Ha Sustainable Infrastructure Capital, Inc. · NYSE:HASI
Ha Sustainable Infrastructure Capital — Q3 2024 Earnings Presentation
30 slides from Ha Sustainable Infrastructure Capital's earnings presentation, Nov 7, 2024
Slide 1: Earnings Presentation Third Quarter 2024
Earnings Presentation Third Quarter 2024
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: Q3 2024 Highlights
Q3 2024 Highlights $1.2b ~10.5% $0.52 Transactions Closed New Asset Yield Q3 YTD1 YTD2 Adjusted EPS5 $13.1b 8.1% ($0.17) Managed Assets3 Portfolio Yield4 Q3 GAAP EPS6 2024 – 2026 Guidance Affirmed7 1. YTD through 9/30/24 5. See Appendix for an explanation of Adjusted Earnings and Earnings per 2. Rep
Slide 4: Clean Energy Investment is Driven by Economics not Politics
Clean Energy Investment is Driven by Economics not Politics U.S. Energy Transition Investment by Presidential Term1 $430 $449 $ billions (inflation- $319 adjusted) $247 $176 2005- 2008 2009- 2012 2013- 2016 2017- 2020 2021- 2023 Bush (2nd) Obama (1st) Obama (2nd) Trump Biden By Congressional Distric
Slide 5: Resilient Margins in all Interest Rate Environments
Resilient Margins in all Interest Rate Environments 2020 2021 2022 2023 2024 YTD1 3.9% 2.8% 3.3% 2.7% 3.7% 10.5% 9.1% 7.5% 7.1% 7.6% 6.3% 6.6% 4.2% 4.9% 3.4% New Asset Yields2 New Debt Issued3 Margin Adjusted EPS Y/Y Growth Adjusted EPS 11% 21% 11% 7% 8%1 Y/Y Growth 5% 10-Year Treasury Yield 4% 3% 2
Slide 6: Key Updates
Key Updates Margins CCH1 SunStrong Additional investments New JV partner has closed New asset yields ~10.5%1 have been funded purchase of Sunpower’s stake Publicly-listed bonds trading Partnership progressing Assets continue to perform with yields <6.5% as planned as expected 1. Represents yields on
Slide 7: Well-Diversified Pipeline Continues to Support Our Growth Outlook
Well-Diversified Pipeline Continues to Support Our Growth Outlook Behind-the-Meter Grid-Connected 46% 30% ~10 new clients expected in 2024 >$5.5b Projects in our pipeline have typically 12-mo Pipeline1 completed development, reducing risk of delays or changes in presidential administration Fuels, Tr
Slide 8: $1.2b of Transactions Closed YTD with Managed Assets Up to $13.1b
$1.2b of Transactions Closed YTD with Managed Assets Up to $13.1b Managed Assets up 14% Y/Y1 Portfolio up 15% Y/Y2 GC Solar Resi GC Solar 18% Solar 19% 29% Public Wind Sector 41% $13.1b 9% $6.3b Wind FTN 19% 6% Community Solar 8% Resi C&I C&I Other 3% FTN Solar 7% 4% 14% Community Solar 4% 15% Publi
Slide 9: Effectively Navigating a Higher Interest Rate Environment
Effectively Navigating a Higher Interest Rate Environment 12.4% 11.8% 11.1% 11.2% 11.4% 10.5% 10.7% 7.9% 8.1% 7.6% 7.6% 7.5% 7.5% 6.8% 5.4% 5.6% 4.9% 5.1% 5.0% 4.6% 4.3% 2018 2019 2020 2021 2022 2023 Q3 2024 1 2 3 Adjusted ROE Portfolio Yield Interest Expense / Avg Debt Balance Gain on sale contribu
Slide 10: Q3 Income Statement Detail
Q3 Income Statement Detail Adjusted Adjusted 3Q23 3Q24 Net Investment Income1 EPS1 $192 $1.83 $1.70 GAAP Diluted EPS $0.20 ($0.17) $160 +8% +20% Adjusted EPS1 $0.62 $0.52 GAAP NII $17.0m $4.8m 2023 YTD 2024 YTD 2023 YTD 2024 YTD Recurring Capital Light Income Upfront Capital Light Income Adjusted NI
Slide 11: Ample Liquidity to Invest in Our Pipeline
Ample Liquidity to Invest in Our Pipeline Revolver Largely Undrawn Debt Maturities Extend out to 20341 Cash CP $1,000 Secured Facility >$1.3b $500 Liquidity Sources1 Unsecured Revolver $0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Credit facilities, TLA Convertible Notes Senior Unsecured
Slide 12: 3Q24 Sustainability and Impact Highlights
3Q24 Sustainability and Impact Highlights Ranked top 95th Percentile of Named Among Newsweek’s HASI Foundation Grant to Support Peer Group by S&P Corporate Greenest Companies 2025 in Energy Industry Fellowships for Sustainability Assessment Specialty Finance Category HBCU Students Carbon Emissions1
Slide 13: Strong Tailwinds to our Business
Strong Tailwinds to our Business Investment in clean energy driven by U.S. power Market Outlook demand growth offers an enormous growth opportunity in the years ahead Margins Proven resilience in any interest rate environment Second investment grade rating and CCH1 Capital strategic partnership posi
Slide 14: Appendix
Appendix 14
Slide 15: Portfolio Bridge: Q2 2024 to Q3 2024
Portfolio Bridge: Q2 2024 to Q3 2024 $ millions Portfolio at 6/30/24 $6,186 Funding of new investments $46 Funding of prior investments $162 Principal collections ($70) Syndications and securitizations ($31) Other $3 Portfolio at 9/30/24 $6,296 15
Slide 16: Adjusted Cash from Operations Plus Other Portfolio Collections
Adjusted Cash from Operations Plus Other Portfolio Collections1 $ millions2 3Q24 (TTM) 2023 2022 Cash collected from our Portfolio $815 $442 $424 Cash collected from sale of assets3 $259 $34 $47 Cash used for compensation and benefits and G&A expenses ($79) ($79) ($64) Interest paid4 ($170) ($138) (
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(%)6 Structural Seniority Obligor Credit > 355k consumers WAVG 1 Performing1 ~99% Residential 29% Typically Preferred FICO: “Very Good”
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 Corporate Senior Unsecured Notes $1,000 3.38% 2026 Corporate Senior Unsecured Notes $750 8.00% 2027 Term Loan A $250 5.71% 2027 Convertible Notes $403 3.75% 2028 Corporate Senior Unsecured N
Slide 19: 2024-26 Guidance Bridge to Long-Term Business Model
2024-26 Guidance Bridge to Long-Term Business Model Adjusted EPS1 Dividend Per Share (DPS) Long-Term Business Model 10% CAGR 50% payout ratio2 (Realized 2014-2023 CAGR of 10%) 2024 – 2026 Guidance 8-10% CAGR3 60-70% payout ratio2 Guidance Adjusted EPS1: 8-10% Adj-EPS CAGR2 $2.97 $2.81 2023 2024 2025
Slide 20: 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 21: 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 22: Supplemental Financial Data
Supplemental Financial Data Managed Assets As we both consolidate assets on our balance sheet, securitize assets, and manage assets in which we co-invest with other partners, certain of our receivables and other assets are not reflected on our balance sheet where we may have a residual interest in t
Slide 23: 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 —_For the Nine Months Ended September 30, Ended September 30, 2024 23 2024 2003 Revenue Interest income S 64,068
Slide 24: Balance Sheet
Balance Sheet HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) September 30, 2028 wdited) December 31,2023, Assets Cash and cash equivalents s 44,053 § 62,632 Equity method investments 3,353,204 2,966,305 Rece
Slide 25: Statement of Cashflows
Statement of Cashflows HA SUSTAINABLE INFRASTRUCTURE CAP PAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS) (UNAUDITED) te Monts Ended ‘Nine Months Ended September 30, September 30, mas 3 a LAAT eS su 0m eta ton) SCS Seen Diatpapefosas ott aed umes) (42400) Adjustments
Slide 26: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections 26
Slide 27: Reconciliation of GAAP Net Income to Adjusted Earnings
Reconciliation of GAAP Net Income to Adjusted Earnings (1) The per share data reflects the GAAP diluted earnings per share and is the most comparable GAAP measure 5) Shares used to calculated adjusted earnings per share represents the weighted to our adjusted earnings per share. average number of sh
Slide 28: Reconciliation of GAAP-based NII to Adjusted NII
Reconciliation of GAAP-based NII to Adjusted NII 28
Slide 29: Additional GAAP to Non-GAAP Reconciliations
Additional GAAP to Non-GAAP Reconciliations 29
Slide 30: Visit our website at www.hasi.com
Visit our website at www.hasi.com Securities are offered by Hannon Armstrong Securities, LLC, a registered broker dealer, member FINRA and SIPC and subsidiary of Hannon Armstrong Sustainable Infrastructure Capital, Inc.
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