FSFL

Foresight Solar Fund Limited

Trading Update, Q2 2026 Net Asset Value

Foresight Solar, the fund investing in solar and battery storage assets to generate income and deliver long-term growth, announces its unaudited net asset value (NAV) was £517.9 million at 30 June 2026 (31 March 2026: £543.0 million). This results in a NAV per ordinary share of 94.9 pence (31 March 2026: 99.2 pence).

Summary of key changes to NAV

Item	p/share movement
NAV on 31 March 2026	99.2p
Interim dividends paid	-2.0p
Time value	+1.9p
Discount rate adjustment	-1.4p
Inflation assumptions	+0.9p
Project actuals	-1.3p
Power price forecasts	-1.1p
Carbon Price Support (CPS) removal	-0.5p
Share buyback programme	+0.1p
Other movements	-0.9p
NAV on 30 June 2026	94.9p

Inflation assumptions

UK inflation assumptions also moved higher, with RPI and CPI now expected to be 3.5% and 3.0% in 2027, respectively. From 2028 to 2030, RPI is forecast at 3.0% and CPI at 2.5%, before easing to 2.4%¹ and 2.25%, respectively, from 2031. The updated assumptions added 0.9pps to NAV.

Project actuals

Project actuals reduced NAV by 1.3pps, primarily reflecting the timing of cash receipts, payments and power price hedging settlement related to the UK portfolio, as well as lower-than-budgeted generation in Spain and Australia during the second quarter.

Power price forecasts

Updated forecasts from independent market consultants reflected lower near-term power price expectations across Foresight Solar’s markets, following an easing of geopolitical risk during the period, as well as wider UK solar capture price discounts in the long term. Overall, this reduced NAV by 1.1pps.

CPS removal

The UK government announced earlier this year that it will remove the Carbon Price Support mechanism from April 2028. The move is intended to reduce wholesale electricity prices for consumers and industry in the medium term. The change reduced NAV by 0.5pps, in line with the Company’s estimate of between 0.5pps and 1.0pps disclosed at the time of the government’s announcement.

Share buyback programme

Foresight Solar continued to buy back its shares, adding 0.1pps to NAV in the second quarter of 2026. More than £56 million of the £60 million programme has been deployed, delivering a cumulative NAV uplift of 3.4pps since repurchases began.

Other movements

Other movements, including foreign exchange, working capital movements and minor portfolio adjustments, resulted in a net negative impact of 0.9pps.

Independent valuation

Given the persistent share price discount to NAV and the limited number of recent comparable market transactions, the Board commissioned an independent third party to undertake a review of the valuation of the Company’s UK operational solar portfolio. The review considered the valuation methodology, key assumptions and supporting market evidence, and concluded that the valuation is within a reasonable range of fair values.

Trading update

Above-budget production in the UK was partly offset by higher-than-expected curtailment in Spain and below-forecast irradiation in Australia. Overall, global production for the quarter was 3.6% under budget, with solar resource 4.7% above expectations.

In the six months to 30 June 2026, global portfolio generation was 5.6% lower than forecast and irradiation was marginally above budget.

Taking advantage of the macro environment, the investment manager continued to actively manage the Company’s power price hedging strategy. Global contracted revenues are now 84% for 2026, 82% for 2027 and 64% for 2028 of forecast total revenues for each year, with average UK prices at £75.48/MWh, £72.14/MWh and £75.05/MWh for those years, respectively.

Since the end of the second quarter, UK day-ahead electricity prices have risen in reaction to consecutive heatwaves, low wind output and tighter gas markets. Middle East tensions have added pressure to natural gas prices. Solar generators are likely to benefit from these factors, as well as from the sunniest month on record in July, according to the Met Office.

Gearing

The gross asset value (GAV) on 30 June 2026 was £908.0 million (31 March 2026: £931.5 million), with total outstanding debt of £390.1 million, which represented 43.0% of GAV (31 March 2026: £388.5 million and 41.7%) – comfortably within the 50% limit. The modest increase in gearing reflects seasonal working capital requirements.

Interim results date

Foresight Solar expects to publish its interim results for the six months to 30 June 2026 on 15 September 2026. A Notice of Results with more details will be released in due course.