03:52 PM EDT, 06/27/2024 (MT Newswires) -- Bottom line, National Bank likes Altius Renewable Royalties' ( ATRWF ) investment in Nokomis given it avoids interconnection queues and National believes ARR could continue to be active over the second half of the year. With confidence in ARR's royalty model (achieving 8-12% unlevered returns vs. peers at 8-12% levered), the bank maintains its Outperform rating and $11/sh target that is based on a long-term DCF with a discount rate of 7.75%.

On more investments could come, National said with its recent $247 million of financing agreements, ARR could be active this year and has signaled that it sees opportunities in both developer deals and operating assets. National noted with $106 mln of available liquidity at GBR's credit facility and $67 mln of cash at ARR as of Q1, it has the capital to get back to the $100 mln per year deployment pace it saw in previous years, rebounding from a slower 2023. These future investments could set the stage for long-term growth, adding to ARR's more than 15 GW pipeline spread across technologies and locations.

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