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Hannon Armstrong Sustainable Infrastructure capital (HASI)

Hannon Armstrong is the first U.S. public company solely dedicated to investments in climate solutions, providing capital to leading companies in energy efficiency, renewable energy, and other sustainable infrastructure markets. With more than $7 billion in managed assets as of December 31, 2020, Hannon Armstrong's core purpose is to make climate-positive investments with superior risk-adjusted returns.

Company profile

Ticker
HASI
Exchange
CEO
Jeffrey W. Eckel
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Cobalt Upwind Holdings LLC • HA 7V Solar Ranch LLC • HA AllStrong LLC • HA Antelope DSR 3 LLC • HA Athena Capital Holdings LLC • HA Athos III Lender LLC • HA Brazoria 2 LLC • HA Brazoria West LLC • HA Buckeye Holdings LLC • HA Chap Springs LLC ...
IRS number
461347456

HASI stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$61.00
Low target
$55.00
High target
$67.00
JP Morgan
Maintains
Overweight
$67.00
8 Aug 22
Morgan Stanley
Maintains
Equal-Weight
$55.00
13 Jun 22

Calendar

6 May 22
12 Aug 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 155.17M 155.17M 155.17M 155.17M 155.17M 155.17M
Cash burn (monthly) 31.97M 8.16M (no burn) (no burn) 10.65M 37.92K
Cash used (since last report) 141.25M 36.04M n/a n/a 47.05M 167.54K
Cash remaining 13.92M 119.13M n/a n/a 108.12M 155M
Runway (months of cash) 0.4 14.6 n/a n/a 10.2 4087.9

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 May 22 Jeffrey Lipson Common stock, par value $0.01 per share Payment of exercise Dispose F No No 37.53 6,534 245.22K 27,737
13 May 22 Jeffrey Lipson Common stock, par value $0.01 per share Buy Acquire P No No 37.18 3,000 111.54K 30,737
13 May 22 Eckel Jeffrey Common stock, par value $0.01 per share Buy Acquire P Yes No 37.41 2,668 99.81K 535,507
25 Mar 22 Melko Charles LTIP Units Common stock, par value $0.01 per share Grant Acquire A Yes No 0 5,495 0 17,679
25 Mar 22 Marc T. Pangburn LTIP Units Common stock, par value $0.01 per share Grant Acquire A Yes No 0 27,748 0 60,250
13F holders Current Prev Q Change
Total holders 360 360
Opened positions 44 52 -15.4%
Closed positions 44 42 +4.8%
Increased positions 150 128 +17.2%
Reduced positions 112 107 +4.7%
13F shares Current Prev Q Change
Total value 3.88B 3.66B +6.2%
Total shares 70.48M 68.43M +3.0%
Total puts 214.1K 109.8K +95.0%
Total calls 123.3K 90K +37.0%
Total put/call ratio 1.7 1.2 +42.3%
Largest owners Shares Value Change
Vanguard 7.83M $371.54M +1.1%
BLK Blackrock 6.28M $297.62M -0.6%
Wellington Management 5.24M $248.76M +18.4%
TROW T. Rowe Price 3.41M $161.85M +3.4%
IPXAF Impax Asset Management 2.42M $114.97M -12.2%
Van Eck Associates 1.71M $80.99M -6.6%
IVZ Invesco 1.65M $78.41M +4.4%
STT State Street 1.61M $76.48M +4.0%
Handelsbanken Fonder AB 1.6M $75.78M -17.6%
SLFPY Standard Life Aberdeen 1.58M $75.11M -10.0%
Largest transactions Shares Bought/sold Change
Wellington Management 5.24M +816.07K +18.4%
Border to Coast Pensions Partnership 701.42K +701.42K NEW
Norges Bank 0 -699.2K EXIT
C Citigroup 83.29K -563.85K -87.1%
Citadel Advisors 686.92K +534.68K +351.2%
Voya Investment Management 548.46K +518.58K +1735.5%
Lombard Odier Asset Management 346.21K +346.21K NEW
Handelsbanken Fonder AB 1.6M -341.03K -17.6%
IPXAF Impax Asset Management 2.42M -337.23K -12.2%
AXAHF Axa 501.67K -290.98K -36.7%

Financial report summary

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Risks
  • Risks Related to Our Business and Our Industry
  • Our business depends in part on U.S. federal, state and local government policies, and a decline in the level of government support could harm our business.
  • U.S. federal, state and local government entities are major participants in, and regulators of, the energy industry, and their actions could be adverse to our project companies or our company.
  • A change in the fiscal health, level of appropriations or budgets of U.S. federal, state and local governments could reduce demand for our investments.
  • If the cost of energy generated by traditional sources of energy continues to stay or further declines from present levels, demand for the projects in which we invest may decline.
  • If the market for various types of climate solutions projects or the investment techniques related to such projects do not develop as we anticipate, new business generation in this target area may be adversely impacted.
  • Some projects in which we invest rely on net metering and related policies to improve project economics which if reduced could impact repayment of our investments or the return on our assets.
  • Existing electric utility industry regulations, and changes to regulations, may present technical, regulatory and economic barriers to the purchase and use of renewable energy and energy efficiency systems that may significantly reduce demand for systems and projects in which we invest or may adversely affect the profitability of such projects.
  • We are subject to risks related to our ESG activities and disclosures.
  • We operate in a competitive market and future competition may impact the terms of our investments.
  • Our business is affected by seasonal trends and construction cycles, and these trends and cycles could have an adverse effect on our operating results.
  • Risks Related to Our Assets and Projects in Which We Invest
  • Changes in interest rates could adversely affect the value of our assets and negatively affect our profitability.
  • The lack of liquidity of our assets may adversely affect our business, including our ability to value our assets.
  • Some of the assets in our Portfolio may be recorded at fair value and, as a result, there could be uncertainty as to the value of these assets. Further, we may experience a decline in the fair value of our assets.
  • The preparation of our financial statements, including provision for loan losses, involves use of estimates, judgments and assumptions, and our financial statements may be materially affected if our estimates prove to be incorrect.
  • We rely on our project sponsors for financial reporting related to our project companies, and our financial statements may be materially affected if the financial reporting related to our project companies proves to be incorrect.
  • The majority of our investments are not rated by a rating agency, which may result in an amount of risk, volatility or potential loss of principal that is greater than that of alternative asset opportunities.
  • Any credit ratings assigned to our assets, debt or obligors are subject to ongoing evaluations and revisions and we cannot assure you that those ratings will not be downgraded.
  • Our investments are subject to delinquency, foreclosure and loss, any or all of which could result in losses to us.
  • Our climate solutions project companies may incur liabilities that rank equally with, or senior to, our investments in such projects.
  • Our subordinated and mezzanine debt and equity investments, many of which are illiquid with no readily available market, involve a substantial degree of risk.
  • We generally do not control the projects in which we invest.
  • We invest in joint ventures and other similar arrangements that subject us to additional risks.
  • Many of our assets depend on revenues from third-party contractual arrangements.
  • We are exposed to the credit risk of ESCOs, various project sponsors, and others.
  • Some of the projects in which we invest have sold their output under PPAs that expose the projects to various risks.
  • Portions of the electricity and environmental attributes our assets generate are sold on the open market at spot-market prices. A prolonged environment of low prices for natural gas, or other conventional fuel sources such as we are experiencing may, and could continue to, have a material adverse effect on our long-term business prospects, financial condition and results of operations.
  • The ability of our assets to generate revenue from certain projects depends on having interconnection arrangements and services.
  • Our projects and their obligors are exposed to an increase in climate change or other change in meteorological conditions which could have an impact on electric generation, revenue, insurance costs or the ability of the projects or their obligors to honor their contract obligations, all of which could adversely affect our business, financial condition and results of operations and cash flows.
  • Operation of the projects in which we invest involves significant risks and hazards that could have a material adverse effect on our business, financial condition, results of operations and cash flows.
  • Some of the projects in which we invest may require substantial operating or capital expenditures in the future.
  • The use of real property rights that we acquire or are used for our climate solutions projects may be adversely affected by the rights of lienholders and leaseholders that are superior to those of the grantors of those real property rights to us.
  • We own land or leasehold interests that are used by renewable energy projects. Negative market conditions or adverse events affecting tenants, or the industries in which they operate, could have an adverse impact on our underwritten returns. Moreover, many of our real estate assets are concentrated in similar geographic locations, which subjects us to an increased risk of significant loss if any property declines in value, incurs a natural disaster or if we are unable to lease a property.
  • Performance of projects where we invest may be harmed by future labor disruptions and economically unfavorable collective bargaining agreements.
  • We invest in projects that rely on third parties to manufacture quality products or provide reliable services in a timely manner and the failure of these third parties could cause project performance to be adversely affected.
  • Liability relating to environmental matters may impact the value of properties that we may acquire or the properties underlying our assets.
  • Our insurance and contractual protections may not always cover lost revenue, increased expenses or liquidated damages payments.
  • The repayment of certain of our assets is dependent upon collection of payments from residential customers and we may be indirectly subject to consumer protection laws and regulations.
  • Risks Related to Our Company
  • We may change our operational policies (including our investment guidelines and strategies) with the approval of our Board but without stockholder consent at any time, which may adversely affect the market value of our common stock and our ability to make distributions to our stockholders.
  • Our management and employees depend on information systems and system failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to make distributions to our stockholders.
  • We contract with information technology service providers where, in part, we rely upon their systems and controls for the quality of the data provided. The inappropriate establishment and maintenance of these systems and controls could cause information that we use to operate our business to be unavailable or inaccurate and could negatively impact our financial results.
  • Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, a misappropriation of funds, and/or damage to our business relationships, all of which could negatively impact our financial results.
  • We may seek to expand our business internationally, which will expose us to additional risks that we do not face in the United States, which could have an adverse effect on our business, financial condition and operating results.
  • We grow our business in part through future acquisitions or other similar investments.
  • Risks Relating to Regulation
  • We cannot predict the unintended consequences and market distortions that may stem from far-ranging governmental intervention in the economic and financial system or from regulatory reform of the oversight of financial markets.
  • Loss of our 1940 Act exemptions would adversely affect us, the market price of shares of our common stock and our ability to distribute dividends.
  • Rapid changes in the values of our assets may make it more difficult for us to maintain our qualification as a REIT or our exemption from the 1940 Act.
  • Because we expect to distribute substantially all of our REIT taxable income to our stockholders, we will need additional capital to finance our growth and such capital may not be available on favorable terms or at all.
  • Risks Related to our Borrowings and Hedging
  • We use financial leverage in executing our business strategy, which may adversely affect the returns on our assets and may reduce cash available for distribution to our stockholders, as well as increase losses when economic conditions are unfavorable.
  • An increase in our borrowing costs relative to the interest we receive on our assets may adversely affect our profitability and our cash available for distribution to our stockholders. Our borrowings may have a shorter duration than our assets.
  • While we have an established Board-approved leverage limit, our Board may change our leverage limits without stockholder approval.
  • The use of securitizations and special purpose entities exposes us to additional risks.
  • Our existing credit facilities and debt contain, and any future financing facilities may contain, covenants that restrict our operations and may inhibit our ability to grow our business and increase revenues.
  • We will have to pay off the remaining balance or refinance our borrowings when they become due. The failure to be able to pay off the remaining balance or refinance such borrowings or an increase in interest rates of such refinancing could have a material impact on our business.
  • If a counterparty to repurchase transactions defaults on its obligation to resell the underlying security back to us at the end of the transaction term, or if the value of the underlying security has declined as of the end of that term, or if we default on obligations under the repurchase agreement, we may lose money on repurchase transactions.
  • The discontinuation of U.S. dollar London Interbank Offered Rate (“LIBOR”) may adversely affect our borrowing costs and the costs of any related hedging transactions.
  • We, or the projects in which we invest, enter into hedging transactions that could expose us to contingent liabilities or additional credit risk in the future and adversely impact our financial condition.
  • If we, or our projects, choose not to pursue, or fail to qualify for, hedge accounting treatment, our operating results may be impacted because losses on the derivatives that we enter into may not be offset by a change in the fair value of the related hedged transaction.
  • Risks Related to Our Common Stock
  • An active trading market for our common stock may not continue, which could cause our common stock to trade at a discount and make it difficult for holders of our common stock to sell their shares.
  • Common stock and preferred stock eligible for future sale may have adverse effects on our share price.
  • We cannot assure you of our ability to make distributions in the future. If our portfolio of assets fails to generate sufficient income and cash flow, we could be required to sell assets, borrow funds, raise additional equity or make a portion of our distributions in the form of a taxable stock distribution or distribution of debt securities.
  • Future offerings of debt or equity securities, which may rank senior to our common stock, may adversely affect the market price of our common stock.
  • Risks Related to Our Organization and Structure
  • Our business could be harmed if key personnel terminate their employment with us.
  • Conflicts of interest could arise as a result of our structure.
  • Certain provisions of Maryland law could inhibit changes in control.
  • Our authorized but unissued shares of common and preferred stock may prevent a change in our control.
  • Our rights and the rights of our stockholders to take action against our directors and officers are limited, which could limit stockholder recourse in the event of actions not in our stockholders’ best interests.
  • Our charter contains provisions that make removal of our directors difficult, which could make it difficult for our stockholders to effect changes to our management.
  • Ownership limitations may restrict change of control or business combination opportunities in which our stockholders might receive a premium for their shares.
  • Risks Related to Our Taxation as a REIT
  • Qualifying as a REIT involves highly technical and complex provisions of the Internal Revenue Code, and our failure to qualify or remain qualified as a REIT would subject us to U.S. federal income tax and applicable state and local tax, which would negatively impact the results of our operations and reduce the amount of cash available for distribution to our stockholders.
  • Complying with REIT requirements may force us to liquidate or forego otherwise attractive investments, incur debt, or sell assets at inopportune times.
  • Even though we qualify as a REIT, we may face tax liabilities that reduce our cash flow.
  • The failure of assets subject to a repurchase agreement to be considered owned by us or mezzanine loans or other assets to qualify as real estate assets may adversely affect our ability to qualify as a REIT.
  • We may be required to report taxable income for certain investments in excess of the economic income we ultimately realize from them.
  • The “taxable mortgage pool” rules may increase the taxes that we or our stockholders may incur and may limit the way we effect future securitizations.
  • Our ownership of and relationship with our TRSs is limited and a failure to comply with the limits would jeopardize our REIT qualification and may result in the application of a 100% excise tax.
  • The tax on prohibited transactions limits our ability to engage in certain types of transactions, including certain methods of securitizing loans, which would be treated as sales for U.S. federal income tax purposes.
  • Complying with REIT requirements may limit our ability to hedge effectively.
  • Legislative, regulatory, or administrative changes could adversely affect us.
  • Your investment has various U.S. federal income tax risks.
  • The current outbreak and spread of the COVID-19 outbreak has disrupted, and is likely to further cause severe disruptions in, the U.S. and global economies and financial markets and create widespread business continuity and viability issues.
Management Discussion
  • Comparison of the Three Months Ended March 31, 2022 vs. Three Months Ended March 31, 2021
  • •Net income decreased by $6 million due to a decrease in equity method investments income (loss) of $7 million, a $4 million increase in income tax expense, and a $1 million increase in total expenses, offset by a $7 million increase in revenue. These results do not reflect the non-GAAP distributable earnings adjustments discussed in the non-GAAP financial measures section below.
  • •Total revenue increased by $7 million due to a $5 million increase in interest income, driven primarily by a higher average Portfolio balance and rate and by a $2 million increase in fee income, driven by additional fee generating opportunities in the current period.

Content analysis

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Readability
H.S. junior Avg
New words: akin, benchmark, buy, congestion, cooperation, fewer, fractional, HVAC, leadership, lieu, located, SI, SOFR
Removed: accelerated, annum, dating, dilution, executed, extreme, headcount, hedge, increasingly, interested, January, obligation, posting, priced, repayable, representation, reserved, standard, warehouse, winter