Overview

• US sustainable infrastructure investor's Q1 adjusted EPS rose 20% yr/yr, beating analyst expectations

• Q1 revenue declined and missed analyst expectations

• GAAP net loss driven by timing difference in tax equity investment accounting, expected to normalize

Outlook

• HASI affirms 2028 adjusted EPS guidance of $3.50 to $3.60

• Company expects adjusted ROE of more than 17% in 2028

• HASI expects payout ratio to fall below 50% in 2028 and below 40% in 2030

Result Drivers

• PORTFOLIO GROWTH AND YIELD - Co said higher adjusted earnings were driven by a larger portfolio and higher yields on investments

• ASSET SALES - Gain on sale of assets contributed to higher adjusted earnings in the quarter

• HIGHER INTEREST EXPENSE - Interest expense increased due to debt refinancing and issuance of higher-rate notes

Company press release: ID:nBw2s09yka

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for HA Sustainable Infrastructure Capital Inc is $46.00, about 6.2% above its May 6 closing price of $43.31

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

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