HASI Announces Fourth Quarter and Full Year 2024 Results
ANNAPOLIS, Md.–(BUSINESS WIRE)–HA Sustainable Infrastructure Capital, Inc. (“HASI,” “we,” “our” or the “Company”) (NYSE: HASI), a leading investor in sustainable infrastructure assets, today reported results for the fourth quarter and full year of 2024.
Key Highlights
- GAAP EPS of $1.62 on a fully diluted basis in 2024, compared with $1.42 in 2023, and Adjusted EPS of $2.45 on a fully diluted basis in 2024, up 10% year-over-year.
- GAAP Net Investment Income of $24 million in 2024, compared to $58 million in 2023, and Adjusted Net Investment Income of $264 million, up 22% compared to $217 million in 2023.
- Closed $2.3 billion of investments in 2024, and grew Managed Assets 11% to $13.7 billion and our Portfolio 6% in 2024 to $6.6 billion, compared to the end of 2023.
- New portfolio asset yields exceeded 10.5% in 2024, up from more than 9% in 2023.
- Diversified pipeline of greater than $5.5 billion as of the end of 2024.
- Extending guidance for 8% to 10% Adjusted EPS Growth an additional year to 2027, from the 2023 baseline.
- Increased dividend to $0.42 per share for the first quarter of 2025, and expecting payout ratio to decline to 55%-60% by 2027.
“Our Q4 and FY 2024 results continued to demonstrate the consistency and resilience of our business over many years,” said Jeffrey A. Lipson, HASI President and Chief Executive Officer. “We remain confident in our strategy, and expect to prosper in any policy or rate scenario. This confidence allows us to extend our 8-10% annual Adjusted EPS growth guidance to include 2027.”
A summary of our financial results is shown in the table below:
|
|
|
For the Three Months Ended December 31, |
|
For the For the Year Ended December 31, |
||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
(in thousands, except for per share data) |
|||||||||||
|
GAAP Net investment income |
$ |
6,776 |
|
$ |
13,814 |
|
$ |
23,523 |
|
$ |
58,037 |
|
|
Adjusted Net investment income |
|
71,620 |
|
|
57,331 |
|
|
263,688 |
|
|
217,267 |
|
|
Gain on sale of assets |
|
18,257 |
|
|
15,722 |
|
|
80,341 |
|
|
68,637 |
|
|
|
|
|
|
|
|
|
|
|||||
|
GAAP Net Income |
|
70,087 |
|
|
89,762 |
|
|
200,037 |
|
|
148,836 |
|
|
GAAP Diluted earnings per share |
|
0.54 |
|
|
0.74 |
|
|
1.62 |
|
|
1.42 |
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted earnings |
|
75,422 |
|
|
60,642 |
|
|
290,636 |
|
|
232,248 |
|
|
Adjusted earnings per share |
|
0.62 |
|
|
0.53 |
|
|
2.45 |
|
|
2.23 |
|
Sustainability and Impact Highlights
An estimated 872 thousand metric tons of carbon emissions will be avoided annually by our transactions closed in 2024, equating to a CarbonCount® score of 0.39 metric tons per $1,000 invested. Our Managed Assets avoid more than 8 million metric tons of carbon emissions annually.
Investment Activity
We closed a record $1.1 billion of new transactions in the fourth quarter, bringing total closed transactions to $2.3 billion for 2024. New Portfolio investments were underwritten at a weighted average yield of more than 10.5% in 2024, up from more than 9% in 2023.
As of December 31, 2024, our Managed Assets totaled $13.7 billion, up 11% year-over-year, and our Portfolio of assets on our balance sheet was approximately $6.6 billion, up 6% year-over-year. Our Portfolio remains well-diversified across established clean energy end markets with approximately $3.1 billion of behind-the-meter assets, approximately $2.6 billion of grid-connected assets, and approximately $0.9 billion in fuels, transport, and nature assets.
The following is an analysis of the performance ratings of our portfolio as of December 31, 2024:
|
|
Portfolio Performance |
|
|
|||||||||||||||||
|
|
Commercial |
|
Government |
|
|
|||||||||||||||
|
|
1 (1) |
|
2 (2) |
|
3 (3) |
|
1 (1) |
|
Total |
|||||||||||
|
|
(dollars in millions) |
|
|
|||||||||||||||||
|
Total receivables held-for-investment |
$ |
2,911 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
35 |
|
|
$ |
2,946 |
|
|
|
Less: Allowance for loss on receivables |
|
(50 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
|
|
Net receivables held-for-investment |
|
2,861 |
|
|
|
— |
|
|
|
— |
|
|
|
35 |
|
|
|
2,896 |
|
|
|
Receivables held-for-sale |
|
39 |
|
|
|
— |
|
|
|
— |
|
|
|
37 |
|
|
|
76 |
|
|
|
Investments |
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
7 |
|
|
|
Real estate |
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
Equity method investments (4) |
|
3,577 |
|
|
|
35 |
|
|
|
— |
|
|
|
— |
|
|
|
3,612 |
|
|
|
Total |
$ |
6,485 |
|
|
$ |
35 |
|
|
$ |
— |
|
|
$ |
74 |
|
|
$ |
6,594 |
|
|
|
Percent of Portfolio |
|
98 |
% |
|
|
1 |
% |
|
|
— |
% |
|
|
1 |
% |
|
|
100 |
% |
|
|
(1) |
This category includes our assets where based on our credit criteria and performance to date, we believe that our risk of not receiving our invested capital remains low. |
|
|
(2) |
This category includes our assets where based on our credit criteria and performance to date, we believe there is a moderate level of risk of not receiving some or all of our invested capital. |
|
|
(3) |
This category includes our assets where based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital. Loans in this category are placed on non-accrual status. |
|
|
(4) |
Some of the individual projects included in portfolios that make up our equity method investments have government off-takers. As they are part of large portfolios, they are not classified separately. |
Financial Results
“Our business is highly adaptable to changes in underlying rates, as proven by both our execution on $2.3 billion of new transactions and the 10.5% yield on new Portfolio investments,” said Marc T. Pangburn, Chief Financial Officer. “We have demonstrated enhanced access to capital in the quarter with an expansion of our revolver and another successful investment grade bond offering.”
GAAP Earnings and EPS
Total revenue of $384 million for the year ended December 31, 2024 increased by 20% year-over-year, from $320 million for the year ended December 31, 2023, driven by an increase in Interest and Securitization Asset Income of $63 million, as a result of higher average receivables and securitization assets balances. Rental Income decreased by $19 million due to the sale of real estate assets in 2023 and 2024. Gain on Sale of Assets increased by $12 million due to a higher volume of assets being securitized. Other Income increased by $8 million due in part to fees earned from asset management activities. In addition, $5 million of Other Income, as well as $6 million of Compensation and Benefits and General and Administrative Expenses were related to our temporary consolidation of SunStrong servicing activities, which ceased on December 31, 2024.
Interest Expense of $242 million increased $71 million year-over-year, primarily due to a larger average outstanding debt balance and a higher average interest rate. We recorded a $1 million provision for loss on receivables and securitization assets, due primarily to new loans and loan commitments made during the year offset by the release of reserves related to certain loan prepayments. Compensation and benefits and general and administrative expenses increased by a combined $19 million, primarily due to the growth of the company and the previously mentioned temporary consolidation of SunStrong servicing activities.
Income from Equity Method Investments increased by approximately $107 million during 2024 compared to 2023 primarily due to allocations of income in the current period from tax attributes allocated to our investors related to grid-connected utility-scale renewable energy projects, as those tax attributes reduced the tax equity investors ongoing claim on the net assets of the project. Income tax expense increased by approximately $39 million due to greater GAAP pre-tax income this period.
GAAP Net Income to controlling shareholders in 2024 was $200 million, compared to $149 million in 2023.
Adjusted Earnings and EPS
In addition to our GAAP results, we also present non-GAAP measures to enhance the usefulness of financial information and allow for greater transparency with respect to key metrics used by management internally for planning, forecasting, and evaluating our operating performance.
GAAP Net Investment Income in 2024 of $24 million includes all of our Interest Expense but only the portion of our investment returns that is reflected in GAAP Interest Income and Rental Income revenue. Because it does not include the portion of our investment returns recognized through our Equity Method Investments, GAAP Net Investment Income fails to capture all of the economic returns earned by our Portfolio.
Given that GAAP Net Investment Income, and in turn GAAP Net Income, does not reflect such economic returns, our non-GAAP measures Adjusted Net Investment Income and Adjusted Earnings are utilized by management to monitor and evaluate our business as we believe they are a helpful indicator of the underlying economics of our investments. We also believe they provide investors and analysts with useful supplemental information to understand the financial performance of our business and to analyze financial and business trends and enable a useful comparison of financial results between periods.
Adjusted Net Investment Income is determined using an Equity Method Investments Earnings Adjustment. The Equity Method Investments Earnings Adjustment is calculated using our underwritten project cash flows discounted back to the net present value, based on a target investment rate, with the cash flows to be received in the future reflecting both a return on the capital (based upon the underwritten investment rate) and a return of the capital we have committed to our Equity Method Investments, as adjusted to reflect the performance of the project and the cash distributed.
Adjusted Net Investment Income was $264 million in 2024, compared to $217 million in 2023.
Adjusted Earnings is calculated using the same Equity Method Investments Earnings Adjustment that is used to calculate adjusted net investment income. Adjusted Earnings excludes the recognition of income using the hypothetical liquidation at book value method (“HLBV”), which uses profit and loss allocations that may differ materially from the agreed upon allocations of a project’s cash flows, and in turn reflects income that can differ substantially from the economic returns achieved by a project in any given period.
Adjusted Earnings also excludes non-cash equity compensation expense, Provisions for Loss on Receivables, amortization of intangibles, non-cash provision (benefit) for taxes, and earnings attributable to non-controlling interests, and also makes an adjustment to eliminate our portion of fees we earn from related-party co-investment structures. Please refer to the Explanatory Notes in this press release for a more detailed explanation of Adjusted Earnings.
Adjusted Earnings in 2024 was approximately $291 million, an increase of $58 million over 2023, primarily driven by growth in Adjusted Net Investment Income due to a larger Portfolio at higher yields and higher gain on sale income. Adjusted EPS was $2.45, compared to $2.23 in the prior year.
Portfolio Yield was 8.3% as of December 31, 2024 and 7.9% as of December 31, 2023. Our weighted average interest cost, as measured by GAAP Interest Expense, excluding loss on debt extinguishment, divided by average debt outstanding, was 5.6% in 2024, as compared to 5.0% in 2023.
Leverage
As of December 31, 2024, Cash and Cash Equivalents were $130 million and total debt outstanding was $4.4 billion. Our debt-to-equity ratio at December 31, 2024, was 1.8, within our target range of 1.5 to 2.0 and below our internal limit of 2.5.
The calculation of our fixed-rate debt and leverage ratios as of December 31, 2024 and December 31, 2023 are shown in the table below:
|
|
December 31, 2024 |
|
% of Total |
|
December 31, 2023 |
|
% of Total |
|||||
|
|
($ in millions) |
|
|
|
($ in millions) |
|
|
|||||
|
Floating-rate borrowings (1) |
$ |
— |
|
— |
% |
|
$ |
338 |
|
8 |
% |
|
|
Fixed-rate debt (2) |
|
4,400 |
|
100 |
% |
|
|
3,909 |
|
92 |
% |
|
|
Total |
$ |
4,400 |
|
100 |
% |
|
$ |
4,247 |
|
100 |
% |
|
|
Leverage (3) |
1.8 to 1 |
|
|
|
2.0 to 1 |
|
|
|||||
|
(1) |
Floating-rate borrowings include borrowings under our floating-rate credit facilities and commercial paper notes with less than six months original maturity, to the extent such borrowings are not hedged using interest rate swaps. |
|
|
(2) |
Fixed-rate debt includes the impact of our interest rate swaps and collars on debt that is otherwise floating. Debt excludes securitizations that are not consolidated on our balance sheet. |
|
|
(3) |
Leverage, as measured by our debt-to-equity ratio. |
Guidance
We confirm our guidance for Adjusted Earnings per Share to grow at a compound annual rate of 8% to 10% through 2026, from the 2023 baseline of $2.23 per share, and also extend it by an additional year to 2027, equivalent to a midpoint of $3.15 per share in 2027. In addition, we expect distributions of annual dividends per share to decline to between 55% and 60% of annual adjusted earnings per share by 2027. This guidance reflects our judgments and estimates of (i) yield on our existing portfolio; (ii) yield on incremental portfolio investments, inclusive of our existing pipeline; (iii) the volume and profitability of transactions; (iv) amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of our forecasted operations; and (vi) the general interest rate and market environment. In addition, distributions are subject to approval by our Board of Directors on a quarterly basis. We have not provided GAAP guidance as discussed in the Forward-Looking Statements section of this press release.
Dividend
The Company is announcing today that its Board of Directors declared a quarterly cash dividend of $0.42 per share of common stock. This dividend will be paid on April 18, 2025, to stockholders of record as of April 4, 2025.
Conference Call and Webcast Information
HASI will host an investor conference call today, Thursday, February 13, 2025, at 5:00 p.m. Eastern time. The conference call can be accessed live over the phone by dialing 1-877-407-0890 (Toll-Free) or +1-201-389-0918 (toll). Participants should inform the operator you want to be joined to the HASI call. The conference call will also be accessible as an audio webcast with slides on our website. A replay after the event will be accessible as on-demand webcast on our website.
About HASI
HASI is an investor in sustainable infrastructure assets advancing the energy transition. With approximately $14 billion in managed assets, our investments are diversified across multiple asset classes, including utility-scale solar, onshore wind, and storage; distributed solar and storage; RNG; and energy efficiency. We combine deep expertise in energy markets and financial structuring with long-standing programmatic client partnerships to deliver superior risk-adjusted returns and measurable environmental benefits. HA Sustainable Infrastructure Capital, Inc. is listed on the New York Stock Exchange (Ticker: HASI). For more information, visit www.hasi.com.
Forward-Looking Statements:
Some of the information contained in this press release is 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, that are subject to risks and uncertainties. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, we intend to identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements.
Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption “Risk Factors” included in our most recent Annual Report on Form 10-K as well as in other periodic reports that we file with the U.S. Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement.
The Company has not provided GAAP guidance as forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the HLBV method to these investments. In order to forecast under the HLBV method, 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. GAAP HLBV earnings over a period of time are very sensitive to these assumptions especially in regard to when a partnership transaction flips and thus the liquidation scenarios change materially. The Company believes that these assumptions would require unreasonable efforts to complete and if completed, the wide variation in projected GAAP earnings based upon a range of scenarios would not be meaningful to investors. Accordingly, the Company has not included a GAAP reconciliation table related to any adjusted earnings guidance.
Estimated carbon savings are calculated using the estimated kilowatt hours, gallons of fuel oil, million British thermal units of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of CO2 equivalent emissions based upon the project’s location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis.
|
HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. |
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) |
||||||||||||||||
|
|
For the Three Months Ended December 31, |
|
For the Year Ended December 31, |
|||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
|
Revenue |
|
|
|
|
|
|
|
|||||||||
|
Interest income |
$ |
68,253 |
|
|
$ |
62,170 |
|
|
$ |
263,792 |
|
|
$ |
207,794 |
|
|
|
Rental income |
|
83 |
|
|
|
2,239 |
|
|
|
2,095 |
|
|
|
21,251 |
|
|
|
Gain on sale of assets |
|
18,257 |
|
|
|
15,722 |
|
|
|
80,341 |
|
|
|
68,637 |
|
|
|
Securitization asset income |
|
6,857 |
|
|
|
5,878 |
|
|
|
26,054 |
|
|
|
19,259 |
|
|
|
Other income |
|
7,848 |
|
|
|
576 |
|
|
|
11,313 |
|
|
|
2,930 |
|
|
|
Total revenue |
|
101,298 |
|
|
|
86,585 |
|
|
|
383,595 |
|
|
|
319,871 |
|
|
|
Expenses |
|
|
|
|
|
|
|
|||||||||
|
Interest expense |
|
61,560 |
|
|
|
50,595 |
|
|
|
242,364 |
|
|
|
171,008 |
|
|
|
Provision for loss on receivables |
|
2,003 |
|
|
|
(649 |
) |
|
|
1,059 |
|
|
|
11,832 |
|
|
|
Compensation and benefits |
|
22,608 |
|
|
|
15,817 |
|
|
|
81,319 |
|
|
|
64,344 |
|
|
|
General and administrative |
|
8,904 |
|
|
|
6,457 |
|
|
|
32,905 |
|
|
|
31,283 |
|
|
|
Total expenses |
|
95,075 |
|
|
|
72,220 |
|
|
|
357,647 |
|
|
|
278,467 |
|
|
|
Income before equity method investments |
|
6,223 |
|
|
|
14,365 |
|
|
|
25,948 |
|
|
|
41,404 |
|
|
|
Income (loss) from equity method investments |
|
85,858 |
|
|
|
113,545 |
|
|
|
247,878 |
|
|
|
140,974 |
|
|
|
Income (loss) before income taxes |
|
92,081 |
|
|
|
127,910 |
|
|
|
273,826 |
|
|
|
182,378 |
|
|
|
Income tax (expense) benefit |
|
(20,769 |
) |
|
|
(36,920 |
) |
|
|
(70,198 |
) |
|
|
(31,621 |
) |
|
|
Net income (loss) |
$ |
71,312 |
|
|
$ |
90,990 |
|
|
$ |
203,628 |
|
|
$ |
150,757 |
|
|
|
Net income (loss) attributable to non-controlling interest holders |
|
1,225 |
|
|
|
1,228 |
|
|
|
3,591 |
|
|
|
1,921 |
|
|
|
Net income (loss) attributable to controlling stockholders |
$ |
70,087 |
|
|
$ |
89,762 |
|
|
$ |
200,037 |
|
|
$ |
148,836 |
|
|
|
Basic earnings (loss) per common share |
$ |
0.59 |
|
|
$ |
0.80 |
|
|
$ |
1.72 |
|
|
$ |
1.45 |
|
|
|
Diluted earnings (loss) per common share |
$ |
0.54 |
|
|
$ |
0.74 |
|
|
$ |
1.62 |
|
|
$ |
1.42 |
|
|
|
Weighted average common shares outstanding—basic |
|
118,615,360 |
|
|
|
111,277,751 |
|
|
|
115,548,087 |
|
|
|
101,844,551 |
|
|
|
Weighted average common shares outstanding—diluted |
|
137,130,030 |
|
|
|
129,656,080 |
|
|
|
130,501,006 |
|
|
|
109,467,554 |
|
|
|
HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. |
||||||||
|
CONSOLIDATED BALANCE SHEETS |
||||||||
|
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) |
||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
|||||
|
Assets |
|
|
|
|||||
|
Cash and cash equivalents |
$ |
129,758 |
|
|
$ |
62,632 |
|
|
|
Equity method investments |
|
3,612,394 |
|
|
|
2,966,305 |
|
|
|
Receivables, net of allowance of $50 million and $50 million, respectively |
|
2,895,837 |
|
|
|
3,073,855 |
|
|
|
Receivables held-for-sale |
|
75,556 |
|
|
|
35,299 |
|
|
|
Real estate |
|
2,984 |
|
|
|
111,036 |
|
|
|
Investments |
|
6,818 |
|
|
|
7,165 |
|
|
|
Securitization assets, net of allowance of $3 million and $3 million, respectively |
|
248,688 |
|
|
|
218,946 |
|
|
|
Other assets |
|
108,210 |
|
|
|
77,112 |
|
|
|
Total Assets |
$ |
7,080,245 |
|
|
$ |
6,552,350 |
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|||||
|
Liabilities: |
|
|
|
|||||
|
Accounts payable, accrued expenses and other |
$ |
275,639 |
|
|
$ |
163,305 |
|
|
|
Credit facilities |
|
1,001 |
|
|
|
400,861 |
|
|
|
Commercial paper notes |
|
100,057 |
|
|
|
30,196 |
|
|
|
Term loan facility |
|
407,978 |
|
|
|
727,458 |
|
|
|
Non-recourse debt (secured by assets of $307 million and $239 million, respectively) |
|
131,589 |
|
|
|
160,456 |
|
|
|
Senior unsecured notes |
|
3,139,363 |
|
|
|
2,318,841 |
|
|
|
Convertible notes |
|
619,543 |
|
|
|
609,608 |
|
|
|
Total Liabilities |
|
4,675,170 |
|
|
|
4,410,725 |
|
|
|
Stockholders’ Equity: |
|
|
|
|||||
|
Preferred stock, par value $0.01 per share, 50,000,000 shares authorized, no shares issued and outstanding |
|
— |
|
|
|
— |
|
|
|
Common stock, par value $0.01 per share, 450,000,000 shares authorized, 118,960,353 and 112,174,279 shares issued and outstanding, respectively |
|
1,190 |
|
|
|
1,122 |
|
|
|
Additional paid in capital |
|
2,592,964 |
|
|
|
2,381,510 |
|
|
|
Accumulated deficit |
|
(297,499 |
) |
|
|
(303,536 |
) |
|
|
Accumulated other comprehensive income (loss) |
|
40,101 |
|
|
|
13,165 |
|
|
|
Non-controlling interest |
|
68,319 |
|
|
|
49,364 |
|
|
|
Total Stockholders’ Equity |
|
2,405,075 |
|
|
|
2,141,625 |
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
7,080,245 |
|
|
$ |
6,552,350 |
|
|
|
HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. |
||||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||
|
(DOLLARS IN THOUSANDS) |
||||||||||||
|
|
Years Ended December 31, |
|||||||||||
|
|
2024 |
|
2023 |
|
2022 |
|||||||
|
Cash flows from operating activities |
|
|
|
|
|
|||||||
|
Net income (loss) |
$ |
203,628 |
|
|
$ |
150,757 |
|
|
$ |
41,911 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|||||||
|
Provision for loss on receivables |
|
1,059 |
|
|
|
11,832 |
|
|
|
12,798 |
|
|
|
Depreciation and amortization |
|
1,003 |
|
|
|
3,127 |
|
|
|
3,993 |
|
|
|
Amortization of financing costs |
|
17,039 |
|
|
|
12,958 |
|
|
|
11,685 |
|
|
|
Equity-based compensation |
|
23,151 |
|
|
|
18,386 |
|
|
|
20,101 |
|
|
|
Equity method investments |
|
(179,747 |
) |
|
|
(108,025 |
) |
|
|
16,403 |
|
|
|
Non-cash gain on securitization |
|
(70,685 |
) |
|
|
(43,542 |
) |
|
|
(28,614 |
) |
|
|
(Gain) loss on sale of assets |
|
7,299 |
|
|
|
1,305 |
|
|
|
(218 |
) |
|
|
Changes in receivables held-for-sale |
|
(29,273 |
) |
|
|
51,538 |
|
|
|
(62,953 |
) |
|
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Changes in accounts payable and accrued expenses |
|
101,410 |
|
|
|
48,485 |
|
|
|
18,176 |
|
|
|
Change in accrued interest on receivables and investments |
|
(78,639 |
) |
|
|
(44,105 |
) |
|
|
(15,414 |
) |
|
|
Cash received (paid) upon hedge settlement |
|
20,311 |
|
|
|
— |
|
|
|
— |
|
|
|
Other |
|
(10,704 |
) |
|
|
(3,027 |
) |
|
|
(17,638 |
) |
|
|
Net cash provided by operating activities |
|
5,852 |
|
|
|
99,689 |
|
|
|
230 |
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|||||||
|
Equity method investments |
|
(396,613 |
) |
|
|
(869,412 |
) |
|
|
(127,867 |
) |
|
|
Equity method investment distributions received |
|
39,142 |
|
|
|
30,140 |
|
|
|
110,064 |
|
|
|
Proceeds from sales of equity method investments |
|
9,472 |
|
|
|
— |
|
|
|
1,700 |
|
|
|
Purchases of and investments in receivables |
|
(667,140 |
) |
|
|
(1,338,860 |
) |
|
|
(726,931 |
) |
|
|
Principal collections from receivables |
|
600,652 |
|
|
|
197,784 |
|
|
|
125,976 |
|
|
|
Proceeds from sales of receivables |
|
171,991 |
|
|
|
7,634 |
|
|
|
5,047 |
|
|
|
Purchases of real estate |
|
— |
|
|
|
— |
|
|
|
(4,550 |
) |
|
|
Sales of real estate |
|
115,767 |
|
|
|
— |
|
|
|
4,550 |
|
|
|
Purchases of investments |
|
(10,537 |
) |
|
|
(14,404 |
) |
|
|
(2,329 |
) |
|
|
Proceeds from sales of investments and securitization assets |
|
5,390 |
|
|
|
— |
|
|
|
7,020 |
|
|
|
Collateral provided to hedge counterparties |
|
(27,090 |
) |
|
|
(93,550 |
) |
|
|
— |
|
|
|
Collateral received from hedge counterparties |
|
27,570 |
|
|
|
84,950 |
|
|
|
— |
|
|
|
Funding of escrow accounts |
|
— |
|
|
|
— |
|
|
|
(5,476 |
) |
|
|
Withdrawal from escrow accounts |
|
— |
|
|
|
— |
|
|
|
22,757 |
|
|
|
Other |
|
204 |
|
|
|
2,915 |
|
|
|
(2,071 |
) |
|
|
Net cash provided by (used in) investing activities |
|
(131,192 |
) |
|
|
(1,992,803 |
) |
|
|
(592,110 |
) |
|
|
Cash flows from financing activities |
|
|
|
|
|
|||||||
|
Proceeds from credit facilities |
|
1,296,792 |
|
|
|
1,177,000 |
|
|
|
100,000 |
|
|
|
Principal payments on credit facilities |
|
(1,696,792 |
) |
|
|
(827,000 |
) |
|
|
(150,000 |
) |
|
|
Proceeds from (repayment of) commercial paper notes |
|
70,000 |
|
|
|
30,000 |
|
|
|
(50,000 |
) |
|
|
Proceeds from issuance of non-recourse debt |
|
94,000 |
|
|
|
— |
|
|
|
32,923 |
|
|
|
Principal payments on non-recourse debt |
|
(72,989 |
) |
|
|
(21,606 |
) |
|
|
(30,581 |
) |
|
|
Proceeds from issuance of term loan |
|
250,000 |
|
|
|
365,000 |
|
|
|
383,000 |
|
|
|
Principal payments on term loan |
|
(567,952 |
) |
|
|
(16,478 |
) |
|
|
— |
|
|
|
Proceeds from issuance of senior unsecured notes |
|
1,199,956 |
|
|
|
550,000 |
|
|
|
— |
|
|
|
Redemption of senior unsecured notes |
|
(400,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
Proceeds from issuance of convertible notes |
|
— |
|
|
|
402,500 |
|
|
|
200,000 |
|
|
|
Principal payments on convertible notes |
|
— |
|
|
|
(143,748 |
) |
|
|
(461 |
) |
|
|
Purchase of capped calls related to the issuance of convertible notes |
|
— |
|
|
|
(37,835 |
) |
|
|
— |
|
|
|
Net proceeds of common stock issuances |
|
203,528 |
|
|
|
492,377 |
|
|
|
188,881 |
|
|
|
Payments of dividends and distributions |
|
(192,269 |
) |
|
|
(159,786 |
) |
|
|
(132,198 |
) |
|
|
Withholdings on employee share vesting |
|
(529 |
) |
|
|
(1,488 |
) |
|
|
(3,211 |
) |
|
|
Redemption premium paid |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
Payment of debt issuance costs |
|
(30,331 |
) |
|
|
(22,894 |
) |
|
|
(11,754 |
) |
|
|
Collateral provided to hedge counterparties |
|
(151,330 |
) |
|
|
(166,600 |
) |
|
|
— |
|
|
|
Collateral received from hedge counterparties |
|
199,300 |
|
|
|
176,050 |
|
|
|
— |
|
|
|
Other |
|
(969 |
) |
|
|
(3,268 |
) |
|
|
(9,820 |
) |
|
|
Net cash provided by (used in) financing activities |
|
200,415 |
|
|
|
1,792,224 |
|
|
|
516,779 |
|
|
|
Increase (decrease) in cash, cash equivalents, and restricted cash |
|
75,075 |
|
|
|
(100,890 |
) |
|
|
(75,101 |
) |
|
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
75,082 |
|
|
|
175,972 |
|
|
|
251,073 |
|
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
150,157 |
|
|
$ |
75,082 |
|
|
$ |
175,972 |
|
|
|
Interest paid |
$ |
192,960 |
|
|
$ |
138,418 |
|
|
$ |
98,704 |
|
|
|
Supplemental disclosure of non-cash activity |
|
|
|
|
|
|||||||
|
Residual assets retained from securitization transactions |
$ |
43,329 |
|
|
$ |
35,483 |
|
|
$ |
28,614 |
|
|
|
Equity method investments retained from securitization and deconsolidation transactions |
|
32,564 |
|
|
|
144,603 |
|
|
|
— |
|
|
|
Issuance of common stock from conversion of convertible notes |
|
— |
|
|
|
— |
|
|
|
7,674 |
|
|
|
Equity method investments retained from sale of assets to co-investment structure |
|
115,249 |
|
|
|
— |
|
|
|
— |
|
|
|
Deconsolidation of non-recourse debt and other liabilities |
|
51,233 |
|
|
|
257,746 |
|
|
|
— |
|
|
|
Deconsolidation of assets pledged for non-recourse debt |
|
51,761 |
|
|
|
374,608 |
|
|
|
— |
|
|
Contacts
Investor Contact:
Aaron Chew
investors@hasi.com
410-571-6189
Media Contact:
Gil Jenkins
media@hasi.com
443-321-5753
