ST. JOHN’S, Newfoundland and Labrador - Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF), a company specializing in renewable energy royalties, reported a rise in its fourth-quarter 2023 proportionate royalty revenue, reaching $1.3M (NYSE:MMM), an increase from the $0.9M recorded in the same quarter of the previous year. On an annual basis, the company's proportionate royalty revenue grew to $5.2M in 2023 from $3.7M in 2022.
The reported figures represent the company's 50% stake in Great Bay Renewables (GBR). GBR’s total royalty revenue for 2023 was $10.4M, which fell short of the projected $11.5M to $13.5M. The shortfall is largely attributed to a delayed escrow release of $1.25m from Titan Solar, which is now expected in Q1 2024, contingent on confirmation of a local transmission line upgrade.
GBR CEO Frank Getman highlighted the company's achievements in 2023, including a $45M developer transaction with Hexagon and securing a $247M credit facility. He noted that GBR is well-positioned for growth in 2024 with a diversified portfolio and over 1 gigawatt (GW) of developer-derived royalties currently under construction.
Altius Renewable Royalties Corp. is set to announce its full Q4 and year-end 2023 financial results on Wednesday, March 6, 2024, after market close. A conference call and webcast will follow on Thursday, March 7, 2024, at 9:00 am ET, allowing for a discussion of the business and its outlook, along with a Q&A session for analysts and investors.
As a renewable energy royalty company, ARR provides investment capital to renewable power developers, operators, and originators. The company currently has interests in 33 renewable energy royalties, totaling approximately 1.9 GW of operational renewable power, and an additional 6.0 GW in the development phase across various U.S. regional power pools. Future royalties are expected from GBR's investments in other energy companies, potentially increasing the total development project pipeline to about 15.0 GW.
The information in this article is based on a press release statement and contains forward-looking statements that are subject to risks and uncertainties. These statements reflect management's current expectations, and actual results could differ materially from those anticipated.
InvestingPro Insights
As Altius Renewable Royalties Corp. (ARR) charts a path of growth in the renewable energy sector, its financial metrics and market performance provide a critical lens for investors. According to real-time data from InvestingPro, the company's market capitalization stands at a robust $932.87 million. Despite a challenging backdrop, analysts remain optimistic about ARR's potential, expecting net income and sales to grow in the current year. This is particularly noteworthy as the company aims to expand its royalty revenue and capitalize on its investments in renewable energy projects.
InvestingPro Tips highlight the company's commitment to shareholder returns, with ARR having maintained dividend payments for 15 consecutive years and currently offering a compelling dividend yield of 15.13%. The company's stock has also demonstrated resilience, with a strong return over the last three months of 29.71%. For those looking to delve deeper into ARR's prospects, InvestingPro offers a plethora of additional tips for a comprehensive investment strategy.
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