Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35877 | |
Entity Registrant Name | HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-1347456 | |
Entity Address, Address Line One | 1906 Towne Centre Blvd | |
Entity Address, Address Line Two | Suite 370 | |
Entity Address, City or Town | Annapolis, | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21401 | |
City Area Code | 410 | |
Local Phone Number | 571-9860 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | HASI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 84,693,740 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001561894 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 413,259 | $ 286,250 |
Equity method investments | 1,468,282 | 1,279,651 |
Loans | 1,351,000 | |
Real estate | 356,861 | 359,176 |
Investments | 17,637 | 55,377 |
Securitization assets | 203,625 | 164,342 |
Other assets | 130,046 | 100,364 |
Total Assets | 3,940,863 | 3,459,067 |
Liabilities: | ||
Accounts payable, accrued expenses and other | 77,395 | 59,944 |
Credit facilities | 25,483 | 22,591 |
Non-recourse debt (secured by assets of $574 million and $723 million, respectively) | 438,051 | 592,547 |
Senior unsecured notes | 1,771,264 | 1,283,335 |
Convertible notes | 155,285 | 290,501 |
Total Liabilities | 2,467,478 | 2,248,918 |
Stockholders’ 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, 84,275,179 and 76,457,415 shares issued and outstanding, respectively | 843 | 765 |
Additional paid in capital | 1,671,747 | 1,394,009 |
Accumulated deficit | (225,933) | (204,112) |
Accumulated other comprehensive income (loss) | 7,746 | 12,634 |
Non-controlling interest | 18,982 | 6,853 |
Total Stockholders’ Equity | 1,473,385 | 1,210,149 |
Total Liabilities and Stockholders’ Equity | 3,940,863 | 3,459,067 |
Commercial receivables | ||
Assets | ||
Loans | 1,224,741 | 965,452 |
Government receivables | ||
Assets | ||
Loans | $ 126,412 | $ 248,455 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for loss on receivables | $ 39 | $ 36 |
Non-recourse debt, secured by assets | $ 574 | $ 723 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 84,275,179 | 76,457,415 |
Common stock, shares outstanding (in shares) | 84,275,179 | 76,457,415 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Interest income | $ 26,236 | $ 23,508 | $ 76,352 | $ 71,046 |
Rental income | 6,430 | 6,469 | 19,361 | 19,408 |
Gain on sale of receivables and investments | 13,072 | 13,628 | 54,988 | 34,449 |
Fee income | 3,144 | 4,984 | 8,769 | 13,115 |
Total revenue | 48,882 | 48,589 | 159,470 | 138,018 |
Expenses | ||||
Interest expense | 27,349 | 26,085 | 95,394 | 65,884 |
Provision for loss on receivables | 1,485 | 2,458 | 2,896 | 5,629 |
Compensation and benefits | 12,218 | 9,012 | 39,850 | 27,223 |
General and administrative | 4,964 | 3,918 | 14,814 | 11,181 |
Total expenses | 46,016 | 41,473 | 152,954 | 109,917 |
Income before equity method investments | 2,866 | 7,116 | 6,516 | 28,101 |
Income (loss) from equity method investments | (7,215) | 16,506 | 69,519 | 32,505 |
Income (loss) before income taxes | (4,349) | 23,622 | 76,035 | 60,606 |
Income tax (expense) benefit | 1,250 | (2,345) | (11,510) | (2,860) |
Net income (loss) | (3,099) | 21,277 | 64,525 | 57,746 |
Net income (loss) attributable to non-controlling interest holders | (261) | 102 | 366 | 255 |
Net income (loss) attributable to controlling stockholders | $ (2,838) | $ 21,175 | $ 64,159 | $ 57,491 |
Basic earnings (loss) per common share (in usd per share) | $ (0.04) | $ 0.28 | $ 0.81 | $ 0.80 |
Diluted earnings (loss) per common share (in usd per share) | $ (0.04) | $ 0.28 | $ 0.79 | $ 0.78 |
Weighted average common shares outstanding—basic (in shares) | 79,335,173 | 74,012,788 | 78,407,028 | 71,376,004 |
Weighted average common shares outstanding—diluted (in shares) | 79,335,173 | 76,131,252 | 82,069,464 | 72,644,626 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (3,099) | $ 21,277 | $ 64,525 | $ 57,746 |
Unrealized gain (loss) on available-for-sale securities, net of tax benefit (provision) of $0.1 million and $0.3 million for the three and nine months ended September 30, 2021 and $0.0 million and $(1.1) million for the three and nine months ended September 30, 2020 | (900) | 872 | (8,268) | 12,280 |
Unrealized gain (loss) on interest rate swaps, net of tax benefit (provision) of $0.9 million and $(1.0) million for the three and nine months ended September 30, 2021 and $(0.3) million and $1.3 million for the three and nine months ended September 30, 2020 | (2,703) | 990 | 3,351 | (4,071) |
Comprehensive income (loss) | (6,702) | 23,139 | 59,608 | 65,955 |
Less: Comprehensive income (loss) attributable to non-controlling interest holders | (274) | 110 | 337 | 289 |
Comprehensive income (loss) attributable to controlling stockholders | $ (6,428) | $ 23,029 | $ 59,271 | $ 65,666 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on interest rate swaps | $ (0.1) | $ 0 | $ 0.3 | $ 1.1 |
Unrealized gain (loss) on available-for-sale securities, benefit (provision) | $ (0.9) | $ 0.3 | $ 1 | $ (1.3) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Adoption of ASU 2016-13, net of tax effect | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitAdoption of ASU 2016-13, net of tax effect | Accumulated Other Comprehensive Income (Loss) | Non-controlling interests | Non-controlling interestsAdoption of ASU 2016-13, net of tax effect |
Beginning Balance (in shares) at Dec. 31, 2019 | 66,338 | ||||||||
Beginning Balance at Dec. 31, 2019 | $ 939,912 | $ (14,105) | $ 663 | $ 1,102,303 | $ (169,786) | $ (14,031) | $ 3,300 | $ 3,432 | $ (74) |
Ending Balance (in shares) at Jun. 30, 2020 | 73,319 | ||||||||
Ending Balance at Jun. 30, 2020 | 1,067,964 | $ 733 | 1,250,976 | (198,719) | 9,619 | 5,355 | |||
Beginning Balance (in shares) at Dec. 31, 2019 | 66,338 | ||||||||
Beginning Balance at Dec. 31, 2019 | 939,912 | $ (14,105) | $ 663 | 1,102,303 | (169,786) | $ (14,031) | 3,300 | 3,432 | $ (74) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 57,746 | 57,491 | 255 | ||||||
Unrealized gain (loss) on available-for-sale securities | 12,280 | 12,222 | 58 | ||||||
Unrealized gain (loss) on interest rate swaps | (4,071) | (4,048) | (23) | ||||||
Issued shares of common stock (in shares) | 7,319 | ||||||||
Issued shares of common stock | 188,798 | $ 75 | 188,723 | ||||||
Equity-based compensation | 11,641 | 8,098 | 3,543 | ||||||
Issuance (repurchase) of vested equity-based compensation shares (in shares) | 537 | ||||||||
Issuance (repurchase) of vested equity-based compensation shares | (17,288) | $ 5 | (17,293) | ||||||
Other (in shares) | 59 | ||||||||
Other | 53 | 913 | (860) | ||||||
Dividends and distributions | (77,229) | (76,588) | (641) | ||||||
Ending Balance (in shares) at Sep. 30, 2020 | 74,253 | ||||||||
Ending Balance at Sep. 30, 2020 | 1,097,737 | $ 743 | 1,282,744 | (202,914) | 11,474 | 5,690 | |||
Beginning Balance (in shares) at Jun. 30, 2020 | 73,319 | ||||||||
Beginning Balance at Jun. 30, 2020 | 1,067,964 | $ 733 | 1,250,976 | (198,719) | 9,619 | 5,355 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 21,277 | 21,175 | 102 | ||||||
Unrealized gain (loss) on available-for-sale securities | 872 | 864 | 8 | ||||||
Unrealized gain (loss) on interest rate swaps | 990 | 991 | (1) | ||||||
Issued shares of common stock (in shares) | 875 | ||||||||
Issued shares of common stock | 29,248 | $ 10 | 29,238 | ||||||
Equity-based compensation | 2,902 | 1,617 | 1,285 | ||||||
Other (in shares) | 59 | ||||||||
Other | 54 | 913 | (859) | ||||||
Dividends and distributions | (25,570) | (25,370) | (200) | ||||||
Ending Balance (in shares) at Sep. 30, 2020 | 74,253 | ||||||||
Ending Balance at Sep. 30, 2020 | 1,097,737 | $ 743 | 1,282,744 | (202,914) | 11,474 | 5,690 | |||
Ending Balance (in shares) at Dec. 31, 2020 | 76,457 | ||||||||
Ending Balance at Dec. 31, 2020 | 1,210,149 | $ 765 | 1,394,009 | (204,112) | 12,634 | 6,853 | |||
Ending Balance (in shares) at Jun. 30, 2021 | 78,419 | ||||||||
Ending Balance at Jun. 30, 2021 | 1,322,547 | $ 784 | 1,487,103 | (193,530) | 11,335 | 16,855 | |||
Beginning Balance (in shares) at Dec. 31, 2020 | 76,457 | ||||||||
Beginning Balance at Dec. 31, 2020 | 1,210,149 | $ 765 | 1,394,009 | (204,112) | 12,634 | 6,853 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 64,525 | 64,159 | 366 | ||||||
Unrealized gain (loss) on available-for-sale securities | (8,268) | (8,219) | (49) | ||||||
Unrealized gain (loss) on interest rate swaps | 3,351 | 3,331 | 20 | ||||||
Issued shares of common stock (in shares) | 2,496 | ||||||||
Issued shares of common stock | 151,701 | $ 25 | 151,676 | ||||||
Equity-based compensation | 17,965 | 5,226 | 12,739 | ||||||
Conversion of convertible notes (in shares) | 4,999 | ||||||||
Conversion of convertible notes | 134,906 | $ 50 | 134,856 | ||||||
Issuance (repurchase) of vested equity-based compensation shares (in shares) | 323 | ||||||||
Issuance (repurchase) of vested equity-based compensation shares | (14,017) | $ 3 | (14,020) | ||||||
Dividends and distributions | (86,927) | (85,980) | (947) | ||||||
Ending Balance (in shares) at Sep. 30, 2021 | 84,275 | ||||||||
Ending Balance at Sep. 30, 2021 | 1,473,385 | $ 843 | 1,671,747 | (225,933) | 7,746 | 18,982 | |||
Beginning Balance (in shares) at Jun. 30, 2021 | 78,419 | ||||||||
Beginning Balance at Jun. 30, 2021 | 1,322,547 | $ 784 | 1,487,103 | (193,530) | 11,335 | 16,855 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (3,099) | (2,838) | (261) | ||||||
Unrealized gain (loss) on available-for-sale securities | (900) | (896) | (4) | ||||||
Unrealized gain (loss) on interest rate swaps | (2,703) | (2,693) | (10) | ||||||
Issued shares of common stock (in shares) | 857 | ||||||||
Issued shares of common stock | 48,812 | $ 9 | 48,803 | ||||||
Equity-based compensation | 3,715 | 985 | 2,730 | ||||||
Conversion of convertible notes (in shares) | 4,999 | ||||||||
Conversion of convertible notes | 134,906 | $ 50 | 134,856 | ||||||
Dividends and distributions | (29,893) | (29,565) | (328) | ||||||
Ending Balance (in shares) at Sep. 30, 2021 | 84,275 | ||||||||
Ending Balance at Sep. 30, 2021 | $ 1,473,385 | $ 843 | $ 1,671,747 | $ (225,933) | $ 7,746 | $ 18,982 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 64,525 | $ 57,746 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Provision for loss on receivables | 2,896 | 5,629 |
Depreciation and amortization | 2,811 | 2,685 |
Amortization of financing costs | 8,445 | 5,824 |
Equity-based compensation | 13,503 | 11,615 |
Equity method investments | (45,684) | 14,024 |
Non-cash gain on securitization | (37,521) | (36,866) |
(Gain) loss on sale of receivables and investments | (720) | 8,671 |
Loss on debt extinguishment | 14,584 | 0 |
Changes in accounts payable and accrued expenses | 11,606 | 5,906 |
Change in accrued interest on receivables and investments | (9,516) | (21,925) |
Other | (3,243) | (1,447) |
Net cash provided by (used in) operating activities | 21,686 | 51,862 |
Cash flows from investing activities | ||
Equity method investments | (155,461) | (322,948) |
Equity method investment distributions received | 10,936 | 90,920 |
Proceeds from sales of equity method investments | 300 | 0 |
Purchases of and investments in receivables | (407,517) | (92,232) |
Principal collections from receivables | 87,548 | 94,780 |
Proceeds from sales of receivables | 75,582 | 52,329 |
Purchases of investments | (4,830) | (22,777) |
Principal collections from investments | 256 | 1,981 |
Proceeds from sales of investments and securitization assets | 15,197 | 58,018 |
Funding of escrow accounts | (12,069) | (7,783) |
Withdrawal from escrow accounts | 1,538 | 6,300 |
Other | 290 | 3,200 |
Net cash provided by (used in) investing activities | (388,230) | (138,212) |
Cash flows from financing activities | ||
Proceeds from credit facilities | 25,000 | 126,000 |
Principal payments on credit facilities | (22,441) | (134,594) |
Proceeds from issuance of non-recourse debt | 0 | 15,938 |
Principal payments on non-recourse debt | (29,900) | (118,623) |
Proceeds from issuance of senior unsecured notes | 1,000,000 | 771,250 |
Proceeds from issuance of convertible notes | 0 | 143,750 |
Redemption of senior unsecured notes | (500,000) | 0 |
Net proceeds of common stock issuances | 151,501 | 188,197 |
Payments of dividends and distributions | (83,354) | (74,295) |
Withholdings on employee share vesting | (14,018) | (17,287) |
Redemption premium paid | (14,101) | 0 |
Payment of debt issuance costs | (17,672) | (14,382) |
Other | (13) | (623) |
Net cash provided by (used in) financing activities | 495,002 | 885,331 |
Increase (decrease) in cash, cash equivalents, and restricted cash | 128,458 | 798,981 |
Cash, cash equivalents, and restricted cash at beginning of period | 310,331 | 106,586 |
Cash, cash equivalents, and restricted cash at end of period | 438,789 | 905,567 |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | 74,962 | 57,310 |
Residual assets retained from securitization transactions | 45,578 | 38,081 |
Right-of-use asset obtained in exchange for lease liability | 4,628 | 0 |
Issuance of common stock from conversion of convertible notes | 135,800 | 0 |
Deconsolidation of non-recourse debt | 126,139 | 0 |
Deconsolidation of assets pledged for non-recourse debt | $ 130,513 | $ 0 |
The Company
The Company | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Hannon Armstrong Sustainable Infrastructure Capital, Inc. (the “Company”) invests in climate solutions by providing capital to leading companies in the energy efficiency, renewable energy and other sustainable infrastructure markets. Our goal is to generate attractive returns from a diversified portfolio of projects with long-term and predictable cash flows from proven technologies that reduce carbon emissions or increase resilience to climate change. The Company and its subsidiaries are hereafter referred to as “we,” “us” or “our.” Our investments take various forms, including equity, joint ventures, real estate ownership, or lending or other financing transactions, and typically benefit from contractually committed high credit quality obligors. We also generate on-going fees through off-balance sheet securitization transactions, advisory services and asset management. We refer to the income producing assets that we hold on our balance sheet as our “Portfolio.” Our Portfolio may include: • equity investments in either preferred or common structures in unconsolidated entities; • government and commercial receivables, such as loans for renewable energy and energy efficiency projects; • real estate, such as land or other assets leased for use by sustainable infrastructure projects typically under long-term leases; and • investments in debt securities of renewable energy or energy efficiency projects. We finance our business through cash on hand, borrowings under credit facilities and debt transactions, asset-backed securitization transactions and equity issuances. We also generate fee income through securitizations and syndications, by providing broker/dealer services and by managing and servicing assets owned by third parties. Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “HASI.” We have qualified as a real estate investment trust (“REIT”) and also intend to continue to operate our business in a manner that will maintain our exemption from registration as an investment company under the Investment Company Act of 1940 (the "1940 Act"), as amended. 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 our assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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. Actual results could differ from these estimates and such differences could be material. These financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2020, as filed with the SEC. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations and cash flows have been included. Our results of operations for the three- and nine-month periods ended September 30, 2021 and 2020, are not necessarily indicative of the results to be expected for the full year or any other future period. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior years have been reclassified to conform to the current year presentation. The consolidated financial statements include our accounts and controlled subsidiaries, including the Operating Partnership. All material intercompany transactions and balances have been eliminated in consolidation. Following the guidance for non-controlling interests in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 810, Consolidation ("ASC 810") , references in this report to our earnings per share and our net income and stockholders’ equity attributable to common stockholders do not include amounts attributable to non-controlling interests. Consolidation We account for our investments in entities that are considered voting interest entities or variable interest entities (“VIEs”) under ASC 810 and assess whether we should consolidate these entities on an ongoing basis. We have established various special purpose entities or securitization trusts for the purpose of securitizing certain assets that are not consolidated in our financial statements as described below in Securitization of Financial Assets. Since we have assessed that we have power over and receive the benefits from those special purpose entities that are formed for the purpose of holding our assets on our balance sheet, we have concluded we are the primary beneficiary and should consolidate these entities under the provisions of ASC 810. We also have certain subsidiaries we deem to be voting interest entities that we control through our ownership of voting interests and accordingly consolidate. Certain of our equity method investments were determined to be interests in VIEs in which we are not the primary beneficiary, as we do not direct the significant activities of these entities, and thus we account for those investments as Equity Method Investments as discussed below. Our maximum exposure to loss through these investments is limited to their recorded values. However, we may provide financial commitments to these VIEs or guarantees of certain of their obligations. Certain other entities in which we have equity investments have been assessed to be voting interest entities and are not consolidated as we exert significant influence rather than control through our ownership of voting interests, and accordingly account for them as equity method investments described below. Equity Method Investments We have made equity investments in various renewable energy and energy efficiency projects. These investments are typically owned in holding companies (using limited liability companies (“LLCs”) taxed as partnerships) where we partner with either the operator of the project or other institutional investors. We share in the cash flows, income and tax attributes according to a negotiated schedule (which typically does not correspond with our ownership percentages). Investors, if any, in a preferred return position typically receive a priority distribution of all or a portion of the project's cash flows, and in some cases, tax attributes. Once the preferred return, if applicable, is achieved, the partnership “flips” and the operator of the project along with any other common equity investors receive a larger portion of the cash flows, with the previously preferred investors retaining an on-going residual interest. Our equity investments in renewable energy or energy efficiency projects are accounted for under the equity method of accounting. Under the equity method of accounting, the carrying value of these equity method investments is determined based on amounts we invested, adjusted for the equity in earnings or losses of the investee allocated based on the LLC agreement, less distributions received. For the LLC agreements that contain preferences with regard to cash flows from operations, capital events and liquidation, we reflect our share of profits and losses by determining the difference between our claim on the investee’s book value at the beginning and the end of the period, which is adjusted for distributions received and contributions made. This claim is calculated as the amount we would receive if the investee were to liquidate all of its assets at the recorded amounts determined in accordance with GAAP and distribute the resulting cash to creditors and investors in accordance with their respective priorities. This method is referred to as the hypothetical liquidation at book value method (“HLBV”). Any difference between the amount of our investment and the amount of underlying equity in net assets is generally amortized over the life of the assets and liabilities to which the difference relates. Cash distributions received from each equity method investment are classified as operating activities to the extent of cumulative earnings for each investment in our consolidated statements of cash flows. Our initial investment and additional cash distributions beyond that which are classified as operating activities are classified as investing activities in our consolidated statements of cash flows. We typically recognize earnings one quarter in arrears for certain of these investments to allow for the receipt of financial information. We evaluate on a quarterly basis whether our investments accounted for using the equity method have an other than temporary impairment (“OTTI”). An OTTI occurs when the estimated fair value of an investment is below the carrying value and the difference is determined to not be recoverable. This evaluation requires significant judgment regarding, but not limited to, the severity and duration of the impairment; the ability and intent to hold the securities until recovery; financial condition, liquidity, and near-term prospects of the issuer; specific events; and other factors. Government and Commercial Receivables Government and commercial receivables (“receivables”) include project loans and receivables. These receivables are separately presented in our balance sheet to illustrate the differing nature of the credit risk related to these assets. Unless otherwise noted, we generally have the ability and intent to hold our receivables for the foreseeable future and thus they are classified as held for investment. Our ability and intent to hold certain receivables may change from time to time depending on a number of factors including economic, liquidity and capital market conditions. At inception of the arrangement, the carrying value of receivables 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. Receivables that are held for investment are carried at amortized cost, net of any unamortized acquisition premiums or discounts and include origination and acquisition costs, as applicable. Our initial investment and principal repayments of these receivables are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. Receivables that we intend to sell in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value on our balance sheet, which is assessed on an individual asset basis. The purchases and proceeds from receivables that we intend to sell at origination are classified as operating activities in our consolidated statements of cash flows. Interest collected is classified as an operating activity in our consolidated statements of cash flows. Certain of our receivables may include the ability to defer required interest payments in exchange for increasing the receivable balance at the borrower's option. We generally accrue this paid-in-kind (“PIK”) interest when collection is expected, and cease accruing PIK interest if there is insufficient value to support the accrual or we expect that any portion of the principal or interest due is not collectible. We evaluate our receivables for an allowance as determined under ASC Topic 326 Financial Instruments- Credit Losses (“Topic 326”) and for our internally derived asset performance categories included in Note 6 to our financial statements in this Form 10-Q on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a 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 receivable delinquent or impaired and place the receivable on non-accrual status and cease recognizing income from that receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a 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. We determine our allowance based on the current expectation of credit losses over the contractual life of our receivables as required by Topic 326. We use a variety of methods in developing our allowance, including discounted cash flow analysis and probability-of-default/loss given default (“PD/LGD”) methods. In developing our estimates, we consider our historical experience with our and similar assets in addition to our view of both current conditions and what we expect to occur within a period of time for which we can develop reasonable and supportable forecasts, typically two years. For periods following the reasonable and supportable forecast period, we revert to historical information when developing assumptions used in our estimates. In developing our forecasts, we consider a number of qualitative and quantitative factors in our assessment, including a project’s operating results, loan-to-value ratio, 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 climate solutions sector, the effect of local, industry, and broader economic factors, such as unemployment rates and power prices, the impact of any variation in weather and the historical and anticipated trends in interest rates, defaults and loss severities for similar transactions. For those assets where we record our allowance using a discounted cash flow method, we have elected to record the change in allowance due solely to the passage of time through the provision for loss on receivables in our income statement. For assets where the obligor is a publicly rated entity, we consider the published historical performance of entities with similar ratings in developing our estimate of an allowance, making adjustments determined by management to be appropriate during the reasonable and supportable forecast period. We have made certain loan commitments that are within the scope of Topic 326. When estimating an allowance for these loan commitments we consider the probability of certain amounts to be funded and apply either a discounted cash flow or PD/LGD methodology as described above. We charge off receivables against the allowance, if any, when we determine the unpaid principal balance is uncollectible, net of recovered amounts. Any provision we record for an allowance is a non-cash reconciling item to cash from operating activities in our consolidated statements of cash flows. Real Estate Real estate consists of land or other real property and its related lease intangibles, net of any amortization. Our real estate is generally leased to tenants on a triple 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. Certain real estate transactions may be characterized as "failed sale-leaseback" transactions as defined under ASC Topic 842, Leases , and thus are accounted for similarly to our commercial receivables as described above in Government and Commercial Receivables. For our other real estate lease transactions that are classified as operating leases, the scheduled rental revenue typically varies during the lease term and thus rental 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 that vary during the lease term and the income recognized on a straight-line basis and is recorded in other assets. Expenses, if any, related to the ongoing operation of leases where we are the lessor, are charged to operations as incurred. Our initial investment is classified as investing activities and income collected for rental income is classified as operating activities in our consolidated statements of cash flows. When our real estate transactions are treated as an asset acquisition with an operating lease, we typically record our real estate purchases at cost, including acquisition and closing costs, which is allocated to each tangible and intangible asset acquired on a relative fair value basis. 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 is typically determined by management based on appraisals by a qualified appraiser. In determining the fair value of the identified intangibles of an acquired property, above-market and below-market in-place lease values are valued based on the present value (using an interest rate that 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 renewal periods reasonably certain of being exercised by the lessee. The capitalized off-market lease values are amortized as an adjustment of rental income over the term used to value the intangible. We also record, as appropriate, an intangible asset for in-place leases. The value of the leases in place at the time of the transaction is equal to the potential income lost if the leases were not in place. The amortization of this intangible occurs over the initial term unless management believes that it is reasonably certain that the tenant would exercise the renewal option, in which case the amortization would extend through the renewal period. If a lease were to be terminated, all unamortized amounts relating to that lease would be written off. Investments Investments are debt securities that meet the criteria of ASC 320, Investments-Debt and Equity Securities . We have designated our debt securities as available-for-sale and carry these securities at fair value on our balance sheet. Unrealized gains and losses, to the extent not considered to be credit related, on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (“AOCI”) in equity on our balance sheet. When a security is sold, we reclassify the AOCI to earnings based on specific identification. Our initial investment and principal repayments of these investments are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. We evaluate our investments for impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Our impairment 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 value of the underlying project. We consider several qualitative and quantitative factors in our assessment. The primary factor in our assessment is the current fair value of the security, while other factors include changes in the credit rating, performance of the underlying project, key terms of the transaction, the value of any collateral and any support provided by the sponsor or guarantor. To the extent that we have identified an impairment for a security, intend to hold the investment to maturity, and do not expect that we will be required to sell the security prior to recovery of the amortized cost basis, we will recognize only the credit component of the unrealized loss in earnings by recording an allowance against the amortized cost of the asset as required by Topic 326. We determine the credit component using the difference between the security’s 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 is recorded in AOCI. To the extent we hold investments with a fair value less than the amortized cost and 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 interest income using the effective interest method. Securitization of Financial Assets We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financial assets. We determined that the trusts used in securitizations are VIEs, as defined in ASC 810. When we conclude that we are not the primary beneficiary of certain trusts because we do not have power over those trusts' significant activities, we do not consolidate the trust. 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. We account for transfers of financial assets to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing (“ASC 860”), when we have concluded the transferred assets 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 assets. When we are unable to conclude that we have been sufficiently isolated from the securitized financial assets, we treat such trusts as secured borrowings, retaining the assets on our balance sheet and recording the amounts due to the trust investor as non-recourse debt. For transfers treated as sales under ASC 860, we have received true-sale-at-law and non-consolidation legal opinions for all of our securitization trust structures to support our conclusion regarding the transferred financial assets. When we sell financial assets in securitizations, we generally retain interests in the form of servicing rights and residual assets, which we refer to as securitization assets. Gain or loss on the sale of financial assets 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 assets sold. 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 current market discount rates commensurate with the risks involved. Cash flows related to our securitizations at origination are classified as operating activities in our consolidated statements of cash flows. We initially account for all separately recognized servicing assets and servicing liabilities at fair value and subsequently measure such servicing assets and liabilities using the amortization method. Servicing assets and liabilities are amortized in proportion to, and over the period of, estimated net servicing income with servicing income recognized as earned. 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 accounted for similar to available-for-sale debt securities and carried at fair value. Income related to the residual assets is recognized using the effective interest rate method and included in fee income in the income statement. Our residual assets are evaluated for impairment on a quarterly basis. A residual asset is impaired if its fair value is less than its carrying value. The credit component of impairments, if any, are recognized by recording an allowance against the amortized cost of the asset. For changes in expected cash flows, we will 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 our income related to these assets. 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 includes cash and cash equivalents set aside with certain lenders primarily to support obligations outstanding as of the balance sheet dates. Restricted cash is reported as part of other assets in the consolidated balance sheets. Refer to Note 3 to our financial statements in this Form 10-Q for disclosure of the balances of restricted cash included in other assets. Convertible Notes We have issued convertible senior notes that are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options , and ASC 815, Derivatives and Hedging (“ASC 815”) . Under ASC 815, issuers of certain convertible debt instruments are generally required to separately account for the conversion option of the convertible debt instrument as either a derivative or equity, unless it meets the scope exemption for contracts indexed to, and settled in, an issuer’s own equity. Since this conversion option is both indexed to our equity and can only be settled in our common stock, we have met the scope exemption, and therefore, we are not separately accounting for the embedded conversion option. The initial issuance and any principal repayments are classified as financing activities and interest payments are classified as operating activities in our consolidated statements of cash flows. If converted, the carrying value of each bond is reclassified into stockholders' equity. Income Taxes We elected and qualified to be taxed as a REIT for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2013. We also have taxable REIT subsidiaries (“TRS”) that are taxed separately, and that will generally be subject to U.S. federal, state and local income taxes as well as taxes of foreign jurisdictions, if any. To qualify as a REIT, we must meet on an ongoing basis several organizational and operational requirements, including a requirement that we currently distribute at least 90% of our REIT's net taxable income before dividends paid, excluding capital gains, to our stockholders. 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. We account for income taxes under ASC 740, Income Taxes (“ASC 740”) for 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. We evaluate any deferred tax assets for valuation allowances based on an assessment of available evidence including sources of taxable income, prior years taxable income, any existing taxable temporary differences and our future investment and business plans that may give rise to taxable income. We treat any tax credits we receive from our equity investments in renewable energy projects as reductions of federal income taxes of the year in which the credit arises. Any deferred tax impacts resulting from transfers of assets to or from our TRS are recorded as an adjustment to additional paid-in capital, as it is a transfer amongst entities under common control. We apply ASC 740 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. Equity-Based Compensation In 2013, we adopted the 2013 Hannon Armstrong Sustainable Infrastructure Capital, Inc. Equity Incentive Plan (as amended, 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 grant equity or equity-based awards as compensation to our independent directors, employees, advisors, consultants and other personnel under our 2013 Plan. Certain awards earned under the plan are based on achieving various performance targets, which are generally earned between 0% and 200% of the initial target, depending on the extent to which the performance target is met. In addition to performance targets, certain LTIP units issued by our Operating Partnership also require a certain level of appreciation of partnership interests to occur before parity is reached and LTIP units can be converted to limited partnership units. We record compensation expense for grants made under the 2013 Plan in accordance with ASC 718, Compensation-Stock Compensation . We record compensation expense for unvested grants that vest solely based on service conditions on a straight-line basis over the vesting period of the entire award based upon the fair market value of the grant on the date of grant. Fair market value for restricted common stock is based on our share price on the date of grant. For awards where the vesting is contingent upon achievement of certain performance targets, compensation expense is measured based on the fair market value on the grant date and is recorded over the requisite service period (which includes the performance period). Actual performance results at the end of the performance period determines the number of shares that will ultimately be awarded. We have also issued awards where the vesting is contingent upon service being provided for a defined period and certain market conditions being met. The fair value of these awards, as measured at the grant date, is recognized over the requisite service period, even if the market conditions are not met. The grant date fair value of these awards was developed by an independent appraiser using a Monte Carlo simulation. 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 grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period excluding the weighted average number of unvested grants under the 2013 Plan, if applicable (“participating securities” as defined in Note 12 to our financial statements to this Form 10-Q). Diluted earnings per share is calculated by dividing net income attributable to controlling stockholders (after consideration of the earnings allocated to unvested grants under the 2013 Plan, if applicable) by the weighted-average number of shares of common stock outstanding during the period plus other potential common stock instruments if they are dilutive. Other potentially dilutive common stock instruments include our unvested restricted stock, other equity-based awards, and convertible notes. The restricted stock and other equity-based awards are included if they are dilutive using the treasury stock method. The treasury stock method assumes that theoretical proceeds received for future service provided is used to purchase shares of treasury stock at the average market price per share of common stock, which is deducted from the total shares of potential common stock included in the calculation. When unvested grants are dilutive, the earnings allocated to these dilutive unvested grants are not deducted from the net income attributable to controlling stockholders when calculating diluted earnings per share. The convertible notes are included if they are dilutive using the if-converted method. The if-converted method removes interest expense related to the convertible notes from the net income attributable to controlling stockholders and includes the weighted average shares of potential common stock over the period issuable upon conversion of the note. No adjustment is made for shares of potential common stock that are anti-dilutive during a period. Segment Reporting We make equity and debt investments in the energy efficiency, renewable energy and sustainable infrastructure markets. We manage our business as a single portfolio and report all of our activities as one business segment. Recently Issued Accounting Pronouncements Accounting standards updates issued before November 5, 2021, and effective after September 30, 2021, are not expected to have a material effect on our consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 September 30, 2021 and December 31, 2020, only our residual assets related to our securitization trusts and investments were carried at fair value on the 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. • 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. The tables below illustrate the estimated fair value of our financial instruments on our balance sheet. Unless otherwise discussed below, fair value for our Level 2 and Level 3 measurements is measured using a discounted cash flow model, contractual terms and inputs which consist of base interest rates and spreads over base rates which are based upon market observation and recent comparable transactions. An increase in these inputs would result in a lower fair value and a decline would result in a higher fair value. Our senior unsecured notes and convertible notes are valued using a market based approach and observable prices. The receivables held-for-sale, if any, are carried at the lower of cost or fair value. As of September 30, 2021 Fair Value Carrying Level (in millions) Assets Government receivables $ 139 $ 126 Level 3 Commercial receivables 1,397 1,225 Level 3 Investments (1) 18 18 Level 3 Securitization residual assets (2) 198 198 Level 3 Liabilities (3) Credit facilities $ 25 $ 25 Level 3 Non-recourse debt 487 449 Level 3 Senior unsecured notes 1,838 1,793 Level 2 Convertible notes 203 158 Level 2 (1) The amortized cost of our investments as of September 30, 2021, was $17 million. (2) Included in securitization assets on the consolidated balance sheet. This amount excludes securitization servicing assets, which are carried at amortized cost. The amortized cost of our securitization assets as of September 30, 2021 was $184 million. (3) Fair value and carrying value exclude unamortized financing costs. As of December 31, 2020 Fair Value Carrying Level (in millions) Assets Government receivables $ 282 $ 248 Level 3 Commercial receivables 1,018 965 Level 3 Investments (1) 55 55 Level 3 Securitization residual assets (2) 159 159 Level 3 Liabilities (3) Credit facilities $ 23 $ 23 Level 3 Non-recourse debt 678 605 Level 3 Senior unsecured notes 1,362 1,299 Level 2 Convertible notes 552 296 Level 2 (1) The amortized cost of our investments as of December 31, 2020, was $51 million. (2) Included in securitization assets on the consolidated balance sheet. This amount excludes securitization servicing assets, which are carried at amortized cost. The amortized cost of our securitization assets as of December 31, 2020 was $141 million. (3) Fair value and carrying value exclude unamortized financing costs. Investments The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value on a recurring basis: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 18 $ 46 $ 55 $ 75 Purchases of investments — 5 5 23 Principal payments on investments — — — (2) Sale of investments — — (38) (53) Realized gains on investments recorded in gain on sale of receivables and investments — — — 5 Unrealized gains (losses) on investments recorded in OCI — 1 (4) 4 Balance, end of period $ 18 $ 52 $ 18 $ 52 The following table illustrates our investments in an unrealized loss position: Estimated Fair Value Unrealized Losses (1) Securities with a loss shorter than 12 months Securities with a loss longer than 12 months Securities with a loss shorter than 12 months Securities with a loss longer than 12 months (in millions) September 30, 2021 $ 7 $ — $ 0.2 $ — December 31, 2020 — 6 — 0.3 (1) Loss position is due to interest rates movements. We have the intent and ability to hold these investments until a recovery of fair value. In determining the fair value of our investments we used a market-based risk-free rate and a range of interest rate spreads of approximately 1% to 4% based upon transactions involving similar assets as of September 30, 2021 and December 31, 2020. The weighted average discount rate used to determine the fair value of our investments as of September 30, 2021 and December 31, 2020 were 3.6% and 3.2%, respectively. Securitization residual assets The following table reconciles the beginning and ending balances for our Level 3 securitization residual assets that are carried at fair value on a recurring basis: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 188 $ 135 $ 159 $ 122 Accretion of securitization residual assets 2 2 6 4 Additions to securitization residual assets 11 9 45 36 Collections of securitization residual assets (2) (4) (8) (9) Sales of securitization residual assets — — — (21) Unrealized gains (losses) on securitization residual assets recorded in OCI (1) — (4) 10 Balance, end of period $ 198 $ 142 $ 198 $ 142 In determining the fair value of our securitization residual assets, we used a market-based risk-free rate and a range of interest rate spreads of approximately 1% to 4% based upon transactions involving similar assets as of September 30, 2021 and December 31, 2020. The weighted average discount rates used to determine the fair value of our securitization residual assets as of September 30, 2021 and December 31, 2020 were 4.3% and 3.8%, respectively. Non-recurring Fair Value Measurements Our financial statements may include non-recurring fair value measurements related to acquisitions and non-monetary transactions, if any. Assets acquired in a business combination are recorded at their fair value. We may use third-party valuation firms to assist us with developing our estimates of fair value. See Note 6 for discussion of a fair value measurement recorded at September 30, 2021 related to an equity method investment. Concentration of Credit Risk Government and commercial receivables, real estate leases and debt investments consist primarily of U.S. federal government-backed receivables, investment grade state and local government receivables and receivables from various climate solutions projects and do not, in our view, represent a significant concentration of credit risk. Additionally, certain of our investments are collateralized by projects concentrated in certain geographic regions throughout the United States. These investments typically have structural credit protections to mitigate our risk exposure and, in most cases, the projects are insured for estimated physical loss, which helps to mitigate the possible risk from these concentrations. We had cash deposits that are subject to credit risk as shown below: September 30, 2021 December 31, 2020 (in millions) Cash deposits $ 413 $ 286 Restricted cash deposits (included in other assets) 26 24 Total cash deposits $ 439 $ 310 Amount of cash deposits in excess of amounts federally insured $ 437 $ 309 |
Non-Controlling Interest
Non-Controlling Interest | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-Controlling Interest | Non-Controlling Interest Units of limited partnership interests in the Operating Partnership (“OP units”) that are owned by limited partners other than us are included in non-controlling interest on our consolidated balance sheets. The non-controlling interest holders are generally allocated their pro rata share of income, other comprehensive income and equity transactions. The outstanding OP units held by outside limited partners represent less than 1% of our outstanding OP units and are redeemable by the limited partners for cash, or at our option, for a like number of shares of our common stock. No OP units were exchanged by non-controlling interest holders during the nine months ended September 30, 2021 and 57,400 OP units were exchanged by non-controlling interest holders during the nine months ended September 30, 2020. |
Securitization of Financial Ass
Securitization of Financial Assets | 9 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Securitization of Financial Assets | Securitization of Financial Assets The following summarizes certain transactions with securitization trusts: As of and for the nine months ended September 30, 2021 2020 (in millions) Gains on securitizations $ 55 $ 34 Cost of financial assets securitized 665 173 Proceeds from securitizations 720 207 Residual and servicing assets 204 147 Cash received from residual and servicing assets 9 9 In connection with securitization transactions, we typically retain servicing responsibilities and residual assets. We generally receive annual servicing fees that are typically up to 0.20% of the outstanding balance. We may periodically make servicer advances, that are subject to credit risk. Included in securitization assets in our consolidated balance sheets are our servicing assets at amortized cost and our residual assets at fair value. 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. Other than our securitization assets representing our residual interests in the trusts' collateral, the investors and the securitization trusts have no recourse to our assets for failure of debtors to pay when due. In computing gains and losses on securitizations, we use discount rates based on a review of comparable market transactions including Level 3 unobservable inputs, which consist of base interest rates and spreads over these base rates. Depending on the nature of the transaction risks, the discount rate ranged from 2% to 8%. As of September 30, 2021 and December 31, 2020, our managed assets totaled $8.2 billion and $7.2 billion, respectively, of which $5.0 billion and $4.3 billion, respectively, were securitized assets held in unconsolidated securitization trusts. There were no securitization credit losses in the nine months ended September 30, 2021 or September 30, 2020. As of September 30, 2021, there were no material payments from debtors to the securitization trusts that were greater than 90 days past due. |
Our Portfolio
Our Portfolio | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Our Portfolio | Our Portfolio As of September 30, 2021, our Portfolio included approximately $3.2 billion of equity method investments, receivables, real estate and investments on our balance sheet. The equity method investments represent our non-controlling equity investments in renewable energy and energy efficiency projects and land. The receivables and investments are typically collateralized by 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 wind and solar projects. In developing and evaluating performance against our credit criteria, we consider a number of qualitative and quantitative criteria including a project’s operating results, loan-to-value ratio, 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, the financial and operating capability of the borrower, its sponsors or the obligor as well as any guarantors and the project’s collateral value. In addition, we consider the overall economic environment, the climate solutions 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. The following is an analysis of the Performance Ratings of our Portfolio as of September 30, 2021, which is assessed quarterly: Portfolio Performance 1 (1) 2 (2) 3 (3) Total Government Commercial Commercial Commercial Receivable vintage (dollars in millions) 2021 $ — $ 203 $ — $ — $ 203 2020 — 190 — — 190 2019 — 483 6 — 489 2018 — 260 — — 260 2017 31 1 8 — 40 2016 14 59 — — 73 Prior to 2016 81 46 — 8 135 Total receivables 126 1,242 14 8 1,390 Less: Allowance for loss on receivables — (26) (5) (8) (39) Net receivables (4) 126 1,216 9 — 1,351 Receivables held-for-sale — — — — — Investments 11 7 — — 18 Real estate — 357 — — 357 Equity method investments (5) — 1,442 26 — 1,468 Total $ 137 $ 3,022 $ 35 $ — $ 3,194 Percent of Portfolio 4 % 95 % 1 % — % 100 % Average remaining balance (6) $ 6 $ 13 $ 10 $ 4 $ 12 (1) This category includes our assets where based on our credit criteria and performance to date we believe that our risk of not receiving our invested capital remains low. (2) This category includes our assets where based on our credit criteria and performance to date we believe there is a moderate level of risk to not receiving some or all of our invested capital. (3) This category includes our assets where based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital. Included in this category are two commercial receivables with a combined total carrying value of approximately $8 million as of September 30, 2021, which we have held on non-accrual status since 2017. We expect to continue to pursue our legal claims with regards to these assets. This category previously contained an equity method investment in a wind project with no book value due to our allocation of impairment losses recorded by the project sponsor. We sold this equity method investment in the third quarter for nominal proceeds. (4) Total reconciles to the total of the government receivables and commercial receivables lines of the consolidated balance sheets. (5) Some of the individual projects included in portfolios that make up our equity method investments have government off-takers. As they are part of large portfolios, they are not classified separately. (6) Average remaining balance is calculated gross of allowance for loss on receivables and excludes approximately 152 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $72 million. Receivables As of September 30, 2021, our allowance for loan losses was $39 million based on our expectation of credit losses over the lives of the receivables in our portfolio. During the three and nine months ended September 30, 2021, we increased our reserve by approximately $2 million and $3 million, respectively, primarily as a result of loans and loan commitments made during the period. Below is a summary of the carrying value, expected loan funding commitments, and allowance by type of receivable or “Portfolio Segment”, as defined by Topic 326, as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Gross Carrying Value Loan Funding Commitments Allowance Gross Carrying Value Loan Funding Commitments Allowance (in millions) Government (1) $ 126 $ — $ — $ 248 $ — $ — Commercial (2) 1,264 290 39 1,002 282 36 Total $ 1,390 $ 290 $ 39 $ 1,250 $ 282 $ 36 (1) As of September 30, 2021, our government receivables include $28 million of U.S. federal government transactions and $98 million of transactions where the ultimate obligors are state or local governments. Risk characteristics of our government receivables include the energy savings or the power output of the projects and the ability of the government obligor to generate revenue for debt service, via taxation or other means. Transactions may have guarantees of energy savings or other performance support from third-party service providers, which typically are entities, directly or whose ultimate parent entity is, rated investment grade by an independent rating agency. All of our government receivables are included in Performance Rating 1 in the Portfolio Performance table above. Our allowance for government receivables is primarily calculated by using PD/LGD methods as discussed in Note 2 to our financial statements in this Form 10-Q. Our expectation of credit losses for these receivables is immaterial given the high credit-quality of the obligors. (2) As of September 30, 2021, this category of assets includes $742 million of mezzanine loans made on a non-recourse basis to special purpose subsidiaries of residential solar companies which are secured by residential solar assets where we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries. Approximately $647 million of our commercial receivables are loans made to entities in which we also have non-controlling equity investments of approximately $76 million. This total also includes $47 million of lease agreements where we hold legal title to the underlying real estate which are treated under GAAP as receivables since they were deemed to be failed sale/leaseback transactions as described in Note 2 to our financial statements in this Form 10-Q. Risk characteristics of our commercial receivables include a project’s operating risks, which include the impact of the overall economic environment, the climate solutions sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and trends in interest rates. We use assumptions related to these risks to estimate an allowance using a discounted cash flow analysis or the PD/LGD method as discussed in Note 2 to our financial statements in this Form 10-Q. All of our commercial receivables are included in Performance Rating 1 in the Portfolio Performance table above, except for $14 million of receivables included in Performance Category 2 and the $8 million of receivables we have placed on non-accrual status which are included in Performance Rating 3. For those assets in Performance Rating 1, the credit worthiness of the obligor combined with the various structural protections of our assets cause us to believe we have a low risk we will not receive our invested capital, however we recorded a $26 million allowance on these $1.2 billion in assets as a result of lower probability assumptions utilized in our allowance methodology. The following table reconciles our beginning and ending allowance for loss on receivables by Portfolio Segment: Three months ended September 30, 2021 Three months ended September 30, 2020 Government Commercial Government Commercial (in millions) Beginning balance $ — $ 37 $ — $ 29 Provision for loss on receivables — 2 — 2 Ending balance $ — $ 39 $ — $ 31 Nine months ended September 30, 2021 Nine months ended September 30, 2020 Government Commercial Government Commercial (in millions) Beginning balance (1) $ — $ 36 $ — $ 26 Provision for loss on receivables — 3 — 5 Ending balance $ — $ 39 $ — $ 31 (1) For the nine months ended September 30, 2020, the beginning balance represents January 1, 2020, the adoption date of Topic 326. The beginning balance includes the pre-tax allowance for loss on receivables of $17 million recorded upon adoption which reflects our estimated loss as of that date under the new standard as well as the $8 million of receivables which were previously on non-accrual status and fully reserved. Other than the $8 million of receivables discussed above with a Performance Rating of 3, we have no receivables which are on non-accrual status. The following table provides a summary of our anticipated maturity dates of our receivables and the weighted average yield for each range of maturities as of September 30, 2021: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Maturities by period (excluding allowance) $ 1,390 $ 67 $ 56 $ 482 $ 785 Weighted average yield by period 8.2 % 7.6 % 6.3 % 8.4 % 8.3 % Investments The following table provides a summary of our anticipated maturity dates of our investments and the weighted average yield for each range of maturities as of September 30, 2021: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Maturities by period $ 18 $ — $ — $ — $ 18 Weighted average yield by period 4.1 % — % — % — % 4.1 % We had no investments that were impaired or on non-accrual status as of September 30, 2021 or December 31, 2020, and no allowances associated with our investments. Real Estate Our real estate is leased to renewable energy projects, typically under long-term triple net leases with expiration dates that range between the years 2033 and 2057 under the initial terms and 2047 and 2080 if all renewals are exercised. The components of our real estate portfolio as of September 30, 2021 and December 31, 2020, were as follows: September 30, 2021 December 31, 2020 (in millions) Real estate Land $ 269 $ 269 Lease intangibles 104 104 Accumulated amortization of lease intangibles (16) (14) Real estate $ 357 $ 359 As of September 30, 2021, the future amortization expense of the intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Future Amortization Expense Minimum Rental Income Payments (in millions) From October 1, 2021 to December 31, 2021 $ 1 $ 5 2022 3 22 2023 3 23 2024 3 24 2025 3 24 2026 3 24 Thereafter 72 717 Total $ 88 $ 839 Equity Method Investments We have made non-controlling equity investments in a number of renewable energy and energy efficiency projects as well as in a joint venture that owns land with long-term triple net lease agreements to several solar projects that we account for as equity method investments. As of September 30, 2021, we held the following equity method investments: Investment Date Investee Carrying Value (in millions) Various Jupiter Equity Holdings LLC $ 540 Various Lighthouse Partnerships (1) 211 March 2020 University of Iowa Energy Collaborative Holdings LLC 121 Various Phase V Class A LLC 109 Various Other investees 487 Total equity method investments $ 1,468 (1) Represents the total of three equity investments in a portfolio of renewable assets. Jupiter Equity Holdings LLC We have a preferred equity interest in Jupiter Equity Holdings LLC (“Jupiter”) that owns nine operating onshore wind projects and four operating utility-scale solar projects with an aggregate capacity of approximately 2.3 gigawatts. As of September 30, 2021, we have made capital contributions to Jupiter of approximately $540 million related to these projects. The projects feature cash flows from fixed-price power purchase agreements and financial hedges with a weighted average contract life of 13 years, contracted with highly creditworthy off-takers and counterparties. Jupiter is governed by an amended and restated limited liability company agreement, dated July 1, 2020, by and among Jupiter, one of our subsidiaries and a subsidiary of the project sponsor, and contains customary terms and conditions. We own 100% of the Class A Units in Jupiter corresponding to 49% of the distributions from Jupiter subject to the preferences discussed below. Most major decisions that may impact Jupiter, its subsidiaries or its assets, require the majority vote of a four person committee in which we and the project sponsor each have two representatives. Through Jupiter, we will be entitled to preferred distributions until certain return targets are achieved. Once these return targets are achieved, distributions will be allocated approximately 33% to us and approximately 67% to the sponsor. We and the sponsor each have a right of first offer if the other party desires to transfer any of its equity ownership to a third party on or after July 1, 2023. We use the equity method of accounting to account for our preferred equity interest in Jupiter, and have elected to recognize earnings from this investment one quarter in arrears to allow for the receipt of financial information. Lighthouse Partnerships In December 2020, we entered into certain agreements relating to the acquisition, ownership and management of approximately $663 million in preferred cash equity investments in three partnerships (the “Lighthouse Partnerships”) that expect to own cash equity interests in an approximately 1.6 gigawatt portfolio of onshore wind, utility-scale solar and solar-plus-storage projects (the “Renewables Portfolio”) developed and managed by the project sponsor. We have made initial investments in the preferred cash equity interests of the Lighthouse Partnerships of approximately $219 million through September 30, 2021, and additional investments are expected to be made in 2021 and 2022 as the projects become commercially operational. The Renewables Portfolio currently has contracted cash flows with a combined weighted average contract life of greater than 14 years with a diversified group of predominately investment grade corporate, utility, university and municipal offtakers. In the first quarter of 2021, we made approximately $15 million in equity contributions and made $10 million in member loans to one of the Lighthouse Partnerships for the settlement of hedging activity under one of the project's power hedge agreements as a result of the February 2021 winter storms in Texas. Each of the Lighthouse Partnerships are or will be governed by a limited liability company agreement between us and the sponsor serving as managing member and contain customary terms and conditions. Most major decisions that may impact each of the Lighthouse Partnerships, its subsidiaries or its assets, require a unanimous vote of the representatives present at a meeting of a review committee in which a quorum is present. The review committee is a four person committee, which includes two Company representatives and two sponsor representatives. Through each Lighthouse Partnership, commencing on a certain date following the effective date of the applicable limited liability company agreement, we will be entitled to preferred distributions until certain return targets are achieved. Subject to customary exceptions, no member of a Lighthouse Partnership can transfer any of its equity ownership in any Lighthouse Partnership to a third party without approval of the review committee of that Lighthouse Partnership. We use the equity method of accounting to account for our preferred equity interest in each Lighthouse Partnership, and have elected to recognize earnings from this investment one quarter in arrears to allow for the receipt of financial information. |
Credit facilities and commercia
Credit facilities and commercial paper notes | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Credit facilities and commercial paper notes | Credit facilities and commercial paper notes Secured credit facilities We have two secured revolving credit facilities (our “Secured Credit Facilities”), a representation-based loan agreement (the “Rep-Based Facility”) and an approval-based loan agreement (the “Approval-Based Facility”) with various lenders, which mature in July 2023. The Rep-Based Facility is a secured revolving limited-recourse credit facility, which we modified in March 2021 to have a maximum outstanding principal amount of $100 million, lowered from a previous amount of $250 million. This modification resulted in a $1.5 million loss due to the acceleration of a portion of the related unamortized financing costs that was recognized in the first quarter of 2021. The Approval-Based Facility is a secured revolving recourse credit facility with a maximum outstanding principal amount of $200 million. The following table provides additional detail on our Secured Credit Facilities as of September 30, 2021: Rep-Based Approval-Based Facility (dollars in millions) Outstanding balance $ — $ — Value of collateral pledged to credit facility 24 89 Available capacity based on pledged assets 11 64 Weighted average short-term borrowing rate N/A N/A Loans under the Rep-Based Facility bear interest at a rate equal to one-month LIBOR plus 1.40% or 1.85% (depending on the type of collateral) or, in certain circumstances, the Federal Funds Rate plus 0.40% or 0.85% (depending on the type of collateral). Loans under the Approval-Based Facility bear interest at a rate equal to one-month LIBOR plus 1.50% or 2.00% (depending on the type of collateral) or, under certain circumstances, the Federal Funds Rate plus 0.50% or 1.00% (depending on the type of collateral). Inclusion of any financings of the Company in the borrowing base as collateral under the Rep-Based Facility will be subject to the Company making certain agreed upon representations and warranties. We have provided a limited guarantee covering the accuracy of the representations and warranties, and the repayment by the borrowers of certain amounts relating to any such financing is the exclusive remedy with respect to any breach of such representations and warranties under the Rep-Based Facility. Inclusion of any financings of the Company in the borrowing base as collateral under the Approval-Based Facility will be subject to the approval of a super-majority of the lenders, and we have provided a guarantee of the Approval-Based Facility. The amount eligible to be drawn under the Secured Credit Facilities is based on a discount to the value of each included investment based upon the type of collateral or an applicable valuation percentage. The sum of included financings after taking into account the applicable valuation percentages and any changes in the valuation of the financings in accordance with the Secured Credit Facilities determines the borrowing capacity, subject to the overall facility limits described above. Under the Rep-Based Facility, the applicable valuation percentage is 85% in the case of a land-lease obligor or a U.S. Federal Government obligor, 80% in the case of an institutional obligor or 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 Approval-Based Facility, the applicable valuation percentage is 85% in the case of certain approved financings and 67% or such other percentage as the administrative agent may prescribe. The Approval-Based Facility previously had an outstanding draw with a fixed amortization schedule that was prepaid in the third quarter of 2021. We have approximately $2 million of remaining unamortized financing costs associated with the Secured Credit Facilities that have been capitalized and included in other assets on our balance sheet and are being amortized on a straight-line basis over the term of the Secured Credit Facilities. Administrative fees are payable annually to the administrative agent under each of the Secured Credit Facilities and letter agreements with the administrative agent. Under the Rep-Based Facility, we pay to the administrative agent on each monthly payment date, for the benefit of the lenders, certain availability fees for the Rep-Based Facility equal to 0.60%, divided by 365 or 366, as applicable, multiplied by the excess of the available total commitments under the Rep-Based Facility over the actual amount borrowed under the Rep-Based Facility. The Secured Credit Facilities contain terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature, including 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. We were in compliance with our covenants as of September 30, 2021. The Secured Credit Facilities also include customary events of default, including the existence of a default in more than 50% of the value of underlying financings. The occurrence of an event of default may result in termination of the credit facilities, acceleration of amounts due under the Secured Credit Facilities, and accrual of default interest at a rate of LIBOR plus 2.00% in the case of both the Rep-Based Facility and the Approval-Based Facility. Unsecured credit facility In April 2021, we entered into a new $400 million, 364-day unsecured revolving credit facility pursuant to a revolving credit agreement with a syndicate of lenders, replacing our then-existing $50 million unsecured revolving credit facility entered into in February 2021. As of September 30, 2021, the outstanding balance on this facility was $25 million, and it currently bears interest at a rate of 2.325%. We have approximately $1 million of remaining unamortized financing costs associated with the unsecured credit facility that have been capitalized and included in other assets on our balance sheet and are being amortized on a straight-line basis over the term of the unsecured credit facility. The unsecured revolving credit facility has a commitment fee based on our current credit rating and bears interest at a rate of the LIBOR or prime rate plus applicable margins based on our current credit rating, which may be adjusted downward up to 0.05% to the extent our Portfolio achieves certain targeted levels of carbon emissions avoidance. As of the inception of the unsecured revolving credit facility, the applicable margins are 2.25% for LIBOR-based loans and 1.25% for prime rate-based loans. The unsecured revolving credit facility contains terms, conditions, covenants, and representations and warranties that are customary and typical for a transaction of this nature, including 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, stock repurchases and dividends we declare. The unsecured revolving credit facility also includes customary events of default and remedies. At our option, upon maturity of the unsecured credit facility, we have the ability to convert amounts borrowed into term loans for a fee equal to 2.25% of the term loan amounts. CarbonCount © Green Commercial Paper Note Program In September 2021, we entered into an agreement allowing us to issue commercial paper notes, in amounts up to $100 million outstanding at any time. We obtained an irrevocable direct-pay letter of credit in an amount not to exceed $100 million from Bank of America, N.A, to support these obligations which expires in December 2022. Commercial paper notes will not be redeemable, will not be subject to voluntary prepayment and are not to exceed 397 days. The proceeds of our commercial paper notes are used to acquire or refinance, in whole or in part, eligible green projects, including assets that are neutral to negative on incremental carbon emissions. We have no commercial paper notes outstanding as of September 30, 2021. Green commercial paper notes will be issued at a discount based on market pricing, subject to broker fees of 0.10%. For issuance of the letter of credit, we will pay 0.95% on any drawn letter of credit amounts to Bank of America, N.A., and 0.40% on any unused letter of credit capacity. Fees paid on the drawn letters of credit may be reduced by up to 0.05% to the extent our Portfolio achieves certain targeted levels of carbon emissions avoidance as measured by our CarbonCount © |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Non-recourse debt We have outstanding the following asset-backed non-recourse debt and bank loans: Outstanding Balance Anticipated Carrying Value of Assets Pledged as of September 30, 2021 December 31, 2020 Interest Maturity Date September 30, 2021 December 31, 2020 Description (dollars in millions) HASI Sustainable Yield Bond 2015-1A $ 78 $ 81 4.28% October 2034 $ — $ 133 $ 134 Receivables, real estate and real estate intangibles HASI Sustainable Yield Bond 2015-1B Note (1) — 13 5.41% October 2034 — 133 134 Class B Bond of HASI Sustainable Yield Bond 2015-1 HASI SYB Trust 2016-2 66 67 4.35% April 2037 — 66 71 Receivables HASI ECON 101 Trust (2) — 126 3.57% May 2041 — — 133 Receivables and investments HASI SYB Trust 2017-1 147 150 3.86% March 2042 — 203 205 Receivables, real estate and real estate intangibles Lannie Mae Series 2019-01 93 95 3.68% January 2047 — 107 107 Receivables, real estate and real estate intangibles Other non-recourse debt (3) 65 73 3.15% - 7.45% 2022 to 2032 18 65 73 Receivables Unamortized financing costs (11) (12) Non-recourse debt (4) $ 438 $ 593 (1) The Company repurchased this note in April of 2021. (2) In March 2021, contractual terms were modified resulting in the deconsolidation of both this debt and the related pledged assets. We recognized a loss of approximately $3 million, which is included in gain on sale of receivables and investments in our income statement. (3) Other non-recourse debt consists of various debt agreements used to finance certain of our receivables. Scheduled debt service payment requirements are equal to or less than the cash flows received from the underlying receivables. (4) The total collateral pledged against our non-recourse debt was $574 million and $723 million as of September 30, 2021 and December 31, 2020, respectively. In addition, $25 million and $23 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of September 30, 2021 and December 31, 2020, respectively. We have pledged the financed assets, and typically our interests in one or more parents or subsidiaries of the borrower that are legally separate bankruptcy remote special purpose entities as security for the non-recourse debt. There is no recourse for repayment of these obligations other than to the applicable borrower and any collateral pledged as security for the obligations. Generally, the assets and credit of these entities are not available to satisfy any of our other debts and obligations. The creditors can only look to the borrower, the cash flows of the pledged assets and any other collateral pledged, to satisfy the debt and we are not otherwise liable for nonpayment of such cash flows. The debt agreements contain terms, conditions, covenants and representations and warranties that are customary and typical for transactions of this nature, including 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. The agreements also include customary events of default, the occurrence of which may result in termination of the agreements, acceleration of amounts due and accrual of default interest. We typically act as servicer for the debt transactions. We were in compliance with all covenants as of September 30, 2021 and December 31, 2020. We have guaranteed the accuracy of certain of the representations and warranties and other obligations of certain of our subsidiaries under certain of the debt agreements and provided an indemnity against certain losses from “bad acts” of such subsidiaries including fraud, failure to disclose a material fact, theft, misappropriation, voluntary bankruptcy or unauthorized transfers. The stated minimum maturities of non-recourse debt as of September 30, 2021, were as follows: Future minimum maturities (in millions) October 1, 2021 to December 31, 2021 $ 11 2022 23 2023 26 2024 30 2025 26 2026 25 Thereafter 308 Total minimum maturities $ 449 Unamortized financing costs (11) Total non-recourse debt $ 438 The stated minimum maturities of non-recourse debt above include only the mandatory minimum principal payments. To the extent there are additional cash flows received from our investments in climate solutions serving as collateral for certain of our non-recourse debt facilities, these additional cash flows are required to be used to make additional principal payments against the respective debt. Any additional principal payments made due to these provisions may impact the anticipated balance at maturity of these financings. To the extent there are not sufficient cash flows received from those investments pledged as collateral, the investor has no recourse against other corporate assets to recover any shortfalls. Senior Unsecured Notes We have outstanding senior unsecured notes issued jointly by certain of our TRS and are guaranteed by the Company and certain other subsidiaries (the “Senior Unsecured Notes”), including $1 billion of senior notes due 2026 (“2026 Notes”) issued in June 2021. Proceeds from the 2026 Notes were used to redeem the 2024 Notes as described below. The Senior Unsecured Notes are subject to covenants that limit our ability to incur additional indebtedness and require us to maintain unencumbered assets of not less than 120% of our unsecured debt. These covenants will terminate on any date at which the Senior Unsecured Notes have been rated investment grade by two of the three major credit rating agencies and no event of default has occurred. We are in compliance with all of our covenants as of September 30, 2021 and December 31, 2020. The Senior Unsecured Notes impose certain requirements in the event that we merge with or sell substantially all of our assets to another entity. The proceeds of our Senior Unsecured Notes are used to acquire or refinance, in whole or in part, eligible green projects, including assets that are neutral to negative on incremental carbon emissions. The following are summarized terms of the Senior Unsecured Notes: Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Redemption Terms Modification Date (in millions) 2024 Notes $ — (1) July 15, 2024 5.25 % January 15th and July 15, 2021 2025 Notes 400 April 15, 2025 6.00 % April 15 and April 15, 2022 (2) 2026 Notes 1,000 June 15, 2026 3.38 % June 15 and December 15 March 15, 2026 (2) 2030 Notes 375 (3) September 15, 2030 3.75 % February 15th and August 15th September 15, 2022 (4) (1) The first $350 million issuance of 2024 Notes was priced at par. We subsequently issued $150 million of the $500 million aggregate principal amount of the 2024 Notes for total proceeds of $157 million ($155 million net of issuance costs) at an effective interest rate of 4.13%. The 2024 Notes were redeemed in June 2021 using a portion of the proceeds from the 2026 Notes. We recognized a loss of $15 million upon redemption for the redemption premium and the acceleration of debt issuance cost and premium amortization which is recorded in interest expense in our income statement. (2) Prior to this date, we may redeem, at our option, some or all of the 2025 Notes or 2026 Notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the 2025 Notes or 2026 Notes plus accrued and unpaid interest through the redemption date. In addition, prior to this date, we may redeem up to 40% of the Senior Unsecured Notes using the proceeds of certain equity offerings at a price equal to par plus the coupon percentage of the principal amount thereof, plus accrued but unpaid interest, if any, to, but excluding, the applicable redemption date. On, or subsequent to, this date we may redeem the 2025 Notes or 2026 Notes in whole or in part at redemption prices defined in the indenture governing the 2025 Notes or 2026 Notes, plus accrued and unpaid interest though the redemption date. (3) We issued the $375 million aggregate principal amount of the 2030 Notes for total proceeds of $371 million ($367 million net of issuance costs) at an effective interest rate of 3.87%. (4) Prior to this date, we may, at our option on one or more occasions redeem up to 40% of the 2030 Notes using the proceeds of certain equity offerings at a price equal to 103.75% of the principal amount thereof; plus accrued but unpaid interest, if any, to, but excluding the applicable redemption date. At any point prior to maturity, we may redeem, at our option, some or all of the 2030 Notes plus the applicable “make-whole” premium as defined in the indenture governing the 2030 Notes plus accrued and unpaid interest through the redemption date. The following table presents a summary of the components of the Senior Unsecured Notes: September 30, 2021 December 31, 2020 (in millions) Principal $ 1,775 $ 1,275 Accrued interest 21 22 Unamortized premium (discount) (3) 2 Less: Unamortized financing costs (22) (16) Carrying value of Senior Unsecured Notes $ 1,771 $ 1,283 We recorded approximately $19 million and $53 million in interest expense related to the Senior Unsecured Notes in the three and nine months ended September 30, 2021, respectively, compared to approximately $14 million and $33 million in the three and nine months ended September 30, 2020, respectively. Convertible Senior Notes We have outstanding $158 million aggregate principal amount of convertible senior notes (“Convertible Senior Notes”). Holders may convert any of their Convertible Senior Notes into shares of our common stock at the applicable conversion ratio at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, unless the Convertible Senior Notes have been previously redeemed or repurchased by us. The following are summarized terms of the Convertible Senior Notes as of September 30, 2021: Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Conversion Ratio Conversion Price Issuable Shares Dividend Threshold Amount (1) (in millions) (in millions) 2022 Convertible Senior Notes $ 14 (2) September 1, 4.125 % March 1 and September 1 36.8088 $27.17 0.5 $0.33 2023 Convertible Senior Notes 144 August 15, 0.000 % N/A 20.6853 $48.34 3.0 $0.34 (1) The conversion ratio is subject to adjustment for dividends declared above these amounts per share per quarter and certain other events that may be dilutive to the holder. (2) During the quarter ended September 30, 2021, $136 million in principal amount of 2022 Convertible Senior Notes were converted into 5 million shares of common stock. For both the 2022 Convertible Senior Notes and the 2023 Convertible Senior Notes, following the occurrence of a make-whole fundamental change, we will, in certain circumstances, increase the conversion rate for a holder that converts its convertible notes in connection with such make-whole fundamental change. There are no cash settlement provisions in the convertible notes and the conversion option can only be settled through physical delivery of our common stock. Additionally, upon the occurrence of certain fundamental changes involving us, holders of the convertible notes may require us to redeem all or a portion of their convertible notes for cash at a price of 100% of the principal amount outstanding, plus accrued and unpaid interest. We have a redemption option to call the 2022 Convertible Senior Notes prior to maturity (i) on or after March 1, 2022 and (ii) at any time if such a redemption is deemed reasonably necessary to preserve our qualification as a REIT, with the holder of the notes having the option of converting prior to our redemption becoming effective. The redemption price will be equal to the principal of the notes being redeemed, plus accrued and unpaid interest. In the event of redemption after March 1, 2022, there will be an additional make-whole premium paid to the holder of the redeemed notes unless the redemption is deemed reasonably necessary to preserve our qualification as a REIT. We may redeem the 2023 Convertible Senior Notes at any time only if such a redemption is deemed reasonably necessary to preserve our qualification as a REIT. The following table presents a summary of the components of the Convertible Senior Notes: September 30, 2021 December 31, 2020 (in millions) Principal $ 158 $ 294 Accrued interest — 2 Less: Unamortized financing costs (3) (5) Carrying value of Convertible Senior Notes $ 155 $ 291 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The nature of our operations exposes us to the risk of claims and litigation in the normal course of our business. We are not currently subject to any legal proceedings that are probable of having a material adverse effect on our financial position, results of operations or cash flows. Guarantees and other commitments We have made a guarantee related to the financing of one of our joint venture entities that owns debt securities of energy efficiency projects. The entity entered into a financing arrangement where we have guaranteed the obligations of the entity related to this financing, which includes collateral posting requirements as well as repayment of the financing at maturity in December 2021. As of September 30, 2021, our maximum obligation under this guarantee is approximately $60 million. We have executed a separate agreement with our joint venture partner pursuant to which it is liable for 15% of this obligation repayable to us. In connection with some of our transactions, we have provided certain limited representations, warranties, covenants and/or provided an indemnity against certain losses resulting from our own actions, including related to certain investment tax credits. As of September 30, 2021, there have been no such actions resulting in claims against the Company. COVID-19 The COVID-19 global pandemic has brought forth uncertainty and disruption to the global economy. As of September 30, 2021, we have not recorded any contingencies on our balance sheet related to COVID-19 with the exception of any allowances related to our receivables described in Note 6 to our financial statements in this Form 10-Q. To the extent COVID-19 continues to cause dislocations in the global economy, our financial condition, results of operations, and cash flows may be adversely impacted. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income TaxWe recorded an income tax (expense) benefit of approximately $1 million and $(12) million for the three and nine months ended September 30, 2021, respectively, compared to a $(2) million and $(3) million income tax (expense) benefit in the three and nine months ended September 30, 2020, respectively. For the three and nine months ended September 30, 2021 and 2020, our income tax (expense) benefit was determined using the federal tax rate of 21%, and combined state tax rates, net of federal benefit, of approximately 3% for 2021 and 4% for 2020. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity Dividends and Distributions Our board of directors declared the following dividends in 2020 and 2021: Announced Date Record Date Pay Date Amount per 2/20/2020 4/2/2020 4/10/2020 $ 0.34 6/5/2020 7/2/2020 7/9/2020 0.34 8/6/2020 10/2/2020 10/9/2020 0.34 11/5/2020 12/28/2020 (1) 01/8/2021 0.34 2/18/2021 04/5/2021 04/12/2021 0.35 5/4/2021 7/2/2021 7/9/2021 0.35 8/5/2021 10/1/2021 10/8/2021 0.35 (1) This dividend was treated as a distribution in 2021 for tax purposes. Equity Offerings We have an effective universal shelf registration statement registering the potential offer and sale, from time to time and in one or more offerings, of any combination of our common stock, preferred stock, depositary shares, debt securities, warrants and rights (collectively referred to as the “securities”). We may offer the securities directly, through agents, or to or through underwriters by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices and may include “at the market” (“ATM”) offerings to or through a market maker or into an existing trading market on an exchange or otherwise. We completed the following public offerings (including ATM issuances) of our common stock during 2021 and 2020: Date/Period Common Stock Offerings Shares Issued Price Per Share (2) Net Proceeds (1) (amounts in millions, except per share amounts) Q1 2020 ATM 4.500 $ 25.84 $ 115 Q2 2020 ATM 1.938 23.10 44 Q3 2020 ATM 0.875 33.81 29 Q4 2020 ATM 2.204 50.35 110 Q1 2021 ATM 1.639 63.55 103 Q2 2021 None — — — Q3 2021 ATM 0.857 57.56 49 (1) Net proceeds from the offerings are shown after deducting underwriting discounts, commissions and other offering costs. (2) Represents the average price per share at which investors in our ATM offerings purchased our shares. Equity-based Compensation Awards under our 2013 Plan We have issued equity awards that vest from 2022 to 2025 subject to service, performance and market conditions. During the nine months ended September 30, 2021, our board of directors awarded employees and directors 434,159 shares of restricted stock, restricted stock units and LTIP Units that vest from 2022 to 2025. As of September 30, 2021, we have concluded that it is probable that the performance conditions will be met for previously issued restricted stock awards with performance conditions. Refer to Note 4 to our financial statements in this Form 10-Q for background on the LTIP Units. For the three and nine months ended September 30, 2021 we recorded $4 million and $14 million of stock based compensation, respectively, compared to $4 million and $12 million during the three and nine months ended September 30, 2020. Of the current nine-month period expense, $2 million is related to the acceleration of compensation expense related to an employee with a change in employment status that occurred in the first quarter of 2021. The total unrecognized compensation expense related to awards of shares of restricted stock and restricted stock units was approximately $19 million as of September 30, 2021. We expect to recognize compensation expense related to our equity awards over a weighted-average term of approximately 2 years. A summary of the unvested shares of restricted common stock that have been issued is as follows: Restricted Shares of Common Stock Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 750,242 $ 20.08 $ 15.1 Granted 194,077 32.93 6.4 Vested (576,880) 19.50 (11.3) Forfeited (262) 28.59 — Ending Balance — December 31, 2020 367,177 $ 27.77 $ 10.2 Granted 80,886 59.41 4.8 Vested (250,758) 29.22 (7.3) Forfeited (50) 63.59 — Ending Balance — September 30, 2021 197,255 $ 38.89 $ 7.7 A summary of the unvested shares of restricted stock units that have market-based vesting conditions that have been issued is as follows: Restricted Stock Units (1) Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 435,578 $ 20.12 $ 8.8 Granted 23,342 27.18 0.6 Incremental performance shares granted 216,932 18.99 4.1 Vested (439,986) 19.04 (8.4) Forfeited (266) 25.90 — Ending Balance — December 31, 2020 235,600 $ 21.78 $ 5.1 Granted 17,426 71.23 1.2 Incremental performance shares granted 171,180 20.24 3.5 Vested (342,360) 20.24 (6.9) Forfeited — — — Ending Balance — September 30, 2021 81,846 $ 35.52 $ 2.9 (1) As discussed in Note 2 to our financial statements in this Form 10-Q, restricted stock units with market-based vesting conditions can vest between 0% and 200% subject to both the absolute performance of the Company's common stock as well as relative performance compared to a group of peers. The incremental performance shares granted relate to the vesting of an award at the 200% level. A summary of the unvested LTIP Units that have time-based vesting conditions that have been issued is as follows: LTIP Units (1) Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 201,310 $ 25.84 $ 5.2 Granted 165,346 18.56 3.1 Vested (80,974) 25.87 (2.1) Forfeited — — — Ending Balance — December 31, 2020 285,682 $ 21.62 $ 6.2 Granted 249,573 54.73 13.7 Vested (151,209) 21.58 (3.3) Forfeited — — — Ending Balance — September 30, 2021 384,046 $ 43.15 $ 16.6 (1) See Note 4 to our financial statements in this Form 10-Q for information on the vesting of LTIP Units. A summary of the unvested LTIP Units that have market-based vesting conditions that have been issued is as follows: LTIP Units (1) Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 180,500 $ 26.70 $ 4.8 Granted 132,204 12.25 1.6 Vested — — — Forfeited — — — Ending Balance — December 31, 2020 312,704 $ 20.59 $ 6.4 Granted 86,274 65.28 5.6 Incremental performance shares granted 51,500 21.09 1.1 Vested (103,000) 21.09 (2.1) Forfeited — — — Ending Balance — September 30, 2021 347,478 $ 31.61 $ 11.0 |
Earnings per Share of Common St
Earnings per Share of Common Stock | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share of Common Stock | Earnings per Share of Common StockBoth the net income or loss attributable to the non-controlling OP units and the non-controlling limited partners’ outstanding OP units have been excluded from the basic earnings per share and the diluted earnings per share calculations attributable to common stockholders. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are excluded from net income available to common shareholders in the computation of earnings per share pursuant to the two-class method. Certain share-based awards are included in the diluted share count to the extent they are dilutive as discussed in Note 2 to our financial statements in this Form 10-Q. To the extent our Senior Convertible Notes are dilutive under the if-converted method, we add back the interest expense to the numerator and include the weighted average shares of potential common stock over the period issuable upon conversion of the note in the denominator in calculating dilutive EPS as described in Note 2 to our financial statements in this Form 10-Q. The computation of basic and diluted earnings per common share of common stock is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: (in millions, except share and per share data) Net income (loss) attributable to controlling stockholders and participating securities $ (2.8) $ 21.2 $ 64.2 $ 57.5 Less: Dividends and distributions on participating securities (0.2) (0.2) (0.7) (0.7) Less: Undistributed earnings attributable to participating securities — — — — Net income (loss) attributable to controlling stockholders — basic (3.0) 21.0 63.5 56.8 Add: Interest expense related to convertible notes under the if-converted method — 0.1 1.0 0.1 Add: Undistributed earnings attributable to participating securities — — — — Net income (loss) attributable to controlling stockholders — dilutive $ (3.0) $ 21.1 $ 64.5 $ 56.9 Denominator: Weighted-average number of common shares — basic 79,335,173 74,012,788 78,407,028 71,376,004 Weighted-average number of common shares — diluted 79,335,173 76,131,252 82,069,464 72,644,626 Basic earnings per common share $ (0.04) $ 0.28 $ 0.81 $ 0.80 Diluted earnings per common share $ (0.04) $ 0.28 $ 0.79 $ 0.78 Securities being allocated a portion of earnings: Weighted-average number of OP units 559,686 321,261 459,848 301,582 As of September 30, 2021 As of September 30, 2020 Participating securities: Unvested restricted common stock and unvested LTIP Units with time-based vesting conditions outstanding at period end 581,301 653,071 Potentially dilutive securities as of period end: Unvested restricted common stock and unvested LTIP Units with time-based vesting conditions 581,301 653,071 Restricted stock units 81,846 235,866 LTIP Units with market-based vesting conditions 347,478 312,704 Potential shares of common stock related to convertible notes 3,494,175 8,485,630 |
Equity Method Investments
Equity Method Investments | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments We have non-controlling unconsolidated equity investments in renewable energy and energy efficiency projects as well as in a joint venture that owns land with long-term triple net lease agreements to several solar projects. We recognized income (loss) from our equity method investments of approximately $(7) million and $70 million during the three and nine months ended September 30, 2021, respectively, compared to $17 million and $33 million during the three and nine months ended September 30, 2020, respectively. We describe our accounting for non-controlling equity investments in Note 2 to our financial statements in this Form 10-Q. The following is a summary of the consolidated financial position and results of operations of the significant entities accounted for using the equity method. SunStrong Capital Holdings LLC Rosie Target Co, LLC (1) Lighthouse Renewable HoldCo LLC (1) Summit Ridge Capital Holdings, LLC Vivint Solar Asset 3 Holdco Parent LLC Other Investments (2) Total (in millions) Balance Sheet As of June 30, 2021 Current assets $ 87 $ 11 $ 11 $ 51 $ 60 $ 636 $ 856 Total assets 1,624 282 482 407 441 7,900 11,136 Current liabilities 63 5 41 58 8 587 762 Total liabilities 1,282 101 130 357 353 2,586 4,809 Members' equity 342 181 352 50 88 5,314 6,327 As of December 31, 2020 Current assets 92 25 22 18 86 539 782 Total assets 1,532 299 497 268 303 7,340 10,239 Current liabilities 48 19 22 43 3 518 653 Total liabilities 1,217 118 87 243 139 2,298 4,102 Members' equity 315 181 410 25 164 5,042 6,137 Income Statement For the six months ended June 30, 2021 Revenue 67 6 (71) 6 11 4 23 Income (loss) from continuing operations 2 (3) (88) (5) 4 (283) (373) Net income (loss) 2 (3) (88) (5) 4 (283) (373) For the six months ended June 30, 2020 Revenue 61 — — 1 — 118 180 Income (loss) from continuing operations (4) — — (2) — (1) (7) Net income (loss) (4) — — (2) — (1) (7) (1) Component of the Lighthouse Partnerships described in Note 6 to our financial statements in this Form 10-Q. (2) Represents aggregated financial statement information for investments not separately presented. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The preparation of financial statements in accordance with U.S. generally accepted accounting principles (“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. Actual results could differ from these estimates and such differences could be material. These financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2020, as filed with the SEC. In the opinion of management, all adjustments necessary to present fairly our financial position, results of operations and cash flows have been included. Our results of operations for the three- and nine-month periods ended September 30, 2021 and 2020, are not necessarily indicative of the results to be expected for the full year or any other future period. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. Certain amounts in the prior years have been reclassified to conform to the current year presentation. The consolidated financial statements include our accounts and controlled subsidiaries, including the Operating Partnership. All material intercompany transactions and balances have been eliminated in consolidation. Following the guidance for non-controlling interests in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 810, Consolidation ("ASC 810") , |
Consolidation and Equity Method Investments | Consolidation We account for our investments in entities that are considered voting interest entities or variable interest entities (“VIEs”) under ASC 810 and assess whether we should consolidate these entities on an ongoing basis. We have established various special purpose entities or securitization trusts for the purpose of securitizing certain assets that are not consolidated in our financial statements as described below in Securitization of Financial Assets. Since we have assessed that we have power over and receive the benefits from those special purpose entities that are formed for the purpose of holding our assets on our balance sheet, we have concluded we are the primary beneficiary and should consolidate these entities under the provisions of ASC 810. We also have certain subsidiaries we deem to be voting interest entities that we control through our ownership of voting interests and accordingly consolidate. Certain of our equity method investments were determined to be interests in VIEs in which we are not the primary beneficiary, as we do not direct the significant activities of these entities, and thus we account for those investments as Equity Method Investments as discussed below. Our maximum exposure to loss through these investments is limited to their recorded values. However, we may provide financial commitments to these VIEs or guarantees of certain of their obligations. Certain other entities in which we have equity investments have been assessed to be voting interest entities and are not consolidated as we exert significant influence rather than control through our ownership of voting interests, and accordingly account for them as equity method investments described below. Equity Method Investments We have made equity investments in various renewable energy and energy efficiency projects. These investments are typically owned in holding companies (using limited liability companies (“LLCs”) taxed as partnerships) where we partner with either the operator of the project or other institutional investors. We share in the cash flows, income and tax attributes according to a negotiated schedule (which typically does not correspond with our ownership percentages). Investors, if any, in a preferred return position typically receive a priority distribution of all or a portion of the project's cash flows, and in some cases, tax attributes. Once the preferred return, if applicable, is achieved, the partnership “flips” and the operator of the project along with any other common equity investors receive a larger portion of the cash flows, with the previously preferred investors retaining an on-going residual interest. Our equity investments in renewable energy or energy efficiency projects are accounted for under the equity method of accounting. Under the equity method of accounting, the carrying value of these equity method investments is determined based on amounts we invested, adjusted for the equity in earnings or losses of the investee allocated based on the LLC agreement, less distributions received. For the LLC agreements that contain preferences with regard to cash flows from operations, capital events and liquidation, we reflect our share of profits and losses by determining the difference between our claim on the investee’s book value at the beginning and the end of the period, which is adjusted for distributions received and contributions made. This claim is calculated as the amount we would receive if the investee were to liquidate all of its assets at the recorded amounts determined in accordance with GAAP and distribute the resulting cash to creditors and investors in accordance with their respective priorities. This method is referred to as the hypothetical liquidation at book value method (“HLBV”). Any difference between the amount of our investment and the amount of underlying equity in net assets is generally amortized over the life of the assets and liabilities to which the difference relates. Cash distributions received from each equity method investment are classified as operating activities to the extent of cumulative earnings for each investment in our consolidated statements of cash flows. Our initial investment and additional cash distributions beyond that which are classified as operating activities are classified as investing activities in our consolidated statements of cash flows. We typically recognize earnings one quarter in arrears for certain of these investments to allow for the receipt of financial information. |
Government and Commercial Receivables | Government and Commercial Receivables Government and commercial receivables (“receivables”) include project loans and receivables. These receivables are separately presented in our balance sheet to illustrate the differing nature of the credit risk related to these assets. Unless otherwise noted, we generally have the ability and intent to hold our receivables for the foreseeable future and thus they are classified as held for investment. Our ability and intent to hold certain receivables may change from time to time depending on a number of factors including economic, liquidity and capital market conditions. At inception of the arrangement, the carrying value of receivables 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. Receivables that are held for investment are carried at amortized cost, net of any unamortized acquisition premiums or discounts and include origination and acquisition costs, as applicable. Our initial investment and principal repayments of these receivables are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. Receivables that we intend to sell in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value on our balance sheet, which is assessed on an individual asset basis. The purchases and proceeds from receivables that we intend to sell at origination are classified as operating activities in our consolidated statements of cash flows. Interest collected is classified as an operating activity in our consolidated statements of cash flows. Certain of our receivables may include the ability to defer required interest payments in exchange for increasing the receivable balance at the borrower's option. We generally accrue this paid-in-kind (“PIK”) interest when collection is expected, and cease accruing PIK interest if there is insufficient value to support the accrual or we expect that any portion of the principal or interest due is not collectible. We evaluate our receivables for an allowance as determined under ASC Topic 326 Financial Instruments- Credit Losses (“Topic 326”) and for our internally derived asset performance categories included in Note 6 to our financial statements in this Form 10-Q on at least a quarterly basis and more frequently when economic or other conditions warrant such an evaluation. When a 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 receivable delinquent or impaired and place the receivable on non-accrual status and cease recognizing income from that receivable until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a 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. |
Real Estate | Real Estate Real estate consists of land or other real property and its related lease intangibles, net of any amortization. Our real estate is generally leased to tenants on a triple 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. Certain real estate transactions may be characterized as "failed sale-leaseback" transactions as defined under ASC Topic 842, Leases , and thus are accounted for similarly to our commercial receivables as described above in Government and Commercial Receivables. For our other real estate lease transactions that are classified as operating leases, the scheduled rental revenue typically varies during the lease term and thus rental 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 that vary during the lease term and the income recognized on a straight-line basis and is recorded in other assets. Expenses, if any, related to the ongoing operation of leases where we are the lessor, are charged to operations as incurred. Our initial investment is classified as investing activities and income collected for rental income is classified as operating activities in our consolidated statements of cash flows. When our real estate transactions are treated as an asset acquisition with an operating lease, we typically record our real estate purchases at cost, including acquisition and closing costs, which is allocated to each tangible and intangible asset acquired on a relative fair value basis. |
Investments | Investments Investments are debt securities that meet the criteria of ASC 320, Investments-Debt and Equity Securities . We have designated our debt securities as available-for-sale and carry these securities at fair value on our balance sheet. Unrealized gains and losses, to the extent not considered to be credit related, on available-for-sale debt securities are recorded as a component of accumulated other comprehensive income (“AOCI”) in equity on our balance sheet. When a security is sold, we reclassify the AOCI to earnings based on specific identification. Our initial investment and principal repayments of these investments are classified as investing activities and the interest collected is classified as operating activities in our consolidated statements of cash flows. We evaluate our investments for impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Our impairment 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 value of the underlying project. We consider several qualitative and quantitative factors in our assessment. The primary factor in our assessment is the current fair value of the security, while other factors include changes in the credit rating, performance of the underlying project, key terms of the transaction, the value of any collateral and any support provided by the sponsor or guarantor. To the extent that we have identified an impairment for a security, intend to hold the investment to maturity, and do not expect that we will be required to sell the security prior to recovery of the amortized cost basis, we will recognize only the credit component of the unrealized loss in earnings by recording an allowance against the amortized cost of the asset as required by Topic 326. We determine the credit component using the difference between the security’s 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 is recorded in AOCI. To the extent we hold investments with a fair value less than the amortized cost and 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. |
Securitization of Financial Assets | Securitization of Financial Assets We have established various special purpose entities or securitization trusts for the purpose of securitizing certain financial assets. We determined that the trusts used in securitizations are VIEs, as defined in ASC 810. When we conclude that we are not the primary beneficiary of certain trusts because we do not have power over those trusts' significant activities, we do not consolidate the trust. 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. We account for transfers of financial assets to these securitization trusts as sales pursuant to ASC 860, Transfers and Servicing (“ASC 860”), when we have concluded the transferred assets 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 assets. When we are unable to conclude that we have been sufficiently isolated from the securitized financial assets, we treat such trusts as secured borrowings, retaining the assets on our balance sheet and recording the amounts due to the trust investor as non-recourse debt. For transfers treated as sales under ASC 860, we have received true-sale-at-law and non-consolidation legal opinions for all of our securitization trust structures to support our conclusion regarding the transferred financial assets. When we sell financial assets in securitizations, we generally retain interests in the form of servicing rights and residual assets, which we refer to as securitization assets. Gain or loss on the sale of financial assets 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 assets sold. 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 current market discount rates commensurate with the risks involved. Cash flows related to our securitizations at origination are classified as operating activities in our consolidated statements of cash flows. We initially account for all separately recognized servicing assets and servicing liabilities at fair value and subsequently measure such servicing assets and liabilities using the amortization method. Servicing assets and liabilities are amortized in proportion to, and over the period of, estimated net servicing income with servicing income recognized as earned. 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. |
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 includes cash and cash equivalents set aside with certain lenders primarily to support obligations outstanding as of the balance sheet dates. Restricted cash is reported as part of other assets in the consolidated balance sheets. Refer to Note 3 to our financial statements in this Form 10-Q for disclosure of the balances of restricted cash included in other assets. |
Convertible Notes | Convertible Notes We have issued convertible senior notes that are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options , and ASC 815, Derivatives and Hedging (“ASC 815”) . Under ASC 815, issuers of certain convertible debt instruments are generally required to separately account for the conversion option of the convertible debt instrument as either a derivative or equity, unless it meets the scope exemption for contracts indexed to, and settled in, an issuer’s own equity. Since this conversion option is both indexed to our equity and can only be settled in our common stock, we have met the scope exemption, and therefore, we are not separately accounting for the embedded conversion option. The initial issuance and any principal repayments are classified as financing activities and interest payments are classified as operating activities in our consolidated statements of cash flows. If converted, the carrying value of each bond is reclassified into stockholders' equity. |
Income Taxes | Income Taxes We elected and qualified to be taxed as a REIT for U.S. federal income tax purposes, commencing with our taxable year ended December 31, 2013. We also have taxable REIT subsidiaries (“TRS”) that are taxed separately, and that will generally be subject to U.S. federal, state and local income taxes as well as taxes of foreign jurisdictions, if any. To qualify as a REIT, we must meet on an ongoing basis several organizational and operational requirements, including a requirement that we currently distribute at least 90% of our REIT's net taxable income before dividends paid, excluding capital gains, to our stockholders. 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. We account for income taxes under ASC 740, Income Taxes (“ASC 740”) for 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 |
Equity-Based Compensation | Equity-Based Compensation In 2013, we adopted the 2013 Hannon Armstrong Sustainable Infrastructure Capital, Inc. Equity Incentive Plan (as amended, 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 grant equity or equity-based awards as compensation to our independent directors, employees, advisors, consultants and other personnel under our 2013 Plan. Certain awards earned under the plan are based on achieving various performance targets, which are generally earned between 0% and 200% of the initial target, depending on the extent to which the performance target is met. In addition to performance targets, certain LTIP units issued by our Operating Partnership also require a certain level of appreciation of partnership interests to occur before parity is reached and LTIP units can be converted to limited partnership units. We record compensation expense for grants made under the 2013 Plan in accordance with ASC 718, Compensation-Stock Compensation |
Earnings Per Share | Earnings Per Share We compute earnings per share of common stock in accordance with ASC 260, Earnings Per Share |
Segment Reporting | Segment Reporting We make equity and debt investments in the energy efficiency, renewable energy and sustainable infrastructure markets. We manage our business as a single portfolio and report all of our activities as one business segment. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting standards updates issued before November 5, 2021, and effective after September 30, 2021, are not expected to have a material effect on our consolidated financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value and Carrying Value of Financial Assets and Liabilities | The tables below illustrate the estimated fair value of our financial instruments on our balance sheet. Unless otherwise discussed below, fair value for our Level 2 and Level 3 measurements is measured using a discounted cash flow model, contractual terms and inputs which consist of base interest rates and spreads over base rates which are based upon market observation and recent comparable transactions. An increase in these inputs would result in a lower fair value and a decline would result in a higher fair value. Our senior unsecured notes and convertible notes are valued using a market based approach and observable prices. The receivables held-for-sale, if any, are carried at the lower of cost or fair value. As of September 30, 2021 Fair Value Carrying Level (in millions) Assets Government receivables $ 139 $ 126 Level 3 Commercial receivables 1,397 1,225 Level 3 Investments (1) 18 18 Level 3 Securitization residual assets (2) 198 198 Level 3 Liabilities (3) Credit facilities $ 25 $ 25 Level 3 Non-recourse debt 487 449 Level 3 Senior unsecured notes 1,838 1,793 Level 2 Convertible notes 203 158 Level 2 (1) The amortized cost of our investments as of September 30, 2021, was $17 million. (2) Included in securitization assets on the consolidated balance sheet. This amount excludes securitization servicing assets, which are carried at amortized cost. The amortized cost of our securitization assets as of September 30, 2021 was $184 million. (3) Fair value and carrying value exclude unamortized financing costs. As of December 31, 2020 Fair Value Carrying Level (in millions) Assets Government receivables $ 282 $ 248 Level 3 Commercial receivables 1,018 965 Level 3 Investments (1) 55 55 Level 3 Securitization residual assets (2) 159 159 Level 3 Liabilities (3) Credit facilities $ 23 $ 23 Level 3 Non-recourse debt 678 605 Level 3 Senior unsecured notes 1,362 1,299 Level 2 Convertible notes 552 296 Level 2 (1) The amortized cost of our investments as of December 31, 2020, was $51 million. (2) Included in securitization assets on the consolidated balance sheet. This amount excludes securitization servicing assets, which are carried at amortized cost. The amortized cost of our securitization assets as of December 31, 2020 was $141 million. (3) Fair value and carrying value exclude unamortized financing costs. |
Schedule of Reconciliation of Level 3 Investments Securities | The following table reconciles the beginning and ending balances for our Level 3 investments that are carried at fair value on a recurring basis: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 18 $ 46 $ 55 $ 75 Purchases of investments — 5 5 23 Principal payments on investments — — — (2) Sale of investments — — (38) (53) Realized gains on investments recorded in gain on sale of receivables and investments — — — 5 Unrealized gains (losses) on investments recorded in OCI — 1 (4) 4 Balance, end of period $ 18 $ 52 $ 18 $ 52 The following table reconciles the beginning and ending balances for our Level 3 securitization residual assets that are carried at fair value on a recurring basis: For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 (in millions) Balance, beginning of period $ 188 $ 135 $ 159 $ 122 Accretion of securitization residual assets 2 2 6 4 Additions to securitization residual assets 11 9 45 36 Collections of securitization residual assets (2) (4) (8) (9) Sales of securitization residual assets — — — (21) Unrealized gains (losses) on securitization residual assets recorded in OCI (1) — (4) 10 Balance, end of period $ 198 $ 142 $ 198 $ 142 |
Schedule of Investments in Unrealized Loss Position | The following table illustrates our investments in an unrealized loss position: Estimated Fair Value Unrealized Losses (1) Securities with a loss shorter than 12 months Securities with a loss longer than 12 months Securities with a loss shorter than 12 months Securities with a loss longer than 12 months (in millions) September 30, 2021 $ 7 $ — $ 0.2 $ — December 31, 2020 — 6 — 0.3 |
Schedule of Cash Deposits Subject to Credit Risk | We had cash deposits that are subject to credit risk as shown below: September 30, 2021 December 31, 2020 (in millions) Cash deposits $ 413 $ 286 Restricted cash deposits (included in other assets) 26 24 Total cash deposits $ 439 $ 310 Amount of cash deposits in excess of amounts federally insured $ 437 $ 309 |
Securitization of Financial A_2
Securitization of Financial Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Schedule of Certain Transactions with Securitization Trusts | The following summarizes certain transactions with securitization trusts: As of and for the nine months ended September 30, 2021 2020 (in millions) Gains on securitizations $ 55 $ 34 Cost of financial assets securitized 665 173 Proceeds from securitizations 720 207 Residual and servicing assets 204 147 Cash received from residual and servicing assets 9 9 |
Our Portfolio (Tables)
Our Portfolio (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Schedule of Analysis of Portfolio by Type of Obligor and Credit Quality | The following is an analysis of the Performance Ratings of our Portfolio as of September 30, 2021, which is assessed quarterly: Portfolio Performance 1 (1) 2 (2) 3 (3) Total Government Commercial Commercial Commercial Receivable vintage (dollars in millions) 2021 $ — $ 203 $ — $ — $ 203 2020 — 190 — — 190 2019 — 483 6 — 489 2018 — 260 — — 260 2017 31 1 8 — 40 2016 14 59 — — 73 Prior to 2016 81 46 — 8 135 Total receivables 126 1,242 14 8 1,390 Less: Allowance for loss on receivables — (26) (5) (8) (39) Net receivables (4) 126 1,216 9 — 1,351 Receivables held-for-sale — — — — — Investments 11 7 — — 18 Real estate — 357 — — 357 Equity method investments (5) — 1,442 26 — 1,468 Total $ 137 $ 3,022 $ 35 $ — $ 3,194 Percent of Portfolio 4 % 95 % 1 % — % 100 % Average remaining balance (6) $ 6 $ 13 $ 10 $ 4 $ 12 (1) This category includes our assets where based on our credit criteria and performance to date we believe that our risk of not receiving our invested capital remains low. (2) This category includes our assets where based on our credit criteria and performance to date we believe there is a moderate level of risk to not receiving some or all of our invested capital. (3) This category includes our assets where based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital. Included in this category are two commercial receivables with a combined total carrying value of approximately $8 million as of September 30, 2021, which we have held on non-accrual status since 2017. We expect to continue to pursue our legal claims with regards to these assets. This category previously contained an equity method investment in a wind project with no book value due to our allocation of impairment losses recorded by the project sponsor. We sold this equity method investment in the third quarter for nominal proceeds. (4) Total reconciles to the total of the government receivables and commercial receivables lines of the consolidated balance sheets. (5) Some of the individual projects included in portfolios that make up our equity method investments have government off-takers. As they are part of large portfolios, they are not classified separately. |
Schedule of Carrying Value, Expected Loan Funding Commitments, and Allowance by Type of Receivable | Below is a summary of the carrying value, expected loan funding commitments, and allowance by type of receivable or “Portfolio Segment”, as defined by Topic 326, as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Gross Carrying Value Loan Funding Commitments Allowance Gross Carrying Value Loan Funding Commitments Allowance (in millions) Government (1) $ 126 $ — $ — $ 248 $ — $ — Commercial (2) 1,264 290 39 1,002 282 36 Total $ 1,390 $ 290 $ 39 $ 1,250 $ 282 $ 36 (1) As of September 30, 2021, our government receivables include $28 million of U.S. federal government transactions and $98 million of transactions where the ultimate obligors are state or local governments. Risk characteristics of our government receivables include the energy savings or the power output of the projects and the ability of the government obligor to generate revenue for debt service, via taxation or other means. Transactions may have guarantees of energy savings or other performance support from third-party service providers, which typically are entities, directly or whose ultimate parent entity is, rated investment grade by an independent rating agency. All of our government receivables are included in Performance Rating 1 in the Portfolio Performance table above. Our allowance for government receivables is primarily calculated by using PD/LGD methods as discussed in Note 2 to our financial statements in this Form 10-Q. Our expectation of credit losses for these receivables is immaterial given the high credit-quality of the obligors. (2) As of September 30, 2021, this category of assets includes $742 million of mezzanine loans made on a non-recourse basis to special purpose subsidiaries of residential solar companies which are secured by residential solar assets where we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries. Approximately $647 million of our commercial receivables are loans made to entities in which we also have non-controlling equity investments of approximately $76 million. This total also includes $47 million of lease agreements where we hold legal title to the underlying real estate which are treated under GAAP as receivables since they were deemed to be failed sale/leaseback transactions as described in Note 2 to our financial statements in this Form 10-Q. Risk characteristics of our commercial receivables include a project’s operating risks, which include the impact of the overall economic environment, the climate solutions sector, the effect of local, industry, and broader economic factors, the impact of any variation in weather and trends in interest rates. We use assumptions related to these risks to estimate an allowance using a discounted cash flow analysis or the PD/LGD method as discussed in Note 2 to our financial statements in this Form 10-Q. All of our commercial receivables are included in Performance Rating 1 in the Portfolio Performance table above, except for $14 million of receivables included in Performance Category 2 and the $8 million of receivables we have placed on non-accrual status which are included in Performance Rating 3. For those assets in Performance Rating 1, the credit worthiness of the obligor combined with the various structural protections of our assets cause us to believe we have a low risk we will not receive our invested capital, however we recorded a $26 million allowance on these $1.2 billion in assets as a result of lower probability assumptions utilized in our allowance methodology. The following table reconciles our beginning and ending allowance for loss on receivables by Portfolio Segment: Three months ended September 30, 2021 Three months ended September 30, 2020 Government Commercial Government Commercial (in millions) Beginning balance $ — $ 37 $ — $ 29 Provision for loss on receivables — 2 — 2 Ending balance $ — $ 39 $ — $ 31 Nine months ended September 30, 2021 Nine months ended September 30, 2020 Government Commercial Government Commercial (in millions) Beginning balance (1) $ — $ 36 $ — $ 26 Provision for loss on receivables — 3 — 5 Ending balance $ — $ 39 $ — $ 31 |
Schedule of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield | The following table provides a summary of our anticipated maturity dates of our receivables and the weighted average yield for each range of maturities as of September 30, 2021: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Maturities by period (excluding allowance) $ 1,390 $ 67 $ 56 $ 482 $ 785 Weighted average yield by period 8.2 % 7.6 % 6.3 % 8.4 % 8.3 % Investments The following table provides a summary of our anticipated maturity dates of our investments and the weighted average yield for each range of maturities as of September 30, 2021: Total Less than 1 1-5 years 5-10 years More than 10 (dollars in millions) Maturities by period $ 18 $ — $ — $ — $ 18 Weighted average yield by period 4.1 % — % — % — % 4.1 % |
Schedule of Components of Real Estate Portfolio | The components of our real estate portfolio as of September 30, 2021 and December 31, 2020, were as follows: September 30, 2021 December 31, 2020 (in millions) Real estate Land $ 269 $ 269 Lease intangibles 104 104 Accumulated amortization of lease intangibles (16) (14) Real estate $ 357 $ 359 |
Schedule of Future Amortization Expense of Intangible Assets | As of September 30, 2021, the future amortization expense of the intangible assets and the future minimum rental income payments under our land lease agreements are as follows: Future Amortization Expense Minimum Rental Income Payments (in millions) From October 1, 2021 to December 31, 2021 $ 1 $ 5 2022 3 22 2023 3 23 2024 3 24 2025 3 24 2026 3 24 Thereafter 72 717 Total $ 88 $ 839 |
Schedule of Equity Method Investments | As of September 30, 2021, we held the following equity method investments: Investment Date Investee Carrying Value (in millions) Various Jupiter Equity Holdings LLC $ 540 Various Lighthouse Partnerships (1) 211 March 2020 University of Iowa Energy Collaborative Holdings LLC 121 Various Phase V Class A LLC 109 Various Other investees 487 Total equity method investments $ 1,468 (1) Represents the total of three equity investments in a portfolio of renewable assets. SunStrong Capital Holdings LLC Rosie Target Co, LLC (1) Lighthouse Renewable HoldCo LLC (1) Summit Ridge Capital Holdings, LLC Vivint Solar Asset 3 Holdco Parent LLC Other Investments (2) Total (in millions) Balance Sheet As of June 30, 2021 Current assets $ 87 $ 11 $ 11 $ 51 $ 60 $ 636 $ 856 Total assets 1,624 282 482 407 441 7,900 11,136 Current liabilities 63 5 41 58 8 587 762 Total liabilities 1,282 101 130 357 353 2,586 4,809 Members' equity 342 181 352 50 88 5,314 6,327 As of December 31, 2020 Current assets 92 25 22 18 86 539 782 Total assets 1,532 299 497 268 303 7,340 10,239 Current liabilities 48 19 22 43 3 518 653 Total liabilities 1,217 118 87 243 139 2,298 4,102 Members' equity 315 181 410 25 164 5,042 6,137 Income Statement For the six months ended June 30, 2021 Revenue 67 6 (71) 6 11 4 23 Income (loss) from continuing operations 2 (3) (88) (5) 4 (283) (373) Net income (loss) 2 (3) (88) (5) 4 (283) (373) For the six months ended June 30, 2020 Revenue 61 — — 1 — 118 180 Income (loss) from continuing operations (4) — — (2) — (1) (7) Net income (loss) (4) — — (2) — (1) (7) (1) Component of the Lighthouse Partnerships described in Note 6 to our financial statements in this Form 10-Q. (2) Represents aggregated financial statement information for investments not separately presented. |
Credit facilities and commerc_2
Credit facilities and commercial paper notes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Additional Detail on Credit Facility | The following table provides additional detail on our Secured Credit Facilities as of September 30, 2021: Rep-Based Approval-Based Facility (dollars in millions) Outstanding balance $ — $ — Value of collateral pledged to credit facility 24 89 Available capacity based on pledged assets 11 64 Weighted average short-term borrowing rate N/A N/A |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Non-Recourse Asset-Backed Debt and Bank Loans | We have outstanding the following asset-backed non-recourse debt and bank loans: Outstanding Balance Anticipated Carrying Value of Assets Pledged as of September 30, 2021 December 31, 2020 Interest Maturity Date September 30, 2021 December 31, 2020 Description (dollars in millions) HASI Sustainable Yield Bond 2015-1A $ 78 $ 81 4.28% October 2034 $ — $ 133 $ 134 Receivables, real estate and real estate intangibles HASI Sustainable Yield Bond 2015-1B Note (1) — 13 5.41% October 2034 — 133 134 Class B Bond of HASI Sustainable Yield Bond 2015-1 HASI SYB Trust 2016-2 66 67 4.35% April 2037 — 66 71 Receivables HASI ECON 101 Trust (2) — 126 3.57% May 2041 — — 133 Receivables and investments HASI SYB Trust 2017-1 147 150 3.86% March 2042 — 203 205 Receivables, real estate and real estate intangibles Lannie Mae Series 2019-01 93 95 3.68% January 2047 — 107 107 Receivables, real estate and real estate intangibles Other non-recourse debt (3) 65 73 3.15% - 7.45% 2022 to 2032 18 65 73 Receivables Unamortized financing costs (11) (12) Non-recourse debt (4) $ 438 $ 593 (1) The Company repurchased this note in April of 2021. (2) In March 2021, contractual terms were modified resulting in the deconsolidation of both this debt and the related pledged assets. We recognized a loss of approximately $3 million, which is included in gain on sale of receivables and investments in our income statement. (3) Other non-recourse debt consists of various debt agreements used to finance certain of our receivables. Scheduled debt service payment requirements are equal to or less than the cash flows received from the underlying receivables. (4) The total collateral pledged against our non-recourse debt was $574 million and $723 million as of September 30, 2021 and December 31, 2020, respectively. In addition, $25 million and $23 million of our restricted cash balance was pledged as collateral to various non-recourse loans as of September 30, 2021 and December 31, 2020, respectively. |
Schedule of Minimum Maturities of Debt | The stated minimum maturities of non-recourse debt as of September 30, 2021, were as follows: Future minimum maturities (in millions) October 1, 2021 to December 31, 2021 $ 11 2022 23 2023 26 2024 30 2025 26 2026 25 Thereafter 308 Total minimum maturities $ 449 Unamortized financing costs (11) Total non-recourse debt $ 438 |
Schedule of Long-term Debt Instruments | The following are summarized terms of the Senior Unsecured Notes: Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Redemption Terms Modification Date (in millions) 2024 Notes $ — (1) July 15, 2024 5.25 % January 15th and July 15, 2021 2025 Notes 400 April 15, 2025 6.00 % April 15 and April 15, 2022 (2) 2026 Notes 1,000 June 15, 2026 3.38 % June 15 and December 15 March 15, 2026 (2) 2030 Notes 375 (3) September 15, 2030 3.75 % February 15th and August 15th September 15, 2022 (4) (1) The first $350 million issuance of 2024 Notes was priced at par. We subsequently issued $150 million of the $500 million aggregate principal amount of the 2024 Notes for total proceeds of $157 million ($155 million net of issuance costs) at an effective interest rate of 4.13%. The 2024 Notes were redeemed in June 2021 using a portion of the proceeds from the 2026 Notes. We recognized a loss of $15 million upon redemption for the redemption premium and the acceleration of debt issuance cost and premium amortization which is recorded in interest expense in our income statement. (2) Prior to this date, we may redeem, at our option, some or all of the 2025 Notes or 2026 Notes for the outstanding principal amount plus the applicable “make-whole” premium as defined in the indenture governing the 2025 Notes or 2026 Notes plus accrued and unpaid interest through the redemption date. In addition, prior to this date, we may redeem up to 40% of the Senior Unsecured Notes using the proceeds of certain equity offerings at a price equal to par plus the coupon percentage of the principal amount thereof, plus accrued but unpaid interest, if any, to, but excluding, the applicable redemption date. On, or subsequent to, this date we may redeem the 2025 Notes or 2026 Notes in whole or in part at redemption prices defined in the indenture governing the 2025 Notes or 2026 Notes, plus accrued and unpaid interest though the redemption date. (3) We issued the $375 million aggregate principal amount of the 2030 Notes for total proceeds of $371 million ($367 million net of issuance costs) at an effective interest rate of 3.87%. (4) Prior to this date, we may, at our option on one or more occasions redeem up to 40% of the 2030 Notes using the proceeds of certain equity offerings at a price equal to 103.75% of the principal amount thereof; plus accrued but unpaid interest, if any, to, but excluding the applicable redemption date. At any point prior to maturity, we may redeem, at our option, some or all of the 2030 Notes plus the applicable “make-whole” premium as defined in the indenture governing the 2030 Notes plus accrued and unpaid interest through the redemption date. The following table presents a summary of the components of the Senior Unsecured Notes: September 30, 2021 December 31, 2020 (in millions) Principal $ 1,775 $ 1,275 Accrued interest 21 22 Unamortized premium (discount) (3) 2 Less: Unamortized financing costs (22) (16) Carrying value of Senior Unsecured Notes $ 1,771 $ 1,283 The following are summarized terms of the Convertible Senior Notes as of September 30, 2021: Outstanding Principal Amount Maturity Date Stated Interest Rate Interest Payment Dates Conversion Ratio Conversion Price Issuable Shares Dividend Threshold Amount (1) (in millions) (in millions) 2022 Convertible Senior Notes $ 14 (2) September 1, 4.125 % March 1 and September 1 36.8088 $27.17 0.5 $0.33 2023 Convertible Senior Notes 144 August 15, 0.000 % N/A 20.6853 $48.34 3.0 $0.34 (1) The conversion ratio is subject to adjustment for dividends declared above these amounts per share per quarter and certain other events that may be dilutive to the holder. |
Schedule of Components of Notes | The following table presents a summary of the components of the Convertible Senior Notes: September 30, 2021 December 31, 2020 (in millions) Principal $ 158 $ 294 Accrued interest — 2 Less: Unamortized financing costs (3) (5) Carrying value of Convertible Senior Notes $ 155 $ 291 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Dividends Declared by Board of Directors | Our board of directors declared the following dividends in 2020 and 2021: Announced Date Record Date Pay Date Amount per 2/20/2020 4/2/2020 4/10/2020 $ 0.34 6/5/2020 7/2/2020 7/9/2020 0.34 8/6/2020 10/2/2020 10/9/2020 0.34 11/5/2020 12/28/2020 (1) 01/8/2021 0.34 2/18/2021 04/5/2021 04/12/2021 0.35 5/4/2021 7/2/2021 7/9/2021 0.35 8/5/2021 10/1/2021 10/8/2021 0.35 (1) This dividend was treated as a distribution in 2021 for tax purposes. |
Schedule of Common Stock Public Offerings and ATM | We completed the following public offerings (including ATM issuances) of our common stock during 2021 and 2020: Date/Period Common Stock Offerings Shares Issued Price Per Share (2) Net Proceeds (1) (amounts in millions, except per share amounts) Q1 2020 ATM 4.500 $ 25.84 $ 115 Q2 2020 ATM 1.938 23.10 44 Q3 2020 ATM 0.875 33.81 29 Q4 2020 ATM 2.204 50.35 110 Q1 2021 ATM 1.639 63.55 103 Q2 2021 None — — — Q3 2021 ATM 0.857 57.56 49 (1) Net proceeds from the offerings are shown after deducting underwriting discounts, commissions and other offering costs. (2) Represents the average price per share at which investors in our ATM offerings purchased our shares. |
Schedule of Unvested Shares | A summary of the unvested shares of restricted common stock that have been issued is as follows: Restricted Shares of Common Stock Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 750,242 $ 20.08 $ 15.1 Granted 194,077 32.93 6.4 Vested (576,880) 19.50 (11.3) Forfeited (262) 28.59 — Ending Balance — December 31, 2020 367,177 $ 27.77 $ 10.2 Granted 80,886 59.41 4.8 Vested (250,758) 29.22 (7.3) Forfeited (50) 63.59 — Ending Balance — September 30, 2021 197,255 $ 38.89 $ 7.7 A summary of the unvested shares of restricted stock units that have market-based vesting conditions that have been issued is as follows: Restricted Stock Units (1) Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 435,578 $ 20.12 $ 8.8 Granted 23,342 27.18 0.6 Incremental performance shares granted 216,932 18.99 4.1 Vested (439,986) 19.04 (8.4) Forfeited (266) 25.90 — Ending Balance — December 31, 2020 235,600 $ 21.78 $ 5.1 Granted 17,426 71.23 1.2 Incremental performance shares granted 171,180 20.24 3.5 Vested (342,360) 20.24 (6.9) Forfeited — — — Ending Balance — September 30, 2021 81,846 $ 35.52 $ 2.9 (1) As discussed in Note 2 to our financial statements in this Form 10-Q, restricted stock units with market-based vesting conditions can vest between 0% and 200% subject to both the absolute performance of the Company's common stock as well as relative performance compared to a group of peers. The incremental performance shares granted relate to the vesting of an award at the 200% level. A summary of the unvested LTIP Units that have time-based vesting conditions that have been issued is as follows: LTIP Units (1) Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 201,310 $ 25.84 $ 5.2 Granted 165,346 18.56 3.1 Vested (80,974) 25.87 (2.1) Forfeited — — — Ending Balance — December 31, 2020 285,682 $ 21.62 $ 6.2 Granted 249,573 54.73 13.7 Vested (151,209) 21.58 (3.3) Forfeited — — — Ending Balance — September 30, 2021 384,046 $ 43.15 $ 16.6 (1) See Note 4 to our financial statements in this Form 10-Q for information on the vesting of LTIP Units. A summary of the unvested LTIP Units that have market-based vesting conditions that have been issued is as follows: LTIP Units (1) Weighted Average Grant Date Fair Value Value (per share) (in millions) Ending Balance — December 31, 2019 180,500 $ 26.70 $ 4.8 Granted 132,204 12.25 1.6 Vested — — — Forfeited — — — Ending Balance — December 31, 2020 312,704 $ 20.59 $ 6.4 Granted 86,274 65.28 5.6 Incremental performance shares granted 51,500 21.09 1.1 Vested (103,000) 21.09 (2.1) Forfeited — — — Ending Balance — September 30, 2021 347,478 $ 31.61 $ 11.0 |
Earnings per Share of Common _2
Earnings per Share of Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share of Common Stock | The computation of basic and diluted earnings per common share of common stock is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: (in millions, except share and per share data) Net income (loss) attributable to controlling stockholders and participating securities $ (2.8) $ 21.2 $ 64.2 $ 57.5 Less: Dividends and distributions on participating securities (0.2) (0.2) (0.7) (0.7) Less: Undistributed earnings attributable to participating securities — — — — Net income (loss) attributable to controlling stockholders — basic (3.0) 21.0 63.5 56.8 Add: Interest expense related to convertible notes under the if-converted method — 0.1 1.0 0.1 Add: Undistributed earnings attributable to participating securities — — — — Net income (loss) attributable to controlling stockholders — dilutive $ (3.0) $ 21.1 $ 64.5 $ 56.9 Denominator: Weighted-average number of common shares — basic 79,335,173 74,012,788 78,407,028 71,376,004 Weighted-average number of common shares — diluted 79,335,173 76,131,252 82,069,464 72,644,626 Basic earnings per common share $ (0.04) $ 0.28 $ 0.81 $ 0.80 Diluted earnings per common share $ (0.04) $ 0.28 $ 0.79 $ 0.78 Securities being allocated a portion of earnings: Weighted-average number of OP units 559,686 321,261 459,848 301,582 As of September 30, 2021 As of September 30, 2020 Participating securities: Unvested restricted common stock and unvested LTIP Units with time-based vesting conditions outstanding at period end 581,301 653,071 Potentially dilutive securities as of period end: Unvested restricted common stock and unvested LTIP Units with time-based vesting conditions 581,301 653,071 Restricted stock units 81,846 235,866 LTIP Units with market-based vesting conditions 347,478 312,704 Potential shares of common stock related to convertible notes 3,494,175 8,485,630 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | As of September 30, 2021, we held the following equity method investments: Investment Date Investee Carrying Value (in millions) Various Jupiter Equity Holdings LLC $ 540 Various Lighthouse Partnerships (1) 211 March 2020 University of Iowa Energy Collaborative Holdings LLC 121 Various Phase V Class A LLC 109 Various Other investees 487 Total equity method investments $ 1,468 (1) Represents the total of three equity investments in a portfolio of renewable assets. SunStrong Capital Holdings LLC Rosie Target Co, LLC (1) Lighthouse Renewable HoldCo LLC (1) Summit Ridge Capital Holdings, LLC Vivint Solar Asset 3 Holdco Parent LLC Other Investments (2) Total (in millions) Balance Sheet As of June 30, 2021 Current assets $ 87 $ 11 $ 11 $ 51 $ 60 $ 636 $ 856 Total assets 1,624 282 482 407 441 7,900 11,136 Current liabilities 63 5 41 58 8 587 762 Total liabilities 1,282 101 130 357 353 2,586 4,809 Members' equity 342 181 352 50 88 5,314 6,327 As of December 31, 2020 Current assets 92 25 22 18 86 539 782 Total assets 1,532 299 497 268 303 7,340 10,239 Current liabilities 48 19 22 43 3 518 653 Total liabilities 1,217 118 87 243 139 2,298 4,102 Members' equity 315 181 410 25 164 5,042 6,137 Income Statement For the six months ended June 30, 2021 Revenue 67 6 (71) 6 11 4 23 Income (loss) from continuing operations 2 (3) (88) (5) 4 (283) (373) Net income (loss) 2 (3) (88) (5) 4 (283) (373) For the six months ended June 30, 2020 Revenue 61 — — 1 — 118 180 Income (loss) from continuing operations (4) — — (2) — (1) (7) Net income (loss) (4) — — (2) — (1) (7) (1) Component of the Lighthouse Partnerships described in Note 6 to our financial statements in this Form 10-Q. (2) Represents aggregated financial statement information for investments not separately presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Government and Commercial Receivables (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Financing receivable, non-accrual period | 90 days |
Reasonable forecast period | 2 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Equity-Based Compensation (Details) - 2013 Plan - Restricted stock units | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance target rate | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance target rate | 200.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Segment Reporting (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Accounting Policies [Abstract] | |
Number of segment reported | 1 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value and Carrying Value of Financial Assets and Liabilities (Details - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investments | $ 17,637 | $ 55,377 |
Level 3 | ||
Liabilities | ||
Amortized cost of investments | 17,000 | 51,000 |
Amortized cost of securitization assets | 184,000 | 141,000 |
Fair Value | Level 3 | ||
Assets | ||
Investments | 18,000 | 55,000 |
Securitization residual assets | 198,000 | 159,000 |
Liabilities | ||
Credit facilities | 25,000 | 23,000 |
Non-recourse debt | 487,000 | 678,000 |
Fair Value | Level 3 | Government receivables | ||
Assets | ||
Receivables | 139,000 | 282,000 |
Fair Value | Level 3 | Commercial receivables | ||
Assets | ||
Receivables | 1,397,000 | 1,018,000 |
Fair Value | Level 2 | ||
Liabilities | ||
Senior unsecured notes | 1,838,000 | 1,362,000 |
Convertible notes | 203,000 | 552,000 |
Carrying Value | Level 3 | ||
Assets | ||
Investments | 18,000 | 55,000 |
Securitization residual assets | 198,000 | 159,000 |
Liabilities | ||
Credit facilities | 25,000 | 23,000 |
Non-recourse debt | 449,000 | 605,000 |
Carrying Value | Level 3 | Government receivables | ||
Assets | ||
Receivables | 126,000 | 248,000 |
Carrying Value | Level 3 | Commercial receivables | ||
Assets | ||
Receivables | 1,225,000 | 965,000 |
Carrying Value | Level 2 | ||
Liabilities | ||
Senior unsecured notes | 1,793,000 | 1,299,000 |
Convertible notes | $ 158,000 | $ 296,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Level 3 Investments at Fair Value (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 18 | $ 46 | $ 55 | $ 75 |
Purchases of investments | 0 | 5 | 5 | 23 |
Principal payments on investments | 0 | 0 | 0 | (2) |
Sale of investments | 0 | 0 | (38) | (53) |
Realized gains on investments recorded in gain on sale of receivables and investments | 0 | 0 | 0 | 5 |
Unrealized gains (losses) on investments recorded in OCI | 0 | 1 | (4) | 4 |
Balance, end of period | 18 | 52 | 18 | 52 |
Securitization residual assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 188 | 135 | 159 | 122 |
Accretion of securitization residual assets | 2 | 2 | 6 | 4 |
Purchases of investments | 11 | 9 | 45 | 36 |
Principal payments on investments | (2) | (4) | (8) | (9) |
Sale of investments | 0 | 0 | 0 | (21) |
Unrealized gains (losses) on investments recorded in OCI | (1) | 0 | (4) | 10 |
Balance, end of period | $ 198 | $ 142 | $ 198 | $ 142 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Investments in Unrealized Loss Position (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Estimated Fair Value | ||
Securities with a loss shorter than 12 months | $ 7 | $ 0 |
Securities with a loss longer than 12 months | 0 | 6 |
Unrealized Losses | ||
Securities with a loss shorter than 12 months | 0.2 | 0 |
Securities with a loss longer than 12 months | $ 0 | $ 0.3 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Level 3 | Sep. 30, 2021 | Dec. 31, 2020 |
Risk free interest rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments, measurement input | 0.01 | |
Risk free interest rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments, measurement input | 0.04 | |
Weighted average discount rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments, measurement input | 0.036 | 0.032 |
Securitization residual assets | Risk free interest rate | Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments, measurement input | 0.01 | |
Securitization residual assets | Risk free interest rate | Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments, measurement input | 0.04 | |
Securitization residual assets | Weighted average discount rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments, measurement input | 0.043 | 0.038 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Cash Deposits Subject to Credit Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Cash deposits | $ 413,259 | $ 286,250 |
Restricted cash deposits (included in other assets) | 26,000 | 24,000 |
Total cash deposits | 439,000 | 310,000 |
Amount of cash deposits in excess of amounts federally insured | $ 437,000 | $ 309,000 |
Non-Controlling Interest (Detai
Non-Controlling Interest (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Noncontrolling Interest [Abstract] | ||
Outstanding OP units held by outside limited partners (percent, less than) | 1.00% | |
Exchange of operating partnership units to common stock (in shares) | 0 | 57,400 |
Securitization of Financial A_3
Securitization of Financial Assets - Summary of Certain Transactions with Securitization Trusts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Gains on securitizations | $ 37,521 | $ 36,866 |
Securitization trust | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Gains on securitizations | 55,000 | 34,000 |
Cost of financial assets securitized | 665,000 | 173,000 |
Proceeds from securitizations | 720,000 | 207,000 |
Cash received from residual and servicing assets | 9,000 | 9,000 |
Securitization trust | Residual assets | ||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Residual and servicing assets | $ 204,000 | $ 147,000 |
Securitization of Financial A_4
Securitization of Financial Assets - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Annual servicing fees (up to) | 0.20% | ||
Managed assets | $ 8,200,000,000 | $ 7,200,000,000 | |
Securitization credit losses | 0 | $ 0 | |
Securitization assets | 203,625,000 | 164,342,000 | |
Greater than 90 days past due | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Securitization assets | 0 | ||
Asset-backed securities, securitized loans and receivables | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Managed receivables | 5,000,000,000 | $ 4,300,000,000 | |
Residual assets | Securitization trust | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Receivable from contracts | $ 109,000,000 | ||
Discount rate | Minimum | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Discount rates to determine fair market value of underlying assets | 0.02 | ||
Discount rate | Maximum | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Discount rates to determine fair market value of underlying assets | 0.08 |
Our Portfolio - Additional Info
Our Portfolio - Additional Information (Details) | Jul. 01, 2020projectMW | Jul. 31, 2021USD ($) | Dec. 31, 2020USD ($)committee_memberprojectGW | Sep. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Equity method investments, receivables, real estate and investments | $ 3,194,000,000 | $ 3,194,000,000 | |||||||||
Allowance for loss on receivables | $ 36,000,000 | 39,000,000 | 39,000,000 | ||||||||
Financing receivables on non-accrual status | 0 | 0 | 0 | ||||||||
Allowance on investment | 0 | 0 | 0 | ||||||||
Equity method investments | $ 1,279,651,000 | 1,468,282,000 | 1,468,282,000 | ||||||||
Jupiter Equity Holdings LLC | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Portfolio of renewable energy projects, power | MW | 2.3 | ||||||||||
Investment, limited partnership, expected total contribution | 540,000,000 | 540,000,000 | |||||||||
Project, weighted average contract life | 13 years | ||||||||||
Distribution percent | 49.00% | ||||||||||
Review committee | committee_member | 4 | ||||||||||
Distribution from partnership, upon achievement of certain targets, percent | 33.00% | ||||||||||
Equity method investments | 540,000,000 | 540,000,000 | |||||||||
Jupiter Equity Holdings LLC | Company | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Review committee | committee_member | 2 | ||||||||||
Jupiter Equity Holdings LLC | Sponsor | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Review committee | committee_member | 2 | ||||||||||
Jupiter Equity Holdings LLC | Sponsor | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Distribution from partnership, upon achievement of certain targets, percent | 67.00% | ||||||||||
Jupiter Equity Holdings LLC | Class A units | Jupiter Equity Holdings LLC | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Ownership percent | 100.00% | ||||||||||
Jupiter Equity Holdings LLC | Onshore wind projects | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Number of projects owned | project | 9 | ||||||||||
Jupiter Equity Holdings LLC | Solar projects | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Number of projects owned | project | 4 | ||||||||||
The Lighthouse Partnerships | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Portfolio of renewable energy projects, power | GW | 1.6 | ||||||||||
Project, weighted average contract life | 14 years | ||||||||||
Review committee | committee_member | 4 | ||||||||||
Capital contribution to partnership | $ 663,000,000 | ||||||||||
Number of partnerships | project | 3 | ||||||||||
Investment, limited partnership, preferred cash equity interests | 219,000,000 | 219,000,000 | |||||||||
Equity contributions | $ 15,000,000 | ||||||||||
Member loans | $ 10,000,000 | ||||||||||
The Lighthouse Partnerships | Company | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Review committee | committee_member | 2 | ||||||||||
The Lighthouse Partnerships | Sponsor | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Review committee | committee_member | 2 | ||||||||||
Equity investment converted to loan | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Equity method investments | $ 24,000,000 | ||||||||||
Portfolio loan | 17,000,000 | ||||||||||
Gain (loss) from equity method investments | $ 7,000,000 | ||||||||||
Performance Rating 3 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Allowance for loss on receivables | 8,000,000 | 8,000,000 | |||||||||
Commercial receivables | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Allowance for loss on receivables | $ 36,000,000 | 39,000,000 | $ 31,000,000 | 39,000,000 | $ 31,000,000 | $ 37,000,000 | $ 29,000,000 | $ 26,000,000 | |||
Provision for loss on receivables | 2,000,000 | $ 2,000,000 | 3,000,000 | $ 5,000,000 | |||||||
Commercial receivables | Performance Rating 3 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Equity method investments, receivables, real estate and investments | 0 | 0 | |||||||||
Allowance for loss on receivables | 8,000,000 | 8,000,000 | |||||||||
Financing receivables on non-accrual status | 8,000,000 | 8,000,000 | |||||||||
Equity method investments | $ 0 | $ 0 |
Our Portfolio - Schedule Of Rec
Our Portfolio - Schedule Of Receivables (Details) | 9 Months Ended | |||||
Sep. 30, 2021USD ($)transactionreceivable | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Financing Receivable, Nonaccrual [Line Items] | ||||||
2021 | $ 203,000,000 | |||||
2020 | 190,000,000 | |||||
2019 | 489,000,000 | |||||
2018 | 260,000,000 | |||||
2017 | 40,000,000 | |||||
2016 | 73,000,000 | |||||
Prior to 2016 | 135,000,000 | |||||
Total receivables | 1,390,000,000 | $ 1,250,000,000 | ||||
Less: Allowance for loss on receivables | (39,000,000) | (36,000,000) | ||||
Net receivables | 1,351,000,000 | |||||
Receivables held-for-sale | 0 | |||||
Investments | 17,637,000 | 55,377,000 | ||||
Real estate | 357,000,000 | |||||
Equity method investments | 1,468,282,000 | 1,279,651,000 | ||||
Total | 3,194,000,000 | |||||
Average remaining balance | 12,000,000 | |||||
Financing receivables on non-accrual status | $ 0 | 0 | ||||
Number of transactions | transaction | 152 | |||||
Finance receivable outstanding balance (less than) | $ 1,000,000 | |||||
Finance receivable aggregate remaining amount | $ 72,000,000 | |||||
Credit concentration risk | Percent of Portfolio | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Percent of Portfolio | 100.00% | |||||
3 | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Less: Allowance for loss on receivables | $ (8,000,000) | |||||
Government receivables | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Total receivables | 126,000,000 | 248,000,000 | ||||
Less: Allowance for loss on receivables | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Net receivables | 126,412,000 | 248,455,000 | ||||
Government receivables | 1 | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
2021 | 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
2018 | 0 | |||||
2017 | 31,000,000 | |||||
2016 | 14,000,000 | |||||
Prior to 2016 | 81,000,000 | |||||
Total receivables | 126,000,000 | |||||
Less: Allowance for loss on receivables | 0 | |||||
Net receivables | 126,000,000 | |||||
Receivables held-for-sale | 0 | |||||
Investments | 11,000,000 | |||||
Real estate | 0 | |||||
Equity method investments | 0 | |||||
Total | 137,000,000 | |||||
Average remaining balance | $ 6,000,000 | |||||
Government receivables | 1 | Credit concentration risk | Percent of Portfolio | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Percent of Portfolio | 4.00% | |||||
Commercial receivables | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Total receivables | $ 1,264,000,000 | 1,002,000,000 | ||||
Less: Allowance for loss on receivables | (39,000,000) | $ (37,000,000) | (36,000,000) | $ (31,000,000) | $ (29,000,000) | $ (26,000,000) |
Net receivables | 1,224,741,000 | $ 965,452,000 | ||||
Commercial receivables | 1 | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
2021 | 203,000,000 | |||||
2020 | 190,000,000 | |||||
2019 | 483,000,000 | |||||
2018 | 260,000,000 | |||||
2017 | 1,000,000 | |||||
2016 | 59,000,000 | |||||
Prior to 2016 | 46,000,000 | |||||
Total receivables | 1,242,000,000 | |||||
Less: Allowance for loss on receivables | (26,000,000) | |||||
Net receivables | 1,216,000,000 | |||||
Receivables held-for-sale | 0 | |||||
Investments | 7,000,000 | |||||
Real estate | 357,000,000 | |||||
Equity method investments | 1,442,000,000 | |||||
Total | 3,022,000,000 | |||||
Average remaining balance | $ 13,000,000 | |||||
Commercial receivables | 1 | Credit concentration risk | Percent of Portfolio | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Percent of Portfolio | 95.00% | |||||
Commercial receivables | 2 | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
2021 | $ 0 | |||||
2020 | 0 | |||||
2019 | 6,000,000 | |||||
2018 | 0 | |||||
2017 | 8,000,000 | |||||
2016 | 0 | |||||
Prior to 2016 | 0 | |||||
Total receivables | 14,000,000 | |||||
Less: Allowance for loss on receivables | (5,000,000) | |||||
Net receivables | 9,000,000 | |||||
Receivables held-for-sale | 0 | |||||
Investments | 0 | |||||
Real estate | 0 | |||||
Equity method investments | 26,000,000 | |||||
Total | 35,000,000 | |||||
Average remaining balance | $ 10,000,000 | |||||
Commercial receivables | 2 | Credit concentration risk | Percent of Portfolio | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Percent of Portfolio | 1.00% | |||||
Commercial receivables | 3 | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
2021 | $ 0 | |||||
2020 | 0 | |||||
2019 | 0 | |||||
2018 | 0 | |||||
2017 | 0 | |||||
2016 | 0 | |||||
Prior to 2016 | 8,000,000 | |||||
Total receivables | 8,000,000 | |||||
Less: Allowance for loss on receivables | (8,000,000) | |||||
Net receivables | 0 | |||||
Receivables held-for-sale | 0 | |||||
Investments | 0 | |||||
Real estate | 0 | |||||
Equity method investments | 0 | |||||
Total | 0 | |||||
Average remaining balance | $ 4,000,000 | |||||
Number of contracts | receivable | 2 | |||||
Financing receivables on non-accrual status | $ 8,000,000 | |||||
Commercial receivables | 3 | Wind project | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Equity method investments | $ 0 | |||||
Commercial receivables | 3 | Credit concentration risk | Percent of Portfolio | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Percent of Portfolio | 0.00% | |||||
Residential solar loan | ||||||
Financing Receivable, Nonaccrual [Line Items] | ||||||
Net receivables | $ 742,000,000 |
Our Portfolio - Summary of the
Our Portfolio - Summary of the Carrying Value and Allowance by Type of Receivable or "Portfolio Segment" (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross Carrying Value | $ 1,390,000,000 | $ 1,250,000,000 | ||||
Loan Funding Commitments | 290,000,000 | 282,000,000 | ||||
Allowance | 39,000,000 | 36,000,000 | ||||
Loans | 1,351,000,000 | |||||
Equity method investments, receivables, real estate and investments | 3,194,000,000 | |||||
Financing receivables on non-accrual status | 0 | 0 | ||||
3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance | 8,000,000 | |||||
Special purpose subsidiaries | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Noncontrolling equity investments | 76,000,000 | |||||
Government | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross Carrying Value | 126,000,000 | 248,000,000 | ||||
Loan Funding Commitments | 0 | 0 | ||||
Allowance | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Loans | 126,412,000 | 248,455,000 | ||||
Government | 1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross Carrying Value | 126,000,000 | |||||
Allowance | 0 | |||||
Loans | 126,000,000 | |||||
Equity method investments, receivables, real estate and investments | 137,000,000 | |||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross Carrying Value | 1,264,000,000 | 1,002,000,000 | ||||
Loan Funding Commitments | 290,000,000 | 282,000,000 | ||||
Allowance | 39,000,000 | $ 37,000,000 | 36,000,000 | $ 31,000,000 | $ 29,000,000 | $ 26,000,000 |
Loans | 1,224,741,000 | $ 965,452,000 | ||||
Commercial | 2 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross Carrying Value | 14,000,000 | |||||
Allowance | 5,000,000 | |||||
Loans | 9,000,000 | |||||
Equity method investments, receivables, real estate and investments | 35,000,000 | |||||
Commercial | 3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross Carrying Value | 8,000,000 | |||||
Allowance | 8,000,000 | |||||
Loans | 0 | |||||
Equity method investments, receivables, real estate and investments | 0 | |||||
Financing receivables on non-accrual status | 8,000,000 | |||||
Commercial | 1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross Carrying Value | 1,242,000,000 | |||||
Allowance | 26,000,000 | |||||
Loans | 1,216,000,000 | |||||
Equity method investments, receivables, real estate and investments | 3,022,000,000 | |||||
Commercial | Special purpose subsidiaries | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 647,000,000 | |||||
U.S. federal government | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 28,000,000 | |||||
State or local governments | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 98,000,000 | |||||
Residential solar loan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 742,000,000 | |||||
Leasing arrangement | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Equity method investments, receivables, real estate and investments | $ 47,000,000 |
Our Portfolio - Allowance Roll
Our Portfolio - Allowance Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | $ 36 | ||||
Ending balance | $ 39 | 39 | |||
Allowance for loss on receivables | 39 | 39 | |||
Performance Rating 3 | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 8 | 8 | |||
Allowance for loss on receivables | 8 | 8 | |||
Cumulative effect adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for loss on receivables | $ 17 | ||||
Government receivables | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 0 | $ 0 | 0 | $ 0 | |
Provision for loss on receivables | 0 | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 | |
Allowance for loss on receivables | 0 | 0 | 0 | 0 | |
Commercial receivables | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance | 37 | 29 | 36 | 26 | |
Provision for loss on receivables | 2 | 2 | 3 | 5 | |
Ending balance | 39 | 31 | 39 | 31 | |
Allowance for loss on receivables | 39 | $ 31 | 39 | $ 31 | |
Commercial receivables | Performance Rating 3 | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance | 8 | 8 | |||
Allowance for loss on receivables | $ 8 | $ 8 |
Our Portfolio - Summary of Anti
Our Portfolio - Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Maturities by period (excluding allowance) | |
Total | $ 1,390 |
Less than 1 year | 67 |
1-5 years | 56 |
5-10 years | 482 |
More than 10 years | $ 785 |
Weighted average yield by period | |
Total | 8.20% |
Less than 1 year | 7.60% |
1-5 years | 6.30% |
5-10 years | 8.40% |
More than 10 years | 8.30% |
Maturities by period | |
Total | $ 18 |
Less than 1 year | 0 |
1-5 years | 0 |
5-10 years | 0 |
More than 10 years | $ 18 |
Weighted average yield by period | |
Total | 4.10% |
Less than 1 year | 0.00% |
1-5 years | 0.00% |
5-10 years | 0.00% |
More than 10 years | 4.10% |
Our Portfolio - Components of R
Our Portfolio - Components of Real Estate Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate Properties [Line Items] | ||
Accumulated amortization of lease intangibles | $ (16) | $ (14) |
Real estate | 357 | 359 |
Land | ||
Real Estate Properties [Line Items] | ||
Real estate | 269 | 269 |
Lease intangibles | ||
Real Estate Properties [Line Items] | ||
Real estate | $ 104 | $ 104 |
Our Portfolio - Schedule of Fut
Our Portfolio - Schedule of Future Amortization Expenses Related to Intangible Assets and Future Minimum Rental Income Payments under Land Lease Agreements (Details) $ in Millions | Sep. 30, 2021USD ($) |
Future Amortization Expense | |
From October 1, 2021 to December 31, 2021 | $ 1 |
2022 | 3 |
2023 | 3 |
2024 | 3 |
2025 | 3 |
2026 | 3 |
Thereafter | 72 |
Total | 88 |
Minimum Rental Income Payments | |
From October 1, 2021 to December 31, 2021 | 5 |
2022 | 22 |
2023 | 23 |
2024 | 24 |
2025 | 24 |
2026 | 24 |
Thereafter | 717 |
Total | $ 839 |
Our Portfolio - Equity Method I
Our Portfolio - Equity Method Investments (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)equity_investment | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 1,468,282 | $ 1,279,651 |
Jupiter Equity Holdings LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 540,000 | |
Lighthouse Partnerships | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 211,000 | |
Number of partnership interests | equity_investment | 3 | |
University of Iowa Energy Collaborative Holdings LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 121,000 | |
Phase V Class A LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | 109,000 | |
Other investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying Value | $ 487,000 |
Credit facilities and commerc_3
Credit facilities and commercial paper notes - Senior Credit Facilities (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($)facility | Feb. 28, 2021USD ($) | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||||
Unamortized debt issuance costs | $ 11,000,000 | $ 12,000,000 | |||
Credit Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Number of revolving credit facilities | facility | 2 | ||||
Unamortized issuance costs | $ 2,000,000 | ||||
Default underlying financings (more than) | 50.00% | ||||
Credit Facilities | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Default interest rate (in percent) | 2.00% | ||||
Credit Facilities | Rep-Based Facility | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 100,000,000 | $ 250,000,000 | |||
Loss on modification | $ 1,500,000 | ||||
Availability fee percentage | 0.60% | ||||
Credit Facilities | Rep-Based Facility | U.S. federal government | |||||
Line of Credit Facility [Line Items] | |||||
Applicable valuation percentages | 85.00% | ||||
Credit Facilities | Rep-Based Facility | Institutional | |||||
Line of Credit Facility [Line Items] | |||||
Applicable valuation percentages | 80.00% | ||||
Credit Facilities | Rep-Based Facility | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 1.40% | ||||
Fixed interest rate (in percent) | 1.85% | ||||
Credit Facilities | Rep-Based Facility | Federal Funds Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 0.40% | ||||
Fixed interest rate (in percent) | 0.85% | ||||
Credit Facilities | Approval-Based Facility | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 200,000,000 | ||||
Credit Facilities | Approval-Based Facility | Certain approved existing financing | |||||
Line of Credit Facility [Line Items] | |||||
Applicable valuation percentages | 85.00% | ||||
Credit Facilities | Approval-Based Facility | Others as prescribed by administrative agent | |||||
Line of Credit Facility [Line Items] | |||||
Applicable valuation percentages | 67.00% | ||||
Credit Facilities | Approval-Based Facility | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 1.50% | ||||
Fixed interest rate (in percent) | 2.00% | ||||
Credit Facilities | Approval-Based Facility | Federal Funds Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 0.50% | ||||
Fixed interest rate (in percent) | 1.00% | ||||
Credit Facilities | Unsecured Revolver | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 400,000,000 | $ 50,000,000 | |||
Fixed interest rate (in percent) | 2.325% | ||||
Outstanding credit facility | $ 25,000,000 | ||||
Unamortized debt issuance costs | $ 1,000,000 | ||||
Term loan fee (in percent) | 2.25% | ||||
Long-term Debt, Term | 364 days | ||||
Credit Facilities | Unsecured Revolver | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 2.25% | ||||
Variable rate, maximum downward adjustment (in percent) | 0.05% | ||||
Credit Facilities | Unsecured Revolver | Prime Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (in percent) | 1.25% |
Credit facilities and commerc_4
Credit facilities and commercial paper notes - Schedule of Credit Facilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 25,483 | $ 22,591 |
Credit Facilities | Rep-Based Facility | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | 0 | |
Value of collateral pledged to credit facility | 24,000 | |
Available capacity based on pledged assets | 11,000 | |
Credit Facilities | Approval-Based Facility | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | 0 | |
Value of collateral pledged to credit facility | 89,000 | |
Available capacity based on pledged assets | $ 64,000 |
Credit facilities and commerc_5
Credit facilities and commercial paper notes - Green Commercial Paper Note Program (Details) | 1 Months Ended |
Sep. 30, 2021USD ($) | |
Commercial Paper | |
Debt Instrument [Line Items] | |
Principal amount | $ 100,000,000 |
Credit facility remaining no of days | 397 days |
Broker fee percent | 0.0010 |
Unamortized financing costs | $ 1,000,000 |
Letter of Credit | |
Debt Instrument [Line Items] | |
Principal amount | $ 100,000,000 |
Percentage of drawn letter of credit | 0.0095 |
Unused letter of credit capacity percentage | 0.40% |
Reduced percentage of letter of credit Fee | 0.0005 |
Long-term Debt - Schedule of Ou
Long-term Debt - Schedule of Outstanding Non-Recourse Asset-Backed Debt and Bank Loans (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Unamortized financing costs | $ (11) | $ (12) | |
Total non-recourse debt | 438 | 593 | |
Loss on sale of assets | $ 3 | ||
Collateral pledged | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Restricted cash | 25 | 23 | |
Asset-backed non-recourse debt | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Total collateral pledged against our nonrecourse debt | 574 | 723 | |
Asset-backed non-recourse debt | HASI Sustainable Yield Bond 2015-1A | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Carrying value of Convertible Senior Notes | $ 78 | 81 | |
Interest rate | 4.28% | ||
Anticipated Balance at Maturity | $ 0 | ||
Carrying value of assets pledged, receivables | 133 | 134 | |
Asset-backed non-recourse debt | HASI Sustainable Yield Bond 2015-1B Note | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Carrying value of Convertible Senior Notes | $ 0 | 13 | |
Interest rate | 5.41% | ||
Anticipated Balance at Maturity | $ 0 | ||
Carrying value of assets pledged, other | 133 | 134 | |
Asset-backed non-recourse debt | HASI SYB Trust 2016-2 | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Carrying value of Convertible Senior Notes | $ 66 | 67 | |
Interest rate | 4.35% | ||
Anticipated Balance at Maturity | $ 0 | ||
Carrying value of assets pledged, receivables | 66 | 71 | |
Asset-backed non-recourse debt | HASI ECON 101 Trust | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Carrying value of Convertible Senior Notes | $ 0 | 126 | |
Interest rate | 3.57% | ||
Anticipated Balance at Maturity | $ 0 | ||
Carrying value of assets pledged, receivables | 0 | 133 | |
Asset-backed non-recourse debt | HASI SYB Trust 2017-1 | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Carrying value of Convertible Senior Notes | $ 147 | 150 | |
Interest rate | 3.86% | ||
Anticipated Balance at Maturity | $ 0 | ||
Carrying value of assets pledged, receivables | 203 | 205 | |
Asset-backed non-recourse debt | Lannie Mae Series 2019-01 | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Carrying value of Convertible Senior Notes | $ 93 | 95 | |
Interest rate | 3.68% | ||
Anticipated Balance at Maturity | $ 0 | ||
Carrying value of assets pledged, receivables | 107 | 107 | |
Other non-recourse debt | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Other non-recourse debt | 65 | 73 | |
Anticipated Balance at Maturity | 18 | ||
Carrying value of assets pledged, receivables | $ 65 | $ 73 | |
Other non-recourse debt | Minimum | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Interest rate | 3.15% | ||
Other non-recourse debt | Maximum | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Interest rate | 7.45% |
Long-term Debt - Schedule of Mi
Long-term Debt - Schedule of Minimum Maturities of Non-recourse Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Future minimum maturities | ||
Unamortized financing costs | $ (11) | $ (12) |
Total non-recourse debt | 438 | $ 593 |
Non-recourse debt | ||
Future minimum maturities | ||
October 1, 2021 to December 31, 2021 | 11 | |
2022 | 23 | |
2023 | 26 | |
2024 | 30 | |
2025 | 26 | |
2026 | 25 | |
Thereafter | 308 | |
Carrying value of Convertible Senior Notes | 449 | |
Unamortized financing costs | (11) | |
Total non-recourse debt | $ 438 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 27,349,000 | $ 26,085,000 | $ 95,394,000 | $ 65,884,000 | ||
Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 1,775,000,000 | $ 1,775,000,000 | $ 1,275,000,000 | |||
Maximum unencumbered assets percentage of unsecured debt | 120.00% | 120.00% | ||||
Interest expense | $ 19,000,000 | 14,000,000 | $ 53,000,000 | 33,000,000 | ||
Senior Unsecured Notes | 2026 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 1,000,000,000 | 1,000,000,000 | ||||
Redemption price, percentage | 40.00% | |||||
Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 158,000,000 | 158,000,000 | ||||
Interest expense | 2,000,000 | $ 2,000,000 | 6,000,000 | $ 6,000,000 | ||
Convertible Senior Notes | 2023 Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | 144,000,000 | $ 144,000,000 | ||||
Redemption price, percentage | 100.00% | |||||
Convertible Senior Notes | 2022 Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 14,000,000 | $ 14,000,000 | ||||
Redemption price, percentage | 100.00% |
Long-term Debt - Summarized Ter
Long-term Debt - Summarized Terms of the Senior Unsecured Notes (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Loss on debt extinguishment | $ 14,584,000 | $ 0 | ||
Senior Unsecured Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | 1,775,000,000 | $ 1,275,000,000 | ||
Senior Unsecured Notes | 2024 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 500,000,000 | $ 0 | ||
Stated Interest Rate | 5.25% | |||
Proceeds from issuance of debt | 157,000,000 | |||
Proceeds from issuance of debt net of issuance cost | $ 155,000,000 | |||
Effective interest rate | 4.13% | |||
Loss on debt extinguishment | $ 15,000,000 | |||
Senior Unsecured Notes | 2024 notes issued at par | ||||
Debt Instrument [Line Items] | ||||
Principal | 350,000,000 | |||
Senior Unsecured Notes | 2024 notes note issued above par | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 150,000,000 | |||
Senior Unsecured Notes | 2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 400,000,000 | |||
Stated Interest Rate | 6.00% | |||
Redemption price, percentage | 40.00% | |||
Senior Unsecured Notes | 2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 1,000,000,000 | |||
Stated Interest Rate | 3.38% | |||
Redemption price, percentage | 40.00% | |||
Senior Unsecured Notes | 2030 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 375,000,000 | $ 375,000,000 | ||
Stated Interest Rate | 3.75% | |||
Proceeds from issuance of debt | 371,000,000 | |||
Proceeds from issuance of debt net of issuance cost | $ 367,000,000 | |||
Effective interest rate | 3.87% | |||
Redemption price, percentage | 40.00% | |||
Offer share percentage | 103.75% |
Long-term Debt - Summary of Com
Long-term Debt - Summary of Components of Senior Notes (Details) - Senior Unsecured Notes - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal | $ 1,775 | $ 1,275 |
Accrued interest | 21 | 22 |
Unamortized premium (discount) | (3) | 2 |
Less: Unamortized financing costs | (22) | (16) |
Carrying value of Convertible Senior Notes | $ 1,771 | $ 1,283 |
Long-term Debt - Summarized T_2
Long-term Debt - Summarized Terms of the Convertible Senior Notes (Details) $ / shares in Units, shares in Millions, equity_instrument in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)equity_instrument$ / shares | Sep. 30, 2020USD ($) | |
Debt Instrument [Line Items] | |||
Principal amount | $ 135,800,000 | $ 0 | |
2022 Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 136,000,000 | ||
Common stock (in shares) | shares | 5 | ||
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal Amount | $ 158,000,000 | 158,000,000 | |
Convertible Senior Notes | 2022 Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal Amount | $ 14,000,000 | $ 14,000,000 | |
Stated Interest Rate | 4.125% | 4.125% | |
Conversion Ratio | 36.8088 | ||
Conversion Price (in usd per share) | $ / shares | $ 27.17 | $ 27.17 | |
Issuable Shares | equity_instrument | 0.5 | ||
Dividend Threshold Amount (in usd per share) | $ / shares | $ 0.33 | $ 0.33 | |
Convertible Senior Notes | 2023 Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Principal Amount | $ 144,000,000 | $ 144,000,000 | |
Stated Interest Rate | 0.00% | 0.00% | |
Conversion Ratio | 20.6853 | ||
Conversion Price (in usd per share) | $ / shares | $ 48.34 | $ 48.34 | |
Issuable Shares | equity_instrument | 3 | ||
Dividend Threshold Amount (in usd per share) | $ / shares | $ 0.34 | $ 0.34 |
Long-term Debt - Summary of C_2
Long-term Debt - Summary of Components of Convertible Notes (Details) - Convertible Senior Notes - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal | $ 158,000,000 | |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 158,000,000 | $ 294,000,000 |
Accrued interest | 0 | 2,000,000 |
Less: Unamortized financing costs | (3,000,000) | (5,000,000) |
Carrying value of Convertible Senior Notes | $ 155,000,000 | $ 291,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Financial guarantee $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)joint_venture | |
Guarantor Obligations [Line Items] | |
Number of entities | joint_venture | 1 |
Maximum exposure | $ | $ 60 |
Percent of guarantee obligation payable by other entities | 15.00% |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (expense) benefit | $ 1,250 | $ (2,345) | $ (11,510) | $ (2,860) |
Federal benefit (as a percent) | 3.00% | 4.00% |
Equity - Summary of Dividends (
Equity - Summary of Dividends (Details) - $ / shares | Oct. 08, 2021 | Aug. 05, 2021 | Jul. 09, 2021 | May 04, 2021 | Apr. 12, 2021 | Feb. 18, 2021 | Jan. 08, 2021 | Nov. 05, 2020 | Oct. 09, 2020 | Aug. 06, 2020 | Jul. 09, 2020 | Jun. 05, 2020 | Apr. 10, 2020 | Feb. 20, 2020 |
Dividends Payable [Line Items] | ||||||||||||||
Amount per share, declared (in usd per share) | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.34 | |||||||
Amount per share, paid (in usd per share) | $ 0.35 | $ 0.35 | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.34 | ||||||||
Subsequent Event | ||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||
Amount per share, paid (in usd per share) | $ 0.35 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Public Offerings and ATM (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Net Proceeds | $ 151,501 | $ 188,197 | |||||||
ATM | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares Issued (in shares) | 857 | 0 | 1,639 | 2,204 | 875 | 1,938 | 4,500 | ||
Price Per Share (in usd per share) | $ 57.56 | $ 0 | $ 63.55 | $ 50.35 | $ 33.81 | $ 23.10 | $ 25.84 | $ 57.56 | $ 33.81 |
Net Proceeds | $ 49,000 | $ 0 | $ 103,000 | $ 110,000 | $ 29,000 | $ 44,000 | $ 115,000 |
Equity - Additional Information
Equity - Additional Information (Details) - 2013 Plan - Restricted stock and restricted stock units - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares awarded (in shares) | 434,159 | |||
Equity-based compensation expense | $ 4 | $ 4 | $ 14 | $ 12 |
Accelerated compensation expense | 2 | |||
Unrecognized compensation expense | $ 19 | $ 19 | ||
Weighted-average term in which unrecognized compensation expense is expected to be recognized | 2 years |
Equity - Summary of Unvested Sh
Equity - Summary of Unvested Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Restricted Shares of Common Stock | ||
Shares | ||
Beginning Balance (in shares) | 367,177 | 750,242 |
Granted (in shares) | 80,886 | 194,077 |
Vested (in shares) | (250,758) | (576,880) |
Forfeited (in shares) | (50) | (262) |
Ending Balance (in shares) | 197,255 | 367,177 |
Weighted Average Grant Date Fair Value | ||
Beginning Balance (in usd per share) | $ 27.77 | $ 20.08 |
Granted (in usd per share) | 59.41 | 32.93 |
Vested (in usd per share) | 29.22 | 19.50 |
Forfeited (in usd per share) | 63.59 | 28.59 |
Ending Balance (in usd per share) | $ 38.89 | $ 27.77 |
Value | ||
Beginning Balance | $ 10.2 | $ 15.1 |
Granted | 4.8 | 6.4 |
Vested | (7.3) | (11.3) |
Forfeited | 0 | 0 |
Ending Balance | $ 7.7 | $ 10.2 |
Restricted stock units | ||
Shares | ||
Beginning Balance (in shares) | 235,600 | 435,578 |
Granted (in shares) | 17,426 | 23,342 |
Vested (in shares) | (342,360) | (439,986) |
Forfeited (in shares) | 0 | (266) |
Ending Balance (in shares) | 81,846 | 235,600 |
Weighted Average Grant Date Fair Value | ||
Beginning Balance (in usd per share) | $ 21.78 | $ 20.12 |
Granted (in usd per share) | 71.23 | 27.18 |
Vested (in usd per share) | 20.24 | 19.04 |
Forfeited (in usd per share) | 0 | 25.90 |
Ending Balance (in usd per share) | $ 35.52 | $ 21.78 |
Value | ||
Beginning Balance | $ 5.1 | $ 8.8 |
Granted | 1.2 | 0.6 |
Vested | (6.9) | (8.4) |
Forfeited | 0 | 0 |
Ending Balance | $ 2.9 | $ 5.1 |
Restricted stock units | Minimum | ||
Value | ||
Vesting percentage | 0.00% | |
Restricted stock units | Maximum | ||
Value | ||
Vesting percentage | 200.00% | |
Incremental performance shares granted | ||
Shares | ||
Granted (in shares) | 171,180 | 216,932 |
Weighted Average Grant Date Fair Value | ||
Granted (in usd per share) | $ 20.24 | $ 18.99 |
Value | ||
Granted | $ 3.5 | $ 4.1 |
LTIP time-based vesting units | ||
Shares | ||
Beginning Balance (in shares) | 285,682 | 201,310 |
Granted (in shares) | 249,573 | 165,346 |
Vested (in shares) | (151,209) | (80,974) |
Forfeited (in shares) | 0 | 0 |
Ending Balance (in shares) | 384,046 | 285,682 |
Weighted Average Grant Date Fair Value | ||
Beginning Balance (in usd per share) | $ 21.62 | $ 25.84 |
Granted (in usd per share) | 54.73 | 18.56 |
Vested (in usd per share) | 21.58 | 25.87 |
Forfeited (in usd per share) | 0 | 0 |
Ending Balance (in usd per share) | $ 43.15 | $ 21.62 |
Value | ||
Beginning Balance | $ 6.2 | $ 5.2 |
Granted | 13.7 | 3.1 |
Vested | (3.3) | (2.1) |
Forfeited | 0 | 0 |
Ending Balance | $ 16.6 | $ 6.2 |
LTIP market-based vesting units | ||
Shares | ||
Beginning Balance (in shares) | 312,704 | 180,500 |
Granted (in shares) | 86,274 | 132,204 |
Vested (in shares) | (103,000) | 0 |
Forfeited (in shares) | 0 | 0 |
Ending Balance (in shares) | 347,478 | 312,704 |
Weighted Average Grant Date Fair Value | ||
Beginning Balance (in usd per share) | $ 20.59 | $ 26.70 |
Granted (in usd per share) | 65.28 | 12.25 |
Vested (in usd per share) | 21.09 | 0 |
Forfeited (in usd per share) | 0 | 0 |
Ending Balance (in usd per share) | $ 31.61 | $ 20.59 |
Value | ||
Beginning Balance | $ 6.4 | $ 4.8 |
Granted | 5.6 | 1.6 |
Vested | (2.1) | 0 |
Forfeited | 0 | 0 |
Ending Balance | $ 11 | $ 6.4 |
LTIP market-based vesting units | Minimum | ||
Value | ||
Vesting percentage | 0.00% | |
LTIP market-based vesting units | Maximum | ||
Value | ||
Vesting percentage | 200.00% | |
Incremental performance shares granted | ||
Shares | ||
Granted (in shares) | 51,500 | |
Weighted Average Grant Date Fair Value | ||
Granted (in usd per share) | $ 21.09 | |
Value | ||
Granted | $ 1.1 |
Earnings per Share of Common _3
Earnings per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income (loss) attributable to controlling stockholders and participating securities | $ (2,838) | $ 21,175 | $ 64,159 | $ 57,491 |
Less: Dividends and distributions on participating securities | (200) | (200) | (700) | (700) |
Less: Undistributed earnings attributable to participating securities | 0 | 0 | 0 | 0 |
Net income (loss) attributable to controlling stockholders — basic | (3,000) | 21,000 | 63,500 | 56,800 |
Add: Interest expense related to convertible notes under the if-converted method | 0 | 100 | 1,000 | 100 |
Add: Undistributed earnings attributable to participating securities | 0 | 0 | 0 | 0 |
Net income (loss) attributable to controlling stockholders — dilutive | $ (3,000) | $ 21,100 | $ 64,500 | $ 56,900 |
Denominator: | ||||
Weighted-average number of common shares — basic (in shares) | 79,335,173 | 74,012,788 | 78,407,028 | 71,376,004 |
Weighted-average number of common shares — diluted (in shares) | 79,335,173 | 76,131,252 | 82,069,464 | 72,644,626 |
Basic earnings per common share (in usd per share) | $ (0.04) | $ 0.28 | $ 0.81 | $ 0.80 |
Diluted earnings per common share (in usd per share) | $ (0.04) | $ 0.28 | $ 0.79 | $ 0.78 |
Securities being allocated a portion of earnings: | ||||
Weighted-average number of OP units (in shares) | 559,686 | 321,261 | 459,848 | 301,582 |
Participating securities: | ||||
Potential shares of common stock related to convertible notes (in shares) | 3,494,175 | 8,485,630 | ||
LTIP Units with market-based vesting conditions | ||||
Participating securities: | ||||
Unvested restricted common stock and unvested LTIP Units with time-based vesting conditions (in shares) | 581,301 | 653,071 | ||
Potentially dilutive securities (in shares) | 347,478 | 312,704 | ||
Restricted stock units | ||||
Participating securities: | ||||
Potentially dilutive securities (in shares) | 81,846 | 235,866 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Income (loss) from equity method investments | $ (7,215) | $ 16,506 | $ 69,519 | $ 32,505 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Consolidated Financial Position and Results of Operations of Significant Entities, Accounted for Using Equity Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance Sheet | ||||||||
Total assets | $ 3,940,863 | $ 3,940,863 | $ 3,459,067 | |||||
Total liabilities | 2,467,478 | 2,467,478 | 2,248,918 | |||||
Members' equity | 1,473,385 | $ 1,097,737 | $ 1,322,547 | $ 1,067,964 | 1,473,385 | $ 1,097,737 | 1,210,149 | $ 939,912 |
Income Statement | ||||||||
Revenue | 48,882 | 48,589 | 159,470 | 138,018 | ||||
Income (loss) from continuing operations | (4,349) | 23,622 | 76,035 | 60,606 | ||||
Net income (loss) | $ (3,099) | $ 21,277 | $ 64,525 | $ 57,746 | ||||
SunStrong Capital Holdings LLC | ||||||||
Balance Sheet | ||||||||
Current assets | 87,000 | 92,000 | ||||||
Total assets | 1,624,000 | 1,532,000 | ||||||
Current liabilities | 63,000 | 48,000 | ||||||
Total liabilities | 1,282,000 | 1,217,000 | ||||||
Members' equity | 342,000 | 315,000 | ||||||
Income Statement | ||||||||
Revenue | 67,000 | 61,000 | ||||||
Income (loss) from continuing operations | 2,000 | (4,000) | ||||||
Net income (loss) | 2,000 | (4,000) | ||||||
Rosie Target Co, LLC | ||||||||
Balance Sheet | ||||||||
Current assets | 11,000 | 25,000 | ||||||
Total assets | 282,000 | 299,000 | ||||||
Current liabilities | 5,000 | 19,000 | ||||||
Total liabilities | 101,000 | 118,000 | ||||||
Members' equity | 181,000 | 181,000 | ||||||
Income Statement | ||||||||
Revenue | 6,000 | 0 | ||||||
Income (loss) from continuing operations | (3,000) | 0 | ||||||
Net income (loss) | (3,000) | 0 | ||||||
Lighthouse Renewable HoldCo LLC | ||||||||
Balance Sheet | ||||||||
Current assets | 11,000 | 22,000 | ||||||
Total assets | 482,000 | 497,000 | ||||||
Current liabilities | 41,000 | 22,000 | ||||||
Total liabilities | 130,000 | 87,000 | ||||||
Members' equity | 352,000 | 410,000 | ||||||
Income Statement | ||||||||
Revenue | (71,000) | 0 | ||||||
Income (loss) from continuing operations | (88,000) | 0 | ||||||
Net income (loss) | (88,000) | 0 | ||||||
Summit Ridge Capital Holdings, LLC | ||||||||
Balance Sheet | ||||||||
Current assets | 51,000 | 18,000 | ||||||
Total assets | 407,000 | 268,000 | ||||||
Current liabilities | 58,000 | 43,000 | ||||||
Total liabilities | 357,000 | 243,000 | ||||||
Members' equity | 50,000 | 25,000 | ||||||
Income Statement | ||||||||
Revenue | 6,000 | 1,000 | ||||||
Income (loss) from continuing operations | (5,000) | (2,000) | ||||||
Net income (loss) | (5,000) | (2,000) | ||||||
Vivint Solar Asset 3 Holdco Parent LLC | ||||||||
Balance Sheet | ||||||||
Current assets | 60,000 | 86,000 | ||||||
Total assets | 441,000 | 303,000 | ||||||
Current liabilities | 8,000 | 3,000 | ||||||
Total liabilities | 353,000 | 139,000 | ||||||
Members' equity | 88,000 | 164,000 | ||||||
Income Statement | ||||||||
Revenue | 11,000 | 0 | ||||||
Income (loss) from continuing operations | 4,000 | 0 | ||||||
Net income (loss) | 4,000 | 0 | ||||||
Other investees | ||||||||
Balance Sheet | ||||||||
Current assets | 636,000 | 539,000 | ||||||
Total assets | 7,900,000 | 7,340,000 | ||||||
Current liabilities | 587,000 | 518,000 | ||||||
Total liabilities | 2,586,000 | 2,298,000 | ||||||
Members' equity | 5,314,000 | 5,042,000 | ||||||
Income Statement | ||||||||
Revenue | 4,000 | 118,000 | ||||||
Income (loss) from continuing operations | (283,000) | (1,000) | ||||||
Net income (loss) | (283,000) | (1,000) | ||||||
Total | ||||||||
Balance Sheet | ||||||||
Current assets | 856,000 | 782,000 | ||||||
Total assets | 11,136,000 | 10,239,000 | ||||||
Current liabilities | 762,000 | 653,000 | ||||||
Total liabilities | 4,809,000 | 4,102,000 | ||||||
Members' equity | 6,327,000 | $ 6,137,000 | ||||||
Income Statement | ||||||||
Revenue | 23,000 | 180,000 | ||||||
Income (loss) from continuing operations | (373,000) | (7,000) | ||||||
Net income (loss) | $ (373,000) | $ (7,000) |
Uncategorized Items - hasi-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |