Bluefield Solar Income Fund H1 2026 Earnings Report

Bluefield Solar Income Fund EPS Results

• Actual EPS: GBX 16.03
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Bluefield Solar Income Fund Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Bluefield Solar Income Fund Announcement Details

• Quarter: H1 2026
• Date: 3/3/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, March 3, 2026
• Conference Call Time: 4:30AM ET

Bluefield Solar Income Fund (LON:BSIF) (BSIF) is an investment company focused on the acquisition and long-term management of a diversified portfolio of low carbon assets in the UK, with a primary focus on solar assets. The fund's initial public offering (IPO) was in July 2013, making it the first investment company focused on solar PV to be listed on the London Stock Exchange (LSE). The investment objective of the fund is to deliver long term, attractive yield via the payment of quarterly dividends. The fund primarily targets utility scale solar assets and portfolios on greenfield, industrial and/or commercial sites. Whilst the initial investment focus was 100% UK solar, in July 2020 the mandate was widened to enable investment into complementary technologies including wind and storage. As a pioneer in the renewable market, BSIF has always had a clear environmental focus. BSIF believes that the integration of ESG considerations into investment processes can help to mitigate risk and support long-term resilience of investments, whilst at the same time generating positive value in addition to financial returns. Examples include social value through community benefit fund payments, or environmental value through nature initiatives on site. The positive environmental contribution of the fund has been recognised and in 2019 it was awarded the LSE Green Economy Mark and achieved Guernsey Green Fund status. In 2021 it was admitted as part of the TISE Sustainable market segment. In line with the environmental characteristics it promotes, BSIF is categorised as an Article 8 fund under the Sustainable Finance Disclosure Regulation, and aligns its portfolio with the EU Taxonomy. BSIF’s Investment Adviser, Bluefield Partners LLP, undertakes detailed due diligence on each investment opportunity, covering a range of environmental, social and governance topics. Please refer to BSIF’s Sustainable Investment Policy, available on its website, for further information on how sustainability risks are integrated into the fund’s investment processes. BSIF identified its material ESG risks and opportunities via a materiality assessment, drawing upon internal (i.e., representatives from the Bluefield Group) and external stakeholder perspectives alongside a landscape review of the ESG regulatory environment. The fund’s ESG strategy and KPIs have been built around these aspects to help measure and manage material ESG-related risks and opportunities. BSIF’s ESG strategy is centred around three key pillars: - Climate change mitigation: supporting the UK with its net zero carbon ambition whilst aligning to the TCFD recommendations. - Pioneering positive local Impact: considering and, where possible, enhancing nature and encouraging community engagement at the local level. - Generating energy responsibly: a commitment to help drive ethical practices within its operations and throughout its supply chain. ESG topics are arranged under the three pillars and reflect priority focus areas, as identified by stakeholders, regulatory requirements (including the EU SFDR, EU Taxonomy and TCFD), and ESG frameworks, including SASB. Further information on the Company’s ESG Strategy is available within its Annual Reports. BSIF recognises the potential negative impacts that come with being part of the renewables industry, for example environmental impacts relating to construction, or social risks within wider renewables supply chains. As part of its responsible investment approach, which refers to the integration of ESG across the investment lifecycle (which does not include the manufacturing or end-of-life processing of materials), BSIF considers both the positive and adverse impacts of its investment decisions on sustainability factors, and produces a Principal Adverse Impact (PAI) statement annually. BSIF benefits from a highly experienced, fully independent board of directors. The Board is comprised of five individuals, the chairman and four directors who bring broad and deep experience from the commercial and industrial sectors as well as experience of investment companies. Bluefield Partners LLP acts as Investment Adviser to the fund; it is FCA regulated and a signatory to the UN Principles of Responsible Investment (UN PRI). Bluefield Group is made up of five separate, complementary businesses, each responsible for a different part of the investment, development and operational cycle.

Bluefield Solar Income Fund H1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strategic partnership with GLIL advanced — phase 3 (183MW of development assets) agreed and the JV now includes >400MW operational plus >200MW in construction/development, with prior disposals to the JV generating proceeds north of £100m.
• Positive Sentiment: Development pipeline is large and market-facing: over 1.2GW consented, more than 500MW of CFDs and successful AR7 auction awards of ~200MW, positioning BSIF for future growth opportunities.
• Negative Sentiment: NAV pressure — NAV declined by ~£52m (June–Dec 2025) driven by dividend payouts, lower near-term power price forecasts and a 50bp increase to the discount rate (now 8.5%), reflecting valuation headwinds and a runoff profile without new operational asset inflows.
• Positive Sentiment: Solid financial position with ~£1.1bn gross asset value, conservative low gearing and mostly fixed-rate debt (~4% all‑in, 10‑year average maturity), H1 operational cashflow ~£37m and a targeted 9p full‑year dividend (yield >12%).

Presentation

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

Good morning everyone, thank you for joining the interim results presentation for the Bluefield Solar Income Fund for the period ending December 2025. I'm joined, as usual by Neil Wood. If we can go to page , what have the priorities been in the period? It continues to be the strategic partnership with GLIL, very good progress made there, and also with the development pipeline, and the recent AR7 auctions. We've also been focused on the strategic initiative and formal sale process announced on the 5th of November. On page six, progress with the strategic partnership, as mentioned with GLIL. We've agreed phase three of that program, which is a portfolio of 183 MW of development assets.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

We've also recycled some capital, and we've had the acquisition by BSIF of 249 MW of solar assets in the North East of England around Blyth. Very much the protection and also value creation for BSIF shareholders centered around development assets. Page seven, just a quick reminder of the GLIL strategic partnership. It continues to be a standout achievement for BSIF and also the success shows the attraction of Bluefield Group's end-to-end platform and its development pipeline. We established the partnership just over two years ago, and it already comprises over 400 MW of operational assets and over 200 MW of assets either in construction or in development. As I say, the reason for the partnership is the Bluefield Group's end-to-end platform and capabilities.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

It's a really good example of the interest private capital has in platforms such as the Bluefield Group, which can do development, investment, and operational capability under one roof. To the key financial highlights on page 8. Top row, we're seeing the gross asset value is just shy of, or just over GBP 1.1 billion. We've seen the NAV drop, which is a function where we're in what could be described as sort of runoff, where we're paying out dividends, but we've got no new assets coming on stream, and the asset life is reducing. We've also had a bit of a falling power market in that period. You're seeing on that top row, a reduction in the top row in the middle of NAV, which has been seen actually across the sector.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

Operational cash flow for the half year is just in excess of GBP 37 million, and so extrapolating that for the full year, maybe a little bit down on the record of GBP 95 million in financial year ending 2025, but very still a good solid performance. Middle row, you continue to see very prudent overall levels of gearing. Low levels of gearing, but also a fixed, overwhelmingly a fixed price, which is just in excess of 4% all in, with 10 years average maturity across the whole piece. The bottom row there continues to be a very attractive dividend. We're targeting 9 pence per share for the full year, up from 8.9 pence per share.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

That continues to be across the whole infrastructure, listed infrastructure space, one of the highest dividends in the sector, and a dividend yield today of in excess of, certainly at the time of, the end of the year was, in excess of 12%. On page nine, very simple business model that we have developed over time. We've got debt in the right place, as we've spoken about before, so it's above the SPV level at the U.K. hold level, HoldCo level, which is creating, you know, very protective, high levels of debt service cover and backed by stable, largely regulated and indexed revenues. Again, that's matched to a very defensive portfolio, as BSIF watchers are aware of.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

You've got, again, a very, a very stable, attractive, generation of cash flowing through that middle part in terms of the ability to deliver the dividend. On page 10, just before I hand over to Neil, not much change in the portfolio. It's a business model which has got big focus obviously on solar. The main introduction there, which we mentioned actually in the annual results in October, is we've got, when you're looking at the donut charts on the right-hand side, where you've got the revenue split, you've got the first of the CFDs, which is Yelvertoft. If we were projecting forward into the future, you know, we've got over 600 MW of sites, including Yelvertoft across BSIF and Lyceum.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

you know, a very healthy pipeline, which I will come back to, in just a few moments. With that, I will hand over to Neil.

[Neil Wood, Partner at Bluefield Solar]

Great. Thank you very much, James. Just on slide 12 in capital structure. Since its IPO in 2013, the company has focused on a simple and deliberate debt strategy. Long-term debt is secured against portfolios of assets with fully amortizing profiles within the life of regulated revenues on a fixed interest rate basis and at conservative gearing levels. Deliberately structuring long-term financing across the portfolio in this way delivers three crucial advantages. Firstly, it removes both interest rate and refinancing risk. Secondly, it drives out lower debt costs than shorter tenor financings. Thirdly, as the bar chart illustrates, it ensures annual deleveraging of the portfolio so that by the mid-2030s, the company will have reduced portfolio leverage to close to 0%. This will be despite the portfolio still having 10-15 years of remaining operational life.

[Neil Wood, Partner at Bluefield Solar]

Most importantly of all, though, the debt structure today provides the perfect platform for the future as the natural de-gearing inherent in current financings provides the company with material headroom for utilizing debt to support future asset base growth. Turning over to slide 13 and valuation factors. Our high debt costs and a combination of wider economic and policy uncertainty has continued to reduce transaction activity for aging renewable operator and operating portfolios, with demand shifting almost exclusively towards combined opportunities. These are portfolios of companies that contain operational assets alongside a pipeline of development projects, and so enable an investor to marry the benefit of steady cash flows from operating portfolios with the reinvestment in growth opportunity development pipelines offer. As James mentioned, the company was first to identify this transition with the establishment of its strategic partnership with GLIL in December 23.

[Neil Wood, Partner at Bluefield Solar]

Since then, the company has sold a ROC-backed operational portfolio of 112 MW in August 2024, followed by a 210 megawatt collection of ready-to-build projects in September 2025 into this joint venture, which, as James has referenced earlier on his slides, has resulted in proceeds of north of GBP 100 million being achieved. However, stepping back and taking into account continuing low transaction volumes, U.K. gilt yields remaining elevated over the course of the last 12 months, and of course, as mentioned, increased market uncertainty as a result of ROC and FiT indexation consultations.

[Neil Wood, Partner at Bluefield Solar]

The decision has been made at this point by the directors to increase the discount rate by 50 basis points to 8.5%. That is with a view to continuing to monitor any further changes in future quarters. Turning over the page to slide 14 and the NAV movement over the period. With the company set up as a full payout model distributing all earnings generated to shareholders, the NAV of the company, assuming all valuation assumptions remain equal, will naturally fall each year. Without the addition of future cash flows from new build assets, the company, and thus its NAV, is currently in slow runoff.

[Neil Wood, Partner at Bluefield Solar]

It is indeed this scenario that is illustrated by the movements in the NAV bridge as the overall reduction of GBP 52 million between June 2025 to December 2025 is essentially characterized by cash and non-cash movements in the period. Negative cash movements equate to circa GBP 27 million of dividends being paid and circa four and a half million from generation being slightly below forecast, whilst negative non-cash movements have been driven principally by an increase to the discount rate, as discussed on the previous slide, and adoption of the latest set of power forecasts, which have power prices trending lower in the near term versus those used in the June 2025 and September 2025 net asset values. With that, I will hand over to you, James.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

Thank you, Neil. Page 16, just a few words about the key strengths and also differentiators for our strategy. It's centered around an active management strategy where there is a 140-person team that drives performance enhancement, protection and growth. If we go on to page 17, a very good example of this has been the power strategy. We have consistently optimized power sales, which comes from the capital structure that Neil has just spoken about, where we have maximum flexibility to target the short end of the power curve, which is the most liquid and where we can maximize the value of the prevailing power market to its utmost.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

It's something which has proven to be incredibly incredibly resilient in all different environments in the 12/13 years that we have been running the company. Page 18, just a quick update on the very valuable development pipeline that we've got, which has moved from a concept in 2020 to over 1.2 GW of consented sites today with over 500 MW of CFDs. I think what's a what's a great bit of progress in the last six months has been the success in the most recent CFD auctions, which was AR7, where we have over 200 MW of sites being granted, being successful in the AR7 auction, which made BSIF one of the largest contributors to that particular auction.

[James Armstrong, Founder and Managing Partner at Bluefield Solar]

Page 20, the penultimate slide, which just reiterates the statement made by Michael Gibbons, Chair of BSIF, regarding the formal sale process which he made in the Chair's statement and, as has been, people will be aware, nothing more can be added at this time. To conclude, very good progress on the strategic partnership with GLIL Infrastructure. Likewise, very encouraging developments with the development pipeline and the... as has been said in Michael's statement, the formal sale process is in line with expectations. With that, we conclude the interim update for the period ending December 2025.

Participants

Analysts

• James Armstrong, Founder and Managing Partner at Bluefield Solar
• Neil Wood, Partner at Bluefield Solar