Sep 30, 2024

Hannon Armstrong Q3 2024 Earnings Report

HASI's Q3 2024 results highlighted business resiliency amidst interest rate volatility, with managed assets increasing and new client transactions closed.

Key Takeaways

HA Sustainable Infrastructure Capital (HASI) reported a GAAP EPS of $(0.17) and Adjusted EPS of $0.52 for Q3 2024. Managed assets grew 14% year-over-year to $13.1 billion, and the portfolio increased 15% to $6.3 billion. The company reaffirmed its adjusted EPS growth guidance for 2024-2026 and declared a quarterly dividend of $0.415 per share.

Closed transactions with multiple new clients, including Lightsource bp and Vision RNG.

Managed assets increased 14% year-over-year to $13.1 billion, and the portfolio grew 15% year-over-year to $6.3 billion.

GAAP EPS was $(0.17), and Adjusted EPS was $0.52.

Confirmed adjusted EPS growth guidance from 2024 to 2026 and declared a quarterly dividend of $0.415 per share.

Total Revenue
$82M
Previous year: $89.9M
-8.8%
EPS
$0.52
Previous year: $0.62
-16.1%
Portfolio Yield
8.1%
Previous year: 7.9%
+2.5%
Managed Assets
$13.1B
Previous year: $11.5B
+13.9%
Dividend per share
$0.415
Previous year: $0.395
+5.1%
Gross Profit
$82M
Previous year: $89.9M
-8.8%
Cash and Equivalents
$44.1M
Previous year: $156M
-71.7%
Total Assets
$6.67B
Previous year: $5.91B
+12.9%

Hannon Armstrong

Hannon Armstrong

Forward Guidance

The company confirms its guidance for adjusted earnings per share and dividend payout ratio, expecting annual adjusted EPS to grow at a compounded annual rate of 8% to 10% from 2024 to 2026, with distributions of annual dividends per share at a payout ratio of between 60% and 70% of annual adjusted earnings per share.

Positive Outlook

  • Expect annual adjusted earnings per share to grow at a compounded annual rate of 8% to 10% from 2024 to 2026.
  • Distributions of annual dividends per share from 2024 to 2026 at a payout ratio of between 60% and 70% of annual adjusted earnings per share.
  • Guidance reflects judgments and estimates of yield on the existing portfolio.
  • Guidance reflects judgments and estimates of yield on incremental portfolio investments, inclusive of the existing pipeline.
  • Guidance reflects judgments and estimates of the volume and profitability of transactions.

Challenges Ahead

  • Guidance is subject to the amount, timing, and costs of debt and equity capital to fund new investments.
  • Guidance is subject to changes in costs and expenses reflective of forecasted operations.
  • Guidance is subject to the general interest rate and market environment.
  • Distributions are subject to approval by the Board of Directors on a quarterly basis.
  • The Company has not provided GAAP guidance.