Ha Sustainable Infrastructure Capital, Inc. · NYSE:HASI
Ha Sustainable Infrastructure Capital — Q1 2025 Earnings Presentation
31 slides from Ha Sustainable Infrastructure Capital's earnings presentation, May 7, 2025
Slide 1: Earnings Presentation First Quarter 2025
Earnings Presentation First Quarter 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the information contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, words such as "believe," "expect," "an
Slide 3: Q1 2025 Highlights
Q1 2025 Highlights >$700m $0.64 $1.3b Transactions Closed Adjusted EPS2 Available Liquidity4 >10.5% $0.44 $1.0b New Asset Yield1 GAAP EPS3 CCH1 Funded Assets5 Guidance for CAGR of 8-10% to Adjusted EPS in 2027 Reaffirmed6 1. Represents yields on new portfolio investments only; excludes follow-on inv
Slide 4: Outlook Undeterred by Tariff Dislocations
Outlook Undeterred by Tariff Dislocations Portfolio Pipeline Post-Pipeline De minimis impact Largely protected Manageable exposure • Projects in operation and/ • Most projects already • Underlying growth in U.S. or parts already procured completed or are under power demand/power prices construction
Slide 5: No Impact on our Business Historically from Recessions
No Impact on our Business Historically from Recessions New U.S. generation capacity vs. GDP growth HASI Adjusted EPS vs. GDP growth 2001-02 2007-09 2020 “Tech” Recession “GFC” Recession “Covid” Recession $3.00 6% New U.S. Electric Generation Capacity (GW)1 80 6% U.S. Real GDP Growth2 60 $2.00 HASI A
Slide 6: Strong, Well-Diversified Pipeline
Strong, Well-Diversified Pipeline BTM: Community solar is forecast to add >6 GW of new capacity over the next five years Behind-the-Meter Grid-Connected with more than 15 states now offering 49% 30% community solar programs2 >$5.5b GC: EIA continues to forecast U.S. utility-scale solar capacity to g
Slide 7: Managed Assets of $14.5b with CCH1 at $1b
Managed Assets of $14.5b with CCH1 at $1b Managed Assets up 12% Y/Y1 CCH1 assets of $1b2 By Investment Type By Asset Class GC Solar Equity Investments GC Solar 20% 16% 29% Resi Solar 41% Public Onshore Sector Wind 38% $14.5b 9% FTN 7% Community Solar 3% FTN 20% Receivables 84% C&I 7% Resi C&I Other
Slide 8: New Portfolio Asset Yields of >10.5% in Q1 2025
New Portfolio Asset Yields of >10.5% in Q1 2025 Diversification across asset classes Yield on new investments3 GC Solar >10.5% >10.5% Resi 20% Solar 30% >9.0% >7.5% Portfolio: $7.1b1 Onshore Wind 18% Community Solar 8% C&I FTN 6% 13%2 Public Sector 4% Other 2022 2023 2024 Q1 2025 1% Our portfolio re
Slide 9: Maintaining Strong Margins Amidst Higher Interest Rates
Maintaining Strong Margins Amidst Higher Interest Rates 12.8% 12.5% 11.8% 11.1% 11.2% 11.4% 10.5% 10.7% 8.3% 8.3% 7.6% 7.6% 7.9% 7.5% 7.5% 6.8% 5.4% 5.6% 5.7% 4.9% 5.1% 5.0% 4.6% 4.3% 2018 2019 2020 2021 2022 2023 2024 Q1 2025 1 Adjusted ROE Portfolio Yield 2 Interest Expense / Avg Debt Balance 3 He
Slide 10: Q1 2025 Profitability Metrics
Q1 2025 Profitability Metrics Q1 2024 Q1 2025 Recurring income from Adjusted Net Investment Income and Securitization Asset Income revenue GAAP Diluted EPS $0.98 $0.44 grew by a combined 14% Y/Y to $79 million Adjusted EPS1 $0.68 $0.64 GAAP Net Investment Income $8.7m $1.8m Adjusted EPS and Adjusted
Slide 11: Ample Liquidity and Manageable Debt Maturities
Ample Liquidity and Manageable Debt Maturities Revolver largely undrawn Long-term Debt maturities extend out to 20343 $1,000 Cash CP Gross Liquidity $1.7b >$1.3b - RLOC capacity reserved $0.4 $500 liquidity for stand-alone CP facility2 sources1 Available Liquidity $1.3b Unsecured $0 2025 2026 2027 2
Slide 12: 1Q25 Sustainability and Impact Highlights
1Q25 Sustainability and Impact Highlights Procured Renewable Energy HASI Foundation provided grant to Published 7th annual Certificates (RECs) with high Student-Managed Investment Fund Sustainability & Impact Report avoided emissions to support Scope at Morgan State University 2 impact-based reporti
Slide 13: Highly Resilient Business Model Supports 3-Year Guidance
Highly Resilient Business Model Supports 3-Year Guidance Strong funding platform Manageable public policy impact • Portfolio essentially immune from • Available liquidity of $1.3b at 3/31 policy changes • Increased revolver capacity by $200m • Pipeline protected by inventory, to $1.55b safe harborin
Slide 14: Appendix
Appendix 14
Slide 15: Portfolio Bridge: Q4 2024 to Q1 2025
Portfolio Bridge: Q4 2024 to Q1 2025 $ millions Portfolio at 12/31/24 $6,594 Funding of new investments $232 Funding of prior investments $180 Principal collections1 ($67) Syndications and securitizations ($13) Other $130 Portfolio at 3/31/25 $7,056 1. Reflects principal collections of receivables a
Slide 16: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections1 $ millions2 1Q25 (TTM) 2024 2023 Cash collected from our Portfolio $794 $891 $442 Cash collected from sale of assets3 $200 $325 $34 Cash used for compensation and benefits and G&A expenses ($91) ($86) ($79) Interest paid4 ($201) ($
Slide 17: Strong Portfolio with Positive Credit Attributes
Strong Portfolio with Positive Credit Attributes Recent Portfolio Performance Positive Credit Attributes Rating Description Performance Metric Asset Class Portfolio(%)5 Structural Seniority Obligor Credit Subordinated Debt > 380k consumers WAVG 1 Performing1 ~99% Residential 30% or Structured Equity
Slide 18: Summary of Total Debt and Hedge Portfolio
Summary of Total Debt and Hedge Portfolio Debt Facility Debt Amount (millions) 1 Interest Rate2 Maturity Year Convertible Notes (paid off in April 2025) $200 3.25% 2025 Corporate Senior Unsecured Notes $1,000 3.38% 2026 Corporate Senior Unsecured Notes $750 8.00% 2027 Term Loan A $244 5.76% 2027 Com
Slide 19: 2024-27 Guidance Bridge to Long-Term Business Model
2024-27 Guidance Bridge to Long-Term Business Model Adjusted EPS1 Dividend Long-Term Business Model 10% CAGR 50% payout ratio2 (Realized 2014-2024 CAGR of 10%) 2027 Guidance 8-10% CAGR3 55-60% payout ratio2 $3.26 $3.03 2023 2024 2025 2026 2027 1. See Appendix for an explanation of Adjusted Earnings,
Slide 20: Income Statement
Income Statement HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS. (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) For the Three Months Ended March 31, so Revenue Interest income $ 66,394 $ 68,692 Rental income 83 1,846 Gain on sale of assets 18,6
Slide 21: Balance Sheet
Balance Sheet HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) December 31, 2024 s 129,758 3,612,394 2,895,837 75,556 2,984 6818 248,688 108,210 S$ 7,080,245 (UNAUDITED) March 31, 2025 (unaudited) Assets Cash and cash equ
Slide 22: Statement of Cashflows
Statement of Cashflows HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS: (DOLLARS IN THOUSANDS) (UNAUDITED) ‘Three Months Ended March 31, ‘Three Months Ended 2s ET) March 31, Cash flows from operating activities 224 Net income (loss) $ 58,185 $ 124,548 Cash
Slide 23: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections 23
Slide 24: Reconciliation of GAAP Net Income to Adjusted Earnings (1 of 2)
Reconciliation of GAAP Net Income to Adjusted Earnings (1 of 2) (1) The per share data reflects the GAAP diluted earnings per share and is the most comparable GAAP measure to our adjusted earnings per share. (2) This is a non-GAAP adjustment to reflect the return on capital of our equity method inve
Slide 25: Reconciliation of GAAP Net Income to Adjusted Earnings (2 of 2)
Reconciliation of GAAP Net Income to Adjusted Earnings (2 of 2) (1) The per share data reflects the GAAP diluted earnings per share and is the most comparable GAAP measure to our adjusted earnings per share. (2) This is a non-GAAP adjustment to reflect the return on capital of our equity method inve
Slide 26: Reconciliation of GAAP-based NII to Adjusted NII
Reconciliation of GAAP-based NII to Adjusted NII 26
Slide 27: Additional GAAP to Non-GAAP Reconciliations
Additional GAAP to Non-GAAP Reconciliations (1) Total assets in co-investment structures are $989 million as of March 31, 2025. Not included in this amount is an additional $225 million related to closed transactions not yet funded as of March 31, 2025. 27
Slide 28: Explanatory Notes
Explanatory Notes Adjusted Cash Flow from Operations plus Other Portfolio Collections We operate our business in a manner that considers total cash collected from our portfolio and making necessary operating and debt service payments to assess the amount of cash we have available to fund dividends a
Slide 29: Supplemental Financial Data
Supplemental Financial Data Adjusted Earnings and Earnings on Equity Method Investments We calculate Adjusted earnings as GAAP net income (loss) excluding non-cash equity compensation expense, provisions for loss on receivables, amortization of intangibles, non-cash provision (benefit) for taxes, ga
Slide 30: Supplemental Financial Data
Supplemental Financial Data Managed Assets We consolidate assets on our balance sheet, securitize assets off-balance sheet, and manage assets in which we co-invest with other parties via equity method investments. Therefore, certain receivables and other assets are not reflected on our balance sheet
Slide 31: Visit our website at www.hasi.com
Visit our website at www.hasi.com Listen to the HASI Climate Positive podcast Securities are offered by HASI Securities, LLC, a registered broker dealer, member FINRA and SIPC and subsidiary of HA Sustainable Infrastructure Capital, Inc.
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