Hannon Armstrong Q3 2021 Earnings Report
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.
Hannon Armstrong
Hannon Armstrong
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
- Regulatory environment
- Dynamics of the markets in which we operate