RE Royalties Ltd.: Investing in the US Market

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

It is no secret that electricity is becoming an increasingly scarce commodity in the US. The operators of data centers for the AI boom are dependent on electricity. The construction of new capacity can hardly keep pace, and then there are the outdated grids. Decentralized sources are therefore in high demand. In conjunction with ever-improving storage technology, solar is also an option. Especially since the capacity can be built relatively quickly.

This is precisely what RE Royalties stands to benefit from. With its focus on renewable energy and storage systems within an innovative royalty model, the Canadian company is a clear beneficiary of the energy demand driven by AI data centers. Nevertheless, the stock appears almost exceptionally inexpensive, and the dividend yield of over 10% is highly compelling. Since mid-December, however, increasingly more investors seem to be recognizing this, and the share price has begun to edge higher. At current levels of around CAD 0.32, it still appears attractively valued.

RE Royalties is currently investing heavily in projects in the US. It was recently announced that a further USD 800,000 will be made available for two portfolios of solar projects for decentralized energy generation. The projects are being developed by Solaris Energy.

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