Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 07, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'HASI | ' |
Entity Registrant Name | 'Hannon Armstrong Sustainable Infrastructure Capital, Inc. | ' |
Entity Central Index Key | '0001561894 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 21,774,411 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Financing receivables | $456,073 | $347,871 |
Financing receivables held-for-sale | ' | 24,758 |
Investments held-to-maturity | ' | 91,964 |
Investments available-for-sale | 67,640 | 3,213 |
Real estate | 50,318 | ' |
Real estate related intangible assets | 16,907 | ' |
Securitization assets | 6,221 | 6,144 |
Cash and cash equivalents | 38,691 | 31,846 |
Restricted cash and cash equivalents | 9,557 | 49,865 |
Other intangible assets, net | 1,604 | 1,706 |
Goodwill | 5,942 | 3,798 |
Other assets | 11,176 | 10,267 |
Total Assets | 664,129 | 571,432 |
Liabilities and Equity | ' | ' |
Accounts payable, dividends payable and accrued expenses | 17,361 | 7,296 |
Deferred funding obligations | 15,394 | 74,675 |
Credit facility | 166,191 | 77,114 |
Asset-backed nonrecourse notes (secured by financing receivables of $108.2 million and $109.5 million, respectively) | 97,393 | 100,081 |
Other nonrecourse debt (secured by financing receivables of $141.6 million and $156.4 million, respectively) | 144,953 | 159,843 |
Deferred tax liability | 693 | 1,799 |
Total Liabilities | 441,985 | 420,808 |
Non-controlling interest currently redeemable for cash | 4,918 | ' |
Equity: | ' | ' |
Preferred stock, par value $0.01 per share, 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, par value $0.01 per share, 450,000,000 shares authorized, 21,774,411 shares and 15,892,927 issued and outstanding, respectively | 218 | 159 |
Additional paid in capital | 231,620 | 160,120 |
Retained deficit | -16,918 | -13,864 |
Accumulated other comprehensive income | 2,306 | 110 |
Non-controlling interest | ' | 4,099 |
Total Equity | 217,226 | 150,624 |
Total Liabilities and Equity | $664,129 | $571,432 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Asset-backed nonrecourse notes, secured by financing receivables | $108.20 | $109.50 |
Other nonrecourse debt, secured by financing receivables | $141.60 | $156.40 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 21,774,411 | 15,892,927 |
Common stock, shares outstanding | 21,774,411 | 15,892,927 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Investment Revenue: | ' | ' | ' | ' |
Interest Income, Financing receivables | $5,229 | $3,384 | $9,847 | $6,095 |
Interest Income, Investments | 1,138 | 17 | 2,432 | 17 |
Rental Income | 410 | ' | 410 | ' |
Investment Revenue | 6,777 | 3,401 | 12,689 | 6,112 |
Investment interest expense | -3,684 | -2,069 | -7,214 | -4,305 |
Net Investment Revenue | 3,093 | 1,332 | 5,475 | 1,807 |
Provision for credit losses | ' | ' | ' | ' |
Net Investment Revenue, net of provision for credit losses | 3,093 | 1,332 | 5,475 | 1,807 |
Other Investment Revenue: | ' | ' | ' | ' |
Gain on sale of receivables and investments | 4,272 | 884 | 6,246 | 884 |
Fee income | 207 | 648 | 1,550 | 929 |
Other Investment Revenue | 4,479 | 1,532 | 7,796 | 1,813 |
Total Revenue, net of investment interest expense and provision | 7,572 | 2,864 | 13,271 | 3,620 |
Compensation and benefits | -2,924 | -7,292 | -4,537 | -8,443 |
General and administrative | -1,445 | -1,237 | -2,598 | -1,927 |
Depreciation and amortization of intangibles | -61 | -111 | -123 | -216 |
Acquisition costs | -1,104 | ' | -1,104 | ' |
Other interest expense | ' | -7 | ' | -56 |
Other income | 7 | 9 | 9 | 29 |
Other Expenses, net | -5,527 | -8,638 | -8,353 | -10,613 |
Net income (loss) before income taxes | 2,045 | -5,774 | 4,918 | -6,993 |
Income tax benefit | 830 | ' | 770 | ' |
Net Income (Loss) | 2,875 | -5,774 | 5,688 | -6,993 |
Net income (loss) attributable to non-controlling interest holders | 47 | -802 | 107 | -2,021 |
Net Income (Loss) Attributable to Controlling Shareholders | $2,828 | ($4,972) | $5,581 | ($4,972) |
Basic earnings per common share | $0.13 | ($0.32) | $0.29 | ($0.32) |
Diluted earnings per common share | $0.13 | ($0.32) | $0.29 | ($0.32) |
Weighted average common shares outstanding-basic | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 |
Weighted average common shares outstanding-diluted | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,875 | ($5,774) | $5,688 | ($6,993) |
Unrealized gain on investments available-for-sale, net | 2,284 | ' | 2,284 | ' |
Unrealized (loss) gain on residual assets | -33 | 127 | -46 | -82 |
Comprehensive income (loss) | 5,126 | -5,647 | 7,926 | -7,075 |
Less: Comprehensive income (loss) attributable to non-controlling interests holders | 89 | -767 | 149 | -2,195 |
Comprehensive Income (Loss) Attributable to Non-controlling Shareholders | $5,037 | ($4,880) | $7,777 | ($4,880) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income (loss) | $5,688 | ($6,993) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization of intangibles | 123 | 216 |
Equity-based compensation | 1,970 | 6,179 |
Amortization of deferred financing fees | 937 | ' |
Gain on sales of investments | -1,870 | ' |
Noncash gain on sales and payment in kind income | -668 | -10 |
Amortization of servicing assets | 205 | 255 |
Change in securitization residual assets | 340 | 125 |
Change in financing receivables held-for-sale and investments available-for-sale | 16,801 | ' |
Change in accounts payable, dividends payable and accrued expenses | 2,313 | -2,926 |
Other | -839 | -664 |
Net cash provided by (used in) operating activities | 25,038 | -3,818 |
Cash flows from investing activities | ' | ' |
Acquisition of American Wind Capital Co. LLC, net of cash acquired | -106,744 | ' |
Purchases of financing receivables | -107,227 | -89,790 |
Principal collections from financing receivables | 16,157 | 11,947 |
Proceeds from sales of financing receivables | 22,428 | ' |
Purchases of investments | ' | -37,021 |
Principal collections from investments | 1,522 | ' |
Proceeds from sales of investments | 36,232 | ' |
Purchase of property and equipment | 20 | ' |
Proceeds from affiliate | ' | 278 |
Change in restricted cash | 40,308 | -29,168 |
Net cash used in investing activities | -97,304 | -143,754 |
Cash flows from financing activities | ' | ' |
Net proceeds from common stock issuances | 70,380 | 160,342 |
Proceeds from nonrecourse debt | ' | 29,122 |
Principal payments on nonrecourse debt | -14,890 | -30,938 |
Proceeds from credit facility | 108,000 | ' |
Principal payments on credit facility | -18,953 | -4,169 |
Principal payments on asset-backed nonrecourse notes | -2,688 | ' |
Payments on deferred funding obligations | -50,557 | ' |
Payment of deferred financing costs | -1,569 | ' |
Redemption of OP units | -1,621 | ' |
Repurchase of common stock | -205 | ' |
Payment of dividends | -8,634 | ' |
Distributions to non-controlling interest holders | -152 | ' |
Net cash provided by financing activities | 79,111 | 154,357 |
Increase in cash and cash equivalents | 6,845 | 6,785 |
Cash and cash equivalents at beginning of period | 31,846 | 8,024 |
Cash and cash equivalents at end of period | 38,691 | 14,809 |
Interest paid | $6,544 | $4,189 |
The_Company
The Company | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
The Company | ' | ||||
1 | The Company | ||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (the “Company”) provides debt and equity financing for sustainable infrastructure projects that increase energy efficiency, provide cleaner energy sources, positively impact the environment or make more efficient use of natural resources. The Company and its subsidiaries are hereafter referred to as “we,” “us,” or “our.” | |||||
Our principal business is providing or arranging financing of sustainable infrastructure projects. We refer to the financings that we hold on our balance sheet as our “Portfolio.” Our Portfolio may include: | |||||
• | Financing Receivables, such as sustainable infrastructure project loans, receivables and direct financing leases, | ||||
• | Investments, such as sustainable infrastructure debt and equity securities, and | ||||
• | Real Estate, such as land or other physical assets and related intangible assets used in sustainable infrastructure projects. | ||||
We finance our business through cash on hand, the securitization of receivables and equity and other debt financings. We also generate fee income for arranging financings that are held on the balance sheet of other parties, by providing broker/dealer or other financing related services to sustainable infrastructure project developers and by servicing assets owned by third parties. | |||||
On April 23, 2013, we completed our initial public offering (“IPO”). We sold a total of 14.2 million shares and raised net proceeds of approximately $160 million including the exercise by the underwriters of their option to purchase an additional 0.8 million shares on May 23, 2013. Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “HASI”. Concurrently with the IPO, we completed a series of transactions, which are referred to as the formation transactions, that resulted in Hannon Armstrong Capital, LLC (the “Predecessor”), the entity that operated the historical business prior to the consummation of the IPO, becoming our subsidiary. | |||||
On April 29, 2014, we completed our first follow-on public offering in which we sold 5,750,000 shares of common stock (including 750,000 shares sold pursuant to the full exercise of the underwriters’ option to purchase additional shares) at $13.00 per share, less the underwriting discount and estimated expenses, for net proceeds of $70.4 million. | |||||
We intend to elect and qualify to be taxed as real estate investment trust (“REIT”) for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2013. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our taxable income to stockholders and maintain our qualification as a REIT. We operate our business through, and serve as the sole general partner of, our Operating Partnership subsidiary, Hannon Armstrong Sustainable Infrastructure, L.P, (the “Operating Partnership”) which was formed to acquire and directly or indirectly own the Company’s assets. We also intend to operate our business in a manner that will continue to permit us to maintain our exception from registration as an investment company under the 1940 Act. | |||||
To the extent any of the financial data included in this report is as of or from a period prior to April 23, 2013, such financial data is that of the Predecessor. The financial data for the Predecessor for such periods do not reflect the material changes to our business as a result of the capital raised in the IPO, including the broadened scope of projects targeted for financing, our enhanced financial structuring flexibility and our ability to retain a larger share of the economics from our origination activities. Accordingly, the financial data for the Predecessor is not necessarily indicative of our results of operations, cash flows or financial position following the completion of the IPO and formation transactions. | |||||
Recent Acquisition | |||||
On May 28, 2014, we entered into a Unit Purchase Agreement (the “Purchase Agreement”) to acquire all of the outstanding member interests in AWCC from Northwharf Nominees Limited, DBD AWCC LLC, NGP Energy Technology Partners II, L.P. and C.C. Hinckley Company, LLC (collectively, the “Sellers”) in exchange for approximately $106.9 million (the “Purchase Price”), which we funded from the use of our cash on hand and our existing credit facilities. Through this acquisition, we expanded our portfolio of sustainable infrastructure assets, including acquiring more than 7,500 acres of land with in-place land leases to three solar projects, which we have recorded as real estate, and the rights to payments from land leases for a diversified portfolio of 57 wind projects, which we have recorded as financing receivables. We did not assume any of AWCC’s indebtedness in connection with the transaction. We accounted for our acquisition of AWCC as a business combination and incurred approximately $1.1 million of acquisition related costs, which we have expensed as acquisition costs in our condensed consolidated statement of operations. We recorded the AWCC assets acquired at fair value. We are using a qualified appraiser to assist us with the determination of the fair value estimates for the majority of the AWCC assets acquired and expect to finalize the purchase price allocation later this year based on a final working adjustment. | |||||
The preliminary purchase price allocation for this transaction, which reflects our estimates of the fair value of the assets acquired, is as follows: | |||||
As of May 28, 2014 | |||||
(amounts in thousands) | |||||
Financing receivables | $ | 37,244 | |||
Real estate | 50,318 | ||||
Real estate lease intangibles | 16,945 | ||||
Goodwill | 2,144 | ||||
Other assets | 212 | ||||
Purchase Price | $ | 106,863 | |||
In addition, we entered into a three-year mutually exclusive origination and servicing agreement with an entity owned by former employees and minority owners of AWCC. This entity will be referred to hereafter as “AWCC Capital.” Under this agreement, AWCC Capital has agreed to (a) originate new similar transactions for our benefit and (b) service the existing and any new assets originated by them for our benefit. We paid approximately $0.6 million in cash as consideration for this agreement that will be amortized over the three year initial life of the agreement and will pay additional consideration in the future for new assets originated by AWCC Capital. | |||||
The operating results of AWCC are reflected in our condensed consolidated statement of operations from the date of acquisition forward. | |||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
2 | Summary of Significant Accounting Policies | |
Basis of Presentation | ||
The condensed consolidated financial statements reflect all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position, results of operations, comprehensive income (loss) and cash flows for the periods presented. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior year have been reclassified to conform to the current year presentation. | ||
The condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries, including the Operating Partnership that was formed to acquire and directly or indirectly own the Company’s assets. All significant intercompany transactions and balances have been eliminated in consolidation. | ||
Following the guidance for non-controlling interests in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation, references in this report to our earnings per share and our net income and shareholders’ equity attributable to common shareholders do not include amounts attributable to non-controlling interests. | ||
Financing Receivables | ||
Financing receivables include financing sustainable infrastructure project loans, receivables and direct financing leases. We account for leases as direct financing leases in accordance with ASC 840, Leases. | ||
Unless otherwise noted, we generally have the ability and intention to hold our financing receivables for the foreseeable future and thus they are classified as held for investment. Our intent and ability to hold certain financing receivables may change from time to time depending on a number of factors, including economic, liquidity and capital conditions. A financing receivable held for investment represents the present value of the note, lease or other payments, net of any unearned fee income, which is recognized as income over the term of the note or lease using the effective interest method. Financing receivables that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees, and origination and acquisition costs as applicable, unless the financing receivables are deemed impaired. Financing receivables that we intend to sell in the short-term are classified as held-for-sale and are carried at the lower of amortized costs or fair value on our balance sheet. We may secure non-recourse debt with the proceeds from our financing receivables. | ||
We evaluate our financing receivables for potential delinquency or impairment on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a financing receivable becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally consider the financing receivable delinquent or impaired and place the financing receivable on non-accrual status and cease recognizing income from that financing receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a financing receivable’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, we will remove it from non-accrual status. | ||
A financing receivable is also considered impaired as of the date when, based on current information and events, it is determined that it is probable that we will be unable to collect all amounts due in accordance with the original contracted terms. Many of our financing receivables are secured by sustainable infrastructure projects. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying project, as well as the financial and operating capability of the borrower, its sponsors or the obligor as well as any guarantors. We consider a number of qualitative and quantitative factors in our assessment, including, as appropriate, a project’s operating results, loan-to-value ratios and any cash reserves, the ability of expected cash from operations to cover the cash flow requirements currently and into the future, key terms of the transaction, the ability of the borrower to refinance the transaction, other credit support from the sponsor or guarantor and the project’s collateral value. In addition, we consider the overall economic environment, the sustainable infrastructure sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. | ||
If a financing receivable is considered to be impaired, we record an allowance to reduce the carrying value of the financing receivable to the present value of expected future cash flows discounted at the financing receivable’s contractual effective rate or the amount realizable from other contractual terms such as the currently estimated fair market value of the collateral less estimated selling costs, if repayment is expected solely from the collateral. We write off financing receivables against the allowance when we determine the unpaid principal balance is uncollectible, net of recovered amounts. | ||
Investments | ||
Investments include debt or equity securities that meet the criteria of ASC 320, Investments—Debt and Equity Securities. As a result of the sale of certain debt securities previously designated as held-to-maturity during the quarter ended June 30, 2014, we have designated our debt securities as available-for-sale and will carry these securities at fair value on our balance sheet at June 30, 2014. Unrealized gains and losses, to the extent not considered other than temporary impairment (“OTTI”), on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (loss) (“OCI”) in equity on our balance sheet. Previously, we recorded our debt securities as held-to-maturity and thus had carried these securities on the balance sheet at amortized cost, which is initially at cost plus any premiums or less any discounts that are amortized or accreted from or into investment interest income using the effective interest method. | ||
We evaluate our investments for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Our OTTI assessment is a subjective process requiring the use of judgments and assumptions. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the financial and operating performance and/or value of the underlying project. We consider a number of qualitative and quantitative factors in our assessment. We first consider the current fair value of the security and the duration of any unrealized loss. Other factors considered include changes in the credit rating, performance of the underlying project, key terms of the transaction and support provided by the sponsor or guarantor. | ||
To the extent that we have identified an OTTI for a security and intend to hold the investment to maturity and we do not expect that we will be required to sell the security prior to recovery of the amortized cost basis, we recognize only the credit component of OTTI in earnings. We determine the credit component using the difference between the securities’ amortized cost basis and the present value of its expected future cash flows, discounted using the effective interest method or its estimated collateral value. Any remaining unrealized loss due to factors other than credit, or the non-credit component, is recorded in accumulated OCI. | ||
To the extent we hold investments with an OTTI and if we have made the decision to sell the security or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, we recognize the entire portion of the impairment in earnings. | ||
Premiums or discounts on investment securities are amortized or accreted into investment interest income using the effective interest method. | ||
Real Estate | ||
Real estate reflects land or other real estate held on our balance sheet. Real estate intangibles reflect the value of associated lease intangibles, net of any amortization. In accordance with ASC 840, Business Combinations, the fair value of the real estate acquired in a business combination with in-place leases is allocated to the acquired tangible assets, consisting of land or other real property such as buildings, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of other acquired intangible assets, based in each case on their fair values. | ||
The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements, if any, based on the determination of the fair values of these assets. The as-if-vacant fair value of a property was determined by management based on an appraisal of the property by a qualified appraiser. | ||
In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as intangible assets based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including the probability of renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income and the capitalized below-market lease values are amortized as an increase to rental income. The aggregate value of other acquired intangible assets consists of in-place leases. The value of the leases in place at the time of the transaction is equal to the potential revenue (rent and expenses) lost if the leases were not in place (during downtime) and that would be incurred to obtain the lease. The amortization is calculated over the initial term unless management believes that it is likely that the tenant would exercise the renewal option whereby we would amortize the value attributable to the renewal over the renewal period. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. | ||
We record the acquisition of real estate, other than in a business combination, at cost, including acquisition and closing costs. | ||
Our real estate is generally leased to tenants on a net lease basis, whereby the tenant is responsible for all operating expenses relating to the property, generally including property taxes, insurance, maintenance, repairs and capital expenditures. Revenue is recognized as rentals are earned and expenses (if any) are charged to operations as incurred. When scheduled rental revenue varies during the lease term, income is recognized on a straight-line basis, unless there is considerable risk as to collectability, so as to produce a constant periodic rent over the term of the lease. Accrued rental income is the aggregate difference between the scheduled rents which vary during the lease term and the income recognized on a straight-line basis and is recorded in other assets. | ||
Securitization of Receivables | ||
We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financing receivables or other debt investments. We determined that the trusts used in securitizations are variable interest entities, as defined in ASC 810, Consolidation. We typically serve as primary or master servicer of these trusts; however, as the servicer, we do not have the power to make significant decisions impacting the performance of the trusts. Based on an analysis of the structure of the trusts, under U.S. GAAP, we have concluded that we are not the primary beneficiary of the trusts as we do not have power over the trusts’ significant activities. Therefore, we do not consolidate these trusts in our condensed consolidated financial statements. | ||
We account for transfers of financing receivables to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing, as the transferred receivables have been isolated from the transferor (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred receivables. When we sell receivables in securitizations, we generally retain interests in the form of servicing rights and residual assets, which are carried on the condensed consolidated balance sheets as securitization assets. | ||
Gain or loss on sale of receivables is calculated based on the excess of the proceeds received from the securitization (less any transaction costs) plus any retained interests obtained over the cost basis of the receivables sold. We generally transfer the receivables to securitization trusts immediately upon the initial funding from the third party purchasing a beneficial interest in the trust. For retained interests, we generally estimate fair value based on the present value of future expected cash flows using our best estimates of the key assumptions of anticipated losses, prepayment rates, and discount rates commensurate with the risks involved. | ||
As described above, we initially account for all separately recognized servicing assets and servicing liabilities at fair value as required under ASC 860. Under ASC 860-50, Transfers and Servicing—Servicing Assets and Liabilities, entities may either subsequently measure servicing assets and liabilities using the amortization method or the fair value measurement method and we have selected the amortization method to subsequently measure our servicing assets. We assess servicing assets for impairment at each reporting date. If the amortized cost of servicing assets is greater than the estimated fair value, we will recognize an impairment in net income. | ||
Our other retained interest in securitized assets, the residual assets, are classified as available-for-sale securities and carried at fair value on the condensed consolidated balance sheets. We generally do not sell our residual assets. If we make an assessment that (i) we do not intend to sell the security or (ii) it is not likely we will be required to sell the security before its anticipated recovery, changes in fair value, such as those resulting from changes in market interest yield requirements, are reported as a component of accumulated OCI. However, in the case where we do intend to sell our residual assets or if the fair value of our residual assets is below the current carrying amount and we determine that the decline is OTTI, any impairment charge would be recorded through the statement of operations. An OTTI is considered to have occurred when, based on current information and events, there has been an adverse change in the timing or amount of cash flows expected to be collected. The impairment is equal to the difference between the residual asset’s amortized cost basis and its fair value at the balance sheet date. In the case where there is any expected decline in the forecasted cash flows, such decline would be unlikely to reverse during the holding period of the retained assets and thus would be considered OTTI. | ||
Servicing income is recognized as earned. Servicing assets are amortized in proportion to, and over the period of, estimated net servicing income, and are periodically assessed for impairment. | ||
Interest income related to the residual assets is recognized using the effective interest rate method. If there is a change in expected cash flows related to the residual assets, we calculate a new yield based on the current amortized cost of the residual assets and the revised expected cash flows. This yield is used prospectively to recognize interest income. | ||
Modifications to Debt | ||
We evaluate any modifications to our debt in accordance with the applicable guidance in ASC 470-50, Debt Modifications and Extinguishments. If the debt instruments are substantially modified, the modification is accounted for in the same manner as a debt extinguishment (i.e., a major modification) and the fees paid are recognized as expense at the time of the modification. Otherwise, such fees are deferred and amortized as an adjustment of interest expense over the remaining term of the modified debt instrument using the interest method. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include short-term government securities, certificates of deposit and money market funds, all of which had an original maturity of three months or less at the date of purchase. These securities are carried at their purchase price, which approximates fair value. | ||
Restricted Cash | ||
Restricted cash include cash and cash equivalents set aside with certain lenders primarily to support deferred funding and other obligations outstanding at the balance sheet dates. | ||
Income Taxes | ||
We intend to elect and qualify to be taxed as a REIT for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2013. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we currently distribute at least 90% of our net taxable income, excluding capital gains, to our shareholders. We intend to meet the requirements for qualification as a REIT and to maintain such qualification. As a REIT, we are not subject to U.S. federal corporate income tax on that portion of net income that is currently distributed to our owners. However, our taxable REIT subsidiaries (“TRS”) will generally be subject to U.S. federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. | ||
We account for income taxes of our TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. | ||
Prior to the completion of the IPO, the Predecessor was taxed as a partnership for U.S. federal income tax purposes. No provision for federal or state income taxes has been made for the period prior to our IPO since our profits and losses were reported on the Predecessor’s members’ tax returns. | ||
We apply accounting guidance with respect to how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. This guidance requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more likely than not” to be sustained by the applicable tax authority. We are required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes U.S. federal and certain states. We have no examinations in progress, none are expected at this time, and years 2010 through 2013 are open. As of June 30, 2014 and December 31, 2013, we had no uncertain tax positions. Our policy is to recognize interest expense and penalties related to income tax matters as a component of other expense. There was no accrued interest and penalties as of June 30, 2014 and December 31, 2013, and no interest and penalties were recognized during the three and six months ended June 30, 2014 and 2013. | ||
Equity-Based Compensation | ||
We recorded compensation expense for stock awards in accordance with ASC 718, Compensation—Stock Compensation, which requires that all equity-based payments to employees be recognized in the condensed consolidated statements of operations, based on their grant date fair values with the expense being recognized over the requisite service period. | ||
At the time of completion of our IPO, we adopted our 2013 Equity Incentive Plan (the “2013 Plan”), which provides for grants of stock options, stock appreciation rights, restricted stock units, shares of restricted common stock, phantom shares, dividend equivalent rights, long-term incentive-plan units (“LTIP units”) and other restricted limited partnership units issued by our Operating Partnership and other equity-based awards. From time to time, we may award unvested restricted shares as compensation to members of our senior management team, our independent directors, advisors, consultants and other personnel under our 2013 Plan. Under the 2013 Plan, we have granted service based awards to certain employees and directors. The shares issued under this plan vest over a period of time as determined by the board of directors at the date of grant. We recognize compensation expense for unvested shares that vest solely based on service conditions on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for forfeitures. | ||
Under the 2013 Plan, we granted performance based restricted stock awards to certain employees. The fair value of the performance based awards is measured by the market price of our common stock on the date of the grant. The vesting of these awards is contingent upon achievement of certain performance targets at the end of specified performance periods and the employees’ continued employment. The performance conditions affect the number of shares that will ultimately vest. The range of possible stock-based award vesting is generally between 0% and 150% of the initial target. If minimum performance targets are not attained then no awards will vest under the agreement. Compensation expense related to these awards is recognized based upon the fair market value of the shares on the date of grant over the requisite service period and based on our estimate of the achievement of the various performance targets, adjusted for forfeitures. We currently estimated that 100% of the various award targets will be achieved. | ||
Earnings Per Share | ||
We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share. Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested shares of restricted common stock or restricted stock units) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested shares of restricted common stock or restricted stock units (“participating securities” as defined in Note 12). Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders by the weighted-average number of shares of common stock outstanding during the period plus other potentially dilutive securities. No adjustment is made for shares that are anti-dilutive during a period. | ||
Due to the capital structure of the Predecessor, earnings per share of common stock information has not been presented for historical periods prior to the IPO. | ||
Segment Reporting | ||
We provide and arrange debt and equity financing for sustainable infrastructure projects and report all of our activities as one business segment. | ||
Recently Issued Accounting Pronouncements | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for us beginning in the quarter ending March 31, 2017. We have not yet selected a transition method, and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosure. | ||
Compensation – Stock Compensation | ||
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation, which amends and updates the guidance in ASC 718, as it relates to the accounting for awards with performance conditions that affect vesting after the service. The amendment provides explicit accounting guidance for when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The amendment is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and is to be applied either retrospectively to all existing performance targets outstanding or prospectively for all awards granted or modified after the effective date, with early application permitted. We are evaluating the new standard, but do not at this time expect this standard to have a material impact on our consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
3 | Fair Value Measurements | ||||||||||||||||
Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level hierarchy for classifying financial instruments. The levels of inputs used to determine the fair value of our financial assets and liabilities carried on the balance sheet at fair value and for those which only disclosure of fair value is required are characterized in accordance with the fair value hierarchy established by ASC 820, Fair Value Measurements. Where inputs for a financial asset or liability fall in more than one level in the fair value hierarchy, the financial asset or liability is classified in its entirety based on the lowest level input that is significant to the fair value measurement of that financial asset or liability. We use our judgment and consider factors specific to the financial assets and liabilities in determining the significance of an input to the fair value measurements. As of June 30, 2014 and December 31, 2013, only our residual assets, financing receivables held-for-sale and investments available-for-sale, if any, were carried at fair value on the condensed consolidated balance sheets on a recurring basis. The three levels of the fair value hierarchy are described below: | |||||||||||||||||
Level 1—Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. | |||||||||||||||||
Level 2—Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | |||||||||||||||||
Level 3—Unobservable inputs are used when little or no market data is available. | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Fair Value | Carrying | Level | |||||||||||||||
Value | |||||||||||||||||
(amounts in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Financing receivables(1) | $ | 475.2 | $ | 456.1 | Level 3 | ||||||||||||
Investments available-for-sale(2) | 67.6 | 67.6 | Level 3 | ||||||||||||||
Residual assets | 5.1 | 5.1 | Level 3 | ||||||||||||||
Liabilities | |||||||||||||||||
Credit facility | $ | 166.2 | $ | 166.2 | Level 3 | ||||||||||||
Nonrecourse debt | 153.1 | 145 | Level 3 | ||||||||||||||
Asset-backed nonrecourse notes | 97.6 | 97.4 | Level 3 | ||||||||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $11.0 million as of June 30, 2014. | ||||||||||||||||
-2 | The amortized costs of our investments available-for-sale as of June 30, 2014 was $63.8 million. | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value | Carrying | Level | |||||||||||||||
Value | |||||||||||||||||
(amounts in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Financing receivables(1) | $ | 346.4 | $ | 347.9 | Level 3 | ||||||||||||
Investments | 92 | 92 | Level 3 | ||||||||||||||
Financing receivables held-for-sale | 24.8 | 24.8 | Level 3 | ||||||||||||||
Investments available-for-sale | 3.2 | 3.2 | Level 3 | ||||||||||||||
Residual assets | 4.9 | 4.9 | Level 3 | ||||||||||||||
Liabilities | |||||||||||||||||
Credit facility | $ | 77.1 | $ | 77.1 | Level 3 | ||||||||||||
Nonrecourse debt | 167.1 | 159.8 | Level 3 | ||||||||||||||
Asset-backed nonrecourse notes | 99.8 | 100 | Level 3 | ||||||||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $11.0 million as of December 31, 2013. | ||||||||||||||||
Financing Receivables and Investments | |||||||||||||||||
The fair value of financing receivables and investments is measured using a discounted cash flow model and Level 3 unobservable inputs. The significant unobservable inputs used in the fair value determination of our financing receivables and investments are discount rates and interest rates in recent comparable transactions. Significant increases in discount rates and recent comparable transactions would result in a significantly lower fair value. Significant decreases in discount rates and recent comparable transactions in isolation would result in a significantly higher fair value. | |||||||||||||||||
During the three months ended June 30, 2014, as part of our portfolio management process, we sold certain investments designated as held-to-maturity for $15.5 million with a carrying value of $14.7 million and realized a gain on sale of these investments of $0.8 million. As a result, we have transferred all of our remaining investments in debt securities to investments available-for-sale at fair value. After the transfer of our debt securities to available-for-sale, we sold certain available-for-sale debt securities with a fair value of $20.7 million and a cost of $19.6 million and realized a gain on sale of these investments of $1.1 million. The following table reconciles the beginning and ending balances for our Level 3 investments available-for-sale that are carried at fair value: | |||||||||||||||||
For the three and | |||||||||||||||||
six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(amounts in millions) | |||||||||||||||||
Balance, beginning of period | $ | — | $ | — | |||||||||||||
Transfers to / purchases of available-for-sale debt securities | 83.5 | — | |||||||||||||||
Sale of available-for-sale debt securities | (20.7 | ) | — | ||||||||||||||
Unrealized gain on debt securities transferred to available for sale | 5 | — | |||||||||||||||
Unrealized (loss) on debt securities holdings | (0.2 | ) | — | ||||||||||||||
Balance, end of period | $ | 67.6 | $ | — | |||||||||||||
Credit Facility | |||||||||||||||||
The fair values of the credit facility are determined using a discounted cash flow model and Level 3 unobservable inputs. The significant unobservable inputs used in the fair value determination of our credit facility are discount rates. Significant increases in discount rates would result in a significantly lower fair value. Significant decreases in discount rates in isolation would result in a significantly higher fair value. | |||||||||||||||||
Asset-Backed Nonrecourse Notes and Other Nonrecourse Debt | |||||||||||||||||
The fair values of our nonrecourse debt are determined using a discounted cash flow model and Level 3 inputs. The significant unobservable inputs used in the fair value determination of our nonrecourse debt are discount rates and interest rates in recent comparable transactions. Significant increases in discount rates would result in a significantly lower fair value. Significant decreases in discount rates and recent comparable transactions in isolation would result in a significantly higher fair value. | |||||||||||||||||
Residual Assets | |||||||||||||||||
As of June 30, 2014 and December 31, 2013, we had residual assets, which are included in the securitization assets line item in the condensed consolidated balance sheets, relating to our retained interests in securitized receivables. Due to the lack of actively traded market data, the valuation of these residual assets was based on Level 3 unobservable inputs. The significant unobservable inputs used in the fair value measurement of our residual assets are estimated securitization cash flows, potential default rates and comparable transactions in related assets of public companies. The observable inputs include published U.S government interest rates. The discount rates considered, based on observations of market participants on other government-issued securitization transactions, range from 7% to 15%. Based on the high credit quality of the obligors under our underlying assets and our estimates of potential default and prepayment rates, we have used discount rates of 8% to 10% to determine the fair market value of our residual assets. Significant increases in U.S. Treasury rates or default and prepayment rates would, in isolation, result in a significantly lower fair value measurement. See Note 5 regarding servicing assets and the residual asset sensitivity analysis. | |||||||||||||||||
The following table reconciles the beginning and ending balances for our Level 3 residual assets carried at fair value: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(amounts in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 4,490 | $ | 4,436 | $ | 4,863 | $ | 4,639 | |||||||||
Accretion | 135 | 118 | 284 | 246 | |||||||||||||
Additions | 661 | 10 | 661 | 10 | |||||||||||||
Collections | (115 | ) | (249 | ) | (624 | ) | (371 | ) | |||||||||
Unrealized (loss) gain on residual assets | (33 | ) | 127 | (46 | ) | (82 | ) | ||||||||||
Balance, end of period | $ | 5,138 | $ | 4,442 | $ | 5,138 | $ | 4,442 | |||||||||
Recent Acquisitions | |||||||||||||||||
In connection with the AWCC acquisition, the assets acquired were recorded at their fair value. We used a third party valuation firm to assist us with developing our estimates of fair value. The fair value of land was based on comparable land sales and the fair value of the financial assets was based on a comparison of market yields for similar assets. All the valuations are Level 3 estimates. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents. As of June 30, 2014 and December 31, 2013, we had cash deposits held in U.S. banks of $48.2 million and $81.7 million, respectively. Included in these balances are $46.8 million and $80.8 million in bank deposits, respectively, in excess of amounts federally insured. | |||||||||||||||||
Financing receivables, investments and leases consist of primarily U.S. government-backed receivables, investment grade state and local government receivables and receivables from various sustainable infrastructure projects and do not, in our view, represent a significant concentration of credit risk. See Note 6 for an analysis by type of obligor. |
NonControlling_Interest
Non-Controlling Interest | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||
Non-Controlling Interest | ' | ||||||||||||
4 | Non-Controlling Interest | ||||||||||||
Non-Controlling Interest in Consolidated Entities | |||||||||||||
Units of limited partnership interests in the Operating Partnership (“OP units”) that are owned by other limited partners are included in non-controlling interest on our condensed consolidated balance sheets. As of June 30, 2014, the Operating Partnership had 23,091,209 OP units outstanding, of which 98.5% were owned by us and 1.5% were owned by other limited partners. The outstanding OP units held by outside limited partners are redeemable for cash, or at our option, for a like number of shares of our common stock. | |||||||||||||
In January 2014, we agreed to not exercise our right under the Operating Partnership agreement to deliver shares of our common stock in lieu of cash upon a request for redemption of OP units held our limited partners and instead agreed to redeem such OP units for cash until such time that we have an effective registration statement covering the resale of shares of our common stock issuable upon exchange of OP units held by such limited partners. As a result, we are reporting our non-controlling interest that is redeemable for cash outside of equity as of June 30, 2014. During the three and six months ended June 30, 2014, we redeemed 7,406 and 119,983 OP units held by our non-controlling interest holders for cash of $0.1 million and $1.6 million, respectively. Our remaining non-controlling interest holders held 342,392 OP units as of June 30, 2014. | |||||||||||||
The following is an analysis of the controlling and non-controlling interest from December 31, 2013, to June 30, 2014: | |||||||||||||
Controlling | Non-Controlling | Total | |||||||||||
Interest | Interest Holders | ||||||||||||
(amounts in thousands) | |||||||||||||
Total Non-Controlling Interest and Equity—December 31, 2013 | $ | 146,525 | $ | 4,099 | $ | 150,624 | |||||||
Net income attributable to interest holders | 5,581 | 107 | 5,688 | ||||||||||
Issuance of common stock | 70,379 | — | 70,379 | ||||||||||
Redemption of OP units | (557 | ) | (1,064 | ) | (1,621 | ) | |||||||
Repurchase of common stock | (205 | ) | — | (205 | ) | ||||||||
Equity-based compensation | 1,938 | 32 | 1,970 | ||||||||||
Distributions | (8,634 | ) | (152 | ) | (8,786 | ) | |||||||
Change in accumulated other comprehensive income | 2,196 | 42 | 2,238 | ||||||||||
Tax basis difference on contributed asset | 1,818 | 39 | 1,857 | ||||||||||
Redemption value change for non-controlling interest redeemable for cash | (1,815 | ) | 1,815 | — | |||||||||
217,226 | 4,918 | 222,144 | |||||||||||
Less Non-Controlling Interest Redeemable for cash | — | (4,918 | ) | (4,918 | ) | ||||||||
Total Non-Controlling Interest and Equity—June 30, 2014 | $ | 217,226 | $ | — | $ | 217,226 | |||||||
The following is an analysis of the controlling and non-controlling interest from April 23, 2013, the date of our IPO, to June 30, 2013: | |||||||||||||
Controlling | Non-Controlling | Total | |||||||||||
Interest | Interest Holders | ||||||||||||
(amounts in thousands) | |||||||||||||
Equity immediately after IPO | $ | 168,266 | $ | — | $ | 168,266 | |||||||
Establishment of non-controlling interest during formation transaction | (4,649 | ) | 4,649 | — | |||||||||
Net loss attributable to interest holders | (4,972 | ) | (141 | ) | (5,113 | ) | |||||||
Change in accumulated other comprehensive income | 92 | 3 | 95 | ||||||||||
Total Non-Controlling Interest and Equity—June 30, 2013 | $ | 158,737 | $ | 4,511 | $ | 163,248 | |||||||
Allocation of Profit and Loss and Cash Distributions prior to our IPO | |||||||||||||
Prior to the IPO, all profits, losses and cash distributions of the Predecessor were allocated based on the percentages as follows: | |||||||||||||
Prior to | |||||||||||||
April 23, 2013 | |||||||||||||
MissionPoint HA Parallel Fund, L.P. | 70 | % | |||||||||||
Jeffrey W. Eckel, Chief Executive Officer | 18 | % | |||||||||||
Other management and employees of the Predecessor | 12 | % | |||||||||||
Upon the completion of the IPO, the Preferred Units and Common Units in the Predecessor were exchanged for shares of our common stock or OP units in the Operating Partnership, or for certain unit holders in the Predecessor, were redeemed for cash. |
Securitization_of_Receivables
Securitization of Receivables | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Securitization of Receivables | ' | ||||||||
5 | Securitization of Receivables | ||||||||
We sold financing receivables in securitization transactions, recognizing gains of $2.4 million and $4.4 million for the three and six months ended June 30, 2014, respectively, as compared to $0.9 million for both the three and six months ended June 30, 2013. In connection with securitization transactions, we retained servicing responsibilities and residual assets. In certain instances, we receive annual servicing fees ranging from 0.05% to 0.20% of the outstanding balance. The investors and the securitization trusts have no recourse to our other assets for failure of debtors to pay when due. Our residual assets are subordinate to investors’ interests, and their values are subject to credit, prepayment and interest rate risks on the transferred financial assets. | |||||||||
The fair values of retained assets, including the discount rates used in valuing those assets and the sensitivity to an increase in the discount rates of 5% and 10%, as of June 30, 2014, and December 31, 2013, were as follows: | |||||||||
June 30, 2014 | |||||||||
Servicing | Residual Assets | ||||||||
(amounts in thousands) | |||||||||
Amortized cost basis | $ | 1,083 | $ | 5,072 | |||||
Fair value | $ | 1,212 | $ | 5,138 | |||||
Weighted-average life in years | 8 | 7 to 19 | |||||||
Discount rate | 8 | % | 8 to 10 | % | |||||
Fair value that would be decreased based on hypothetical adverse changes in discount rates: | |||||||||
5% change in discount rate | $ | 241 | $ | 1,362 | |||||
10% change in discount rate | $ | 394 | $ | 2,128 | |||||
December 31, 2013 | |||||||||
Servicing | Residual Assets | ||||||||
(amounts in thousands) | |||||||||
Amortized cost basis | $ | 1,281 | $ | 4,750 | |||||
Fair value | $ | 1,407 | $ | 4,863 | |||||
Weighted-average life in years | 8 | 6 to 19 | |||||||
Discount rate | 8 | % | 8% to 10 | % | |||||
Fair value that would be decreased based on hypothetical adverse changes in discount rates: | |||||||||
5% change in discount rate | $ | 255 | $ | 1,194 | |||||
10% change in discount rate | $ | 418 | $ | 1,842 | |||||
In computing gains and losses on securitizations, the discount rates were consistent with the discount rates presented in the above table. Based on the nature of the receivables and experience-to-date, we do not currently expect to incur any credit losses on the receivables sold. | |||||||||
The following is an analysis of certain cash flows between us and the securitization trusts: | |||||||||
For the Six Months | |||||||||
Ended June 30, | |||||||||
2014 | 2013 | ||||||||
(amounts in thousands) | |||||||||
Purchase of receivables securitized | $ | 110,225 | $ | 38,360 | |||||
Proceeds from securitizations | $ | 114,601 | $ | 39,244 | |||||
Servicing fees received | $ | 397 | $ | 393 | |||||
Cash received from residual assets | $ | 624 | $ | 371 | |||||
As of June 30, 2014 and December 31, 2013, our managed assets totaled $2.2 billion and $2.1 billion, respectively, of which $1.6 billion and $1.6 billion were securitized. There were no securitization credit losses in the three months ended June 30, 2014 or 2013, and no material securitization delinquencies as of June 30, 2014 and December 31, 2013. |
Our_Portfolio_Financing_Receiv
Our Portfolio - Financing Receivables, Investments and Real Estate | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Our Portfolio - Financing Receivables, Investments and Real Estate | ' | ||||||||||||||||||||||||
6 | Our Portfolio – Financing Receivables, Investments and Real Estate | ||||||||||||||||||||||||
As of June 30, 2014, our Portfolio included approximately $591 million of financing receivables, investments and real estate on our balance sheet. The financing receivables and investments are typically collateralized contractually committed debt obligations of government entities or private high credit quality obligors and are often supported by additional forms of credit enhancement, including security interests and supplier guaranties. The real estate is typically land and related lease intangibles for long-term leases to sustainable infrastructure projects with high credit quality obligors. | |||||||||||||||||||||||||
The following is an analysis of our Portfolio by type of obligor and credit quality as of June 30, 2014. | |||||||||||||||||||||||||
Investment Grade | |||||||||||||||||||||||||
Federal(1) | State, Local, | Commercial | Commercial | Commercial | Total | ||||||||||||||||||||
Institutions(2) | Externally | Rated | Other(5) | ||||||||||||||||||||||
Rated(3) | Internally(4) | ||||||||||||||||||||||||
(amounts in millions, except for percentages) | |||||||||||||||||||||||||
Financing receivables | $ | 195.9 | $ | 73.8 | $ | 22 | $ | 163.5 | $ | 0.8 | $ | 456 | |||||||||||||
Investments available-for-sale | — | — | 43.3 | 7.8 | 16.6 | 67.7 | |||||||||||||||||||
Real estate(6) | — | — | — | 67.2 | — | 67.2 | |||||||||||||||||||
Total | $ | 195.9 | $ | 73.8 | $ | 65.3 | $ | 238.5 | $ | 17.4 | $ | 590.9 | |||||||||||||
% of Total Portfolio | 33.1 | % | 12.5 | % | 11.1 | % | 40.4 | % | 2.9 | % | 100 | % | |||||||||||||
Average Balance(7) | $ | 7.7 | $ | 24.6 | $ | 21.8 | $ | 13.3 | $ | 16.6 | $ | 11.7 | |||||||||||||
-1 | Transactions where the ultimate obligor is the U.S. Federal Government. Transactions may have guaranties of energy savings from third party service providers, the majority of which are investment grade rated entities. | ||||||||||||||||||||||||
-2 | Transactions where the ultimate obligors are state or local governments or institutions such as hospitals or universities where the obligors are rated investment grade (either by an independent rating agency or based upon our credit analysis). Transactions may have guaranties of energy savings from third party service providers, the majority of which are investment grade rated entities. | ||||||||||||||||||||||||
-3 | Transactions where the projects or the ultimate obligors are commercial entities that have been rated investment grade by one or more independent rating agencies. This includes an investment grade rated debt security with a fair value of $38.2 million that matures in 2035 whose obligor is an entity whose ultimate parent is Berkshire Hathaway Inc. | ||||||||||||||||||||||||
-4 | Transactions where the projects or the ultimate obligors are commercial entities that have been rated investment grade using our internal credit analysis. | ||||||||||||||||||||||||
-5 | Transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade either by an independent rating agency or using our internal credit analysis. Financing receivables are net of an allowance for credit losses of $11.0 million. Investments include a senior debt investment of $16.6 million on a wind project that is owned by NRG Energy, Inc. | ||||||||||||||||||||||||
-6 | Includes the real estate and the related lease intangible assets. | ||||||||||||||||||||||||
-7 | Average Remaining Balance excludes 66 transactions each with outstanding balances that are less than $1.0 million and that in the aggregate total $16.5 million. | ||||||||||||||||||||||||
The components of financing receivables of June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||
Financing receivables | |||||||||||||||||||||||||
Financing or minimum lease payments(1) | $ | 717,880 | $ | 504,688 | |||||||||||||||||||||
Unearned interest income | (247,497 | ) | (142,366 | ) | |||||||||||||||||||||
Allowance for credit losses | (11,000 | ) | (11,000 | ) | |||||||||||||||||||||
Unearned fee income, net of initial direct costs | (3,310 | ) | (3,451 | ) | |||||||||||||||||||||
Financing receivables(1) | $ | 456,073 | $ | 347,871 | |||||||||||||||||||||
-1 | Excludes $24.8 million in financing receivables held-for-sale at December 31, 2013 and that were securitized in the three months ended March 31, 2014 | ||||||||||||||||||||||||
In accordance with the terms of certain financing receivables purchase agreements, payments of the purchase price is scheduled to be made over time, generally within twelve months of entering into the transaction, and as a result, we have recorded deferred funding obligations of $15.4 million and $74.7 million as of June 30, 2014 and December 31, 2013, respectively. We have $9.6 million and $49.9 million in restricted cash as of June 30, 2014 and December 31, 2013, respectively, that will be used to pay these funding obligations. | |||||||||||||||||||||||||
During the first quarter ended March 31, 2014, we sold a debt security of $3.2 million that was recorded at fair value and classified as available-for-sale as of December 31, 2013. The fair value of the debt security approximated its carrying value as of December 31, 2013. During the three months ended June 30, 2014, as part of our portfolio management process, we sold certain investments designated as held-to-maturity for $15.5 million with a carrying value of $14.7 million and realized a gain on sale of these investments of $0.8 million. As a result, we transferred all of our remaining investments in debt securities to investments available-for-sale at fair value. After this transfer, we sold certain available-for-sale debt securities with a fair value of $20.7 million and a cost of $19.6 million and realized a gain on sale of these investments of $1.1 million. As of June 30, 2014, all of our investments in debt securities are classified as investments available for sale and we are carrying them on our balance sheet at fair value. There were no investments in an unrealized loss position as of June 30, 2014 or December 31, 2013. | |||||||||||||||||||||||||
The components of our real estate portfolio as of June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||
Land | $ | 50,318 | $ | — | |||||||||||||||||||||
Lease Intangibles | 16,945 | — | |||||||||||||||||||||||
Accumulated amortization of lease intangibles | (38 | ) | — | ||||||||||||||||||||||
Real Estate | $ | 67,225 | $ | — | |||||||||||||||||||||
Our acquisition of AWCC resulted in the recognition of land of $50.3 million and an intangible asset for favorable land leases of $16.9 million that will be amortized on a straight-line basis over the lease terms with expirations dates that range between the years 2052 and 2061 assuming expected extensions. There is an conservation easement agreement covering one of the properties acquired that limits the use of the property at the expiration of the lease which is expected to be in 2061. As of June 30, 2014, the future amortization expense to be recognized related to these intangible assets is: | |||||||||||||||||||||||||
Year Ending December 31, | (Amounts in Thousands) | ||||||||||||||||||||||||
2014 | $ | 206 | |||||||||||||||||||||||
2015 | 413 | ||||||||||||||||||||||||
2016 | 413 | ||||||||||||||||||||||||
2017 | 413 | ||||||||||||||||||||||||
2018 | 413 | ||||||||||||||||||||||||
2019 | 413 | ||||||||||||||||||||||||
Thereafter | 14,636 | ||||||||||||||||||||||||
Total | $ | 16,907 | |||||||||||||||||||||||
The following table provides a summary of our anticipated maturity dates of our financing receivables and investments for each range of maturities as of June 30, 2014: | |||||||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||||||
1 year | 10 years | ||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||
Financing Receivables | |||||||||||||||||||||||||
Payment due by period | $ | 456,073 | $ | 1,845 | $ | 89,083 | $ | 18,034 | $ | 347,111 | |||||||||||||||
Investments available-for-sale | |||||||||||||||||||||||||
Payment due by period | $ | 67,640 | $ | — | $ | 16,552 | $ | — | $ | 51,088 | |||||||||||||||
Our real estate is rented under long term land lease agreements with expiration dates that range between the years 2041 and 2043 under the initial terms and 2052 and 2061 assuming expected extensions. As of June 30, 2014, the future minimum rental income under our land lease agreements is as follows: | |||||||||||||||||||||||||
Year Ending December 31, | (Amounts in Thousands) | ||||||||||||||||||||||||
2014 | $ | 2,443 | |||||||||||||||||||||||
2015 | 4,886 | ||||||||||||||||||||||||
2016 | 4,886 | ||||||||||||||||||||||||
2017 | 4,886 | ||||||||||||||||||||||||
2018 | 4,886 | ||||||||||||||||||||||||
2019 | 4,886 | ||||||||||||||||||||||||
Thereafter | 173,625 | ||||||||||||||||||||||||
Total | $ | 200,498 | |||||||||||||||||||||||
In December 2013, we recorded an allowance of $11.0 million on the remaining $11.8 million balance of a $24 million loan made in May 2013 to a wholly owned subsidiary of EnergySource LLC (“EnergySource”) to be used for a geothermal project. The loan’s average outstanding balance for the three and six months ended June 30, 2014 was $11.8 million. No interest income was accrued or collected in cash on the loan for the three and six months ended June 30, 2014. For the three and six months ended June 30, 2013, we recorded income from EnergySource for investment banking and management services of $0.4 million and $0.5 million, respectively. The project is considered a variable interest entity and the maximum exposure to loss is the net balance of $0.8 million, which represents our current estimate of the realizable sale value of tangible project assets. As previously disclosed, certain of our executive officers and directors own an indirect minority interest in EnergySource following the distribution of the Predecessor’s ownership interest prior to our IPO. We continue to pursue recovery options relating to this loan. | |||||||||||||||||||||||||
We had no other financing receivables, investments or leases on nonaccrual status as of June 30, 2014 and December 31, 2013. There was no provision for credit losses for the three and six months ended June 30, 2014, or June 30, 2013. We evaluate any modifications to our financing receivables in accordance with the guidance in ASC 310, Receivables. We evaluate modifications of financing receivables to determine if the modification is more than minor, whereby any related fees, such as prepayment fees, would be recognized in income at the time of the modification. We did not have any loan modifications that qualify as trouble debt restructurings for the three months and six months ended June 30, 2014 or 2013. |
Credit_Facility
Credit Facility | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Text Block [Abstract] | ' | ||||
Credit Facility | ' | ||||
7 | Credit Facility | ||||
In July 2013, we entered into a $350 million senior secured revolving credit facility through newly-created, wholly-owned special purpose subsidiaries (the “Borrowers”). In November 2013, the PF Loan Agreement (as defined below) was amended to provide us with the flexibility to negotiate an alternative interest rate margin on certain loans with the approval of the administrative agent. In May 2014, we amended the PF Loan Agreement to increase its overall borrowing capacity by $200 million to $500 million, increase the maximum borrowings allowed at any point in time in the facility by $100 million to $250 million and expand the collateral eligibility criteria to reflect current market opportunities in distributed energy assets. In August, 2014, we entered into an amended and restated loan agreement which a) incorporated the terms of the first two amendments, b) added additional subsidiaries as Borrowers, c) provided for a fixed rate loan option and d) modified the timing of borrowings on certain projects. We have guaranteed the obligations of the Borrowers under each of the Loan Agreements pursuant to (x) a Continuing Guaranty, dated July 19, 2013, (y) a Limited Guaranty, dated July 19, 2013. As part of our August 2014 amendment, we entered into amended and restated versions of these guaranties. | |||||
The terms of the credit facility are set forth in the Loan Agreement (G&I) (the “G&I Loan Agreement”) and the Loan Agreement (PF) and related amendments (the “PF Loan Agreement”, and together with the G&I Loan Agreement, the “Loan Agreements”) and provide for senior secured revolving credit facilities with total maximum advances of $900 million (i) in the case of the G&I Loan Agreement, in the principal amount of $200 million to be used to leverage certain qualifying government and institutional financings entered into by us, with maximum total advances (without giving effect to prepayments or repayments) of $400 million, and (ii) in the case of the PF Loan Agreement, in the principal amount of $250 million to be used to leverage certain qualifying project financings entered into by us, with maximum total advances (without giving effect to prepayments or repayments) of $500 million. The scheduled termination date of each of the Loan Agreements is July 19, 2018. Loans under the G&I Loan Agreement bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus 1.50% or, under certain circumstances, the Federal Funds Rate plus 1.50%. Loans under the PF Loan Agreement bear interest at a rate equal to LIBOR plus 2.50% or, under certain circumstances, the Federal Funds Rate plus 2.50%, or a specifically negotiated rate on certain loans as approved by the administrative agent. We also have the option of a loan where the rate is fixed until the expiration of the credit facility in July 2018. The fixed rate is determined by agreement between the Borrower and Administrative Agent and is based on the prevailing US SWAP rate of an equivalent term to the average-life of the fixed rate portion of the borrowing plus an agreed upon margin. | |||||
Any financing we proposed to be included in the borrowing base as collateral under the Loan Agreements will be subject to the approval of the administrative agent in its sole discretion. The amount eligible to be drawn under the Loan Agreements for purposes of financing such investments will be based on a discount to the value of each investment or an applicable valuation percentage. Under the G&I Loan Agreement, the applicable valuation percentage for non-delinquent investments is 80% in the case of a U.S. Federal Government obligor, 75% in the case of an institutional obligor or a state and local obligor, and with respect to other obligors or in certain circumstances, such other percentage as the administrative agent may prescribe. Under the PF Loan Agreement, the applicable valuation percentage is 67% or such other percentage as the administrative agent may prescribe. The sum of approved financings after taking into account the valuation percentages and any changes in the valuation of the financings in accordance with the Loan Agreement determines the borrowing capacity, subject to the overall facility limits described above. | |||||
We had outstanding borrowings under our credit facilities of $166.2 million and $77.1 million as of June 30, 2014 and December 31, 2013, respectively. We pledged $260.8 million and $114.3 million of financing receivables as collateral for the credit facility as of June 30, 2014 and December 31, 2013, respectively. The weighted average short-term borrowing rate of our credit facilities was 2.7% and 2.6% as of June 30, 2014 and December 31, 2013, respectively. We incurred approximately $10.2 million of costs associated with the Loan Agreements that have been capitalized (included in other assets on the condensed consolidated balance sheets) and will be amortized on a straight-line basis over the term of the agreement. On each monthly payment date, the Borrowers shall also pay to the administrative agent, for the benefit of the lenders, certain availability fees for each Loan Agreement equal to 0.50%, divided by 360, multiplied by the excess of the available borrowing capacity under each Loan Agreement over the actual amount borrowed under such Loan Agreement. | |||||
Each Loan Agreement contains terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature. The Loan Agreements contain various affirmative and negative covenants, and limitations on the incurrence of liens and indebtedness, investments, fundamental organizational changes, dispositions, changes in the nature of business, transactions with affiliates, use of proceeds and stock repurchases. | |||||
Each Loan Agreement also includes customary events of default, including for the existence of a default in more than 50% of underlying financings. The occurrence of an event of default may result in termination of the Loan Agreements, acceleration of amounts due under both Loan Agreements, and accrual of default interest at a rate of LIBOR plus 2.50% in the case of the G&I Loan Agreement and at a rate of LIBOR plus 5.00% in the case of the PF Loan Agreement. | |||||
The Loan Agreements require that we maintain the following financial covenants: | |||||
Covenant | Covenant | ||||
Threshold | |||||
Minimum Liquidity (defined as available borrowings under the Loan Agreements plus unrestricted cash divided by actual borrowings) of greater than: | 5 | % | |||
12 month rolling Net Interest Margin of greater than: | zero | ||||
Maximum Debt to Equity Ratio of less than: | 4 to 1 | ||||
We were in compliance with the financial covenants of the Loan Agreements at each reporting date that such covenants were applicable. For purposes of the Maximum Debt to Equity ratio, debt is defined as total indebtedness excluding accounts payable and accrued expenses and nonrecourse debt. |
Nonrecourse_Debt
Nonrecourse Debt | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Nonrecourse Debt | ' | ||||||||||||
8 | Nonrecourse Debt | ||||||||||||
Asset-Backed Nonrecourse Notes | |||||||||||||
In December 2013, through certain of our subsidiaries, we issued in a private placement $100 million of nonrecourse Asset-Backed Notes (the “Notes”) with a fixed interest rate of 2.79%. The Notes mature in December 2019 and are secured by certain of our financing receivables included on our balance sheet. The Noteholders can only look to the cash flows of the pledged financing receivables to satisfy the Notes and we are not liable for nonpayment by the obligor of the financing receivables securing these Notes. As of June 30, 2014 and December 31, 2013, we had $97.4 million and $100.1 million, respectively, of Notes outstanding, which were secured by $108.2 million and $109.5 million, respectively, of our financing receivables included on our balance sheet. Upon maturity, the Notes are anticipated to have an outstanding debt balance of approximately $57 million. The Notes may be prepaid prior to December 2018, with a make whole payment calculated using a discount rate equal to the comparable-maturity treasury yield plus 50 basis points. Thereafter the notes are repayable at par. At maturity, we will have the option to rollover the remaining debt with a mutually agreed term and rate or repay the outstanding balance. | |||||||||||||
We incurred approximately $0.2 million of costs associated with the issuance of the Notes that have been capitalized (included in other assets on the condensed consolidated balance sheets) and will be amortized using the effective interest method over a 72 month period from December 2013. | |||||||||||||
Other Nonrecourse Debt | |||||||||||||
We have other nonrecourse debt that was used to finance certain of our financing receivables for the term of the financing receivable. Amounts due under nonrecourse notes are secured by financing receivables with a carrying value of $141.6 million and $156.4 million as of June 30, 2014 and December 31, 2013, respectively, and there is no recourse to our general assets. Debt service payment requirements, in a majority of cases, are equal to or less than the cash flows received from the underlying financing receivables. | |||||||||||||
Analyses of other nonrecourse debt by interest rate are as follows: | |||||||||||||
As of June 30, 2014 | Balance | Maturity | |||||||||||
(amounts in thousands) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.06% to 5.00% per annum | $ | 58,333 | 2014 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 62,558 | 2014 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 24,062 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 144,953 | |||||||||||
As of December 31, 2013 | Balance | Maturity | |||||||||||
(amounts in thousands) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.06% to 5.00% per annum | $ | 66,089 | 2014 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 68,862 | 2014 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 24,892 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 159,843 | |||||||||||
The stated minimum maturities of nonrecourse debt as of June 30, 2014, were as follows: | |||||||||||||
Nonrecourse Debt | |||||||||||||
As of June 30, | Asset Backed | Other Nonrecourse | Total | ||||||||||
Nonrecourse Notes | Debt | ||||||||||||
(amounts in thousands) | |||||||||||||
2015 | $ | 8,574 | $ | 38,403 | $ | 46,977 | |||||||
2016 | 7,498 | 26,779 | 34,277 | ||||||||||
2017 | 8,215 | 15,472 | 23,687 | ||||||||||
2018 | 6,605 | 10,227 | 16,832 | ||||||||||
2019 | 4,358 | 4,393 | 8,751 | ||||||||||
Thereafter | 62,143 | 49,679 | 111,822 | ||||||||||
$ | 97,393 | $ | 144,953 | $ | 242,346 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
9 | Commitments and Contingencies | |
Litigation | ||
We are not currently subject to any legal proceedings that are likely to have a material adverse effect on our financial position, results of operations or cash flows. |
Income_Tax
Income Tax | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Tax | ' | |
10 | Income Tax | |
We intend to elect and qualify to be taxed as a REIT, commencing with our taxable year ending December 31, 2013. As a REIT, we are not subject to federal corporate income tax on that portion of net income that is currently distributed to our owners. However, our TRS will generally be subject to federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. | ||
We account for income taxes of our TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. | ||
During the six months ended June 30, 2014, we transferred an asset to our TRS that had a tax basis in excess of its book basis. We recognized a deferred tax asset for the amount we expect to be realizable. Because the transfer was done amongst entities under common control, we recorded the $1.9 million impact of the transaction to additional paid in capital. We established a valuation allowance against the remaining balance of our deferred tax asset as of March 31, 2014. During the three months ended June 30, 2014, we reclassified certain investments to investments available-for-sale and recognized them at fair value, which resulted in an unrealized gain of $3.8 million recognized in OCI. We recorded an deferred tax liability related to the unrealized gain on the available-for-sale investments of $1.5 million and recognized an income tax benefit on the statement of operations related to the release of the remaining valuation allowance of $0.8 million. We recorded an income tax benefit of $0.8 million for both the three and six months ended June 30, 2014, related to the activities of our TRS. We had no income tax expense for the three and six months ended June 30, 2013, related to the activities of our TRS. The income tax expense was determined using a federal rate of 35% and a combined state rate, net of federal benefit, of 5%. |
Equity
Equity | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Equity | ' | ||||||||||||||||
11 | Equity | ||||||||||||||||
Dividends and Distributions | |||||||||||||||||
Our board of directors declared the following dividends in 2013 and 2014: | |||||||||||||||||
Announced Date | Record Date | Pay Date | Amount per | ||||||||||||||
share | |||||||||||||||||
8/8/13 | 8/20/13 | 8/29/13 | $ | 0.06 | |||||||||||||
1/7/13 | 11/18/13 | 11/22/13 | $ | 0.14 | |||||||||||||
2/17/13 | 12/30/13 | 1/10/14 | $ | 0.22 | |||||||||||||
3/13/14 | 3/27/14 | 4/9/14 | $ | 0.22 | |||||||||||||
6/17/14 | 6/27/14 | 7/10/14 | $ | 0.22 | |||||||||||||
Common Stock | |||||||||||||||||
We completed the following public offerings of common stock(1): | |||||||||||||||||
Closing Date | Shares Issued | Price | Net Proceeds | ||||||||||||||
Per Share | |||||||||||||||||
(amounts in thousands, except per share amounts) | |||||||||||||||||
4/23/13 | 14,152 | $ | 12.5 | $ | 160 | ||||||||||||
4/29/14 | 5,750 | $ | 13 | $ | 70.4 | ||||||||||||
(1) | Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares. Net proceeds from the offerings is shown after deducting underwriting discounts, commissions, other offering costs and, in the case of our initial public offering, formation transaction costs. | ||||||||||||||||
Equity Incentive Plan | |||||||||||||||||
We recorded compensation expense for stock awards in accordance with ASC 718, Compensation—Stock Compensation, which requires that all equity-based payments to employees be recognized in the condensed consolidated statements of operations, based on their grant date fair values with the expense being recognized over the requisite service period. | |||||||||||||||||
At the time of completion of our IPO, we adopted our 2013 Plan, which provides for grants of stock options, stock appreciation rights, restricted stock units, shares of restricted common stock, phantom shares, dividend equivalent rights, LTIP units and other restricted limited partnership units issued by our Operating Partnership and other equity-based awards. From time to time, we may award unvested restricted shares as compensation to members of our senior management team, our independent directors, advisors, consultants and other personnel under our 2013 Plan. The shares issued under this plan vest over a period of time as determined by the board of directors at the date of grant. Under the 2013 Plan, we issued both awards with service conditions and awards with performance conditions. We recognize compensation expense for unvested shares that vest solely based on service conditions on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for forfeitures. Compensation expense related to our awards with performance conditions is recognized over the requisite service period based on our estimate of the achievement of the various performance targets based on the fair market value of the shares on the date of grant, adjusted for forfeitures. | |||||||||||||||||
Reallocation of the Predecessor’s Membership Units | |||||||||||||||||
Concurrently with the IPO, the existing owners of the Predecessor reallocated and distributed a portion of their equity ownership to the employees of the Predecessor and the employees received 202,826 shares of common stock, 128,348 restricted stock units and 135,938 OP units. This reallocation was accounted for as equity-based compensation in accordance with ASC 718, Compensation—Stock Compensation, with equity award valuations based on the IPO price of $12.50 per share. As the shares of common stock, restricted stock units and OP units were immediately vested, we recorded compensation expense related to these awards of $5.8 million on April 23, 2013. No tax benefits have been recorded related to this reallocation. The restricted stock units, net of applicable federal and state taxes withheld, were converted to common shares in November 2013. | |||||||||||||||||
Awards of Shares of Restricted Common Stock under our 2013 Plan | |||||||||||||||||
During the six months ended June 30, 2014, our board of directors awarded employees and directors 149,359 shares of restricted common stock that vest in 2015 and 2016 and 373,241 shares of restricted common stock to certain employees that vest upon the later of the achievement of certain dividend growth targets and December 31, 2015. | |||||||||||||||||
We recognize compensation expense for unvested shares of restricted common stock on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of issuance, adjusted for forfeitures. The calculation of the compensation expense assumes a forfeiture rate up to 5%. For the three and six months ended June 30, 2014, we recorded $1.5 million and $2.0 million of equity-based compensation expense as compared to $6.2 million, which includes $5.8 million related to the reallocation of shares to employees from the existing owners of the Predecessor on the completion of our IPO, for the three and six months ended June 30, 2013. Included in our stock based compensation expense is an accrual for an additional 163,868 shares of restricted common stock that the board has set as a target to be earned by certain employees upon the achievement of certain corporate and individual performance goals during 2014 and, if earned and awarded, will vest in equal amounts on December 31, 2015 and 2016. | |||||||||||||||||
The total unrecognized compensation expense related to awards of shares of restricted common stock subject to a vesting schedule, considering estimated forfeitures, is $11.9 million as of June 30, 2014, which is expected to be recognized over a weighted-average term of approximately two years. | |||||||||||||||||
A summary of the unvested shares of restricted common stock that have been issued, as of June 30, 2014, is as follows: | |||||||||||||||||
Restricted Shares of | Value (000’s) | ||||||||||||||||
Common Stock | |||||||||||||||||
Beginning Balance—December 31, 2013 | 598,815 | $ | 7,484 | ||||||||||||||
Granted | 522,600 | $ | 7,410 | ||||||||||||||
Vested | (147,009 | ) | $ | (1,838 | ) | ||||||||||||
Forfeited | — | $ | — | ||||||||||||||
Ending Balance—June 30, 2014 | 974,406 | $ | 13,057 | ||||||||||||||
Accumulated OCI is the cumulative total OCI that is included as a component of shareholder’s equity. The following represents changes in accumulated OCI by component as of June 30, 2014. | |||||||||||||||||
Unrealized Gains/ | Unrealized Gains/ | Less | Total | ||||||||||||||
(Loss) on | (Losses) on | Noncontrolling | |||||||||||||||
Residual Assets | Investments | Interest | |||||||||||||||
Available-for-Sale | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Balances as of December 31, 2013 | $ | 113 | $ | — | $ | (3 | ) | $ | 110 | ||||||||
Other comprehensive income before reclassifications, net | (46 | ) | 3,314 | (61 | ) | 3,207 | |||||||||||
Amounts reclassified from accumulated OCI | — | (1,030 | ) | 19 | (1,011 | ) | |||||||||||
Balances as of June 30, 2014 | $ | 67 | $ | 2,284 | $ | (45 | ) | $ | 2,306 |
Earnings_per_Share_of_Common_S
Earnings per Share of Common Stock | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings per Share of Common Stock | ' | ||||||||||||||||
12 | Earnings per Share of Common Stock | ||||||||||||||||
Net income or loss figures are presented net of income or loss attributable to the non-controlling OP units in the earnings per share calculations. The non-controlling limited partners’ outstanding OP units have also been excluded from the diluted earnings per share calculation attributable to common stockholders as there would be no effect on the amounts since the limited partners’ share of income would also be added back to net income. The weighted average number of OP units attributable to the non-controlling interest was 345,485 and 353,405 for the three months and six months ended June 30, 2014, respectively. | |||||||||||||||||
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. Any shares of common stock which, if included in the diluted earnings per share calculation, would have an anti-dilutive effect have been excluded from the diluted earnings per share calculation. | |||||||||||||||||
For the three months ended June 30, 2014, undistributed earnings attributable to unvested shares of restricted common stock have been excluded, as applicable, from net income or loss attributable to common shareholders used in the basic and diluted earnings per share calculations because the effect of these items on diluted earnings per share would be anti-dilutive As of June 30, 2014 and 2013, there were 974,406 and 734,763 shares of unvested restricted common stock outstanding, respectively. | |||||||||||||||||
The computation of basic and diluted earnings per common share is as follows: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Numerator: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||
Net income (loss) attributable to controlling shareholders and participating securities | $ | 2,828 | $ | (4,972 | ) | $ | 5,581 | $ | (4,972 | ) | |||||||
Less: Dividends paid on participating securities | (214 | ) | — | (348 | ) | — | |||||||||||
Undistributed earnings attributable to participating securities | — | — | — | — | |||||||||||||
Net income attributable to controlling shareholders | $ | 2,614 | $ | (4,972 | ) | $ | 5,233 | $ | (4,972 | ) | |||||||
Denominator: | |||||||||||||||||
Weighted-average number of common shares—basic | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 | |||||||||||||
Weighted-average number of common shares—diluted | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 | |||||||||||||
Net income per share attributable to common shares—basic | $ | 0.13 | $ | (0.32 | ) | $ | 0.29 | $ | (0.32 | ) | |||||||
Net income per share attributable to common shares—diluted | $ | 0.13 | $ | (0.32 | ) | $ | 0.29 | $ | (0.32 | ) | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated financial statements reflect all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position, results of operations, comprehensive income (loss) and cash flows for the periods presented. The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior year have been reclassified to conform to the current year presentation. | |
The condensed consolidated financial statements include the accounts of the Company and its controlled subsidiaries, including the Operating Partnership that was formed to acquire and directly or indirectly own the Company’s assets. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Following the guidance for non-controlling interests in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation, references in this report to our earnings per share and our net income and shareholders’ equity attributable to common shareholders do not include amounts attributable to non-controlling interests. | |
Financing Receivables | ' |
Financing Receivables | |
Financing receivables include financing sustainable infrastructure project loans, receivables and direct financing leases. We account for leases as direct financing leases in accordance with ASC 840, Leases. | |
Unless otherwise noted, we generally have the ability and intention to hold our financing receivables for the foreseeable future and thus they are classified as held for investment. Our intent and ability to hold certain financing receivables may change from time to time depending on a number of factors, including economic, liquidity and capital conditions. A financing receivable held for investment represents the present value of the note, lease or other payments, net of any unearned fee income, which is recognized as income over the term of the note or lease using the effective interest method. Financing receivables that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees, and origination and acquisition costs as applicable, unless the financing receivables are deemed impaired. Financing receivables that we intend to sell in the short-term are classified as held-for-sale and are carried at the lower of amortized costs or fair value on our balance sheet. We may secure non-recourse debt with the proceeds from our financing receivables. | |
We evaluate our financing receivables for potential delinquency or impairment on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a financing receivable becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service all of its debt or other obligations, we will generally consider the financing receivable delinquent or impaired and place the financing receivable on non-accrual status and cease recognizing income from that financing receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a financing receivable’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, we will remove it from non-accrual status. | |
A financing receivable is also considered impaired as of the date when, based on current information and events, it is determined that it is probable that we will be unable to collect all amounts due in accordance with the original contracted terms. Many of our financing receivables are secured by sustainable infrastructure projects. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying project, as well as the financial and operating capability of the borrower, its sponsors or the obligor as well as any guarantors. We consider a number of qualitative and quantitative factors in our assessment, including, as appropriate, a project’s operating results, loan-to-value ratios and any cash reserves, the ability of expected cash from operations to cover the cash flow requirements currently and into the future, key terms of the transaction, the ability of the borrower to refinance the transaction, other credit support from the sponsor or guarantor and the project’s collateral value. In addition, we consider the overall economic environment, the sustainable infrastructure sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. | |
If a financing receivable is considered to be impaired, we record an allowance to reduce the carrying value of the financing receivable to the present value of expected future cash flows discounted at the financing receivable’s contractual effective rate or the amount realizable from other contractual terms such as the currently estimated fair market value of the collateral less estimated selling costs, if repayment is expected solely from the collateral. We write off financing receivables against the allowance when we determine the unpaid principal balance is uncollectible, net of recovered amounts. | |
Investments | ' |
Investments | |
Investments include debt or equity securities that meet the criteria of ASC 320, Investments—Debt and Equity Securities. As a result of the sale of certain debt securities previously designated as held-to-maturity during the quarter ended June 30, 2014, we have designated our debt securities as available-for-sale and will carry these securities at fair value on our balance sheet at June 30, 2014. Unrealized gains and losses, to the extent not considered other than temporary impairment (“OTTI”), on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (loss) (“OCI”) in equity on our balance sheet. Previously, we recorded our debt securities as held-to-maturity and thus had carried these securities on the balance sheet at amortized cost, which is initially at cost plus any premiums or less any discounts that are amortized or accreted from or into investment interest income using the effective interest method. | |
We evaluate our investments for OTTI on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Our OTTI assessment is a subjective process requiring the use of judgments and assumptions. Accordingly, we regularly evaluate the extent and impact of any credit deterioration associated with the financial and operating performance and/or value of the underlying project. We consider a number of qualitative and quantitative factors in our assessment. We first consider the current fair value of the security and the duration of any unrealized loss. Other factors considered include changes in the credit rating, performance of the underlying project, key terms of the transaction and support provided by the sponsor or guarantor. | |
To the extent that we have identified an OTTI for a security and intend to hold the investment to maturity and we do not expect that we will be required to sell the security prior to recovery of the amortized cost basis, we recognize only the credit component of OTTI in earnings. We determine the credit component using the difference between the securities’ amortized cost basis and the present value of its expected future cash flows, discounted using the effective interest method or its estimated collateral value. Any remaining unrealized loss due to factors other than credit, or the non-credit component, is recorded in accumulated OCI. | |
To the extent we hold investments with an OTTI and if we have made the decision to sell the security or it is more likely than not that we will be required to sell the security prior to recovery of its amortized cost basis, we recognize the entire portion of the impairment in earnings. | |
Premiums or discounts on investment securities are amortized or accreted into investment interest income using the effective interest method. | |
Real Estate | ' |
Real Estate | |
Real estate reflects land or other real estate held on our balance sheet. Real estate intangibles reflect the value of associated lease intangibles, net of any amortization. In accordance with ASC 840, Business Combinations, the fair value of the real estate acquired in a business combination with in-place leases is allocated to the acquired tangible assets, consisting of land or other real property such as buildings, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of other acquired intangible assets, based in each case on their fair values. | |
The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements, if any, based on the determination of the fair values of these assets. The as-if-vacant fair value of a property was determined by management based on an appraisal of the property by a qualified appraiser. | |
In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as intangible assets based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including the probability of renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income and the capitalized below-market lease values are amortized as an increase to rental income. The aggregate value of other acquired intangible assets consists of in-place leases. The value of the leases in place at the time of the transaction is equal to the potential revenue (rent and expenses) lost if the leases were not in place (during downtime) and that would be incurred to obtain the lease. The amortization is calculated over the initial term unless management believes that it is likely that the tenant would exercise the renewal option whereby we would amortize the value attributable to the renewal over the renewal period. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. | |
We record the acquisition of real estate, other than in a business combination, at cost, including acquisition and closing costs. | |
Our real estate is generally leased to tenants on a net lease basis, whereby the tenant is responsible for all operating expenses relating to the property, generally including property taxes, insurance, maintenance, repairs and capital expenditures. Revenue is recognized as rentals are earned and expenses (if any) are charged to operations as incurred. When scheduled rental revenue varies during the lease term, income is recognized on a straight-line basis, unless there is considerable risk as to collectability, so as to produce a constant periodic rent over the term of the lease. Accrued rental income is the aggregate difference between the scheduled rents which vary during the lease term and the income recognized on a straight-line basis and is recorded in other assets. | |
Securitization of Receivables | ' |
Securitization of Receivables | |
We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financing receivables or other debt investments. We determined that the trusts used in securitizations are variable interest entities, as defined in ASC 810, Consolidation. We typically serve as primary or master servicer of these trusts; however, as the servicer, we do not have the power to make significant decisions impacting the performance of the trusts. Based on an analysis of the structure of the trusts, under U.S. GAAP, we have concluded that we are not the primary beneficiary of the trusts as we do not have power over the trusts’ significant activities. Therefore, we do not consolidate these trusts in our condensed consolidated financial statements. | |
We account for transfers of financing receivables to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing, as the transferred receivables have been isolated from the transferor (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership) and we have surrendered control over the transferred receivables. When we sell receivables in securitizations, we generally retain interests in the form of servicing rights and residual assets, which are carried on the condensed consolidated balance sheets as securitization assets. | |
Gain or loss on sale of receivables is calculated based on the excess of the proceeds received from the securitization (less any transaction costs) plus any retained interests obtained over the cost basis of the receivables sold. We generally transfer the receivables to securitization trusts immediately upon the initial funding from the third party purchasing a beneficial interest in the trust. For retained interests, we generally estimate fair value based on the present value of future expected cash flows using our best estimates of the key assumptions of anticipated losses, prepayment rates, and discount rates commensurate with the risks involved. | |
As described above, we initially account for all separately recognized servicing assets and servicing liabilities at fair value as required under ASC 860. Under ASC 860-50, Transfers and Servicing—Servicing Assets and Liabilities, entities may either subsequently measure servicing assets and liabilities using the amortization method or the fair value measurement method and we have selected the amortization method to subsequently measure our servicing assets. We assess servicing assets for impairment at each reporting date. If the amortized cost of servicing assets is greater than the estimated fair value, we will recognize an impairment in net income. | |
Our other retained interest in securitized assets, the residual assets, are classified as available-for-sale securities and carried at fair value on the condensed consolidated balance sheets. We generally do not sell our residual assets. If we make an assessment that (i) we do not intend to sell the security or (ii) it is not likely we will be required to sell the security before its anticipated recovery, changes in fair value, such as those resulting from changes in market interest yield requirements, are reported as a component of accumulated OCI. However, in the case where we do intend to sell our residual assets or if the fair value of our residual assets is below the current carrying amount and we determine that the decline is OTTI, any impairment charge would be recorded through the statement of operations. An OTTI is considered to have occurred when, based on current information and events, there has been an adverse change in the timing or amount of cash flows expected to be collected. The impairment is equal to the difference between the residual asset’s amortized cost basis and its fair value at the balance sheet date. In the case where there is any expected decline in the forecasted cash flows, such decline would be unlikely to reverse during the holding period of the retained assets and thus would be considered OTTI. | |
Servicing income is recognized as earned. Servicing assets are amortized in proportion to, and over the period of, estimated net servicing income, and are periodically assessed for impairment. | |
Interest income related to the residual assets is recognized using the effective interest rate method. If there is a change in expected cash flows related to the residual assets, we calculate a new yield based on the current amortized cost of the residual assets and the revised expected cash flows. This yield is used prospectively to recognize interest income. | |
Modifications to Debt | ' |
Modifications to Debt | |
We evaluate any modifications to our debt in accordance with the applicable guidance in ASC 470-50, Debt Modifications and Extinguishments. If the debt instruments are substantially modified, the modification is accounted for in the same manner as a debt extinguishment (i.e., a major modification) and the fees paid are recognized as expense at the time of the modification. Otherwise, such fees are deferred and amortized as an adjustment of interest expense over the remaining term of the modified debt instrument using the interest method. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include short-term government securities, certificates of deposit and money market funds, all of which had an original maturity of three months or less at the date of purchase. These securities are carried at their purchase price, which approximates fair value. | |
Restricted Cash | ' |
Restricted Cash | |
Restricted cash include cash and cash equivalents set aside with certain lenders primarily to support deferred funding and other obligations outstanding at the balance sheet dates. | |
Income Taxes | ' |
Income Taxes | |
We intend to elect and qualify to be taxed as a REIT for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2013. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we currently distribute at least 90% of our net taxable income, excluding capital gains, to our shareholders. We intend to meet the requirements for qualification as a REIT and to maintain such qualification. As a REIT, we are not subject to U.S. federal corporate income tax on that portion of net income that is currently distributed to our owners. However, our taxable REIT subsidiaries (“TRS”) will generally be subject to U.S. federal, state, and local income taxes as well as taxes of foreign jurisdictions, if any. | |
We account for income taxes of our TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. | |
Prior to the completion of the IPO, the Predecessor was taxed as a partnership for U.S. federal income tax purposes. No provision for federal or state income taxes has been made for the period prior to our IPO since our profits and losses were reported on the Predecessor’s members’ tax returns. | |
We apply accounting guidance with respect to how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. This guidance requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more likely than not” to be sustained by the applicable tax authority. We are required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes U.S. federal and certain states. We have no examinations in progress, none are expected at this time, and years 2010 through 2013 are open. As of June 30, 2014 and December 31, 2013, we had no uncertain tax positions. Our policy is to recognize interest expense and penalties related to income tax matters as a component of other expense. There was no accrued interest and penalties as of June 30, 2014 and December 31, 2013, and no interest and penalties were recognized during the three and six months ended June 30, 2014 and 2013. | |
Equity-Based Compensation | ' |
Equity-Based Compensation | |
We recorded compensation expense for stock awards in accordance with ASC 718, Compensation—Stock Compensation, which requires that all equity-based payments to employees be recognized in the condensed consolidated statements of operations, based on their grant date fair values with the expense being recognized over the requisite service period. | |
At the time of completion of our IPO, we adopted our 2013 Equity Incentive Plan (the “2013 Plan”), which provides for grants of stock options, stock appreciation rights, restricted stock units, shares of restricted common stock, phantom shares, dividend equivalent rights, long-term incentive-plan units (“LTIP units”) and other restricted limited partnership units issued by our Operating Partnership and other equity-based awards. From time to time, we may award unvested restricted shares as compensation to members of our senior management team, our independent directors, advisors, consultants and other personnel under our 2013 Plan. Under the 2013 Plan, we have granted service based awards to certain employees and directors. The shares issued under this plan vest over a period of time as determined by the board of directors at the date of grant. We recognize compensation expense for unvested shares that vest solely based on service conditions on a straight-line basis over the vesting period based upon the fair market value of the shares on the date of grant, adjusted for forfeitures. | |
Under the 2013 Plan, we granted performance based restricted stock awards to certain employees. The fair value of the performance based awards is measured by the market price of our common stock on the date of the grant. The vesting of these awards is contingent upon achievement of certain performance targets at the end of specified performance periods and the employees’ continued employment. The performance conditions affect the number of shares that will ultimately vest. The range of possible stock-based award vesting is generally between 0% and 150% of the initial target. If minimum performance targets are not attained then no awards will vest under the agreement. Compensation expense related to these awards is recognized based upon the fair market value of the shares on the date of grant over the requisite service period and based on our estimate of the achievement of the various performance targets, adjusted for forfeitures. We currently estimated that 100% of the various award targets will be achieved. | |
Earnings Per Share | ' |
Earnings Per Share | |
We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share. Basic earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested shares of restricted common stock or restricted stock units) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested shares of restricted common stock or restricted stock units (“participating securities” as defined in Note 12). Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders by the weighted-average number of shares of common stock outstanding during the period plus other potentially dilutive securities. No adjustment is made for shares that are anti-dilutive during a period. | |
Due to the capital structure of the Predecessor, earnings per share of common stock information has not been presented for historical periods prior to the IPO. | |
Segment Reporting | ' |
Segment Reporting | |
We provide and arrange debt and equity financing for sustainable infrastructure projects and report all of our activities as one business segment. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for us beginning in the quarter ending March 31, 2017. We have not yet selected a transition method, and we are currently evaluating the effect that the updated standard will have on our consolidated financial statements and related disclosure. | |
Compensation – Stock Compensation | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation, which amends and updates the guidance in ASC 718, as it relates to the accounting for awards with performance conditions that affect vesting after the service. The amendment provides explicit accounting guidance for when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target (for example, an initial public offering or a profitability target) could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The amendment is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period and is to be applied either retrospectively to all existing performance targets outstanding or prospectively for all awards granted or modified after the effective date, with early application permitted. We are evaluating the new standard, but do not at this time expect this standard to have a material impact on our consolidated financial statements. |
The_Company_Tables
The Company (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Accounting Policies [Abstract] | ' | ||||
Schedule of Preliminary Purchase Price Allocation | ' | ||||
The preliminary purchase price allocation for this transaction, which reflects our estimates of the fair value of the assets acquired, is as follows: | |||||
As of May 28, 2014 | |||||
(amounts in thousands) | |||||
Financing receivables | $ | 37,244 | |||
Real estate | 50,318 | ||||
Real estate lease intangibles | 16,945 | ||||
Goodwill | 2,144 | ||||
Other assets | 212 | ||||
Purchase Price | $ | 106,863 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Residual Interests Securitized Receivables and Derivatives Carried at Fair Value | ' | ||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Fair Value | Carrying | Level | |||||||||||||||
Value | |||||||||||||||||
(amounts in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Financing receivables(1) | $ | 475.2 | $ | 456.1 | Level 3 | ||||||||||||
Investments available-for-sale(2) | 67.6 | 67.6 | Level 3 | ||||||||||||||
Residual assets | 5.1 | 5.1 | Level 3 | ||||||||||||||
Liabilities | |||||||||||||||||
Credit facility | $ | 166.2 | $ | 166.2 | Level 3 | ||||||||||||
Nonrecourse debt | 153.1 | 145 | Level 3 | ||||||||||||||
Asset-backed nonrecourse notes | 97.6 | 97.4 | Level 3 | ||||||||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $11.0 million as of June 30, 2014. | ||||||||||||||||
-2 | The amortized costs of our investments available-for-sale as of June 30, 2014 was $63.8 million. | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value | Carrying | Level | |||||||||||||||
Value | |||||||||||||||||
(amounts in millions) | |||||||||||||||||
Assets | |||||||||||||||||
Financing receivables(1) | $ | 346.4 | $ | 347.9 | Level 3 | ||||||||||||
Investments | 92 | 92 | Level 3 | ||||||||||||||
Financing receivables held-for-sale | 24.8 | 24.8 | Level 3 | ||||||||||||||
Investments available-for-sale | 3.2 | 3.2 | Level 3 | ||||||||||||||
Residual assets | 4.9 | 4.9 | Level 3 | ||||||||||||||
Liabilities | |||||||||||||||||
Credit facility | $ | 77.1 | $ | 77.1 | Level 3 | ||||||||||||
Nonrecourse debt | 167.1 | 159.8 | Level 3 | ||||||||||||||
Asset-backed nonrecourse notes | 99.8 | 100 | Level 3 | ||||||||||||||
-1 | Financing receivables includes $0.8 million, which represents the net fair value of collateral related to an impaired loan. The allowance for loan losses included in the carrying value of the financing receivables was $11.0 million as of December 31, 2013. | ||||||||||||||||
Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities | ' | ||||||||||||||||
The following table reconciles the beginning and ending balances for our Level 3 investments available-for-sale that are carried at fair value: | |||||||||||||||||
For the three and | |||||||||||||||||
six months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(amounts in millions) | |||||||||||||||||
Balance, beginning of period | $ | — | $ | — | |||||||||||||
Transfers to / purchases of available-for-sale debt securities | 83.5 | — | |||||||||||||||
Sale of available-for-sale debt securities | (20.7 | ) | — | ||||||||||||||
Unrealized gain on debt securities transferred to available for sale | 5 | — | |||||||||||||||
Unrealized (loss) on debt securities holdings | (0.2 | ) | — | ||||||||||||||
Balance, end of period | $ | 67.6 | $ | — | |||||||||||||
Schedule of Reconciliation of Residual Assets | ' | ||||||||||||||||
The following table reconciles the beginning and ending balances for our Level 3 residual assets carried at fair value: | |||||||||||||||||
For the three months ended | For the six months ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(amounts in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 4,490 | $ | 4,436 | $ | 4,863 | $ | 4,639 | |||||||||
Accretion | 135 | 118 | 284 | 246 | |||||||||||||
Additions | 661 | 10 | 661 | 10 | |||||||||||||
Collections | (115 | ) | (249 | ) | (624 | ) | (371 | ) | |||||||||
Unrealized (loss) gain on residual assets | (33 | ) | 127 | (46 | ) | (82 | ) | ||||||||||
Balance, end of period | $ | 5,138 | $ | 4,442 | $ | 5,138 | $ | 4,442 | |||||||||
NonControlling_Interest_Tables
Non-Controlling Interest (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||
Analysis of Controlling and Non-Controlling Interest | ' | ||||||||||||
The following is an analysis of the controlling and non-controlling interest from December 31, 2013, to June 30, 2014: | |||||||||||||
Controlling | Non-Controlling | Total | |||||||||||
Interest | Interest Holders | ||||||||||||
(amounts in thousands) | |||||||||||||
Total Non-Controlling Interest and Equity—December 31, 2013 | $ | 146,525 | $ | 4,099 | $ | 150,624 | |||||||
Net income attributable to interest holders | 5,581 | 107 | 5,688 | ||||||||||
Issuance of common stock | 70,379 | — | 70,379 | ||||||||||
Redemption of OP units | (557 | ) | (1,064 | ) | (1,621 | ) | |||||||
Repurchase of common stock | (205 | ) | — | (205 | ) | ||||||||
Equity-based compensation | 1,938 | 32 | 1,970 | ||||||||||
Distributions | (8,634 | ) | (152 | ) | (8,786 | ) | |||||||
Change in accumulated other comprehensive income | 2,196 | 42 | 2,238 | ||||||||||
Tax basis difference on contributed asset | 1,818 | 39 | 1,857 | ||||||||||
Redemption value change for non-controlling interest redeemable for cash | (1,815 | ) | 1,815 | — | |||||||||
217,226 | 4,918 | 222,144 | |||||||||||
Less Non-Controlling Interest Redeemable for cash | — | (4,918 | ) | (4,918 | ) | ||||||||
Total Non-Controlling Interest and Equity—June 30, 2014 | $ | 217,226 | $ | — | $ | 217,226 | |||||||
The following is an analysis of the controlling and non-controlling interest from April 23, 2013, the date of our IPO, to June 30, 2013: | |||||||||||||
Controlling | Non-Controlling | Total | |||||||||||
Interest | Interest Holders | ||||||||||||
(amounts in thousands) | |||||||||||||
Equity immediately after IPO | $ | 168,266 | $ | — | $ | 168,266 | |||||||
Establishment of non-controlling interest during formation transaction | (4,649 | ) | 4,649 | — | |||||||||
Net loss attributable to interest holders | (4,972 | ) | (141 | ) | (5,113 | ) | |||||||
Change in accumulated other comprehensive income | 92 | 3 | 95 | ||||||||||
Total Non-Controlling Interest and Equity—June 30, 2013 | $ | 158,737 | $ | 4,511 | $ | 163,248 | |||||||
Member Interests in Predecessor | ' | ||||||||||||
Allocation of Profit and Loss and Cash Distributions prior to our IPO | |||||||||||||
Prior to the IPO, all profits, losses and cash distributions of the Predecessor were allocated based on the percentages as follows: | |||||||||||||
Prior to | |||||||||||||
April 23, 2013 | |||||||||||||
MissionPoint HA Parallel Fund, L.P. | 70 | % | |||||||||||
Jeffrey W. Eckel, Chief Executive Officer | 18 | % | |||||||||||
Other management and employees of the Predecessor | 12 | % |
Securitization_of_Receivables_
Securitization of Receivables (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||
Schedule of Fair Values of Retained Assets, Discount Rates Used in Valuing Assets | ' | ||||||||
The fair values of retained assets, including the discount rates used in valuing those assets and the sensitivity to an increase in the discount rates of 5% and 10%, as of June 30, 2014, and December 31, 2013, were as follows: | |||||||||
June 30, 2014 | |||||||||
Servicing | Residual Assets | ||||||||
(amounts in thousands) | |||||||||
Amortized cost basis | $ | 1,083 | $ | 5,072 | |||||
Fair value | $ | 1,212 | $ | 5,138 | |||||
Weighted-average life in years | 8 | 7 to 19 | |||||||
Discount rate | 8 | % | 8 to 10 | % | |||||
Fair value that would be decreased based on hypothetical adverse changes in discount rates: | |||||||||
5% change in discount rate | $ | 241 | $ | 1,362 | |||||
10% change in discount rate | $ | 394 | $ | 2,128 | |||||
December 31, 2013 | |||||||||
Servicing | Residual Assets | ||||||||
(amounts in thousands) | |||||||||
Amortized cost basis | $ | 1,281 | $ | 4,750 | |||||
Fair value | $ | 1,407 | $ | 4,863 | |||||
Weighted-average life in years | 8 | 6 to 19 | |||||||
Discount rate | 8 | % | 8% to 10 | % | |||||
Fair value that would be decreased based on hypothetical adverse changes in discount rates: | |||||||||
5% change in discount rate | $ | 255 | $ | 1,194 | |||||
10% change in discount rate | $ | 418 | $ | 1,842 | |||||
Schedule of Cash Flows between us and Securitization Trusts | ' | ||||||||
The following is an analysis of certain cash flows between us and the securitization trusts: | |||||||||
For the Six Months | |||||||||
Ended June 30, | |||||||||
2014 | 2013 | ||||||||
(amounts in thousands) | |||||||||
Purchase of receivables securitized | $ | 110,225 | $ | 38,360 | |||||
Proceeds from securitizations | $ | 114,601 | $ | 39,244 | |||||
Servicing fees received | $ | 397 | $ | 393 | |||||
Cash received from residual assets | $ | 624 | $ | 371 |
Our_Portfolio_Financing_Receiv1
Our Portfolio - Financing Receivables, Investments and Real Estate (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Analysis of Portfolio by Type of Obligor and Credit Quality | ' | ||||||||||||||||||||||||
The following is an analysis of our Portfolio by type of obligor and credit quality as of June 30, 2014. | |||||||||||||||||||||||||
Investment Grade | |||||||||||||||||||||||||
Federal(1) | State, Local, | Commercial | Commercial | Commercial | Total | ||||||||||||||||||||
Institutions(2) | Externally | Rated | Other(5) | ||||||||||||||||||||||
Rated(3) | Internally(4) | ||||||||||||||||||||||||
(amounts in millions, except for percentages) | |||||||||||||||||||||||||
Financing receivables | $ | 195.9 | $ | 73.8 | $ | 22 | $ | 163.5 | $ | 0.8 | $ | 456 | |||||||||||||
Investments available-for-sale | — | — | 43.3 | 7.8 | 16.6 | 67.7 | |||||||||||||||||||
Real estate(6) | — | — | — | 67.2 | — | 67.2 | |||||||||||||||||||
Total | $ | 195.9 | $ | 73.8 | $ | 65.3 | $ | 238.5 | $ | 17.4 | $ | 590.9 | |||||||||||||
% of Total Portfolio | 33.1 | % | 12.5 | % | 11.1 | % | 40.4 | % | 2.9 | % | 100 | % | |||||||||||||
Average Balance(7) | $ | 7.7 | $ | 24.6 | $ | 21.8 | $ | 13.3 | $ | 16.6 | $ | 11.7 | |||||||||||||
-1 | Transactions where the ultimate obligor is the U.S. Federal Government. Transactions may have guaranties of energy savings from third party service providers, the majority of which are investment grade rated entities. | ||||||||||||||||||||||||
-2 | Transactions where the ultimate obligors are state or local governments or institutions such as hospitals or universities where the obligors are rated investment grade (either by an independent rating agency or based upon our credit analysis). Transactions may have guaranties of energy savings from third party service providers, the majority of which are investment grade rated entities. | ||||||||||||||||||||||||
-3 | Transactions where the projects or the ultimate obligors are commercial entities that have been rated investment grade by one or more independent rating agencies. This includes an investment grade rated debt security with a fair value of $38.2 million that matures in 2035 whose obligor is an entity whose ultimate parent is Berkshire Hathaway Inc. | ||||||||||||||||||||||||
-4 | Transactions where the projects or the ultimate obligors are commercial entities that have been rated investment grade using our internal credit analysis. | ||||||||||||||||||||||||
-5 | Transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade either by an independent rating agency or using our internal credit analysis. Financing receivables are net of an allowance for credit losses of $11.0 million. Investments include a senior debt investment of $16.6 million on a wind project that is owned by NRG Energy, Inc. | ||||||||||||||||||||||||
-6 | Includes the real estate and the related lease intangible assets. | ||||||||||||||||||||||||
-7 | Average Remaining Balance excludes 66 transactions each with outstanding balances that are less than $1.0 million and that in the aggregate total $16.5 million. | ||||||||||||||||||||||||
Components of Financing Receivables | ' | ||||||||||||||||||||||||
The components of financing receivables of June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||
Financing receivables | |||||||||||||||||||||||||
Financing or minimum lease payments(1) | $ | 717,880 | $ | 504,688 | |||||||||||||||||||||
Unearned interest income | (247,497 | ) | (142,366 | ) | |||||||||||||||||||||
Allowance for credit losses | (11,000 | ) | (11,000 | ) | |||||||||||||||||||||
Unearned fee income, net of initial direct costs | (3,310 | ) | (3,451 | ) | |||||||||||||||||||||
Financing receivables(1) | $ | 456,073 | $ | 347,871 | |||||||||||||||||||||
-1 | Excludes $24.8 million in financing receivables held-for-sale at December 31, 2013 and that were securitized in the three months ended March 31, 2014 | ||||||||||||||||||||||||
Components of Real Estate Portfolio | ' | ||||||||||||||||||||||||
The components of our real estate portfolio as of June 30, 2014 and December 31, 2013, were as follows: | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||
Land | $ | 50,318 | $ | — | |||||||||||||||||||||
Lease Intangibles | 16,945 | — | |||||||||||||||||||||||
Accumulated amortization of lease intangibles | (38 | ) | — | ||||||||||||||||||||||
Real Estate | $ | 67,225 | $ | — | |||||||||||||||||||||
Future Amortization Expenses Related to Intangible Assets | ' | ||||||||||||||||||||||||
As of June 30, 2014, the future amortization expense to be recognized related to these intangible assets is: | |||||||||||||||||||||||||
Year Ending December 31, | (Amounts in Thousands) | ||||||||||||||||||||||||
2014 | $ | 206 | |||||||||||||||||||||||
2015 | 413 | ||||||||||||||||||||||||
2016 | 413 | ||||||||||||||||||||||||
2017 | 413 | ||||||||||||||||||||||||
2018 | 413 | ||||||||||||||||||||||||
2019 | 413 | ||||||||||||||||||||||||
Thereafter | 14,636 | ||||||||||||||||||||||||
Total | $ | 16,907 | |||||||||||||||||||||||
Summary of Anticipated Maturity Dates of Financing Receivables and Investments | ' | ||||||||||||||||||||||||
The following table provides a summary of our anticipated maturity dates of our financing receivables and investments for each range of maturities as of June 30, 2014: | |||||||||||||||||||||||||
Total | Less than | 1-5 years | 5-10 years | More than | |||||||||||||||||||||
1 year | 10 years | ||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||
Financing Receivables | |||||||||||||||||||||||||
Payment due by period | $ | 456,073 | $ | 1,845 | $ | 89,083 | $ | 18,034 | $ | 347,111 | |||||||||||||||
Investments available-for-sale | |||||||||||||||||||||||||
Payment due by period | $ | 67,640 | $ | — | $ | 16,552 | $ | — | $ | 51,088 | |||||||||||||||
Future Minimum Rental Income under Land Lease Agreements | ' | ||||||||||||||||||||||||
As of June 30, 2014, the future minimum rental income under our land lease agreements is as follows: | |||||||||||||||||||||||||
Year Ending December 31, | (Amounts in Thousands) | ||||||||||||||||||||||||
2014 | $ | 2,443 | |||||||||||||||||||||||
2015 | 4,886 | ||||||||||||||||||||||||
2016 | 4,886 | ||||||||||||||||||||||||
2017 | 4,886 | ||||||||||||||||||||||||
2018 | 4,886 | ||||||||||||||||||||||||
2019 | 4,886 | ||||||||||||||||||||||||
Thereafter | 173,625 | ||||||||||||||||||||||||
Total | $ | 200,498 | |||||||||||||||||||||||
Credit_Facility_Tables
Credit Facility (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Text Block [Abstract] | ' | ||||
Summary of Required Covenant Included in Loan Agreements | ' | ||||
The Loan Agreements require that we maintain the following financial covenants: | |||||
Covenant | Covenant | ||||
Threshold | |||||
Minimum Liquidity (defined as available borrowings under the Loan Agreements plus unrestricted cash divided by actual borrowings) of greater than: | 5 | % | |||
12 month rolling Net Interest Margin of greater than: | zero | ||||
Maximum Debt to Equity Ratio of less than: | 4 to 1 |
Nonrecourse_Debt_Tables
Nonrecourse Debt (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Analysis of Other Nonrecourse Debt by Interest Rate | ' | ||||||||||||
Analyses of other nonrecourse debt by interest rate are as follows: | |||||||||||||
As of June 30, 2014 | Balance | Maturity | |||||||||||
(amounts in thousands) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.06% to 5.00% per annum | $ | 58,333 | 2014 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 62,558 | 2014 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 24,062 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 144,953 | |||||||||||
As of December 31, 2013 | Balance | Maturity | |||||||||||
(amounts in thousands) | |||||||||||||
Fixed-rate promissory notes, interest rates from 2.06% to 5.00% per annum | $ | 66,089 | 2014 to 2032 | ||||||||||
Fixed-rate promissory notes, interest rates from 5.01% to 6.50% per annum | 68,862 | 2014 to 2031 | |||||||||||
Fixed-rate promissory notes, interest rates from 6.51% to 8.00% per annum | 24,892 | 2015 to 2031 | |||||||||||
Other nonrecourse debt | $ | 159,843 | |||||||||||
Schedule of Minimum Maturities of Nonrecourse Debt | ' | ||||||||||||
The stated minimum maturities of nonrecourse debt as of June 30, 2014, were as follows: | |||||||||||||
Nonrecourse Debt | |||||||||||||
As of June 30, | Asset Backed | Other Nonrecourse | Total | ||||||||||
Nonrecourse Notes | Debt | ||||||||||||
(amounts in thousands) | |||||||||||||
2015 | $ | 8,574 | $ | 38,403 | $ | 46,977 | |||||||
2016 | 7,498 | 26,779 | 34,277 | ||||||||||
2017 | 8,215 | 15,472 | 23,687 | ||||||||||
2018 | 6,605 | 10,227 | 16,832 | ||||||||||
2019 | 4,358 | 4,393 | 8,751 | ||||||||||
Thereafter | 62,143 | 49,679 | 111,822 | ||||||||||
$ | 97,393 | $ | 144,953 | $ | 242,346 | ||||||||
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Summary of Dividends Declared by Board of Directors | ' | ||||||||||||||||
Our board of directors declared the following dividends in 2013 and 2014: | |||||||||||||||||
Announced Date | Record Date | Pay Date | Amount per | ||||||||||||||
share | |||||||||||||||||
8/8/13 | 8/20/13 | 8/29/13 | $ | 0.06 | |||||||||||||
1/7/13 | 11/18/13 | 11/22/13 | $ | 0.14 | |||||||||||||
2/17/13 | 12/30/13 | 1/10/14 | $ | 0.22 | |||||||||||||
3/13/14 | 3/27/14 | 4/9/14 | $ | 0.22 | |||||||||||||
6/17/14 | 6/27/14 | 7/10/14 | $ | 0.22 | |||||||||||||
Schedule of Common Stock Public Offerings | ' | ||||||||||||||||
We completed the following public offerings of common stock(1): | |||||||||||||||||
Closing Date | Shares Issued | Price | Net Proceeds | ||||||||||||||
Per Share | |||||||||||||||||
(amounts in thousands, except per share amounts) | |||||||||||||||||
4/23/13 | 14,152 | $ | 12.5 | $ | 160 | ||||||||||||
4/29/14 | 5,750 | $ | 13 | $ | 70.4 | ||||||||||||
(1) | Includes shares issued in connection with the exercise of the underwriters’ option to purchase additional shares. Net proceeds from the offerings is shown after deducting underwriting discounts, commissions, other offering costs and, in the case of our initial public offering, formation transaction costs. | ||||||||||||||||
Summary of Unvested Shares of Restricted Common Stock | ' | ||||||||||||||||
A summary of the unvested shares of restricted common stock that have been issued, as of June 30, 2014, is as follows: | |||||||||||||||||
Restricted Shares of | Value (000’s) | ||||||||||||||||
Common Stock | |||||||||||||||||
Beginning Balance—December 31, 2013 | 598,815 | $ | 7,484 | ||||||||||||||
Granted | 522,600 | $ | 7,410 | ||||||||||||||
Vested | (147,009 | ) | $ | (1,838 | ) | ||||||||||||
Forfeited | — | $ | — | ||||||||||||||
Ending Balance—June 30, 2014 | 974,406 | $ | 13,057 | ||||||||||||||
Schedule of Changes in Accumulated OCI by Component | ' | ||||||||||||||||
Accumulated OCI is the cumulative total OCI that is included as a component of shareholder’s equity. The following represents changes in accumulated OCI by component as of June 30, 2014. | |||||||||||||||||
Unrealized Gains/ | Unrealized Gains/ | Less | Total | ||||||||||||||
(Loss) on | (Losses) on | Noncontrolling | |||||||||||||||
Residual Assets | Investments | Interest | |||||||||||||||
Available-for-Sale | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Balances as of December 31, 2013 | $ | 113 | $ | — | $ | (3 | ) | $ | 110 | ||||||||
Other comprehensive income before reclassifications, net | (46 | ) | 3,314 | (61 | ) | 3,207 | |||||||||||
Amounts reclassified from accumulated OCI | — | (1,030 | ) | 19 | (1,011 | ) | |||||||||||
Balances as of June 30, 2014 | $ | 67 | $ | 2,284 | $ | (45 | ) | $ | 2,306 | ||||||||
Earnings_per_Share_of_Common_S1
Earnings per Share of Common Stock (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Common Share | ' | ||||||||||||||||
The computation of basic and diluted earnings per common share is as follows: | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Numerator: | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||
Net income (loss) attributable to controlling shareholders and participating securities | $ | 2,828 | $ | (4,972 | ) | $ | 5,581 | $ | (4,972 | ) | |||||||
Less: Dividends paid on participating securities | (214 | ) | — | (348 | ) | — | |||||||||||
Undistributed earnings attributable to participating securities | — | — | — | — | |||||||||||||
Net income attributable to controlling shareholders | $ | 2,614 | $ | (4,972 | ) | $ | 5,233 | $ | (4,972 | ) | |||||||
Denominator: | |||||||||||||||||
Weighted-average number of common shares—basic | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 | |||||||||||||
Weighted-average number of common shares—diluted | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 | |||||||||||||
Net income per share attributable to common shares—basic | $ | 0.13 | $ | (0.32 | ) | $ | 0.29 | $ | (0.32 | ) | |||||||
Net income per share attributable to common shares—diluted | $ | 0.13 | $ | (0.32 | ) | $ | 0.29 | $ | (0.32 | ) | |||||||
The_Company_Additional_Informa
The Company - Additional Information (Detail) (USD $) | 0 Months Ended | 6 Months Ended | ||||
28-May-14 | Apr. 23, 2013 | Jun. 30, 2014 | Apr. 29, 2014 | 23-May-13 | Apr. 23, 2013 | |
acre | ||||||
Organization [Line Items] | ' | ' | ' | ' | ' | ' |
Initial public offering, shares | ' | ' | ' | ' | ' | 14,200,000 |
Net proceeds from offering | ' | $160,000,000 | ' | ' | ' | ' |
Underwriters shares of common stock | ' | ' | ' | ' | 800,000 | ' |
Share issued pursuant to underwriter | ' | ' | ' | 750,000 | ' | ' |
First follow-on public offering, shares | ' | ' | ' | 5,750,000 | ' | ' |
First follow-on public offering, price per share | ' | ' | ' | $13 | ' | ' |
Net proceeds from first follow-on from public offering | ' | ' | ' | 70,400,000 | ' | ' |
Acquisition date | ' | ' | 28-May-14 | ' | ' | ' |
Business combination consideration paid | 106,900,000 | ' | ' | ' | ' | ' |
Area of land acquired | 7,500 | ' | ' | ' | ' | ' |
Acquisition related costs | 1,100,000 | ' | ' | ' | ' | ' |
Business combination cash consideration | $600,000 | ' | $106,744,000 | ' | ' | ' |
Cash consideration amortization period | '3 years | ' | ' | ' | ' | ' |
Solar [Member] | ' | ' | ' | ' | ' | ' |
Organization [Line Items] | ' | ' | ' | ' | ' | ' |
Number of solar projects | 3 | ' | ' | ' | ' | ' |
Wind [Member] | ' | ' | ' | ' | ' | ' |
Organization [Line Items] | ' | ' | ' | ' | ' | ' |
Number of solar projects | 57 | ' | ' | ' | ' | ' |
The_Company_Schedule_of_Prelim
The Company - Schedule of Preliminary Purchase Price Allocation (Detail) (USD $) | Jun. 30, 2014 | 28-May-14 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' | ' |
Financing receivables | ' | $37,244 | ' |
Real estate | ' | 50,318 | ' |
Real estate lease intangibles | ' | 16,945 | ' |
Goodwill | 5,942 | 2,144 | 3,798 |
Other assets | ' | 212 | ' |
Purchase Price | ' | $106,863 | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Financing receivable, past due | ' | ' | '90 days | ' | ' |
Cash and cash equivalents original maturity period | ' | ' | '3 months | ' | ' |
Real estate investment description | ' | ' | 'To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we currently distribute at least 90% of our net taxable income, excluding capital gains, to our shareholders. | ' | ' |
Income tax examination, description | ' | ' | 'We have no examinations in progress, none are expected at this time, and years 2010 through 2013 are open. | ' | ' |
Uncertain tax positions | $0 | ' | $0 | ' | $0 |
Accrued interest and penalties | 0 | ' | 0 | ' | 0 |
Interest and penalties recognized during the year | 0 | 0 | 0 | 0 | ' |
2013 Plan [Member] | Performance Based Restricted Stock award [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Estimated vesting percentage | 100.00% | ' | 100.00% | ' | ' |
Prior To IPO [Member] | Federal or State Income Taxes [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Provision for income taxes | ' | ' | ' | $0 | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Percentage of taxable income distributed to stockholders | ' | ' | 90.00% | ' | ' |
Minimum [Member] | 2013 Plan [Member] | Performance Based Restricted Stock award [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Stock-based award vesting percentage | ' | ' | 0.00% | ' | ' |
Maximum [Member] | 2013 Plan [Member] | Performance Based Restricted Stock award [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Stock-based award vesting percentage | ' | ' | 150.00% | ' | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Residual Interests Securitized Receivables and Derivatives Carried at Fair Value (Detail) (Fair Value, Measurements, Recurring [Member], Level 3 [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value [Member] | Credit Facility [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities | $166.20 | $77.10 |
Fair Value [Member] | Nonrecourse Debt [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities | 153.1 | 167.1 |
Fair Value [Member] | Asset-Backed Nonrecourse Notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities | 97.6 | 99.8 |
Fair Value [Member] | Financing Receivable [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | 475.2 | 346.4 |
Fair Value [Member] | Investments Available-for-sale [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | 67.6 | 3.2 |
Fair Value [Member] | Residual Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | 5.1 | 4.9 |
Fair Value [Member] | Investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | ' | 92 |
Fair Value [Member] | Financing Receivables Held For Sale [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | ' | 24.8 |
Carrying Value [Member] | Credit Facility [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities | 166.2 | 77.1 |
Carrying Value [Member] | Nonrecourse Debt [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities | 145 | 159.8 |
Carrying Value [Member] | Asset-Backed Nonrecourse Notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Liabilities | 97.4 | 100 |
Carrying Value [Member] | Financing Receivable [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | 456.1 | 347.9 |
Carrying Value [Member] | Investments Available-for-sale [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | 67.6 | 3.2 |
Carrying Value [Member] | Residual Assets [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | 5.1 | 4.9 |
Carrying Value [Member] | Investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | ' | 92 |
Carrying Value [Member] | Financing Receivables Held For Sale [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets | ' | $24.80 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Residual Interests Securitized Receivables and Derivatives Carried at Fair Value (Parenthetical) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Allowance for loan losses on financing receivables | $11,000 | $11,000 |
Amortized costs | 63,800 | ' |
Financing Receivable [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Net fair value collateral impaired loan | 800 | 800 |
Allowance for loan losses on financing receivables | $11,000 | $11,000 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Minimum [Member] | Maximum [Member] | ||||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' | ' | ' | ' |
Investments designated as held-to-maturity carrying value | $14.70 | ' | ' | ' | ' |
Sale of investments designated as held-to-maturity | 15.5 | ' | ' | ' | ' |
Realized gain on sale of investments designated as held-to-maturity | 0.8 | ' | ' | ' | ' |
Available-for-sale debt securities at fair value | 20.7 | 3.2 | ' | ' | ' |
Available-for-sale debt securities at cost | 19.6 | ' | ' | ' | ' |
Realized gain on sale of investments | 1.1 | ' | ' | ' | ' |
Discount rates based on market observations | ' | ' | ' | 7.00% | 15.00% |
Discount rates to determine fair market value of underlying assets | ' | ' | ' | 8.00% | 10.00% |
Cash deposits held in U.S. banks | 48.2 | ' | 81.7 | ' | ' |
Bank deposits | $46.80 | ' | $80.80 | ' | ' |
Fair_Value_Measurements_Schedu2
Fair Value Measurements - Schedule of Reconciliation of Level 3 Investments Available-for-Sale Securities (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Balance, beginning of period | $3,213,000 |
Transfers to / purchases of available-for-sale debt securities | 83,500,000 |
Sale of available-for-sale debt securities | -20,700,000 |
Unrealized gain on debt securities transferred to available for sale | 5,000,000 |
Unrealized (loss) on debt securities holdings | -200,000 |
Balance, end of period | $67,640,000 |
Fair_Value_Measurements_Schedu3
Fair Value Measurements - Schedule of Reconciliation of Residual Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Unrealized (loss) gain on residual assets | ($33) | $127 | ($46) | ($82) |
Residual Assets [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | 4,490 | 4,436 | 4,863 | 4,639 |
Accretion | 135 | 118 | 284 | 246 |
Additions | 661 | 10 | 661 | 10 |
Collections | -115 | -249 | -624 | -371 |
Unrealized (loss) gain on residual assets | -33 | 127 | -46 | -82 |
Balance, end of period | $5,138 | $4,442 | $5,138 | $4,442 |
NonControlling_Interest_Additi
Non-Controlling Interest - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Noncontrolling Interest [Abstract] | ' | ' | ' |
Operating Partnership units outstanding | ' | 23,091,209 | 23,091,209 |
Percentage of Operating Partnership owned by us | ' | 98.50% | 98.50% |
Percentage of Operating Partnership owned by other limited partners | ' | 1.50% | 1.50% |
Redemption of Operating Partnership units outstanding | ' | 7,406 | 119,983 |
Payment in cash for redemption of operating partnership units | ' | $100 | $1,621 |
Weighted average number of OP units held by remaining non-controlling interest | 342,392 | ' | ' |
NonControlling_Interest_Analys
Non-Controlling Interest - Analysis of Controlling and Non-Controlling Interest (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Beginning Balance | $168,266 | ' | $150,624 |
Net income (loss) attributable to interest holders | -5,113 | ' | 5,688 |
Issuance of common stock | ' | ' | 70,379 |
Redemption of OP units | ' | -100 | -1,621 |
Repurchase of common stock | ' | ' | -205 |
Equity-based compensation | ' | ' | 1,970 |
Distributions | ' | ' | -8,786 |
Change in accumulated other comprehensive income | 95 | ' | 2,238 |
Tax basis difference on contributed asset | ' | ' | 1,857 |
Total Non-Controlling Interest and Equity before adjustments | ' | 222,144 | 222,144 |
Less Non-Controlling Interest Redeemable for cash | ' | -4,918 | -4,918 |
Ending Balance | 163,248 | 217,226 | 217,226 |
Controlling Interest [Member] | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Beginning Balance | 168,266 | ' | 146,525 |
Establishment of non-controlling interest during formation transaction | -4,649 | ' | ' |
Net income (loss) attributable to interest holders | -4,972 | ' | 5,581 |
Issuance of common stock | ' | ' | 70,379 |
Redemption of OP units | ' | ' | -557 |
Repurchase of common stock | ' | ' | -205 |
Equity-based compensation | ' | ' | 1,938 |
Distributions | ' | ' | -8,634 |
Change in accumulated other comprehensive income | 92 | ' | 2,196 |
Tax basis difference on contributed asset | ' | ' | 1,818 |
Redemption value change for non-controlling interest redeemable for cash | ' | ' | -1,815 |
Total Non-Controlling Interest and Equity before adjustments | ' | 217,226 | 217,226 |
Ending Balance | 158,737 | 217,226 | 217,226 |
Non-Controlling Interest Holders [Member] | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' |
Beginning Balance | ' | ' | 4,099 |
Establishment of non-controlling interest during formation transaction | 4,649 | ' | ' |
Net income (loss) attributable to interest holders | -141 | ' | 107 |
Redemption of OP units | ' | ' | -1,064 |
Equity-based compensation | ' | ' | 32 |
Distributions | ' | ' | -152 |
Change in accumulated other comprehensive income | 3 | ' | 42 |
Tax basis difference on contributed asset | ' | ' | 39 |
Redemption value change for non-controlling interest redeemable for cash | ' | ' | 1,815 |
Total Non-Controlling Interest and Equity before adjustments | ' | 4,918 | 4,918 |
Less Non-Controlling Interest Redeemable for cash | ' | -4,918 | -4,918 |
Ending Balance | $4,511 | ' | ' |
NonControlling_Interest_Member
Non-Controlling Interest - Member Interests in Predecessor (Detail) | 4 Months Ended |
Apr. 23, 2013 | |
MissionPoint HA Parallel Fund, L.P. [Member] | ' |
Other Ownership Interests [Line Items] | ' |
Member interests in the Predecessor | 70.00% |
Jeffrey W. Eckel, Chief Executive Officer [Member] | ' |
Other Ownership Interests [Line Items] | ' |
Member interests in the Predecessor | 18.00% |
Other Management and Employees of the Predecessor [Member] | ' |
Other Ownership Interests [Line Items] | ' |
Member interests in the Predecessor | 12.00% |
Securitization_of_Receivables_1
Securitization of Receivables - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' | ' | ' |
Gain on securitization of receivables | $2,400,000 | $900,000 | $4,400,000 | $900,000 | ' |
Change in discount rate | 5.00% | ' | 5.00% | ' | 10.00% |
Managed receivables | 2,200,000,000 | ' | 2,200,000,000 | ' | 2,100,000,000 |
Securitization credit losses | 0 | ' | ' | 0 | ' |
Asset-backed Securities, Securitized Loans and Receivables [Member] | ' | ' | ' | ' | ' |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' | ' | ' |
Managed receivables | $1,600,000,000 | ' | $1,600,000,000 | ' | $1,600,000,000 |
Minimum [Member] | ' | ' | ' | ' | ' |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' | ' | ' |
Annual servicing fees | ' | ' | 0.05% | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | ' | ' | ' | ' | ' |
Annual servicing fees | ' | ' | 0.20% | ' | ' |
Securitization_of_Receivables_2
Securitization of Receivables - Schedule of Fair Values of Retained Assets, Discount Rates Used in Valuing Assets (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Minimum [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Discount rate | 8.00% | ' |
Maximum [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Discount rate | 10.00% | ' |
Servicing [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Amortized cost basis | $1,083 | $1,281 |
Fair value | 1,212 | 1,407 |
Weighted-average life in years | '8 years | '8 years |
Discount rate | 8.00% | 8.00% |
Fair value that would be decreased based on hypothetical adverse changes in discount rates: | ' | ' |
5% change in discount rate | 241 | 255 |
10% change in discount rate | 394 | 418 |
Residual Assets [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Amortized cost basis | 5,072 | 4,750 |
Fair value | 5,138 | 4,863 |
Fair value that would be decreased based on hypothetical adverse changes in discount rates: | ' | ' |
5% change in discount rate | 1,362 | 1,194 |
10% change in discount rate | $2,128 | $1,842 |
Residual Assets [Member] | Minimum [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Weighted-average life in years | '7 years | '6 years |
Discount rate | 8.00% | 8.00% |
Residual Assets [Member] | Maximum [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Weighted-average life in years | '19 years | '19 years |
Discount rate | 10.00% | 10.00% |
Securitization_of_Receivables_3
Securitization of Receivables - Schedule of Fair Values of Retained Assets, Discount Rates Used in Valuing Assets (Parenthetical) (Detail) | Jun. 30, 2014 | Dec. 31, 2013 |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Change in discount rate | 5.00% | 10.00% |
Servicing [Member] | Scenario 1 [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Change in discount rate | 5.00% | 5.00% |
Servicing [Member] | Scenario 2 [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Change in discount rate | 10.00% | 10.00% |
Residual Assets [Member] | Scenario 1 [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Change in discount rate | 5.00% | 5.00% |
Residual Assets [Member] | Scenario 2 [Member] | ' | ' |
Servicing Assets at Fair Value [Line Items] | ' | ' |
Change in discount rate | 10.00% | 10.00% |
Securitization_of_Receivables_4
Securitization of Receivables - Schedule of Cash Flows between us and Securitization Trusts (Detail) (Securitization Trust [Member], USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Securitization Trust [Member] | ' | ' |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ' | ' |
Purchase of receivables securitized | $110,225 | $38,360 |
Proceeds from securitizations | 114,601 | 39,244 |
Servicing fees received | 397 | 393 |
Cash received from residual assets | $624 | $371 |
Our_Portfolio_Financing_Receiv2
Our Portfolio - Financing Receivables, Investments and Real Estate - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | 31-May-13 | |
Investment | Investment | Investment | Minimum [Member] | Maximum [Member] | Energy Source LLC [Member] | Energy Source LLC [Member] | Energy Source LLC [Member] | Energy Source LLC [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing receivables and investments | $590,900,000 | ' | $590,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred funding obligations | 15,400,000 | ' | 15,400,000 | ' | ' | 74,700,000 | ' | ' | ' | ' | ' | ' |
Restricted cash | 9,557,000 | ' | 9,557,000 | ' | ' | 49,865,000 | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities at fair value | 20,700,000 | ' | 20,700,000 | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' |
Investments designated as held-to-maturity carrying value | 14,700,000 | ' | 14,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of investments designated as held-to-maturity | 15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain on sale of investments designated as held-to-maturity | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities at cost | 19,600,000 | ' | 19,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain on sale of investments | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in unrealized loss position | 0 | ' | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Intangible assets for land leases for amortize | ' | ' | 16,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land recognized in acquisition | 50,300,000 | ' | 50,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease agreement expected expirations, term | ' | ' | ' | ' | ' | ' | '2052 | '2061 | ' | ' | ' | ' |
Lease agreements expirations, term | ' | ' | ' | ' | ' | ' | '2041 | '2043 | ' | ' | ' | ' |
Financing receivable allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' |
Financing receivable allowance, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 |
Accrued interest income | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial receivable average outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | 11,800,000 | 11,800,000 | ' | ' |
Income on investment | 3,093,000 | 1,332,000 | 5,475,000 | 1,807,000 | ' | ' | ' | ' | 400,000 | 500,000 | ' | ' |
Maximum exposure loss for variable interest entity | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other financing receivables on non accrual status | 0 | ' | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Provision for credit losses | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Our_Portfolio_Financing_Receiv3
Our Portfolio - Financing Receivables, Investments and Real Estate - Analysis of Portfolio by Type of Obligor and Credit Quality (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ' |
Financing receivables | $456 |
Investments available-for-sale | 67.7 |
Real estate investments | 67.2 |
Total | 590.9 |
% of Total Portfolio | 100.00% |
Average Balance | 11.7 |
Federal [Member] | ' |
Financing Receivable, Recorded Investment [Line Items] | ' |
Financing receivables | 195.9 |
Investments available-for-sale | ' |
Real estate investments | ' |
Total | 195.9 |
% of Total Portfolio | 33.10% |
Average Balance | 7.7 |
State, Local, Institutions [Member] | ' |
Financing Receivable, Recorded Investment [Line Items] | ' |
Financing receivables | 73.8 |
Investments available-for-sale | ' |
Real estate investments | ' |
Total | 73.8 |
% of Total Portfolio | 12.50% |
Average Balance | 24.6 |
Commercial Externally Rated [Member] | ' |
Financing Receivable, Recorded Investment [Line Items] | ' |
Financing receivables | 22 |
Investments available-for-sale | 43.3 |
Real estate investments | ' |
Total | 65.3 |
% of Total Portfolio | 11.10% |
Average Balance | 21.8 |
Commercial Rated Internally [Member] | ' |
Financing Receivable, Recorded Investment [Line Items] | ' |
Financing receivables | 163.5 |
Investments available-for-sale | 7.8 |
Real estate investments | 67.2 |
Total | 238.5 |
% of Total Portfolio | 40.40% |
Average Balance | 13.3 |
Commercial Other [Member] | ' |
Financing Receivable, Recorded Investment [Line Items] | ' |
Financing receivables | 0.8 |
Investments available-for-sale | 16.6 |
Real estate investments | ' |
Total | 17.4 |
% of Total Portfolio | 2.90% |
Average Balance | $16.60 |
Our_Portfolio_Financing_Receiv4
Our Portfolio - Financing Receivables, Investments and Real Estate - Analysis of Portfolio by Type of Obligor and Credit Quality (Parenthetical) (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Transactions | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Allowance for credit losses | $11,000,000 | $11,000,000 |
Number of transactions | 66 | ' |
Financial receivable outstanding, Average Remaining Balance | 11,700,000 | ' |
Total aggregate remaining balance | 16,500,000 | ' |
Maximum [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Financial receivable outstanding, Average Remaining Balance | 1,000,000 | ' |
Berkshire Hathaway Inc. [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Debt security, fair value | 38,200,000 | ' |
Debt security, maturity | '2035 | ' |
NRG Energy [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Allowance for credit losses | 11,000,000 | ' |
Senior debt investment | $16,600,000 | ' |
Our_Portfolio_Financing_Receiv5
Our Portfolio - Financing Receivables, Investments and Real Estate - Components of Financing Receivables (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing receivables | ' | ' |
Financing or minimum lease payments | $717,880 | $504,688 |
Unearned interest income | -247,497 | -142,366 |
Allowance for credit losses | -11,000 | -11,000 |
Unearned fee income, net of initial direct costs | -3,310 | -3,451 |
Financing receivables | $456,073 | $347,871 |
Our_Portfolio_Financing_Receiv6
Our Portfolio - Financing Receivables, Investments and Real Estate - Components of Financing Receivables (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Receivables [Abstract] | ' |
Financing receivables held-for-sale | $24.80 |
Our_Portfolio_Financing_Receiv7
Our Portfolio - Financing Receivables, Investments and Real Estate - Components of Real Estate Portfolio (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ' | ' |
Real Estate | $67,225 | ' |
Land [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Real Estate | 50,318 | ' |
Lease Intangibles [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Real Estate | 16,945 | ' |
Accumulated Amortization of Lease Intangibles [Member] | ' | ' |
Real Estate Properties [Line Items] | ' | ' |
Real Estate | $38 | ' |
Our_Portfolio_Financing_Receiv8
Our Portfolio - Financing Receivables, Investments and Real Estate - Future Amortization Expenses Related to Intangible Assets (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Intangible Liability Disclosure [Abstract] | ' |
2014 | $206 |
2015 | 413 |
2016 | 413 |
2017 | 413 |
2018 | 413 |
2019 | 413 |
Thereafter | 14,636 |
Total | $16,907 |
Our_Portfolio_Financing_Receiv9
Our Portfolio - Financing Receivables, Investments and Real Estate - Summary of Anticipated Maturity Dates of Financing Receivables and Investments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Financing Receivables, payment due total | $456,073 | ' |
Financing Receivables, payment due in less than 1 year | 1,845 | ' |
Financing Receivables, payment due in 1-5 years | 89,083 | ' |
Financing Receivables, payment due in 5-10 years | 18,034 | ' |
Financing Receivables, payment due in more than 10 years | 347,111 | ' |
Investments available-for-sale, payment due total | 67,640 | 3,213 |
Investments available-for-sale, payment due in less than 1 year | ' | ' |
Investments available-for-sale, payment due in 1-5 years | 16,552 | ' |
Investments available-for-sale, payment due in 5-10 years | ' | ' |
Investments available-for-sale, payment due in more than 10 years | $51,088 | ' |
Recovered_Sheet1
Our Portfolio - Financing Receivables, Investments and Real Estate - Schedule of Future Minimum Rental Income under Land Lease Agreements (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Receivables [Abstract] | ' |
2014 | $2,443 |
2015 | 4,886 |
2016 | 4,886 |
2017 | 4,886 |
2018 | 4,886 |
2019 | 4,886 |
Thereafter | 173,625 |
Total | $200,498 |
Credit_Facility_Additional_Inf
Credit Facility - Additional Information (Detail) (USD $) | 6 Months Ended | 6 Months Ended | 6 Months Ended | 1 Months Ended | |||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-14 | 31-May-14 | Dec. 31, 2013 | |
Senior Secured Revolving Credit Facility [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | Qualifying Government and Institutional Loans (G&I Facility) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | Qualifying Project Finance Loans (PF Facility) [Member] | |||
Credit Default Option [Member] | U.S. Federal Government [Member] | Institutional [Member] | Federal Funds [Member] | Senior Secured Revolving Credit Facility [Member] | Credit Default Option [Member] | Federal Funds [Member] | Minimum [Member] | Maximum [Member] | Senior Secured Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility outstanding | $166,191,000 | $77,114,000 | $350,000,000 | ' | ' | ' | ' | ' | $200,000,000 | ' | ' | ' | ' | ' | $250,000,000 |
Maximum advances on credit facilities | ' | ' | 900,000,000 | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | 500,000,000 |
Line of credit facility, increase in overall capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | 500,000,000 | ' |
Line of credit facility, increase in maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 250,000,000 | ' |
Termination of credit facility | ' | ' | ' | 19-Jul-18 | ' | ' | ' | ' | ' | 19-Jul-18 | ' | ' | ' | ' | ' |
Description of credit facility | ' | ' | ' | 'Continuing Guaranty, dated July 19, 2013 | ' | ' | ' | ' | ' | 'Limited Guaranty, dated July 19, 2013 | ' | ' | ' | ' | ' |
London Interbank Offered Rate | ' | ' | ' | 'LIBOR plus 1.50% | 'LIBOR plus 2.50% | ' | ' | 'Federal Funds Rate plus 1.50% | ' | 'LIBOR plus 2.50% | 'LIBOR plus 5.00% | 'Federal Funds Rate plus 2.50% | ' | ' | ' |
Floating interest rate | ' | ' | ' | 1.50% | 2.50% | ' | ' | 1.50% | ' | 2.50% | 5.00% | 2.50% | ' | ' | ' |
Applicable valuation percentages | ' | ' | ' | ' | ' | 80.00% | 75.00% | ' | ' | 67.00% | ' | ' | ' | ' | ' |
Outstanding borrowings | 166,200,000 | 77,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pledge of investments in financing receivables | 260,800,000 | 114,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance costs | $10,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average short-term borrowing rate | 2.70% | 2.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees for loan agreement description | 'Fees for each Loan Agreement equal to 0.50%, divided by 360, multiplied by the excess of the available borrowing capacity under each Loan Agreement over the actual amount borrowed under such Loan Agreement. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Default underlying financings | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit_Facility_Summary_of_Req
Credit Facility - Summary of Required Covenant Included in Loan Agreements (Detail) (Covenants Threshold [Member], USD $) | Jun. 30, 2014 |
Covenants Threshold [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Minimum Liquidity (defined as available borrowings under the Loan Agreements plus unrestricted cash divided by actual borrowings) of greater than: | 5.00% |
12 month rolling Net Interest Margin of greater than: | $0 |
Maximum Debt to Equity Ratio of less than: | 4 |
Nonrecourse_Debt_Additional_In
Nonrecourse Debt - Additional Information (Detail) (USD $) | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Other Nonrecourse Debt [Member] | Other Nonrecourse Debt [Member] | Asset-Backed Nonrecourse Notes [Member] | Asset-Backed Nonrecourse Notes [Member] | Asset-Backed Nonrecourse Notes [Member] | |||
Other Assets [Member] | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Nonrecourse Asset-Backed Notes | $97,393,000 | $100,081,000 | ' | ' | $100,000,000 | ' | ' |
Nonrecourse Asset-Backed Notes, interest rate | ' | ' | ' | ' | 2.79% | ' | ' |
Nonrecourse Asset-Backed Notes, maturity period | ' | ' | ' | ' | '2019-12 | ' | ' |
Outstanding Notes | ' | ' | ' | ' | 100,100,000 | 97,400,000 | ' |
Amount of financing receivables pledged for Asset-Backed Notes | ' | ' | 141,600,000 | 156,400,000 | 109,500,000 | 108,200,000 | ' |
Anticipated debt balance at maturity | ' | ' | ' | ' | 57,000,000 | ' | ' |
Prepayment penalty, maturity date | ' | ' | ' | ' | '2018-12 | ' | ' |
Make whole payment discount rate | ' | ' | ' | ' | 0.50% | ' | ' |
Cost on issuance of Notes | $10,200,000 | ' | ' | ' | ' | ' | $200,000 |
Debt issuance cost amortization period | ' | ' | ' | ' | ' | ' | '72 months |
Nonrecourse_Debt_Analysis_of_O
Nonrecourse Debt - Analysis of Other Nonrecourse Debt by Interest Rate (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Balance | 144,953 | 159,843 |
Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Balance | 58,333 | 66,089 |
Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Balance | 62,558 | 68,862 |
Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Balance | 24,062 | 24,892 |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Maturity | '2014 | '2014 |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Maturity | '2014 | '2014 |
Minimum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Maturity | '2015 | '2015 |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Maturity | '2032 | '2032 |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Maturity | '2031 | '2031 |
Maximum [Member] | Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Other nonrecourse debt, Maturity | '2031 | '2031 |
Nonrecourse_Debt_Analysis_of_O1
Nonrecourse Debt - Analysis of Other Nonrecourse Debt by Interest Rate (Parenthetical) (Detail) | Jun. 30, 2014 | Dec. 31, 2013 |
Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fixed-rate promissory notes, interest rates | 2.06% | 2.06% |
Fixed-Rate Promissory Notes, Interest Rates from 2.06% to 5.00% Per Annum [Member] | Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fixed-rate promissory notes, interest rates | 5.00% | 5.00% |
Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fixed-rate promissory notes, interest rates | 5.01% | 5.01% |
Fixed-Rate Promissory Notes, Interest Rates from 5.01% to 6.50% Per Annum [Member] | Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fixed-rate promissory notes, interest rates | 6.50% | 6.50% |
Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fixed-rate promissory notes, interest rates | 6.51% | 6.51% |
Fixed-Rate Promissory Notes, Interest Rates from 6.51% to 8.00% Per Annum [Member] | Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fixed-rate promissory notes, interest rates | 8.00% | 8.00% |
Nonrecourse_Debt_Schedule_of_M
Nonrecourse Debt - Schedule of Minimum Maturities of Nonrecourse Debt (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
Maturity of Nonrecourse debt, 2015 | $46,977 |
Maturity of Nonrecourse debt, 2016 | 34,277 |
Maturity of Nonrecourse debt, 2017 | 23,687 |
Maturity of Nonrecourse debt, 2018 | 16,832 |
Maturity of Nonrecourse debt, 2019 | 8,751 |
Maturity of Nonrecourse debt, Thereafter | 111,822 |
Maturity of Nonrecourse debt, Total | 242,346 |
Asset-Backed Nonrecourse Notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Maturity of Nonrecourse debt, 2015 | 8,574 |
Maturity of Nonrecourse debt, 2016 | 7,498 |
Maturity of Nonrecourse debt, 2017 | 8,215 |
Maturity of Nonrecourse debt, 2018 | 6,605 |
Maturity of Nonrecourse debt, 2019 | 4,358 |
Maturity of Nonrecourse debt, Thereafter | 62,143 |
Maturity of Nonrecourse debt, Total | 97,393 |
Other Nonrecourse Debt [Member] | ' |
Debt Instrument [Line Items] | ' |
Maturity of Nonrecourse debt, 2015 | 38,403 |
Maturity of Nonrecourse debt, 2016 | 26,779 |
Maturity of Nonrecourse debt, 2017 | 15,472 |
Maturity of Nonrecourse debt, 2018 | 10,227 |
Maturity of Nonrecourse debt, 2019 | 4,393 |
Maturity of Nonrecourse debt, Thereafter | 49,679 |
Maturity of Nonrecourse debt, Total | $144,953 |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Income Tax Holiday [Line Items] | ' | ' | ' | ' | ' |
Unrealized gain recognized in OCI | ($33,000) | $127,000 | ($46,000) | ($82,000) | ' |
Deferred tax liability related to unrealized gain | 693,000 | ' | 693,000 | ' | 1,799,000 |
Income tax benefit (expense) | -830,000 | ' | -770,000 | ' | ' |
Investments Available-for-sale [Member] | ' | ' | ' | ' | ' |
Income Tax Holiday [Line Items] | ' | ' | ' | ' | ' |
Unrealized gain recognized in OCI | 3,800,000 | ' | ' | ' | ' |
Deferred tax liability related to unrealized gain | 1,500,000 | ' | 1,500,000 | ' | ' |
TRS [Member] | ' | ' | ' | ' | ' |
Income Tax Holiday [Line Items] | ' | ' | ' | ' | ' |
Deferred valuation allowance | 800,000 | ' | 800,000 | ' | ' |
Income tax benefit (expense) | 800,000 | 0 | 800,000 | 0 | ' |
Effective income tax rate reconciliation, at federal statutory income tax rate, Percent | ' | ' | 35.00% | ' | ' |
Effective income tax rate reconciliation, State and local income taxes, Percent | ' | ' | 5.00% | ' | ' |
Additional Paid-in Capital [Member] | TRS [Member] | ' | ' | ' | ' | ' |
Income Tax Holiday [Line Items] | ' | ' | ' | ' | ' |
Tax impact on additional paid in capital | $1,900,000 | ' | $1,900,000 | ' | ' |
Equity_Summary_of_Dividends_De
Equity - Summary of Dividends Declared by Board of Directors (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
8/20/13 Record Date [Member] | ' |
Dividends Payable [Line Items] | ' |
Announced Date | 8-Aug-13 |
Record Date | 20-Aug-13 |
Pay Date | 29-Aug-13 |
Amount per share | $0.06 |
11/18/13 Record Date [Member] | ' |
Dividends Payable [Line Items] | ' |
Announced Date | 7-Jan-13 |
Record Date | 18-Nov-13 |
Pay Date | 22-Nov-13 |
Amount per share | $0.14 |
12/30/13 Record Date [Member] | ' |
Dividends Payable [Line Items] | ' |
Announced Date | 17-Feb-13 |
Record Date | 30-Dec-13 |
Pay Date | 10-Jan-14 |
Amount per share | $0.22 |
03/27/14 Record Date [Member] | ' |
Dividends Payable [Line Items] | ' |
Announced Date | 13-Mar-14 |
Record Date | 27-Mar-14 |
Pay Date | 9-Apr-14 |
Amount per share | $0.22 |
06/27/14 Record Date [Member] | ' |
Dividends Payable [Line Items] | ' |
Announced Date | 17-Jun-14 |
Record Date | 27-Jun-14 |
Pay Date | 10-Jul-14 |
Amount per share | $0.22 |
Equity_Schedule_of_Common_Stoc
Equity - Schedule of Common Stock Public Offerings (Detail) (USD $) | Apr. 23, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
4/23/2013 Closing Date [Member] | 4/29/2014 Closing Date [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Public offerings of common stock, Closing Date | ' | 23-Apr-13 | 29-Apr-14 |
Public offerings of common stock, Shares Issued | ' | 14,152 | 5,750 |
Public offerings of common stock, Price Per Share | $12.50 | $12.50 | $13 |
Public offerings of common stock, Net Proceeds | ' | $160,000 | $70,400 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 0 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Apr. 23, 2013 | Apr. 23, 2013 | Apr. 23, 2013 | Apr. 23, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Performance Based Restricted Stock award [Member] | OP Units [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Incentive [Member] | Restricted Incentive [Member] | Restricted Incentive [Member] | Restricted Incentive [Member] | Restricted Incentive [Member] | Restricted Incentive [Member] | |||
2013 Plan [Member] | 2013 Plan [Member] | 2013 Plan [Member] | 2013 Plan [Member] | 2013 Plan [Member] | 2013 Plan [Member] | 2013 Plan [Member] | 2013 Plan [Member] | |||||
Employees and Directors [Member] | Certain Employees [Member] | Date One [Member] | Date Two [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares received by employees through reallocation | 202,826 | ' | 128,348 | 135,938 | ' | ' | ' | ' | ' | ' | ' | ' |
Value per share under stock based compensation plan | ' | $12.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | $5,800,000 | ' | ' | ' | ' | ' | ' | $5,800,000 | ' | $5,800,000 | ' | ' |
Income tax benefit on reallocation | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares awarded | ' | ' | ' | ' | 149,359 | 373,241 | ' | ' | ' | ' | ' | ' |
Restricted common shares vesting years | ' | ' | ' | ' | 'Vest in 2015 and 2016 | ' | ' | ' | ' | ' | ' | ' |
Assumed forfeiture rate for calculation of compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' |
Equity-based compensation expense | ' | ' | ' | ' | ' | ' | 1,500,000 | 6,200,000 | 2,000,000 | 6,200,000 | ' | ' |
Additional restricted stock awards authorized upon achievement of certain corporate and individual performance goals | ' | ' | ' | ' | ' | ' | ' | ' | 163,868 | ' | ' | ' |
Restricted common stock, vesting date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-15 | 31-Dec-16 |
Unrecognized compensation expense | ' | ' | ' | ' | ' | ' | $11,900,000 | ' | $11,900,000 | ' | ' | ' |
Weighted-average term in which unrecognized compensation expense is expected to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' |
Equity_Summary_of_Unvested_Sha
Equity - Summary of Unvested Shares of Restricted Common Stock (Detail) (Restricted Incentive [Member], USD $) | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 |
Restricted Incentive [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance, Restricted Shares of Common Stock | 598,815 |
Granted, Restricted Shares of Common Stock | 522,600 |
Vested, Restricted Shares of Common Stock | -147,009 |
Forfeited, Restricted Shares of Common Stock | ' |
Ending Balance, Restricted Shares of Common Stock | 974,406 |
Beginning Balance, Fair Value of Restricted Shares of Common Stock | $7,484 |
Granted, Fair Value of Restricted Shares of Common Stock | 7,410 |
Vested, Fair Value of Restricted Shares of Common Stock | -1,838 |
Forfeited, Fair Value of Restricted Shares of Common Stock | ' |
Ending Balance, Fair Value of Restricted Shares of Common Stock | $13,057 |
Equity_Schedule_of_Changes_in_
Equity - Schedule of Changes in Accumulated OCI by Component (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | $110 |
Other comprehensive income before reclassifications, net | 3,207 |
Amounts reclassified from accumulated OCI | -1,011 |
Ending balance | 2,306 |
Unrealized Gains/ (Loss) on Residual Assets [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | 113 |
Other comprehensive income before reclassifications, net | -46 |
Amounts reclassified from accumulated OCI | ' |
Ending balance | 67 |
Unrealized Gains/ (Losses) on Investments Available-for-Sale [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | ' |
Other comprehensive income before reclassifications, net | 3,314 |
Amounts reclassified from accumulated OCI | -1,030 |
Ending balance | 2,284 |
Non-Controlling Interest Holders [Member] | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Beginning balance | -3 |
Other comprehensive income before reclassifications, net | -61 |
Amounts reclassified from accumulated OCI | 19 |
Ending balance | ($45) |
Earnings_per_Share_of_Common_S2
Earnings per Share of Common Stock - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted average number of OP units held by the non-controlling interest | 345,485 | 353,405 | ' |
Unvested shares of restricted common stock | ' | 974,406 | 734,763 |
Earnings_per_Share_of_Common_S3
Earnings per Share of Common Stock - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net income (loss) attributable to controlling shareholders and participating securities | $2,828 | ($4,972) | $5,581 | ($4,972) |
Less: Dividends paid on participating securities | -214 | ' | -348 | ' |
Undistributed earnings attributable to participating securities | ' | ' | ' | ' |
Net income attributable to controlling shareholders | $2,614 | ($4,972) | $5,233 | ($4,972) |
Denominator: | ' | ' | ' | ' |
Weighted-average number of common shares-basic | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 |
Weighted-average number of common shares-diluted | 19,973,393 | 15,439,311 | 17,944,432 | 15,439,311 |
Net income per share attributable to common shares-basic | $0.13 | ($0.32) | $0.29 | ($0.32) |
Net income per share attributable to common shares-diluted | $0.13 | ($0.32) | $0.29 | ($0.32) |