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Sep 30, 2021
Hannon Armstrong Q3 2021 Earnings Report
Reported mixed results due to lower gain on sale and fee income, offset by growth in portfolio and managed assets.
Key Takeaways
Hannon Armstrong reported a GAAP EPS loss of $(0.04) and Distributable EPS of $0.41. The company closed $200 million of investments in a seasoned portfolio of residential solar assets, launched a $100 million CarbonCount®-based Commercial Paper Note Program, and grew its portfolio by 45% YOY to $3.2 billion.
GAAP EPS was $(0.04) compared to $0.28 for the same period in 2020.
Distributable EPS was $0.41, a 14% YOY increase from $0.36 in 2020.
Portfolio grew 45% YOY to $3.2 billion.
Managed Assets grew 28% YOY to $8.2 billion.
Forward Guidance
The Company expects that annual distributable earnings per share will grow at a compounded annual rate of 7% to 10% from 2021 to 2023, relative to the 2020 baseline of $1.55 per share, which is equivalent to a 2023 midpoint of $1.98 per share. The Company also expects that annual dividends per share will grow at a compound annual rate of 3% to 5% from 2021 to 2023, relative to the 2020 baseline of $1.36 per share, which is equivalent to a 2023 midpoint of $1.53 per share.
Positive Outlook
- Yield on existing Portfolio
- Yield on incremental Portfolio investments, inclusive of the Company’s existing pipeline
- Volume and profitability of securitization 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
- Ongoing and future impact of COVID-19
- Speed and efficacy of vaccine distribution on economic conditions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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