To provide Shareholders with an attractive return, principally in the form of quarterly income distributions by being invested primarily in solar energy assets located in the UK.
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Started: Troajan, 15 May 2024 11:53
Last post: Troajan, 15 May 2024 11:53
Last post: Gavster-NBC, 14 May 2024 10:33
Hi, yes agree, but also Bluefield's buyback program is a show of strength above some of the other funds, unlike for example Next Energy, which has also has NAV discount but no buyback.
This is one of my long term holds. I know the discount on Nav is quite big but then all of these funds seem to be under valued at present. Once more I shall take the dividend in shares..
Solid update from the company. Still a considerable discount to NAV which is unwarranted IMO.
With over 8% yield in this sector, and very likely improving over time, this looks like incredible value. Very pleased with my recent purchases.
Last post: Hastings74, 30 Apr 2024 16:50
Did the same.
The raft of director buys at around £1 are a good indication this is oversold. I started buying at around 103p, and have build most of my position slowly over the last month.
I reinvested today after top slicing elsewhere.
Perhaps too early if this ftse rise reverses but the expected dividend next couple of weeks and then DRIP into a mid to long term hold should be fine and somewhat a level of insulation.
Nice dig up on BSIF .. looks like old news though ... AJ Bell are pretty useless in my view ... I left and moved over to Interactive Investor in 2021 ... saved me £1000 a year in AJ Bell fees for a better on line system that didn't crash as frequently as AJ Bells plus and this was the big irritation ... getting money out of AJ Bell was impossible where I had to stop trading for a week to satisfy cleared fund criteria. Useless.
Well, I wasn't going to buy any more BSIF, as I was already overweight renewables including a good-sized holding of BSIF. But BSIF stood out like a sore thumb today as my only holding in the red for the day. The price has just got silly, at 97.5p. That's a discount of 28% to latest NAV, and a forward yield of 9% (probably still 2x covered). Also, gas prices (which have probably contributed to the falling share price) have been creeping back up, though that could easily change again. I can't help feeling that the reason BSIF has been particularly singled out is because some platforms have been warning potential buyers about it or even blocking them from buying it altogether! (See https://citywire.com/investment-trust-insider/news/aj-bell-blunders-deepen-row-over-fair-value-restrictions-on-trusts/a2440235)
Tichtich and Star Bright, your recent dialogue is amongst the most helpful and enlightening I have read on a bullitin board. Thank you!
Started: StarBright, 28 Feb 2024 07:10
Last post: tichtich, 29 Feb 2024 09:37
Correction: I should probably have deducted 1 percentage point from my return estimates, to allow for the 1% management fee.
P.S. The interim report claims that "ample transactional evidence adds further weight to the credibility of the Company's valuation". Perhaps that's a sign that buyers and sellers of these assets are all doing similar DCF calculations, and pricing assets on that basis.
I'm aware that the NAVs for such companies are based on a DCF calculation. I prefer that to an estimated market value. I don't care that much about the market value, unless the company is going to wind itself up. I'm more interested in the long-term fundamentals, and what better way is there to assess those than a DCF calculation? Of course, a DCF is only as good as its assumptions. So I do look at those. I've looked more closely at UKW, which I have a much bigger position in, and I think its assumptions are pretty conservative. I haven't looked so carefully at BSIF, and I don't think its assumptions are quite as clearly stated, but as far as I can tell they seem reasonable. Maybe they're a bit less conservative than UKW's, but arguably that's balanced by BSIF's bigger discount to NAV.
If the assumptions are correct and the shares are bought at NAV, their long term rate of return should equal the discount rate. That's 8% for BSIF, but I think that's an "unlevered" rate and the levered rate (taking leverage into account) is probably more like 10%. The DCF assumes long-term inflation of 2.25%, but let's say 2.5% inflation to allow for the higher short-term inflation that's assumed. That makes a real return of 7.5% if bought at NAV, or about 9% at current price, which is a little more than the current yield. I take that as confirmation that the current yield is sustainable (rising with inflation) for the long term, if the DCF assumptions turn out about right. That said, I'd be perfectly happy with a 7% real return, and satisfied with 5%, so there's a decent margin of safety as far as I'm concerned.
Well, that's how I look at, rightly or wrongly.
@tichtich - I have a controversial view: the NAVs reported by renewable energy companies applying the IFRS10 “investment entity” approach [where subsidiaries are recognised at fair value through profit and loss] are largely illusory and should be disregarded by investors. Consequently the NAV discounts that many (most?) of these companies are reporting presently are not particularly relevant or useful. In fact, the term “NAV” is somewhat misleading in this use case.
There are three different ways that investment companies calculate NAVs. They are VERY different to each other. In simple terms:
Method A - the NAV represents the sum total of liquid securities traded on the open market. This is how traditional investment trust NAVs are compiled. It is a largely objective measure, verifiable against third-party data.
Method B - the NAV represents the sum total of independent professional valuations of illiquid (not traded on an exchange) assets. This is how property funds work; they have to get periodic valuations of individual properties performed by qualified independent surveyors. This method is slightly less objective, because it relies upon the professional judgement of the appointed surveyors.
Method C - the NAV represents the sum total of the Director’s valuations of the assets (in this case typically unquoted companies) that make up the fund. The valuations are based upon cashflow projections for the underlying assets, to which a discount rate is applied. This is FAR from objective, because it combines together uncertain projections for future cashflows and arbitrary assumptions for discount rates, interest rates and inflation etc.
The renewable energy companies utilise Method C. Thus the “NAVs” they publish are subject to significant inaccuracy. In no way do they represent a dispassionate view of the “market value” of an underlying portfolio comparable to those of companies using methods A & B. The NAV’s they publish are hugely sensitive to input assumptions for discount/interest/inflation rates. That IFRS10 requires these companies to update their self-generated “NAVs” periodically and recognise the changes as operating income just compounds the mis-representation. If/when interest rates and inflation fall these companies will all adjust down their discount rates and report increased operating income as a result. Even if everything else stays the same; no more projects are made operational, no more wind/irradiation etc. the reported “NAVs” will increase. I think this is nonsensical.
The questionable NAVs however form the basis upon which the management companies “employed” by these funds charge for their services. It is the mechanism through which their operators are paid. Hence it is extremely important to them…
What matters more is the ability of the underlying portfolios to produce sufficient free cashflow to sustain their dividends. I may write a separate post on this another time
Thanks, SB. I was wondering about that too. In fact I was struggling to understand most of the items in the NAV bridge. I thought "Date Change" might refer to a change in the life expectancy of the panels. You'd think that, if they'd re-assessed the efficiency/longevity of the panels, they'd mention it in the text.
The chairman's statement mentioned the drop in the NAV, but didn't say anything about what had caused it. Since the drop seems a little at odds with his positivity about the period, I think it's reasonable to expect an explanation.
Started: Gavster-NBC, 15 Feb 2024 09:24
Last post: legsofman, 27 Feb 2024 14:55
Some large vol buys today ahead of buy back programme. No effect on sp today.
Someone loading up. Not me unfortunately...:-((
They can’t buy any shares back at this point, because they are in a closed period ahead of interim results which should be out on Feb 28th. Once these are out I expect they’ll be active in the market.
Are they buying any or what then ?
Great news and a show of strength whilst maintaining dividends, but I'm not holding my breath that it will help the share price. Just look across to UKW whose SP is also dragged down with the sector, and that with a daily buyback program. There will be a resulting tiny increment to dividends, but a buyback drag on the SP will more help long term holders with respect to DRIP and continued investment.
Started: Jet7, 8 Nov 2023 13:30
Last post: tichtich, 13 Feb 2024 14:45
I decided to go ahead and buy more BSIF. I think it's a good hedge against inflation.
That's me fully invested now, which means we can expect a market decline from here. Good luck!
Ah, not the sun going out, just US CPI a bit higher than expected. Yawn.
Maybe scientists have just discovered that the sun is dimming. 😎
With no news it is hard to know what is driving the sp down. I'm thinking of moving more money in for what is an excellent yield but where will it bottom?
I bought BSIF a week or two ago at what I thought was a bargain-basement price, and now it's down nearly 10% from there. Yield is now about 8.8%. Good job I kept back some cash for an even greater bargain. But I'm not sure whether to go for more BSIF or UKW (which is already one of my biggest holdings) or wait a bit longer. In the stock market, cheap can always get cheaper!
Also, I'd like to know whether there's any company-specific news I'm unaware of.
Last post: spindok, 14 Sep 2023 16:48
Been in this for over two years now and just take the dividends. No idea why all my solar and renewables have gone up today but I need a bit of good news for a change.....
Started: BuggerTheBanks, 17 Aug 2023 09:34
Last post: DiveCentre, 17 Aug 2023 15:29
It may be a consequence of the rising bank rate and increasing guilt yields.
It seems the market is looking ahead to a likely labour government and nationalisation. I can think of no other reason for such a sound business in an industry of the future, boasting a high and inflation linked yield, to be trading so far below par.
Started: 2227, 24 May 2023 10:04
Last post: CallingShots, 29 May 2023 09:34
8 consecutive down days.
Aa 50MW solar PV power project. It is planned in England, the UK. According to GlobalData, who tracks and profiles over 170,000 power plants worldwide.
The project is owned by Bluefield Solar Income Fund with a stake of 100%.
Yelvertoft Solar PV Park is a ground-mounted solar project.
The project cost is expected to be around £35m. Should be operational later this year.
Started: 2227, 27 Feb 2023 09:31
Last post: 2227, 27 Feb 2023 09:31
Interim Results for the Half Year ended 31 December 2022 on Tuesday, 28 February 2023.
Last post: Checkinbutyoudon, 24 Dec 2022 17:45
The market has not been spooked. It has been massacred by Kamikazee Kwarteng and his Mistress's Voice.. Tories are toast. My MP is history..
Started: Krustysmegma, 22 Aug 2022 17:47
Last post: Gavster-NBC, 23 Aug 2022 00:18
OK Got It.
Government subsidies account for 62% of the revenue here, compared to NESF's 50%.
With the current government's bad attitude to green energy some of these may be under threat, but surely the Inflation Reduction Act across the pond will swing the pendulum the other way as argued in this article.
https://www.raconteur.net/sustainability/us-climate-bill-inflation-reduction-act-uk-cleantech-sector/
From Bluefield accounts RNS:
"The portfolio's revenue streams in the reporting period (excluding any ROC recycle estimates for CP20: the Compliance Period April 2021 to March 2022) show that the sale of electricity accounted for 38% (June 2021: 38%) of the Company's income. Regulated revenues from the sale of FiTs and ROCs accounted for 62% (June 2021: 62%)."
Hi. Does Bluefield have the same amount of revenue coming from Subsidies as Next Energy ? See the NESF BB
https://www.lse.co.uk/rns/NESF/unaudited-quarterly-nav-operational-update-w79nd3rxbmvd7n6.html
NAV increased to 140, sun still shining, steady dividend income. The only cloud on the horizon I can foresee is a new PM looking to increase their popularity by proposing a levy on green profits. I guess he/she could always look to buy more gas from that Putin fella if they choose to penalise the fledgling solar industry. I'm sure that'll go down well.
Started: Krustysmegma, 8 Jun 2022 11:27
Last post: Krustysmegma, 8 Jun 2022 11:27
Finally received my placing shares today (exactly a week since they were divvied up), received 40% of my requested amount. Seem to be receiving less and less each time across the green sector, I guess that's good news in the sense it shows there's still plenty of demand for them. No doubt there'll be another coming along soon. Still looking really good here IMHO, the windfall clamour seems to have been abated for now at least by hitting oil & gas.
Last post: Krustysmegma, 7 Jun 2022 14:18
I have these in my ISA & now me & 'er indoors are both retired I take the dividends as an income. There are so many options available at the moment for income seekers so I keep a relatively small amount in a fairly large number of shares, REIT's, Funds & IT's. I've still got a few shares with big growth potential but mostly derisked now and sitting in my SIPP for when I need it.
Did not take up the offer. I have enough of these for the time being... Take the div in shares though..
Last post: Krustysmegma, 7 Jun 2022 09:32
Yes that's right spindok, and still waiting to find out my allocation. Good job I wasn't planning on selling any time soon. K
Sorry thats the dividend.......You mean the offer..
Shares are not due until 13.6.22....
Started: Krustysmegma, 11 May 2022 09:58
Last post: Krustysmegma, 6 Jun 2022 13:05
Nearly a week later (give or take Bank Holidays) and still no sign of my allocation on HL. Anyone else received their new shares yet?
News due in the morning, sp dropped dangerously close to the placing price but hopefully this will still get away. I'll take a few more at this price anyway.
Just read the "BSIF Share News" at the top of this page. They're equally in the dark, having reported that BSIF aims to raise Eu 8M to pay down the Eu 200M revolving credit facility and fund further purchases. My maths isn't the best but I don't think that's going to work! Very odd isn't it, I don't think I've seen an RNS written like this before. Would have expected some clarification by now?
Not altogether clear is it BTB? I can see the retail element is looking to raise Eu 8M so I guess that's the bit us PI's will be scrapping over. Perhaps they're going to assess II demand before deciding?
Did I miss it? How big is the raise???
I see the bit about the purchase (£122.4M) & paying down the (£200M) RCF, but how much are they looking to raise?
Started: Thommo566, 10 Mar 2022 11:42
Last post: Gavster-NBC, 10 Mar 2022 15:43
Hi Thommo
Yes, the big question is what price will the issue be at ?
My holding is modest so I've recently sold taking the profit from 122 to 131 in anticipation. Like last time the issue price could well be at a discount to today's price to be attractive which would no doubt drag the SP down, at which point I'll buy back. My capital to reside elsewhere for other dividends in the meantime.
If I'm wrong then I'll have to consider this investment as the one that got away.
We'll see. Cheers and GL.
Just when you think you've got a reasonable share price, they initiate a another cash call. I get why they're doing it, but it's still annoying.
Started: BuggerTheBanks, 2 Mar 2022 15:31
Last post: BuggerTheBanks, 2 Mar 2022 15:31
But not so much the wider (fossil fuel) energy trusts. What's the cause?
Started: BuggerTheBanks, 22 Feb 2022 20:03
Last post: BuggerTheBanks, 22 Feb 2022 20:03
This has to jump tomorrow morning.
Started: BuggerTheBanks, 29 Jan 2022 18:05
Last post: BuggerTheBanks, 29 Jan 2022 18:05
Fingers crossed.
Started: Gavster-NBC, 6 Jul 2021 09:58
Last post: Gavster-NBC, 25 Aug 2021 16:48
Well this is now all looking OK ))
Anyone know or want to speculate what/when the increase in dividend will be from the new investment ?
Hi huudi. It's a good point. I'm not happy with my investment here despite taking the offer. Where is the promotion / attraction / uplift for this ? One of the hottest topics yet here we are flatlining at 118p. There is no point being invested if the value goes down the same or more than the dividend. I'll hold some more and see but if the current price is not proved the floor after upcoming divs or inflation bites elsewhere then I'll go cash.
Like many, I bought for the dividend but while this industry grows, cash calls will continue therefore don't expect this sector to pay your bills. My mistake thinking it would, the question is where next? Perhaps an oil boom, a half-decent war could create demand.
Hi Lutra. Thanks for that. Yes, that is food for thought indeed.
Do you have a link or can you point to what proportions of revenue come from such long term contracts and how long they last ?
It does put a dampener on the notion that the revenues would track up with inflation but it also shows that a high amount of contracts like this around UK industry will also be reigns on inflation and for Bluefield, it's effects on revenues would be delayed rather than non-existent.
Still OK with my holdings here, though small, like others I imagine, regular income and relative stability is value within my portfolio when I see the large traditional companies and shares encountering great turbulence and dividend problems.
Gavster, I'd be wary of assuming that Dividends from renewables will cope with rising inflation. In general it is assumed that cost of renewables will fall, relative to everything else. But more specifically, the bond-like nature of BSIF partly comes from the proportion of its revenue that is future-proofed by long-term, fixed-price sales contracts and government production tariffs. These provide a virtually guaranteed stream of future revenue, but a significant proportion is already set at today's prices.
Started: bbrinkw, 19 Jul 2021 14:09
Last post: bbrinkw, 19 Jul 2021 14:09
Wanted these when retired but not at +140p then.
Bought two shed loads today, shade under 118p.