Hannon Armstrong Sustainable Infrastructure Capital Inc (HASI) Reports Q3 2023 Earnings: ...
HASI reports Q3 2023 distributable EPS of $0.62, up from $0.49 a year ago.
Year-to-date 2023 volume reaches $1.8 billion with portfolio growth of $1.2 billion.
GAAP-based Net Investment Income increases by 50% year over year to $17.0 million.
Company affirms guidance, expecting Distributable Earnings Per Share to grow at a compound annual rate of 10% to 13% from 2021 to 2024.
On November 2, 2023, Hannon Armstrong Sustainable Infrastructure Capital Inc (NYSE:HASI), a leading investor in climate solutions, announced its third-quarter 2023 results. The company reported a record distributable earnings per share (EPS) of $0.62, up from $0.49 in the same quarter last year. The GAAP diluted EPS for the quarter was $0.20, compared to $0.38 a year ago.
Financial Highlights
HASI's year-to-date (YTD) 2023 volume reached $1.8 billion, and the portfolio grew by $1.2 billion. The company's asset yields were over 9%, compared to a YTD debt cost of 6.5%. The portfolio yield increased to 7.9%. The company closed $973 million of investments in the third quarter of 2023 and declared a dividend of $0.395 per share.
GAAP-based Net Investment Income increased by 50% year over year to $17.0 million in the third quarter, and Distributable Net Investment Income rose by 35% year over year to $58.8 million. The company's portfolio increased by 11% in the quarter and 41% in the last twelve months to $5.5 billion. Managed assets grew 22% year over year to $11.5 billion.
We are very pleased with our 2023 performance to date with record earnings, volume, and yields, said Jeffrey A. Lipson, HASI President and Chief Executive Officer. The business model is proving its resiliency as we continue to execute despite challenging capital markets. Demand for climate solutions continues to grow, and HASIs differentiated business model remains ideally positioned to address the accelerating energy transition markets.
Financial Tables Summary
For the quarter ended September 30, 2023, HASI reported GAAP Net Income of $21,446 thousand, or $0.20 per diluted share, compared to $34,534 thousand, or $0.38 per diluted share, for the same period in 2022. Distributable earnings for the quarter were $68,801 thousand, or $0.62 per diluted share, up from $43,646 thousand, or $0.49 per diluted share, in the same period last year.
For the nine months ended September 30, 2023, the company reported GAAP Net Income of $59,075 thousand, or $0.59 per diluted share, compared to $61,431 thousand, or $0.69 per diluted share, for the same period in 2022. Distributable earnings for the period were $171,605 thousand, or $1.70 per diluted share, up from $142,903 thousand, or $1.61 per diluted share, in the same period last year.
Looking Ahead
HASI affirms its guidance, expecting that Distributable Earnings Per Share will grow at a compound annual rate of 10% to 13% from 2021 to 2024, relative to the 2020 baseline of $1.55 per share. This is equivalent to a 2024 midpoint of $2.40 per share. The company also expects growth of annual dividends per share to be at a compounded annual rate of 5% to 8%.
The company's Board of Directors approved a quarterly cash dividend of $0.395 per share of common stock, to be paid on January 12, 2024, to stockholders of record as of December 29, 2023.
Explore the complete 8-K earnings release (here) from Hannon Armstrong Sustainable Infrastructure Capital Inc for further details.
This article first appeared on GuruFocus.
