Friday, December 27, 2024

HA Sustainable Infrastructure Capital Inc (HASI) Q3 2024 Earnings Call Highlights: Strong …

Must read

  • New Investments Year-to-Date: $1.7 billion as of the start of the fourth quarter.

  • Managed Assets Growth: 14% increase over the last 12 months, exceeding $13 billion.

  • Portfolio Yield: Increased to 8.1% year-to-date.

  • Adjusted Earnings Per Share (EPS): 52 for the third quarter, $1.83 year-to-date, representing 8% growth over the first three quarters of 2023.

  • Transaction Closings Year-to-Date: $1.2 billion, with expectations to exceed $2 billion for the year.

  • Portfolio Growth: Managed assets at $13.1 billion, portfolio increased to $6.3 billion.

  • Return on Equity (ROE): 12.4% year-to-date.

  • Adjusted Net Investment Income (NII): $192 million year-to-date, up 20% from the previous year.

  • Recurring Capital Light Income: $19 million year-to-date, up 43%.

  • Upfront Capital Light Income: $65 million year-to-date, up 19%.

  • Liquidity: $1.3 billion as of September 30.

  • Debt to Equity Ratio: 1.8 times, within the target range of 1.5 to 2 times.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

  • HA Sustainable Infrastructure Capital Inc (NYSE:HASI) closed $1.7 billion in new investments year-to-date, reflecting strong growth and an active start to the fourth quarter.

  • Managed assets have grown by 14% over the last 12 months, now exceeding $13 billion.

  • The company achieved an adjusted earnings per share (EPS) growth of 8% over the first three quarters of 2023.

  • HA Sustainable Infrastructure Capital Inc (NYSE:HASI) maintains a consistent and disciplined approach to interest rate risk management, ensuring attractive margins.

  • The company has a robust pipeline of over $5.5 billion, diversified across various markets, indicating strong future growth potential.

  • The company reported a GAAP loss of 17 cents per share for Q3, driven by mark-to-market impacts related to power contracts.

  • Higher interest rates have increased the company’s cost of debt relative to 2023, although it has declined incrementally from earlier in 2024.

  • The renewable natural gas (RNG) market, while growing, is not yet comparable in size to wind and solar markets, potentially limiting diversification.

  • Gain on sale transactions can vary significantly from quarter to quarter, introducing some unpredictability in financial results.

  • The company’s exposure to interest rate volatility remains a concern, despite hedging strategies in place to mitigate risks.

Q: How significant is the R&G market in the FTN sector, and can it compensate for any declines in the solar and wind markets? A: The R&G market is large and growing, with significant investments from major developers and private equity firms. While it may not match the size of wind and solar, it is becoming a meaningful part of our business due to its diversity and growth potential. (Jeff Lipson, CEO)

Latest article