NYSE$HASI

Hannon Armstrong Sustainable Infrastructure Capital Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Hannon Armstrong reported strong Q1 2024 results, highlighted by a new strategic partnership with KKR and significant growth in portfolio and managed assets.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. announced its Q1 2024 results, featuring a strategic partnership with KKR to invest $2 billion in sustainable infrastructure assets. The company reported GAAP diluted EPS of $0.98 and Adjusted EPS of $0.68. The portfolio increased by 36% to $6.4 billion, and managed assets grew by 24% to $12.9 billion.

  • Announced a $2 billion strategic partnership with KKR through CarbonCount Holdings 1 LLC.
  • Increased capacity and extended maturities of revolving line of credit and commercial paper programs.
  • Portfolio increased 36% year-over-year to $6.4 billion.
  • Adjusted Net Investment Income increased by 37% year-over-year to $64.3 million.

Headline financials

Total Revenue

$106M

Previous: $69.1M+53.1%
EPS

$0.98

Previous: $0.53+84.9%
Managed Assets

$12.9B

Previous: $10.4B+24.5%
Adjusted Recurring Net Investment Income

$69.3M

No prior period
Free Cash Flow

$123M

Previous: $24.1M+410.4%
Net Income

$123M

Previous: $24.1M+410.4%
Operating Income

$88.3M

Previous: $59.2M+49.1%
Gross Profit

$106M

Previous: $69.1M+53.1%
Cash & Equivalents

$61.4M

Previous: $142M-56.9%
Total Assets

$6.73B

Previous: $5.14B+30.9%
Stock-Based Comp

$6.6M

Previous: $7.9M-16.4%

Revenue & EPS history

Hannon Armstrong · Revenue · Quarterly

$106M

Q1 2024+53.1%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Hannon Armstrong · $43.9M total across 2 segments · Q4 2021

  • Interest and Rental Income
    $30.5M
  • Gain on Sale of Assets
    $13.3M

Forward guidance

The Company expects that annual adjusted earnings per share will grow at a compounded annual rate of 8% to 10% from 2024 to 2026, relative to the 2023 baseline of $2.23 per share, which is equivalent to a 2026 midpoint of $2.89 per share. The Company also expects distributions of annual dividends per share from 2024 to 2026 to be set at a payout ratio of 60-70% of annual adjusted earnings per share.

Tailwinds

  • Yield on its existing portfolio
  • Yield on incremental portfolio investments, inclusive of the Company’s existing pipeline
  • Volume and profitability of transactions
  • Amount, timing, and costs of debt and equity capital to fund new investments
  • Changes in costs and expenses reflective of the Company’s forecasted operations

Headwinds

  • General interest rate and market environment
  • Distributions are subject to approval by the Company’s Board of Directors on a quarterly basis.
  • Forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the HLBV method to these investments.
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.6%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+0.7%

Avg return

30 days after

67%

35 / 52 earnings

Positive

+23.1%

Q3 2023

Best reaction

-11.9%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.8%-4.6%-9.2%
Q4 2025+10.8%+5.4%-1.2%
Q3 2025+12.4%+18.8%+17.1%
Q1 2025+0.2%+6.3%-1.4%
Q4 2024+0.3%+3.6%+4.1%
Q3 2024-11.3%-16.6%-3.5%
Q2 2024-5.0%-8.0%-1.2%
Q1 2024+16.8%+23.1%+22.0%
Q4 2023+7.2%+6.0%-0.1%
Q3 2023+23.1%+14.3%+43.6%
Q2 2023+2.0%-9.1%-3.8%
Q1 2023+1.0%-4.2%-4.1%
Q4 2022-5.2%-11.1%-33.8%
Q3 2022+7.1%+10.9%+23.9%
Q2 2022+5.9%+15.3%+0.3%
Q1 2022+5.6%-3.0%-3.4%
Q4 2021+6.3%+3.6%+10.4%
Q3 2021-0.2%-0.1%-11.0%
Q2 2021+0.6%+4.1%+4.3%
Q1 2021-7.9%-7.2%-7.1%
Q4 2020+3.2%-5.1%-13.1%
Q3 2020+10.3%+11.5%+23.6%
Q2 2020+3.7%+2.3%+9.5%
Q1 2020+6.9%+1.0%+8.2%
Q4 2019+3.5%+0.8%-53.9%
Q3 2019+1.2%+0.6%-0.5%
Q2 2019+0.2%-1.2%+0.7%
Q1 2019+2.4%+4.0%-2.6%
Q4 2018+1.8%+5.9%+6.7%
Q3 2018+5.5%+9.6%+10.1%
Q2 2018+0.4%+1.9%+11.2%
Q1 2018-3.6%-2.3%-6.1%
Q4 2017-11.9%-10.9%-10.3%
Q3 2017-3.1%-1.7%-0.6%
Q2 2017+1.8%+4.3%-0.3%
Q1 2017-1.8%-0.5%-0.2%
Q4 2016+3.2%+3.1%+1.0%
Q3 2016-7.1%-8.5%-13.3%
Q2 2016+2.3%+2.7%+11.3%
Q1 2016+2.6%
Q4 2015+1.2%
Q3 2015-4.6%
Q2 2015-6.5%
Q1 2015-0.1%
Q4 2014+4.5%
Q3 2014-1.2%
Q2 2014+6.4%
Q1 2014+1.6%
Q4 2013-1.8%
Q3 2013-5.6%
Q2 2013+0.8%
Q1 2013+0.9%
Q3 2012
Q2 2012
Q1 2012
Q4 2011

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