Hannon Armstrong Announces First Quarter 2018 Results

ANNAPOLIS, Md., May 3, 2018

Highlights

• GAAP loss of $0.03 per share for the quarter, primarily relating to a non-cash HLBV loss on an equity method investment
• Core earnings of $0.27 per share for the quarter due to higher fixed rate debt interest expense, investment in compensation and general and administrative expenses and lower originations
• Expect 2018 annual Core EPS growth to be 2% to 6%, equivalent to $1.32 at the midpoint, in line with expected dividend level
• Increased near term pipeline for gain on sale securitizations; pipeline remains over $2.5 billion
• Closed approximately $108 million of new transactions, continue to target $1 billion for the year
• Maintained the fixed-rate debt level of 92% as of March 31, 2018
• An estimated 27,000 metric tons of annual carbon emissions will be offset by our Q1 2018 transactions equating to a CarbonCount^® score of 0.25, or .25 metric tons per $1,000 invested

"We remain on track for both investment and earnings targets as we expect increased securitization activity over the next couple of quarters to more than offset the impact of higher interest expense," said Jeffrey Eckel, President & CEO.  "As discussed, we will see increased variability in earnings with lower earning quarters like this one offset by higher earnings in quarters where securitizations increase.  Our pipeline remains strong and we continue to work on growing the platform for accretive originations, such as the expansion of commercial energy efficiency."

		For the Three Months Ended March 31, 2018				For the Three Months Ended ARIVA.DE Börsen-Geflüster Kurse Hannon Armstrong Sustainable Infrastructure Capital 23,96 € -1,24% March 31, 2017
		$ in thousands		Per Share		$ in thousands		Per Share
GAAP Net Income		$     (1,223)		$    (0.03)		$     7,199		$    0.14
Core Earnings (1)		$   14,277		$    0.27		$   15,496		$    0.32

First Quarter Results

Revenue grew by approximately $4 million, or 17%, for the three months ended March 31, 2018, as compared to the same period in 2017. Increases in the quarter were primarily driven by higher gain on sale and fee income of approximately $3 million due to increased securitization and higher interest and rental income of approximately $1 million due to growth in the Portfolio to $2.0 billion as of March 31, 2018 from $1.9 billion as of March 31, 2017. The revenue growth was offset by an approximately $5 million increase in interest expense for the three months ended March 31, 2018, as compared to the same period in 2017. This increase was primarily the result of higher average outstanding borrowings, a higher percentage of fixed-rate debt and an increase in interest rates.

Other expenses (compensation and benefits and general and administrative expenses) increased by $1 million (GAAP) and by $2 million (core) for the three months ended March 31, 2018, as compared to the same period in 2017 due primarily to the growth of the Company.  Income before equity method investments fell by approximately $2 million due in large part to the higher interest and other expenses.  For the three months ended March 31, 2018, we recognized a $2 million non-cash loss under GAAP HLBV for our equity investments in renewable energy projects.  As a result, we recognized a GAAP loss of $1 million for the quarter as compared to a $7 million profit in the same quarter last year.

Core earnings declined by approximately $1 million for the quarter primarily due to the higher interest expense and higher other expenses. A reconciliation of our GAAP net income to core earnings is included in this press release.

The calculation of our fixed-rate debt and leverage ratios as of March 31, 2018 and 2017 are shown in the chart below:

"Rising short-term rates and a flattening yield curve confirmed our decision to fix out rates last year despite the estimate of up to $0.10 per share annualized incremental fixed rate debt cost," said Brendan Herron, Chief Financial Officer.  "We certainly saw the impact of that this quarter as we had $5 million of additional interest expense, including approximately $1 million, or $0.02 per share, related to the higher fixed rate debt.  We expect increased securitization activity over the next few quarters will allow us to overcome this cost and return to growth in core earnings."

Portfolio

Our Portfolio totaled approximately $2.0 billion as of March 31, 2018, and included approximately $1 billion of behind-the-meter assets, approximately $0.9 billion of grid-connected assets and approximately $0.1 billion of other sustainable infrastructure investments. The following is an analysis of our Portfolio as of March 31, 2018:

			Investment Grade
			Government (1)		Commercial (2)		Commercial Non- Investment Grade (3)		Subtotal, Debt and Real Estate		Equity Method Investments		Total
							($ in millions)
Equity investments in renewable energy projects			$            —		$            —		$           —		$        —		$        469		$    469
Receivables and investments			633		512		8		1,153		—		1,153
Real estate (4)			—		340		—		340		21		361
Total			$              633		$             852 Werbung Mehr Nachrichten zur Hannon Armstrong Sustainable Infrastructure Capital Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 11:24 - ARIVA.DE Redaktion Aktienmarkt: Kurs der Infineon-Aktie im Plus (31,92 €) 03:37 - PR Newswire Tellworth Investments LLP - Form 8.3 - Gresham Technologies Plc 02:00 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Total Voting Rights SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59