Japan has been relatively better for Covid19 defense, but the situation is changing rapidly. Occupancy rate of hospital spiked in Hyogo prefecture to 65%. There aren’t enough nurses and trying to invite from other regions. They say “We are not “Kamikaze Squad”.
【Bed Utilization of Top 7 prefectures】
Gravis Capital Management (GCM) announced that it entered into a strategic partnership with ORIX Corporation. ORIX will acquire a 70% equity stake in the company. The price tag is not disclosed. ORIX has a strategy of expanding its asset management business into renewable energy and infrastructure-related investments.
They expand a global asset management operation organically and through acquisitions that includes companies in the real estate finance sector in the United States. Real Asset Investment is the place to be under negative interest environment. There’s yield there.
【Gravis Main Fund Performance, GCP Infrastructure】
The return is lower than Corporate Bond this year, but NAV is relatively stable for the past 5 years.The fund invests mostly in Renewable and some PFI.
Debt type is 50-50 in senior and subordinated. More than 60% of bonds pay less than 6-8% yield.
【Yield of GCP INFRA Portfolio】
Anyhow, Hulic, Japanese property developer launched a plan to convert all their electricity into renewable by 2050, not 2025 though. Hulic will invest in Solar and Hydro with $1bn. Hulic’s net profit is $580mil in 2019. The investment would be 33mil per year by 2050, not a big risk.
The point is Hulic thinks Alt Energy would be a key to attract in the rental property market. Both stocks are lagging with no renewable revaluation.
【Hulic blue and ORIX orange, share price】
You remember Apple generate 80% of power from renewably by 2025. The headquarter is now 100% natural energy since 2018 with CO2 emission zero.
【Apple headquarter covered with Solar panels roof】
If you want to eliminate CO2 related and Nuclear, 85% has to be replaced with renewable. Huge potential in a supply chain. Panels, Grids, Power Plants, Transformer and Battery. The fund is an easy way to get a return from the shift of the new value chains.
【Japanese Power Generation Breakdown】
Gross yield is 15% for solar generation in Japan, which is more than offset the lower FIT price. Looking at solar panel and module makers, their price-performance is outstanding, more than GAAFANG. Both outperforming S&P500 by more than 100%. Everyone is looking for return from renewable on the back of ESG.
【Jinko, Canadian Solar share prices vs. S&P500】