RE Royalties- An Update

An opinion piece by Fabian Lorenz (Apaton Finance GmbH).

Strong update from RE Royalties. The Canadian company finances renewable energy projects and secures long-term revenue shares, known as royalties, in return. The shares have not yet reacted to the news, even though the content was positive.

RE Royalties is expanding its international portfolio and investing USD 1.5 million in revenue shares (royalties) from nine rooftop solar installations already operating in the Philippines. The installations, with a total capacity of 14.2 MW, are located on shopping centres and have long-term power purchase agreements. RE Royalties receives quarterly payments based on gross revenues throughout the life of the projects. With the transaction, the Canadian company is entering the Southeast Asian market and gaining a new development partner. This partner has projects totalling around 138 MW at an advanced stage of development, as well as a further project pipeline of more than 700 MW. This could give rise to additional investment opportunities.

There are also developments in the US, which, together with Canada, is the most important market for RE. Outagamie Clean Energy Partners (OCEP) has repaid a secured loan of USD 4.6 million to RE Royalties in full. The final repayment instalment amounted to around USD 938,000. At the same time, the first royalty payment from the project has already been received. Over the next ten years, RE Royalties will receive a fixed annual payment of 4% of the originally invested capital. This equates to USD 184,000 per year or USD 1.84 million in total. The financed project in the US state of Wisconsin produces renewable natural gas from agricultural waste. The project clearly demonstrates the strength of the business model. The capital originally invested is available again for new investments, while the agreed royalty income continues to flow.

RE Royalties also provided an update on the status of the strategic review initiated in March 2026. The review aims to identify opportunities to increase the company's value and explore additional financing options for the growing investment pipeline. According to the company, discussions have already taken place with various interested parties and are continuing. No concrete results have been announced so far. The strategic options extend to a potential takeover of RE Royalties.

Read the full article here.