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Jun 30, 2023
Hannon Armstrong Q2 2023 Earnings Report
Reported increased investment volume and yields, and affirmed guidance.
Key Takeaways
Hannon Armstrong announced second quarter 2023 results, reporting a GAAP diluted EPS of $0.14 and Distributable EPS of $0.53. The company closed $426 million of investments and affirmed its distributable earnings per share growth guidance of 10% to 13% from 2021 to 2024.
Largest first half volume of $815m and investment yields >8.5% highlight continued execution of business objectives.
Portfolio yield increases to 7.7%.
Investment pipeline of >$5b and diversification of asset classes provide strong visibility on portfolio growth
Intention to discontinue electing REIT status in 2024 to better capture growing investment opportunities.
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
- Expected yield on existing portfolio
- Expected 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
- Regulatory environment
- Dynamics of the markets in which we operate
Historical Earnings Impact
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Avg. Return Before/After Earnings
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