Foresight Envr – Net Asset Value and Dividend Announcement
FORESIGHT ENVIRONMENTAL INFRASTRUCTURE LIMITED
(“FGEN” or the “Company”)
Net Asset Value and Dividend Announcement
The Board of FGEN, a leading investor in private environmental infrastructure assets across the UK and mainland Europe, announces that its unaudited Net Asset Value (“NAV”) at 31 March 2026 was £655.5 million (105.2 pence per share). After paying the quarterly dividend of 1.99 pence per share, the Company delivered a positive NAV Total Return of 2.5% for the quarter and 6.2% for the full financial year.
FY27 Dividend Target
The Board is pleased to announce the Company’s 12th consecutive dividend increase since IPO, with a dividend target of 8.04 pence per share for the year to 31 March 2027, representing a 1.0% uplift from the year to 31 March 2026.
Highlights in the period
· Delivering resilient NAV growth: NAV of £655.5 million as at 31 March 2026 (31 December 2025: £651.7 million), with NAV per share of 105.2 pence, representing an increase of 0.6 pence over the quarter.
· Dividend in line with target: Quarterly dividend of 1.99 pence declared, in line with the Company’s full-year target of 7.96 pence per share.
· Diversification underpinning resilience: Portfolio diversification supports stable NAV and robust cash generation, with dividend cover of 1.25x for the year, post project debt amortisation.
· Prudent balance sheet maintained: Gearing remains conservative at 29.8% as at 31 March 2026 (30.9% at 31 December 2025), supporting financial flexibility and disciplined capital allocation.
· Well positioned for organic NAV growth: the Board remains focused on delivering the Company’s progressive dividend strategy, alongside NAV growth through consistent operational performance, value enhancements and selective capital recycling.
Ed Warner, Chair of FGEN said:
“The Company has delivered another quarter of stable NAV performance, reflecting the resilience of our diversified environmental infrastructure portfolio and its ability to generate robust cashflows. This underpins our confidence in maintaining a progressive dividend, which has consistently increased since IPO, with cover expected to remain within our target range of between 1.2x – 1.3x in the coming years.
We remain focused on maintaining a prudent balance sheet and disciplined capital allocation, positioning the Company to deliver sustainable and organic NAV growth.”
Summary of changes in NAV:
| NAV per share | |
| NAV at 31 December 2025 | 104.6p |
| Dividends paid in the period | -2.0p |
| Power price forecasts | +1.6p |
| Inflation | +0.3p |
| Anaerobic Digestion life extensions – phase one | +1.4p |
| Other movements (including discount rate unwind less fund overheads) | -0.7p |
| NAV at 31 March 2026 | 105.2p |
Valuation factors
Power price forecasts
Short-term power price forecasts provided by independent third-party consultants have increased since the prior valuation date, primarily driven by higher observable gas and power pricing following the escalation of conflict in the Middle East. In addition, updated forecasts now reflect the expected impact of the UK Government’s proposed abolition of the Carbon Price Support mechanism from April 2028, alongside updated GWA assumptions across the UK wind and solar portfolio.
Overall, the net effect of updated power price forecasts was an increase in NAV per share of 1.6 pence.
Inflation
Inflation assumptions for 2026 have been increased by 50bps to reflect updated independent forecasts, with RPI and CPI now modelled at 4.0% and 3.5% respectively.
Inflation assumptions beyond 2026 remain unchanged.
Anaerobic Digestion (“AD”) life extension – phase one
As outlined in prior reporting periods, the Company has long held the view that AD infrastructure will continue to play an important role in the UK energy mix beyond the 20-year Renewable Heat Incentive (“RHI”) support period.
As such, the Investment Manager has worked with a specialist independent consultant to assess the potential value of biomethane from 2035 onwards, informed by current and expected evolution of biomethane policy in the UK and Europe. The consultant has applied this assessment across the FGEN AD portfolio, including revenue stack analysis and cost requirements, taking into account the technical specifications of each facility.
As a result, the Company has recognised a 1.4 pence per share NAV uplift from extending the lives of the six ADs with the most compelling extension potential, with work ongoing to further assess the remaining ADs in the portfolio.
More details will be provided along with the full Annual Report.
Other NAV movements
Other NAV movements include the usual positive discount rate unwind net of fund operating costs of +1.3 pence, alongside a number of other offsetting lower value movements. These include an allowance for additional boiler maintenance at Cramlington Biomass totalling -0.7 pence, refinement of cost assumptions across the wind and solar portfolio of -0.9 pence and an allowance of -0.5 pence at Project Rjukan related to slower than planned ramp up progress during the period.
Gearing
In line with the Company’s stated approach to capital allocation, FGEN continues to maintain one of the lowest levels of gearing in the sector. As at 31 March 2026, total gearing was 29.8% (31 December 2025: 30.9%), with the Company’s Revolving Credit Facility (“RCF”) £123.1 million drawn.
Portfolio performance
The quarter ending 31 March 2026 has seen positive performance, with generation 2.6% ahead of budget. This was supported by particularly strong performance from the anaerobic digestion portfolio. Whilst wind, solar and biomass underperformed during the period, March saw excellent performance across those sectors.
As communicated at the Company’s Capital Markets Day on 12 May 2026, ramp up continues across the growth assets:
– CNG: gas volumes dispensed grew again during the period, and the RTFC business continues to be highly cash generative.
– The Glasshouse: continuing the trend of increasing sales, management also made further progress against its longer-term objective of export opportunities into European markets.
– Rjukan: production volume growth has been slower than expected in the period, reflective of the early operational stage, with works ongoing to continue optimising performance.
Dividend
The Company declares a quarterly interim dividend of 1.99 pence per share for the quarter ended 31 March 2026, consistent with the full-year target of 7.96 pence per share for the year to 31 March 2026, as set out in the 2025 Annual Report. This equates to a yield of 10.5% on the closing share price on 26 May 2026.
As mentioned, the Board has also set a dividend target of 8.04 pence per share for the year to 31 March 2027, the 12th consecutive dividend increase since IPO.
Dividend Timetable
Ex-dividend date 4 June 2026
Record date 5 June 2026
Payment date 26 June 2026.
About FGEN
FGEN invests into environmental infrastructure to deliver stable returns, long term predictable income and opportunities for growth, whilst driving decarbonisation and sustainability.
Investing across renewable generation, other energy infrastructure and sustainable resource management, it targets projects and businesses with an emphasis on long term stable cash flows, secured revenues, inflation linkage and the delivery of essential services. FGEN’s aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly, alongside the potential for capital growth.
The target dividend for the year to 31 March 2027 is 8.04 pence per share¹.
FGEN is not formally subject to the EU Sustainable Finance Disclosure Regulation, but voluntarily discloses against the requirements of an Article 9 SFDR fund. It further discloses voluntarily against the UK’s Sustainability Disclosure Requirements regime as a ‘Sustainability Focus’ fund. Beyond its alignment with evolving regulation, FGEN prides itself on its transparent and award-winning approach to ESG.
(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.
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