HASI Details

Hannon Armstrong Sustainable Infrastructure Capital Inc (NYSE: HASI) is focused on making investment in climate solutions, including energy efficiency, renewable energy, and other sustainable infrastructure markets.

Financial Results for the 2QFY22

• The company reported an increase in revenue by $4 million to $62.80 million for 2QFY22. The higher interest income from the larger portfolio with a lower average interest rate was offset by lower gain on sale because of the change in the mix of assets being securitized.
• Interest expense declined by $12 million due to one-time loss on redemption of senior unsecured notes in the prior period which did not recur.

Key Updates

On 16^th October 2022, Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, stated that “it is investigating potential claims against the company on behalf of Hannon stockholders. The investigation is related to whether the company has violated the federal securities laws and/or engaged in other unlawful business practices.”

Outlook

As per the company, annual distributable EPS is expected to grow at a compounded annual rate of 10% to 13% from 2021 to 2024, relative to the 2020 baseline of $1.55 per share, which is equivalent to the 2024 midpoint of $2.40 per share. Also, it is anticipating growth of annual dividends per share to be at compounded annual rate of 5% - 8%.

Key Risks

The company is exposed to the risk of changes in interest rates, lower government support, etc. Also, there is uncertainty related to the recent lawsuit as indicated above.

Stock Information

On 17^th October, the stock closed at US$23.82 per share, up by 3.97%.

Hannon Armstrong Sustainable Infrastructure Capital Inc (HASI) is a part of Kalkine’s Global Green Energy Product

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is October 18, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.