Foresight Solar (FSFL ) is doubling share buybacks and plans to sell some operational assets to tackle its wide share price discount.

Since May when the renewables income fund set aside £10m for buybacks the shares have continued to derate and trade 21% below net asset value, preventing share issues to raise new money. A further £10m of cash will now be used to correct the disconnect, the board said.

To prove its self-sufficiency the £743m portfolio has also identified around 200MWp of assets it could offload in a phased divestment starting this year.

It will use the proceeds to repay some of its £510m of debt and reduce its relatively high gearing of 41%, as well as fund its current investment pipeline until the end of 2025.

The investment company did not specify which assets could be sold but broker Liberum said it could involve its 72MW of solar projects in Australia which it said had consistently performed below expectations.

The capital recycling follows rival NextEnergy Solar (NESF ) which in April also announced its intention to sell assets to provide money for reinvestment.

FSFL’s announcement came in a second quarter update that showed it was the latest to suffer a drop in asset value from rising discount rates. NAV dropped 3.4% to 119.9p per share at 30 June.

However, the 7.8%-yielder had good news on the strength of its dividends, saying its high level of contracted revenue gave it the confidence to say earnings would cover payouts but at least 1.5 times over the next three years.

The shares added half a penny to 97.5p.