing the first step in that strategy, with the sale of the Hatherden solar project to release funds and reduce borrowings."

Mahy continued: "We believe that this and the successful completion of our overall capital recycling programme will put NESF in an even stronger condition to deliver long-term stable returns to shareholders, whilst making a significant contribution to Britain's decarbonised future."

By Emma Curzon, Alliance News reporter

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