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Climate Commitment and Investments - The company established CarbonCount Holdings 1 LLC to jointly invest $2 billion in eligible climate-positive projects with KKR[51]. - The company is committed to achieving net-zero carbon emissions by 2050, with established targets under the Science Based Targets Initiative[69]. - The company maintains a commitment to providing capital for climate solutions, indicating a long-term growth strategy[268]. - The company entered into a strategic partnership with KKR, committing to invest $1 billion in climate solutions projects over an 18-month period[340]. - The company’s financing strategy includes the use of green bonds, which meet environmental eligibility criteria[51]. Financial Performance - Total revenue rose to $383.6 million in 2024, a 20% increase from $319.9 million in 2023[299]. - Net income increased by approximately $52.9 million, reaching $203.6 million in 2024, a 35% rise compared to $150.8 million in 2023[299]. - Interest income increased to $263.8 million in 2024, up 27% from $207.8 million in 2023[299]. - Income from equity method investments rose to $247.9 million in 2024, a 76% increase from $141 million in 2023[299]. - Adjusted earnings for 2024 were $290,636,000, or $2.45 per share, compared to $232,248,000, or $2.23 per share in 2023, reflecting a 25% increase in adjusted earnings year-over-year[312]. Portfolio and Asset Management - The company completed approximately $2.3 billion of transactions during both 2024 and 2023, with a Portfolio totaling approximately $6.6 billion as of December 31, 2024, up from $6.2 billion in 2023[291]. - The Portfolio included approximately $3.1 billion of Behind-the-Meter (BTM) assets, $2.6 billion of Grid-Connected (GC) assets, and $0.9 billion of Front-of-the-Neter (FTN) assets, with over 550 transactions averaging $11 million each[292]. - Approximately 52% of the Portfolio consisted of unconsolidated equity investments in renewable energy projects, while 46% consisted of commercial and government receivables[292]. - The company recognized equity method investments of $3,612,000,000 in 2024, an increase from $2,966,000,000 in 2023, representing a growth of about 22%[319]. - The company evaluates its Portfolio for potential impairments on a quarterly basis, impacting net income if impairment charges are deemed necessary[288]. Employee Engagement and Diversity - The company employs 158 people as of December 31, 2024, with plans to hire additional professionals to support business strategy[65]. - The board consists of 40% women and 20% individuals from underrepresented ethnicities, promoting diversity[72]. - The average tenure of employees was approximately 4.5 years, with a voluntary employee turnover rate of 5% as of December 31, 2024[331]. - The company emphasizes employee engagement and development, with a focus on diverse perspectives and fair compensation[57]. Risk Management - The company manages credit risk through thorough due diligence, strong structural protections, and active asset management, although exposure to credit risks may increase during economic downturns[276]. - Interest rate risk is influenced by various factors, including governmental policies and economic conditions, affecting new asset originations and borrowings[277]. - The company is exposed to commodity price volatility, particularly in renewable energy projects that sell power on a wholesale basis[278]. - Government policies and incentives play a crucial role in the economic feasibility of renewable energy projects, and any adverse changes could negatively impact operating results[282]. Capital Structure and Liquidity - The debt to equity ratio was approximately 1.8 to 1 as of December 31, 2024, which is below the Board-approved leverage limit of up to 2.5 to 1[345]. - The company had total liquidity of $1.518 billion as of December 31, 2024, including $130 million in unrestricted cash and $1.241 billion in unused capacity under its unsecured revolving credit facility[337]. - The company increased the available capacity under its unsecured revolving credit facility to $1.35 billion and extended its maturity to April 2028[338]. - Cash available for reinvestment in 2024 was $717,806,000, significantly higher than $106,122,000 in 2023, showing a substantial increase[324]. Market Conditions and Economic Factors - The Federal Reserve increased the federal funds rate 11 times in 2022 and 2023, totaling a 5.25% increase, followed by three rate cuts in 2024, resulting in a 1.00% decrease[266]. - Inflationary pressures have not materially impacted the company's business to date[266]. - The average annual Henry Hub natural gas price for 2024 was $2.21/MMBtu, a decrease of 16% from 2023 and 68% from 2022, marking the largest two-year decline on record[267]. - The company expects the average price of natural gas to rise to $3.10 per MMBtu in 2025 and $4.00 per MMBtu in 2026[267]. - The company has experienced increased competition in the alternative investment and climate solutions market, impacting its operational strategies[81].

Financial Data and Key Metrics Changes - In 2024, the company achieved adjusted earnings per share (EPS) growth of 10%, reaching $2.45, and adjusted net investment income (NII) grew 22% to a new high of $264 million [46][47][48] - The company maintained robust margins despite interest rate fluctuations, with a weighted average yield exceeding 10.5% in 2024, and portfolio yield increased to 8.3% from 7.9% year-over-year [51][52] Business Line Data and Key Metrics Changes - The company closed $2.3 billion of new transactions in 2024, including a record $1.1 billion in Q4, demonstrating strong activity across its business lines [48][49] - The managed assets totaled $13.7 billion, increasing 11% year-over-year, with a portfolio of $6.6 billion, which grew 7% from 2023 [50][54] Market Data and Key Metrics Changes - The demand for power in the U.S. is forecasted to double over the next 25 years, driven by factors such as data centers, domestic manufacturing, and electrification [24][25] - Forward price curves in ERCOT and PJM have doubled over the last five years, indicating rising energy prices and a strong market for renewables [25][26] Company Strategy and Development Direction - The company is extending its adjusted EPS guidance of 8% to 10% annual growth through 2027, reflecting confidence in its business model and market fundamentals [12][58] - The investment strategy will focus on continuity, adaptability, and exploring new growth paths, including international opportunities and new asset classes [34][39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model amid policy uncertainties, emphasizing the importance of clean energy projects in addressing climate-related challenges [16][17][22] - The company anticipates continued growth in investment opportunities, particularly in renewables, as clients remain committed to accelerating projects despite policy changes [30][31] Other Important Information - The company announced an increase in its dividend to $0.42 per share, targeting a payout ratio of 50% by 2030, with an interim target of 55% to 60% by the end of the guidance period [13] - The company has initiated a commercial paper issuance program to generate savings on short-term borrowings [55] Q&A Session Summary Question: Timing of new opportunities in the portfolio - Management indicated that some opportunities are tangible and near-term, while others may take longer to materialize, with pricing adjusted based on risk [63][64] Question: Expansion into new markets and its impact on capital raising - Management clarified that the funding strategy for new asset classes will remain consistent with historical practices, not resulting in more or less capital raising [67] Question: Discussions regarding future co-investment partnerships - Management stated that while a co-investment strategy will be a permanent part of the capital structure, there are no advanced discussions on new partnerships at this time [71] Question: Insights on gain on sale levels and future EPS growth - Management noted that while 2024 had an outsized gain related to asset rotation, client-related gain on sale will remain consistent, and other revenue streams are expected to grow [104] Question: International opportunities and their size relative to the U.S. pipeline - Management emphasized that international opportunities will primarily be pursued with existing clients, maintaining a focus on the U.S. market in the near term [150][151]

For the quarter ended December 2024, HA Sustainable Infrastructure Capital (HASI) reported revenue of $37.74 million, up 3% over the same period last year. EPS came in at $0.62, compared to $0.53 in the year-ago quarter.The reported revenue represents a surprise of +45.51% over the Zacks Consensus Estimate of $25.93 million. With the consensus EPS estimate being $0.58, the EPS surprise was +6.90%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Earnings Presentation Fourth Quarter and Full Year 2024 Forward Looking Statements Some of the information contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," "target," or similar expressions, are intended to identify such forward-looking statem ...

HA Sustainable Infrastructure Capital (HASI) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.90%. A quarter ago, it was expected that this provider of financing for sustainable infrastructure projects would post earnings of $0.55 per share when it actually produced earnings of $0.52 ...

HA Sustainable Infrastructure Capital (HASI) Q4 2024 Earnings Call February 13, 2025 05:00 PM ET Company Participants Aaron Chew - SVP - Investor RelationsJeffrey Lipson - President & CEOSusan Nickey - Executive VP & Chief Client OfficerMarc T. Pangburn - EVP & Chief Revenue and Strategy OfficerCharles Melko - EVP, CFO & TreasurerHeidi Hauch - VP, Equity Research - Clean Energy & InfrastructureTyler Bisset - Equity Research AssociateChristopher Dendrinos - VP - Equity ResearchMaheep Mandloi - Equity researc ...

Financial Performance - GAAP EPS for 2024 was $1.62, up from $1.42 in 2023, and Adjusted EPS increased by 10% year-over-year to $2.45[4]. - Total revenue for 2024 was $384 million, a 20% increase from $320 million in 2023, driven by higher interest and securitization asset income[14]. - Net income for the year ended December 31, 2024, was $203.6 million, compared to $150.8 million in 2023, representing a 35% increase[44]. - Adjusted earnings for the year ended December 31, 2024, were $290.636 million, representing an increase of 25% compared to $232.248 million in 2023[60]. - The company reported a GAAP net income attributable to controlling stockholders of $200.037 million for 2024, up from $148.836 million in 2023, reflecting a growth of 34.5%[60]. - The company reported a basic earnings per share of $1.72 for the year ended December 31, 2024, compared to $1.45 in 2023, indicating an 18% increase[44]. Investment Income - GAAP Net Investment Income decreased to $24 million in 2024 from $58 million in 2023, while Adjusted Net Investment Income rose by 22% to $264 million[4]. - Interest income for the year ended December 31, 2024, was $263,792, an increase of 27% from $207,794 in 2023[65]. - Interest income for the three months ended December 31, 2024, was $68.3 million, up from $62.2 million in the same period of 2023, reflecting a 17% increase[44]. - Income from Equity Method Investments increased by approximately $107 million in 2024 compared to 2023, primarily due to tax attributes from renewable energy projects[17]. Assets and Liabilities - Total assets increased to $7.08 billion as of December 31, 2024, from $6.55 billion in 2023, marking an 8% growth[46]. - Managed Assets grew by 11% year-over-year to $13.7 billion, and the portfolio increased by 6% to $6.6 billion[4][8]. - Total liabilities rose to $4.68 billion as of December 31, 2024, compared to $4.41 billion in 2023, reflecting a 6% increase[46]. - As of December 31, 2024, total debt outstanding was $4.4 billion, with a debt-to-equity ratio of 1.8, within the target range[28]. Cash Flow and Financing - Cash flows from financing activities for 2024 showed net cash provided of $200.415 million, a significant decrease from $1.792 billion in 2023[49]. - The cash, cash equivalents, and restricted cash at the end of the period for 2024 was $150.157 million, up from $75.082 million in 2023[49]. - Cash available for reinvestment for the year ended December 31, 2024, was $717,806, significantly higher than $106,122 in 2023, indicating a substantial increase of 576.5%[72]. - Adjusted cash flow from operations plus other portfolio collections for 2024 was $910,075, compared to $265,908 in 2023, representing a growth of 242.5%[73]. Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.42 per share, with a payout ratio expected to decline to 55%-60% by 2027[4][32]. - The company recognized a loss on equity method investments, which was included in the Average Annual Realized Loss on Managed Assets metric[62]. - The company made principal payments on credit facilities totaling $1.696 billion in 2024, compared to $827 million in 2023, reflecting an increase of 105.5%[49]. - The net proceeds from common stock issuances were $203.528 million in 2024, a decrease from $492.377 million in 2023[49]. Future Guidance - The company confirmed guidance for Adjusted EPS growth of 8% to 10% annually through 2027, with a projected midpoint of $3.15 per share in 2027[30]. - The company expects continued growth in interest income and revenue driven by its diversified investment strategy in sustainable infrastructure[39]. - The company has not provided GAAP guidance due to the complexity of forecasting under the HLBV method, which requires various assumptions[39]. Other Key Metrics - Total closed investments for 2024 reached $2.3 billion, with new portfolio asset yields exceeding 10.5%, up from over 9% in 2023[4][7]. - The company has a diversified pipeline exceeding $5.5 billion as of the end of 2024[4]. - Collections of adjusted earnings for the year ended December 31, 2024, were $90 million, compared to $39 million in 2023, marking a growth of 130.8%[56]. - Interest paid increased to $192.960 million in 2024 from $138.418 million in 2023, indicating a rise of 39.3%[49]. - Total interest expense for the year ended December 31, 2024, was $242,364, up from $171,008 in 2023, reflecting an increase of 42%[65].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The investment strategy emphasizes defensive stocks with a medium- to long-term horizon, reflecting a cautious approach in a volatile market [2] Group 2 - The article highlights the importance of conducting due diligence and forming independent conclusions before making investment decisions [4] - It notes that past performance is not indicative of future results, emphasizing the need for careful evaluation of investment suitability [5]