Core Viewpoint - HA Sustainable Infrastructure Capital (HASI) reported quarterly earnings of $0.52 per share, missing the Zacks Consensus Estimate of $0.55 per share, and down from $0.62 per share a year ago [1][2] Financial Performance - The quarterly earnings surprise was -5.45%, with the company previously expected to post earnings of $0.58 per share but actually producing $0.63, resulting in a surprise of 8.62% [2] - Revenues for the quarter ended September 2024 were $21.33 million, surpassing the Zacks Consensus Estimate by 0.15%, but down from $36.76 million year-over-year [3] - Over the last four quarters, the company has exceeded consensus revenue estimates three times [3] Stock Performance - Since the beginning of the year, HA Sustainable Infrastructure Capital shares have increased by approximately 16.9%, compared to the S&P 500's gain of 24.3% [4] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $25.6 million, and for the current fiscal year, it is $2.46 on revenues of $122.65 million [8] Industry Outlook - The Zacks Industry Rank for Financial - Miscellaneous Services is currently in the top 31% of over 250 Zacks industries, indicating a favorable outlook [9] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [6]

Financial Data and Key Metrics Changes - In Q3 2024, the company reported adjusted earnings per share (EPS) of $0.52, with year-to-date adjusted EPS reaching $1.83, representing an 8% growth over the same period in 2023 [6][25] - Managed assets grew by 14% year-over-year, exceeding $13 billion, while the overall portfolio yield increased to 8.1% from 8% in the previous quarter and 7.9% a year ago [6][24] - New investments totaled $1.2 billion year-to-date as of September 30, 2024, and have reached $1.7 billion as of the call date [5][6] Business Line Data and Key Metrics Changes - The company has closed $1.2 billion in transactions year-to-date, with expectations to exceed $2 billion in total transaction closings for the year [22] - The portfolio growth reflects an asset rotation initiative, replacing over $400 million of lower-yielding investments with higher-yielding ones [23] Market Data and Key Metrics Changes - The company noted that the renewable natural gas (RNG) market is large and growing, with significant investments from large developers and private equity firms [35] - The company’s pipeline remains diversified, exceeding $5.5 billion, with expectations to onboard approximately 10 new clients this year [19] Company Strategy and Development Direction - The company aims for annual adjusted EPS growth between 8% and 10% through 2026, with a long-term goal of 10% annual EPS growth and a 50% payout ratio by 2030 [7] - The company emphasizes that its business is not dependent on low interest rates and has maintained a consistent approach to interest rate risk management [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to thrive under various political administrations and interest rate environments, citing historical performance [8][12] - The energy transition is viewed as an extraordinary investment opportunity, with the company positioned to benefit from its experience and access to capital [32] Other Important Information - The company reported a GAAP EPS loss of $0.17, attributed to mark-to-market impacts related to power contracts, which are expected to stabilize over time as power prices increase [25][26] - The partnership with KKR is progressing well, with additional transactions closed in the third quarter and early fourth quarter [17] Q&A Session Summary Question: How significant is RNG in the FTN market and can it support declines in solar and wind? - Management indicated that the RNG market is large and growing, with significant investments being made, and it is expected to become a meaningful part of the business alongside wind and solar [35][36] Question: What are the rate hedges and their impact on earnings power? - Management explained that various hedges are in place for floating rate facilities, supporting earnings, and ensuring a duration profile that fits closely with asset cash flows [37][38] Question: How does the company limit exposure to RIN credit volatility? - Management noted that being in a senior debt position with good cash flow coverage helps mitigate RIN risk [43] Question: Updates on the KKR partnership and project funding? - Management confirmed that additional investments have been added to the KKR vehicle, which is operating as designed, with more disclosures expected as the vehicle grows [44][47] Question: Visibility on achieving $2 billion in originations for the year? - Management expressed confidence in closing the remaining amount to reach the $2 billion target, citing strong activity in October and early November [49] Question: Clarification on GAAP equity method loss? - Management clarified that the GAAP loss is due to mark-to-market accounting for power contracts, which will reflect higher asset values over time as power prices increase [55]

HASI Announces Third Quarter 2024 Results ANNAPOLIS, Md., November 7, 2024 -- (BUSINESS WIRE) -- HA Sustainable Infrastructure Capital, Inc. ("HASI," "we," "our" or the "Company") (NYSE: HASI), a leading investor in climate solutions, today reported results for the third quarter of 2024. Key Highlights • Closed transactions with multiple new clients over the last few months, including Lightsource bp and Vision RNG. • Funded additional investments for CCH1 with partnership progressing as expected. • Managed ...

The upcoming report from HA Sustainable Infrastructure Capital (HASI) is expected to reveal quarterly earnings of $0.55 per share, indicating a decline of 11.3% compared to the year-ago period. Analysts forecast revenues of $29.01 million, representing a decrease of 21.1% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.P ...

Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Orix (IX) or HA Sustainable Infrastructure Capital (HASI) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, an ...

A dollar doesn't go as far as it used to, but you can still pick up some great high-yield dividend stocks for less than $35 a share. There are tons of great stocks out there to buy every single day of the week, but there's just something a little extra about dividend stocks that makes them hard to resist. That's why I'm such a fan of real estate investment trusts. And what's not to love? Regular payouts are great, and then there's the potential for your shares to increase in value over time -- owning them i ...

Justin Paget Thesis Hannon Armstrong (NYSE: NYSE:HASI) posted solid Q2 2024 results, with Non-GAAP EPS at $0.63, beating estimates by $0.07 and revenue hit $94.52 million. In my analysis, you'll note that HASI made exceptionally smart moves in climate investments and a growing portfolio keep them ahead in sustainable infrastructure. In my thesis, I argue that even with high borrowing costs, their focus on long-term value and diverse assets sets them up for steady growth in a fast-changing market. About HA S ...

Portfolio Overview - The company's portfolio totaled approximately $6.2 billion as of June 30, 2024, with $3.0 billion in Behind-the-Meter (BTM) assets, $2.4 billion in Grid-Connected (GC) assets, and $0.8 billion in Fuels, Transport, and Nature (FTN) assets[141]. - Approximately 52% of the portfolio consisted of unconsolidated equity investments in renewable energy projects, while 41% consisted of fixed-rate receivables and debt securities[141]. - The average size of transactions in the portfolio was approximately $12 million, with a weighted average remaining life of about 17 years[141]. - The company managed approximately $13 billion in assets, combining the portfolio and assets in securitization trusts as of June 30, 2024[135]. Financial Performance - Total revenue for the six months ended June 30, 2024, reached $200.3 million, up 40% from $143.4 million in the same period of 2023[151]. - Net income for the three months ended June 30, 2024, was $26.9 million, a 99% increase compared to $13.5 million in the same period of 2023[148]. - Interest income for the three months ended June 30, 2024, increased to $62.8 million, a 30% increase from $48.2 million in the same period of 2023[148]. - Income from equity method investments for the six months ended June 30, 2024, surged to $185.4 million, a 652% increase from $24.7 million in the same period of 2023[151]. - Adjusted earnings for Q2 2024 were $73.683 million, compared to $53.146 million in Q2 2023, reflecting a 38.6% increase[157]. - GAAP net income attributable to controlling stockholders for Q2 2024 was $26.540 million, or $0.23 per share, up from $13.522 million, or $0.14 per share in Q2 2023[157]. Expenses and Cash Flow - Total expenses for the six months ended June 30, 2024, increased to $177.7 million, a 37% increase from $130.2 million in the same period of 2023[151]. - Cash provided by operating activities for the six months ended June 30, 2024 was $(4) million, a decrease of $70 million compared to the same period in 2023[187]. - Cash provided by investing activities increased by $873 million for the six months ended June 30, 2024, driven by higher principal collections from receivables[187]. - Cash collected for Q2 2024 was $19 million, compared to $11 million in Q2 2023, representing a 72.7% increase[156]. Debt and Liquidity - As of June 30, 2024, the company had total liquidity of $1,110 million, consisting of $146 million in unrestricted cash and $927 million in unused capacity under its unsecured revolving credit facility[176]. - The company increased the available capacity under its unsecured revolving credit facility to $1.25 billion and extended its maturity to April 2028[177]. - The debt to equity ratio was approximately 1.8 to 1 as of June 30, 2024, below the board-approved leverage limit of up to 2.5 to 1[179]. - The company has $4.1 billion of fixed-rate debt, including $820 million of floating-rate borrowings hedged with interest rate derivatives[194]. Investment Strategy and Opportunities - The pipeline of potential new opportunities as of June 30, 2024, consisted of more than $5.5 billion in new equity, debt, and real estate opportunities, with approximately 55% related to BTM assets and 22% related to GC assets[137]. - The company entered into a strategic partnership with KKR in May 2024, each committing to invest $1 billion into climate solutions projects[137]. - The company has a large and active pipeline of potential new opportunities, incentivized by the Inflation Reduction Act signed into law on August 16, 2022[137]. Risk Management - The company is exposed to credit risk from various projects, particularly those without government guarantees, such as financing for universities and privately owned commercial projects[193]. - The company employs a risk rating system to evaluate projects, estimating the probability of default and recovery rates based on obligors' credit ratings[193]. - The company faces liquidity risk as its portfolio assets are not publicly traded and may be subject to legal restrictions on resale[196]. - The company is exposed to commodity price risk, particularly in renewable energy projects that may be affected by volatility in energy prices[197]. - The company actively manages environmental risks associated with climate change through ongoing monitoring and third-party expert evaluations[200]. Accounting and Reporting - The company has identified critical accounting policies that require significant judgments and assumptions, which could materially impact reported results of operations or financial condition[140]. - The company plans to continue using adjusted earnings as a meaningful indicator of economic performance for evaluating expected dividend payments over time[154].

Earnings Presentation Second Quarter 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 statements. Forward- ...

Company Performance - HA Sustainable Infrastructure Capital (HASI) reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and up from $0.53 per share a year ago, adjusted for non-recurring items [1] - The quarterly earnings surprise was 8.62%, and the company had a previous quarter surprise of 19.30% with earnings of $0.68 per share against an expectation of $0.57 [2] - Revenues for the quarter were $39.19 million, surpassing the Zacks Consensus Estimate by 26.53%, compared to $33.63 million in the same quarter last year [3] Stock Performance - The stock has increased approximately 18.8% since the beginning of the year, outperforming the S&P 500's gain of 15.8% [4] - The current consensus EPS estimate for the upcoming quarter is $0.60 on revenues of $26.8 million, and for the current fiscal year, it is $2.44 on revenues of $119.3 million [8] Industry Outlook - The Zacks Industry Rank for Financial - Miscellaneous Services, which includes HA Sustainable Infrastructure Capital, is currently in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [9] - The performance of HA Sustainable Infrastructure Capital may be influenced by the overall outlook for the industry, as top-ranked industries tend to outperform lower-ranked ones significantly [9]