Hannon Armstrong Sustainable Infrastructure Capital(HASI) - 2024 Q4 - Annual Results

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].