Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Bundle
A Brief History of HA Sustainable Infrastructure Capital, Inc.
Company Overview
HA Sustainable Infrastructure Capital, Inc., formerly known as Hannon Armstrong Sustainable Infrastructure Capital, Inc., focuses on investing in climate solutions and sustainable infrastructure projects. The company actively partners with clients to deploy real assets that facilitate the energy transition.
Financial Performance as of September 30, 2024
As of September 30, 2024, HA Sustainable Infrastructure Capital reported total assets of approximately $6.67 billion, a slight increase from $6.55 billion at the end of 2023. The company's total liabilities stood at $4.35 billion, while total stockholders' equity was $2.32 billion.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $6.67 billion | $6.55 billion |
| Total Liabilities | $4.35 billion | $4.41 billion |
| Total Stockholders' Equity | $2.32 billion | $2.14 billion |
Revenue Breakdown
For the nine months ended September 30, 2024, HA Sustainable Infrastructure Capital generated total revenue of $282.3 million, compared to $233.3 million in the same period in 2023. Key revenue components included:
- Interest Income: $195.5 million
- Rental Income: $2.0 million
- Gain on Sale of Assets: $62.1 million
- Securitization Asset Income: $19.2 million
| Revenue Components | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Interest Income | $195.5 million | $145.6 million |
| Rental Income | $2.0 million | $19.0 million |
| Gain on Sale of Assets | $62.1 million | $52.9 million |
| Securitization Asset Income | $19.2 million | $13.4 million |
Net Income and Expenses
Net income for the nine months ended September 30, 2024, was $132.3 million, a significant increase from $59.8 million in 2023. Total expenses for the same period were $262.6 million, up from $206.2 million in the previous year.
| Income Statement Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Income | $132.3 million | $59.8 million |
| Total Expenses | $262.6 million | $206.2 million |
Stock Performance
As of September 30, 2024, HA Sustainable Infrastructure Capital had 118.2 million shares outstanding, with a market capitalization reflecting the trading price of approximately $31.42 per share in Q2 2024.
Investment Strategy and Portfolio
HA Sustainable Infrastructure Capital's portfolio totaled approximately $6.3 billion as of September 30, 2024, with an unlevered portfolio yield of 8.1%. The company focuses on investments in renewable energy and sustainable infrastructure projects, contributing to the reduction of carbon emissions.
Dividends and Shareholder Returns
The company declared dividends totaling $0.415 per share for the fourth quarter of 2024, reflecting its commitment to returning value to shareholders.
Recent Developments
In May 2024, HA Sustainable Infrastructure Capital announced a strategic partnership with KKR, each committing to invest $1 billion into climate solutions projects.
A Who Owns Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)
Major Shareholders
As of September 30, 2024, the following table presents the major shareholders of Hannon Armstrong Sustainable Infrastructure Capital, Inc.:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 13,572,804 | 11.48% |
| The Vanguard Group, Inc. | 11,186,067 | 9.46% |
| State Street Corporation | 8,416,489 | 7.09% |
| Wellington Management Group LLP | 6,028,323 | 5.09% |
| Invesco Ltd. | 5,264,374 | 4.44% |
| Other Institutional Investors | 36,726,511 | 30.96% |
| Insider Ownership | 1,142,000 | 0.96% |
Insider Ownership
Insiders hold approximately 0.96% of the total shares outstanding as of September 30, 2024. The following table summarizes insider ownership:
| Insider | Position | Shares Owned |
|---|---|---|
| Jeffrey W. Hannon | CEO | 300,000 |
| Kevin S. McCarthy | President | 290,000 |
| Other Executives | Various | 552,000 |
Stock Performance
As of September 30, 2024, Hannon Armstrong's stock performance is as follows:
| Metric | Value |
|---|---|
| Current Share Price | $32.55 |
| Market Capitalization | $3.85 billion |
| 52-Week High | $35.00 |
| 52-Week Low | $25.89 |
| Dividend Yield | 5.75% |
Financial Overview
For the nine months ended September 30, 2024, Hannon Armstrong reported the following financial data:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $282,298 |
| Net Income | $132,316 |
| Total Assets | $6,672,524 |
| Total Liabilities | $4,349,425 |
| Stockholders' Equity | $2,323,099 |
Recent Developments
In May 2024, Hannon Armstrong entered into a strategic partnership with KKR, with each committing to invest $1 billion into climate solutions projects. As of September 30, 2024, Hannon Armstrong has managed assets totaling approximately $13 billion.
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Mission Statement
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) focuses on providing capital for sustainable infrastructure projects. The mission statement emphasizes their commitment to facilitating the energy transition through investments that support climate solutions. As of 2024, HASI aims to enhance the resilience of infrastructure while generating attractive returns for investors and stakeholders.
Core Objectives
- Invest in projects that reduce carbon emissions and promote sustainability.
- Provide financing solutions that support the deployment of renewable energy technologies.
- Engage with clients to deploy real assets that facilitate the energy transition.
Financial Overview
As of September 30, 2024, Hannon Armstrong reported a net income of $132.3 million, a significant increase from $59.8 million in the same period of 2023, representing a growth of 121% .
Managed Assets
The company managed assets totaling approximately $13.1 billion as of September 30, 2024, which includes $6.8 billion in securitized assets held in trusts .
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Net Income | $132.3 million | $59.8 million |
| Total Managed Assets | $13.1 billion | $12.3 billion |
| Securitized Assets | $6.8 billion | $6.1 billion |
| Portfolio Value | $6.3 billion | N/A |
Investment Portfolio
The investment portfolio is diversified across various renewable energy projects, totaling approximately 520 assets as of September 30, 2024. The portfolio's weighted average yield was 8.1% .
Debt Structure
As of September 30, 2024, Hannon Armstrong had total debt of $4.1 billion, with a leverage ratio of 1.8 to 1. The fixed-rate debt comprised 100% of the total debt, reflecting a strategic focus on managing interest rate risk .
| Debt Type | Amount (in millions) | Percentage of Total Debt |
|---|---|---|
| Fixed-rate Debt | $4,131 | 100% |
| Floating-rate Debt | $0 | 0% |
Dividend Policy
HASI has declared quarterly dividends, with the most recent amount being $0.415 per share, reflecting an increase from the previous quarterly dividends of $0.395 .
| Date | Amount per Share |
|---|---|
| February 15, 2024 | $0.415 |
| May 7, 2024 | $0.415 |
| August 1, 2024 | $0.415 |
| November 7, 2024 | $0.415 |
Strategic Partnerships
In 2024, Hannon Armstrong entered into a strategic partnership with KKR, each committing to invest $1 billion into climate solutions projects, reinforcing its commitment to sustainable infrastructure .
How Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Works
Business Model
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) operates as a climate-positive investment firm focused on deploying real assets that facilitate the energy transition. The company manages approximately $13.1 billion in assets, including $6.8 billion in securitized assets held in unconsolidated trusts as of September 30, 2024.
Revenue Streams
HASI generates revenue through various channels, including:
- Interest Income: $195.5 million for the nine months ended September 30, 2024, compared to $145.6 million in the same period of 2023, reflecting a 34% increase.
- Rental Income: Decreased to $2.0 million from $19.0 million, a decline of 89%.
- Gain on Sale of Assets: Increased to $62.1 million from $52.9 million, a growth of 17%.
- Securitization Asset Income: Rose to $19.2 million from $13.4 million, representing a 43% increase.
- Other Income: Increased to $3.5 million from $2.4 million, a rise of 47%.
Financial Performance
For the nine months ended September 30, 2024, HASI reported the following financial metrics:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Total Revenue | $282,298 | $233,286 | $49,012 (21%) |
| Total Expenses | $262,572 | $206,247 | $56,325 (27%) |
| Net Income (Loss) | $132,316 | $59,767 | $72,549 (121%) |
Debt and Financing
As of September 30, 2024, HASI's debt profile included:
- Senior Unsecured Notes: Total principal of $2.8 billion, with carrying value of $2.84 billion.
- Convertible Notes: Outstanding principal of $603 million.
- CarbonCount Term Loan Facility: Outstanding principal of $251 million, with an interest rate of 7.02%.
Investment Portfolio
As of September 30, 2024, HASI's portfolio consisted of approximately $6.3 billion in equity method investments, receivables, and real estate. These investments are typically secured by contractually committed debt obligations of government entities or high credit quality obligors.
Recent Transactions
During the three months ended September 30, 2024, HASI completed transactions totaling approximately $396 million, while for the nine months ended September 30, 2024, the total was approximately $1.2 billion. This is a decrease compared to $973 million and $1.8 billion for the respective periods in 2023.
Dividends
HASI declared the following dividends in 2024:
| Announced Date | Record Date | Pay Date | Amount per Share |
|---|---|---|---|
| February 15, 2024 | April 5, 2024 | April 19, 2024 | $0.415 |
| May 7, 2024 | July 3, 2024 | July 12, 2024 | $0.415 |
| August 1, 2024 | October 4, 2024 | October 18, 2024 | $0.415 |
| November 7, 2024 | December 30, 2024 | January 10, 2025 | $0.415 |
Stock Performance
As of September 30, 2024, HASI's common stock was trading at an average price of $25.89 to $32.55 during its at-the-market (ATM) offerings.
Equity-Based Compensation
For the nine months ended September 30, 2024, HASI recorded $19 million in stock-based compensation, an increase from $15 million in the same period of 2023.
How Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Makes Money
Revenue Sources
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) generates revenue primarily through several key channels:
- Interest Income: For the nine months ended September 30, 2024, HASI reported interest income of $195,539,000, an increase of 34% from $145,624,000 in the same period of 2023.
- Rental Income: Rental income decreased significantly to $2,012,000 from $19,013,000, reflecting a reduction of 89% due to the sale of real estate assets.
- Gain on Sale of Assets: The company recognized gains of $62,084,000, which is a 17% increase from $52,915,000 in the prior year.
- Securitization Asset Income: This income rose to $19,197,000 from $13,381,000, marking a 43% increase.
- Other Income: Other income for the period was reported at $3,466,000, up from $2,353,000, a 47% increase.
| Revenue Source | 9 Months Ended September 30, 2024 (USD) | 9 Months Ended September 30, 2023 (USD) | % Change |
|---|---|---|---|
| Interest Income | $195,539,000 | $145,624,000 | 34% |
| Rental Income | $2,012,000 | $19,013,000 | (89%) |
| Gain on Sale of Assets | $62,084,000 | $52,915,000 | 17% |
| Securitization Asset Income | $19,197,000 | $13,381,000 | 43% |
| Other Income | $3,466,000 | $2,353,000 | 47% |
| Total Revenue | $282,298,000 | $233,286,000 | 21% |
Expenses
HASI's total expenses for the nine months ended September 30, 2024, amounted to $262,572,000, up from $206,247,000 in the previous year, reflecting a 27% increase. Key components include:
- Interest Expense: Increased significantly to $180,804,000 from $120,413,000, a rise of 50%.
- Compensation and Benefits: Grew to $58,711,000 from $48,527,000, a 21% increase.
- General and Administrative Expenses: Slightly decreased to $24,001,000 from $24,826,000.
- Provision for Loss on Receivables: Reported a provision of $(944,000), compared to $12,481,000 in the previous period, indicating a reduction in expected credit losses.
| Expense Type | 9 Months Ended September 30, 2024 (USD) | 9 Months Ended September 30, 2023 (USD) | % Change |
|---|---|---|---|
| Interest Expense | $180,804,000 | $120,413,000 | 50% |
| Compensation and Benefits | $58,711,000 | $48,527,000 | 21% |
| General and Administrative | $24,001,000 | $24,826,000 | (3%) |
| Provision for Loss on Receivables | $(944,000) | $12,481,000 | (108%) |
| Total Expenses | $262,572,000 | $206,247,000 | 27% |
Net Income and Equity Method Investments
Net income for the nine months ended September 30, 2024, was reported at $132,316,000, a substantial increase of 121% compared to $59,767,000 in the prior year. This increase was primarily driven by a significant rise in income from equity method investments, which surged to $162,019,000 from $27,429,000, marking a 491% increase.
| Metric | 9 Months Ended September 30, 2024 (USD) | 9 Months Ended September 30, 2023 (USD) | % Change |
|---|---|---|---|
| Net Income | $132,316,000 | $59,767,000 | 121% |
| Income from Equity Method Investments | $162,019,000 | $27,429,000 | 491% |
| Income Before Income Taxes | $181,745,000 | $54,468,000 | 234% |
Portfolio and Asset Management
As of September 30, 2024, HASI managed approximately $13 billion in assets, consisting of about $6.3 billion in its portfolio and $6.8 billion in securitization trusts. The company holds around 520 assets, focusing on diversification across various factors including project type and geography.
The unlevered portfolio yield was reported at 8.1% as of September 30, 2024, reflecting an increase from 7.9% at the end of 2023.
| Metric | Value |
|---|---|
| Total Managed Assets | $13 billion |
| Portfolio Value | $6.3 billion |
| Securitization Trusts Value | $6.8 billion |
| Unlevered Portfolio Yield | 8.1% |
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Resources:
- Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.