Foresight Environmental Infrastructure Limited (FGEN) has today released an update on its investment strategy, net asset value (NAV) performance for Q1 2025, and its dividend outlook for the year ahead. The announcement highlights a series of strategic decisions and operational outcomes intended to reinforce the Company’s long-term approach to value creation and shareholder returns.

Watch the short video below for a summary of key achievements and the strategic direction going forward.

As part of the update, FGEN outlined a refocused investment strategy centred on a core portfolio of environmental infrastructure assets. This approach reflects changes in macroeconomic conditions and aims to deliver stable, long-term cash flows with a measured allocation to growth-oriented assets. The strategy is designed to balance income generation with capital appreciation, while retaining flexibility to adapt to evolving market conditions.

Financially, FGEN reported a NAV total return of 1.0% for the quarter and 0.6% for the full year to March 2025. The NAV per share stood at 106.5p, with the portfolio generating record levels of cash. This supported a final quarterly dividend of 1.95p per share and a dividend cover of 1.32x. Looking ahead, the Company has increased its annual dividend target by 2% to 7.96p for FY26—its eleventh consecutive annual increase since IPO.

Alongside portfolio performance, the Company also announced a revised investment management fee structure. From October 2025, fees will be calculated on a blended basis—50% on NAV and 50% on market capitalisation—with the market cap element capped at NAV. This change is expected to deliver an approximate 13% annual reduction in fees. Since changes began in September 2024, total reductions in investment management fees are estimated at around 34%.

To support its share price and manage the discount to NAV, FGEN continues to implement active discount control measures. A total of £19.2 million in share buybacks has been completed since the programme began in August 2024, with the limit recently extended to £30 million. These actions, together with reductions in gearing and select asset disposals, are intended to reinforce the Company’s long-term positioning.

For more information on the strategy and financial performance, please view the video above or visit www.fgen.com.