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Mar 31, 2024
Hannon Armstrong Q1 2024 Earnings Report
Hannon Armstrong reported strong Q1 2024 results, highlighted by a new strategic partnership with KKR and significant growth in portfolio and managed assets.
Key Takeaways
Hannon Armstrong Sustainable Infrastructure Capital, Inc. announced its Q1 2024 results, featuring a strategic partnership with KKR to invest $2 billion in sustainable infrastructure assets. The company reported GAAP diluted EPS of $0.98 and Adjusted EPS of $0.68. The portfolio increased by 36% to $6.4 billion, and managed assets grew by 24% to $12.9 billion.
Announced a $2 billion strategic partnership with KKR through CarbonCount Holdings 1 LLC.
Increased capacity and extended maturities of revolving line of credit and commercial paper programs.
Portfolio increased 36% year-over-year to $6.4 billion.
Adjusted Net Investment Income increased by 37% year-over-year to $64.3 million.
Revenue by Segment
Forward Guidance
The Company expects that annual adjusted earnings per share will grow at a compounded annual rate of 8% to 10% from 2024 to 2026, relative to the 2023 baseline of $2.23 per share, which is equivalent to a 2026 midpoint of $2.89 per share. The Company also expects distributions of annual dividends per share from 2024 to 2026 to be set at a payout ratio of 60-70% of annual adjusted earnings per share.
Positive Outlook
- Yield on its existing portfolio
- Yield on incremental portfolio investments, inclusive of the Company’s existing pipeline
- Volume and profitability of transactions
- Amount, timing, and costs of debt and equity capital to fund new investments
- Changes in costs and expenses reflective of the Company’s forecasted operations
Challenges Ahead
- General interest rate and market environment
- Distributions are subject to approval by the Company’s Board of Directors on a quarterly basis.
- Forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the HLBV method to these investments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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