Jun 30, 2022

Hannon Armstrong Q2 2022 Earnings Report

Announced second quarter 2022 results, reporting Distributable EPS of $0.60 and GAAP EPS of $(0.21).

Key Takeaways

Hannon Armstrong reported a GAAP EPS of $(0.21) and Distributable EPS of $0.60 for the second quarter of 2022. The portfolio grew 30% YOY to $3.9 billion. The company reaffirmed guidance that Distributable Earnings Per Share is expected to grow at a compound annual rate of 10% to 13% from 2021 to 2024.

GAAP EPS was $(0.21) for the second quarter of 2022, compared with $0.20 for the same period in 2021.

Distributable EPS was $0.60 for the second quarter of 2022, compared to $0.57 for the same period in 2021, representing a 5% YOY increase

Distributable Net Investment Income for the second quarter of 2022 increased by 44% YOY to $47.9 million, compared to $33.2 million for the same period in 2021

The portfolio grew 30% YOY to $3.9 billion

Total Revenue
$62.8M
Previous year: $25M
+151.1%
EPS
$0.6
Previous year: $0.57
+5.3%
Dividend per share
$0.375
Previous year: $0.35
+7.1%
Gross Profit
$62.8M
Previous year: $58.9M
+6.6%
Cash and Equivalents
$279M
Previous year: $583M
-52.1%
Total Assets
$4.52B
Previous year: $3.94B
+14.8%

Hannon Armstrong

Hannon Armstrong

Forward Guidance

The Company expects that annual distributable earnings per share will grow at a compounded annual rate of 10% to 13% from 2021 to 2024, relative to the 2020 baseline of $1.55 per share, which is equivalent to a 2024 midpoint of $2.40 per share. The Company also expects growth of annual dividends per share to be at a compounded annual rate of 5% to 8%.

Positive Outlook

  • yield on its existing portfolio
  • yield on incremental portfolio investments, inclusive of the Company’s existing pipeline
  • the 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
  • market environment
  • current expectations of the ongoing and future impact of COVID-19
  • the speed and efficacy of vaccine distribution on economic conditions
  • regulatory environment