Mr. Frank Getman reports

ALTIUS RENEWABLE ROYALTIES REPORTS Q3 2023 FINANCIAL RESULTS

Altius Renewable Royalties Corp. has released its financial results for the third quarter of 2023, with a conference call to follow on Nov. 7, 2023, at 9 a.m. EDT.

The corporation's 50-per-cent-owned Great Bay Renewables (GBR) joint venture recorded $3.9-million in royalty revenue for the quarter ended Sept. 30, 2023, compared with $3.2-million in Q3 2022. Operating cash flows at GBR were $1.7-million in the third quarter of 2023, as compared with $1.8-million in Q3 2022. For the nine months ended Sept. 30, 2023, GBR recorded $7.8-million in royalty revenue, compared with $5.6-million in the same period in 2022. Operating cash flows at GBR were $3.6-million for the nine months ended Sept. 30, 2023, as compared with $2.3-million in the same period in 2022.

Altius reported a net loss of $700,000, proportionate revenue (1) of $2.5-million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) of $1.5-million for the quarter. These compare with net earnings of $300,000, proportionate revenue (1) of $1.8-million and adjusted EBITDA (1) of $1.0-million in Q3 2022. Total proportionate revenue (1) in Q3 2023 comprised $2.0-million in royalty revenue and $500,000 in interest income.

For the nine months ended Sept. 30, 2023, Altius reported a net loss of $900,000, proportionate revenue (1) of $5.6-million and adjusted EBITDA (1) of $2.8-million. These compare with a net loss of $400,000, proportionate revenue (1) of $3.2-million and adjusted EBITDA (1) of $800,000 for the comparative period in 2022. Total proportionate revenue (1) for the nine-month period comprised $3.9-million in royalty revenue and $1.7-million in interest income.

The corporation's current-quarter and year-to-date results reflect the proportionate share of increased revenues at GBR, offset by the proportionate share of increased costs, including GBR's non-cash-based share of loss in equity investments Bluestar and Nova of approximately $4.2-million and $6.2-million, respectively. Bluestar and Nova are currently engaged in early-stage renewable energy development resulting in increased levels of expenses with minimal offsetting revenues thus far at those entities. Nova continues to make good progress in building its greenfield development pipeline as the current portfolio of projects with site control has now grown to over two gigawatts of wind, solar and battery storage projects.

GBR's operating royalty portfolio continued to benefit from the additions of each of the Titan Solar, Young Wind, Appaloosa Run and Hansford County Wind projects, which were either acquired or reached operational status in the second half of 2022. GBR continues to progress several new royalty investment opportunities spanning the full spectrum of development-to-production-stage assets while the El Sauz project is currently in construction and expected to reach commercial operation in late 2023. Several additional royalty projects continue to be advanced toward construction start by several operators across a variety of U.S. power regions.

Increased merchant pricing in the current quarter due to warm weather and increased power demand led to higher royalty revenues for the period.

At Sept. 30, 2023, the corporation held cash of $37.8-million and had expected commitments for the remainder of 2023 of approximately $5.0-million for existing GBR investment agreements. In addition, the corporation recently announced that GBR closed senior secured credit financing agreements in the aggregate amount of $246.5-million, which enables GBR to accelerate its growth trajectory while maintaining a competitive cost of capital.

Commenting on the quarter, Frank Getman, chief executive officer of GBR, said: "With the recent closing of our new debt facility, we have demonstrated the underlying strength of our current asset portfolio in the eyes of sophisticated global lenders and have positioned ourselves to continue to seize upon our strong pipeline of growth opportunities. In a few short years, we have scaled up a portfolio of renewable royalties on over 2.3 gigawatts of operating projects and a pipeline of development-stage royalties of over 15 gigawatts, providing an embedded stream of future cash-flowing royalties that ensures strong revenue growth for GBR through the remainder of the decade."

Brian Dalton, CEO of Altius, added: "GBR continues to gain portfolio scale and diversity at a pace that is exceeding the long-term goals we had set at the time of our IPO in 2021. Our portfolio has been built to date using 100-per-cent-equity-based financing and this has provided us with the capacity to now apply prudent amounts of leverage to continue to grow and diversify the portfolio in a way that is non dilutive to our shareholders equity. The new credit facilities allow us to capture the current contrarian royalty financing opportunity available within the renewables sector, relating to the decrease in availability and attractiveness of other competing forms of capital such as equity and debt. We are poised to play an increased role in supporting the energy transition and to adding further diversity and scale to the portfolio on behalf of shareholders."

(1) Non-GAAP (generally accepted accounting principles) financial measures

Management uses the following non-GAAP financial measures: proportionate royalty and other revenue; and adjusted EBITDA. Management uses these measures to monitor the financial performance of the corporation and believes these measures enable investors and analysts to compare the corporation's financial performance with its competitors and/or evaluate the results of its underlying businesses, which are held primarily in jointly controlled entities. These measures are intended to provide additional information, not to replace IFRS (international financial reporting standards) measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As these measures do not have a standardized meaning, they may not be comparable with similar measures provided by other companies. Further information on the composition and usefulness of each non-GAAP financial measure, including reconciliation to their most directly comparable IFRS measures, is included in the non-GAAP financial measures section of the company's MD&A (management's discussion and analysis).

Conference call details

A conference call and webcast will be held on Tuesday, Nov. 7, 2023, at 9 a.m. EDT, to provide an update and to offer an open question-and-answer session for analysts and investors. Access details are as follows.

Date:  Tuesday, Nov. 7, 2023, at 9 a.m. EDT

Event:  Altius Renewable Royalties Q3 2023 financial results

ID No.:  66424217

Dial-in:  1-888-886-7786 or 1-416-764-8658

Webcast:  A webcast will be available.

About Altius Renewable Royalties Corp.

Altius is a renewable energy royalty company, the business of which is to provide long-term, royalty-level investment capital to renewable power developers, operators and originators. Altius has 33 renewable energy royalties, representing approximately 1.9 gigawatts of renewable power on operating projects, and an additional approximately six gigawatts on projects in development phase, across several regional power pools in the United States. The corporation also expects future royalties from GBR's investments in Bluestar Energy Capital, Hodson Energy and Hexagon Energy, which increase the total development project pipeline to approximately 15 gigawatts. The corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.

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