RE Royalties and a Revaluation

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

While shares of companies like Plug Power, Bloom Energy, and even Nel ASA are skyrocketing, a revaluation for RE Royalties could be on the horizon in the coming weeks. The Canadians are also benefiting from the explosive rise in electricity demand driven by AI. Companies in the energy production and infrastructure sectors are increasingly emerging as the real winners of the AI boom. This is precisely where RE Royalties is positioned. The stock has already shown positive momentum in recent days—possibly just the beginning of a larger rally. After all, based on its business model, the annual dividend of CAD 0.04 (current price CAD 0.40), and growth prospects, the valuation remains attractive.

The current price increase could signal that investors expect exciting news next week. On May 20, 2026, Peter Leighton, COO of RE Royalties, will participate in the IIF virtual investor conference. Management has already expressed its dissatisfaction with the stock price, and various options are currently being explored to address this. These range from partnerships and new financing structures to the sale of the entire company. An update on this is expected next week.

RE Royalties pursues a model that is still little known in Europe but extremely exciting. The company finances renewable energy projects and receives long-term revenue shares in return. This creates a scalable business model with recurring cash flows. Unlike traditional project developers, RE Royalties often bears lower operational risks while still benefiting from the global expansion of clean energy sources. This positioning could become particularly valuable in the age of artificial intelligence. This is because electricity consumption by data centers and AI applications is rising massively—and with it, the demand for green, reliable energy supplies.

The company's portfolio is already impressive. In total, RE Royalties holds stakes in projects with a capacity of 492 MW. These include 77 solar projects, 17 wind farms, 22 storage solutions, two hydropower projects, two efficiency projects, and a biogas plant. The facilities generate enough electricity to power approximately 152,194 households. At the same time, they save more than 488,813 tons of CO₂ annually.

And RE Royalties could continue to grow significantly in the coming years. The company has a potential project pipeline valued at up to CAD 200 million. For context: RE Royalties' market capitalization is under CAD 20 million.

Learn more about the International Investment Forum virtual conference here.

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