Business Context and Reporting Period
This Form 8-K was filed by Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) on May 23, 2023, reporting the filing of a preliminary prospectus supplement for an effective registration statement on Form S-3. The Company invests in climate solutions across three markets: Behind-the-Meter (BTM), Grid-Connected (GC), and Fuels, Transport and Nature (FTN). The financial data provided in this filing reflects the portfolio status as of March 31, 2023, and historical cash flow data for the years ended December 31, 2019 through 2022.
Key Financial Metrics
- Portfolio Size: Approximately $4.7 billion as of March 31, 2023, representing an increase of $0.4 billion from December 31, 2022.
- Portfolio Composition: Over 350 investments across approximately 8 asset classes.
- Yields: Unlevered portfolio yield of 7.5%. Segment yields include BTM at 7.9%, GC at 7.0%, and FTN at 7.5%.
- Production Capacity: BTM investments produced 3 GW; GC investments produced 11 GW.
- Credit Losses: Less than 20 basis points of cumulative credit losses (net of recoveries) since 2012.
- Adjusted Cash Flow from Operations plus Other Portfolio Collections:
- 2022: $287 million
- 2021: $259 million
- 2020: $309 million
- 2019: $314 million
- Dividends Paid: $132 million (2022), $114 million (2021), $100 million (2020), and $86 million (2019).
- Capital Raised: $693 million (2022), $796 million (2021), $1,206 million (2020), and $540 million (2019).
- Investments Funded: $871 million (2022), $960 million (2021), $1,183 million (2020), and $715 million (2019).
Material Changes
The portfolio grew by approximately $0.4 billion between December 31, 2022, and March 31, 2023. The filing highlights a continued strategy of diversifying funding sources, with lending relationships established with more than 15 banks and debt raised from over 200 institutional investors. The Company notes consistent growth in distributable earnings per share from 2014 through 2022 and in dividends from 2019 through 2022.
Guidance, Outlook, and Risks
The Company maintains a large and active pipeline of potential new opportunities across over 8 asset classes expected to close within the next 12 months. Management emphasizes a strategy of relationship-based investing combined with in-house engineering expertise to generate risk-adjusted fixed-rate returns. Investments often feature contractually committed agreements with investment-grade off-takers and senior or preferred positions. The filing does not provide specific forward-looking numerical guidance for revenue or earnings but indicates a focus on funding new investments and regular quarterly dividends using Adjusted Cash Flow from Operations plus Other Portfolio Collections.
Investor Verification Checklist
- Verify the details of the preliminary prospectus supplement filed on Form S-3 (333-263169) referenced in Item 8.01.
- Review the full Quarterly Report for the quarter ended March 31, 2023, for detailed GAAP financial statements and cash flow data not fully included in this 8-K.
- Confirm the specific terms and pricing of the capital raise referenced in the prospectus supplement.
- Assess the composition of the "pipeline of transactions" mentioned for the next 12 months to gauge future growth potential.
- Monitor the Company's ability to maintain the historical trend of Adjusted Cash Flow exceeding dividend payments.