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Dec 31, 2023
Hannon Armstrong Q4 2023 Earnings Report
Hannon Armstrong reported Q4 2023 earnings, featuring a dividend increase and new three-year guidance.
Key Takeaways
Hannon Armstrong reported strong financial results for Q4 2023, driven by record closed transactions. The company's GAAP net income was $89.8 million, or $0.74 per share, while distributable earnings were $60.6 million, or $0.53 per share. The company also announced an increase in its quarterly dividend to $0.415 per share and provided new guidance for annual distributable earnings per share growth of 8% - 10% from 2024 to 2026.
GAAP Net Income was $89.8 million, or $0.74 per share.
Distributable earnings were $60.6 million, or $0.53 per share.
Increased dividend to $0.415 per share for the first quarter of 2024.
Established new guidance that annual distributable earnings per share is expected to grow at a compounded annual rate of 8% - 10% during the years 2024 to 2026 relative to the 2023 baseline of $2.23 per share.
Hannon Armstrong
Hannon Armstrong
Forward Guidance
The Company expects that annual distributable earnings per share will grow at a compounded annual rate of 8% to 10% from 2024 to 2026, relative to the 2023 baseline of $2.23 per share, which is equivalent to a 2026 midpoint of $2.89 per share. The Company also expects distributions of annual dividends per share from 2024 to 2026 to be set at a payout ratio of 60-70% of annual distributable earnings per share.
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
- General interest rate environment
- Market environment
- Distributions are subject to approval by the Company’s Board of Directors on a quarterly basis.
- Company has not provided GAAP guidance
- The Company would be required to make various assumptions related to expected changes in the net asset value of the various entities and how such changes would be allocated under HLBV.