NYSE$HASI

Hannon Armstrong Sustainable Infrastructure Capital Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Hannon Armstrong reported Q4 2023 earnings, featuring a dividend increase and new three-year guidance.

Hannon Armstrong reported strong financial results for Q4 2023, driven by record closed transactions. The company's GAAP net income was $89.8 million, or $0.74 per share, while distributable earnings were $60.6 million, or $0.53 per share. The company also announced an increase in its quarterly dividend to $0.415 per share and provided new guidance for annual distributable earnings per share growth of 8% - 10% from 2024 to 2026.

  • GAAP Net Income was $89.8 million, or $0.74 per share.
  • Distributable earnings were $60.6 million, or $0.53 per share.
  • Increased dividend to $0.415 per share for the first quarter of 2024.
  • Established new guidance that annual distributable earnings per share is expected to grow at a compounded annual rate of 8% - 10% during the years 2024 to 2026 relative to the 2023 baseline of $2.23 per share.

Headline financials

Total Revenue

$86.6M

Previous: $36.8M+135.6%
EPS (adj)

$0.53

Previous: $0.47+12.8%
Managed Assets

$12.3B

Previous: $9.79B+25.1%
Quarterly Dividend Per Share

$0.41

No prior period
Net Income

$91M

Previous: -$19.9M+556.6%
Operating Income

$14.4M

Previous: $633K+2169.4%
Gross Profit

$86.6M

Previous: $58.3M+48.5%
Stock-Based Comp

$3.41M

Previous: $2.11M+61.8%

Revenue & EPS history

Hannon Armstrong · Revenue · Quarterly

$86.6M

Q4 2023+135.6%vs Q4 2022
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 distributable 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 distributable earnings per share.

Tailwinds

  • Yield on its existing portfolio
  • Yield on incremental portfolio investments, inclusive of the Company’s existing pipeline
  • The 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 environment
  • Market environment
  • Distributions are subject to approval by the Company’s Board of Directors on a quarterly basis.
  • Company has not provided GAAP guidance
  • 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.

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 Q4 2023

Historical avgQ4 2023

+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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