SpaceX released its S-1 ahead of what could be a $2T IPO next month, highlighting the market appetite for space exposure - which follows a US-led surge in launches…

… tied to the mass-scale deployment of Low Earth Orbit (LEO) satellites, which are better-suited for connectivity (ie. Starlink), imaging, and surveillance applications than their Geostationary (GEO) counterparts.

The deployment of LEO satellites has driven a step change in commercial space revenue, which now accounts for roughly 80% of total activity…

… and underscores the hype around this IPO. In Canada, Stack Capital (STCK) is the only name that has direct exposure - with SpaceX representing a third of its Q1 book value and priced for growth…

… but the names we highlighted last February have also outperformed. Over the past few years, 5N Plus (VNP) has attracted DoW investment and more-than-doubled its specialty semiconductors backlog (solar cells for satellites)…

… while MDA Space (MDA) has tripled its order book, thanks to satellite constellation deals that are starting to translate into huge top-line growth…

… one of which belongs to Telesat (TSAT), who’s spending ~$1B through fiscal 2026 and targets full commercialization of the fleet by 2028.

On average, the group is up nearly 700% over the past three years…

… but with Musk and co looking to raise up to $80B, there could be some capital rotation within the sector for investors looking to participate - let’s see.

Commercial rents were up 0.3% sequentially and 3.2% versus last March, led by industrial real estate and warehouses…

… which have handily outpaced rent growth in office and retail since the pandemic.

That’s translated to M&A and to share price performance, with industrial REITs adding nearly 30% over the past year - leading the broader REIT universe.

Lightspeed (LSPD) was down 7% on its Q4 print, which beat on revenue but came with a weaker-than-expected Q1 guide for 12% organic growth…

… and a pretty wide range on full-year EBITDA ($75-95M). At the midpoint, management expects to see margin improvement through the year…

… as investments in sales and marketing (up 22% Y/Y) translate to operating leverage in fiscal 2027, which investors will need to see evidence of before LSPD can catch a real bid.

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