Hannon Armstrong Q3 2023 Earnings Report
Key Takeaways
Hannon Armstrong announced strong Q3 2023 results, featuring record distributable EPS of $0.62, significant portfolio growth, and reaffirmed guidance. The company's managed assets grew to $11.5 billion, and it closed $973 million of investments during the quarter.
Delivered $0.20 GAAP diluted EPS QTD and $0.62 Distributable EPS QTD.
Increased portfolio by 11% in the quarter and 41% in the last twelve months to $5.5 billion.
Managed assets grew 22% year over year to $11.5 billion.
Closed $973 million of investments in the third quarter of 2023.
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
- The general interest rate and market environment
- Regulatory environment
- Dynamics of the markets
- Judgments and estimates of the Company’s management team
- Distributions are subject to approval by the Company’s Board of Directors on a quarterly basis