Hannon Armstrong Q4 2021 Earnings Report
Key Takeaways
Hannon Armstrong reported strong Q4 and full year 2021 results, with distributable earnings per share growing by 21% for the year. The company increased and extended its guidance for distributable earnings and dividends through 2024, and raised the dividend to $0.375 per share for Q1 2022.
GAAP EPS was $1.51 in 2021, compared to $1.10 in 2020.
Distributable EPS was $1.88 in 2021, compared to $1.55 in 2020, representing 21% year-on-year growth.
Portfolio grew 24% in 2021 to $3.6 billion.
Managed assets grew 22% to $8.8 billion as of the end of 2021.
Hannon Armstrong
Hannon Armstrong
Hannon Armstrong Revenue by Segment
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 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
- The regulatory environment
- The dynamics of the markets in which we operate
Revenue & Expenses
Visualization of income flow from segment revenue to net income