HASI - Earnings call transcript Q4 2017 | Hannon Armstrong Sustainable Infrastructure Capital, Inc.

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Operator

Good afternoon, and welcome to the Hannon Armstrong's conference call on its Q4 and Full Year 2017 Financial Results. Management will be utilizing a slide presentation for this call, which is available now for download on their Investor Relations page at investors.hannonarmstrong.com. Today's call is being recorded and we have allocated 30 minutes for prepared remarks and Q&A. [Operator Instructions] At this time, I would like to turn the conference call over to Amanda Cimaglia, Investor Relations Director for the company.

Amanda Cimaglia

Thank you, Melissa. welcome. and everyone, afternoon, Good Earlier this its press detailing distributed Hannon quarter and Armstrong fourth results. a full release afternoon, year XXXX of on available which copy our A website. is page live conference be will today. the This being later website, webcast is Investor a call available Relations of replay our where on

Act Before subject begins, of the of are The call forward-looking and amended. and like and results within I from XXXX, uncertainties to to in some Safe the XXA you Factor may forward-looking that for described of such this in the the protections course comments the materially and during forward-looking company statements The of Exchange XX-K Securities in the of of sections. made of SEC. amended, Form Risk the call company's contained the Actual meaning the Section differ Securities of are claims the as made call. described Act the would the Section remind in statements section as the other statements risks XXXX, of Harbor XXE call with filings those this and

conference or as earnings GAAP presentation. is GAAP. for measures this is with any new not note as and to our be In the substitute statements does and are information call. to in non-GAAP financial undertake not a of certain on forward-looking that discussed circumstances posted on financial update this addition, any presentation be isolation financial made of based or on company to available non-GAAP revised A of responsibility in slide Please all statements forward-looking today expectations. information will intended measures the reconciliation A accordance release presented considered

to Cressall, Jeff? call on are over deputy President Eckel, turn Our who CFO; Joining CFO. Justin and and will CEO; me the Slide Company's that, call With X. Brendan Jeff, like begin Herron, our I'd on the today's Jeffrey

Jeffrey Eckel

for the full $X.XX all earnings per share and we the announcing Thank share increase good and of Core XX% are share $X.X and a all afternoon dialing Thanks, X% GAAP the for in. earnings year, you. per for year-over-year. $X.XX you $X.XX for quarter year, fourth quarter Amanda, per the of year-over-year. of Today for

adding the to our of and all overall approximately fee closed the This increasing increased We’ve liquidity balance Given sheet. of and fixed we pipeline the of to sheet very as the of are rate with rates to securitizations our model substantially $X the the important yield on and transactions put an three market. offset flattening liabilities. assets saw higher the increase environment portion and of the curve billion out the increased We balance rate the year securitize to fixed on to of assets relative and is the for we strength proportion flexibility increase consistent a liquidity. debt us alternate generating our growing costs grow business largely allowed We steps.

across While balance XX% securitizations XXX and remain able separate portfolio shifting sheet relatively we we diversified still to by approximately were our widely to are year-over-year transactions. more grow

debt share Given review pipeline a we'll with quarterly annualized earnings X% of environment $X.XX investing have three-year per we are for strong XXXX shareholder higher curve and XXXX it dividend without again time this our year. a total cost yield at of to the corresponding of introducing unchanged a And to benefit normalized the growth decided we and we next in keep fixed guidance growing guide impacting while to returns. rate XX% fully

our investors. Turning themes to mind like X Slide market address to top of some we'd of the for

connected The If relatively is do wholesale grid grid smaller level connected larger the to priced well in the given interest so and smaller, much key been search to XX the we generally low grid? the us produces on the is which model. Investing then its solar of also connector for The that for efficiency it efficiency of prices, storage asset customers’ to assets in so to question yield, as premises if include market the touched themes assets into overall to prices type speak energy. customers’ aggregating this do is that general on are the power continues asset on customers’ of the the more I’ve feeding business as already curve. only whether the generally for assets. have but a assets more opportunity economics in overall opportunity the These the face fits going page, rates opportunity seem flattening is, to and meter renewables perfection the the with not is yield be market invest it grid these attractive days energy they rise location. is the sustainable is particularly distributed us. the and price We on years behind-the-meter on or for markets attractive behind behind power market in for greater energy close it meter it also it global two is plants. power the very impact such rate solar it Not infrastructure assets on If in. or however, utility premises, gas defining we've our a premises, low assets, natural assets. assets of be as Our grow opposed to due see economically

generally like what and Longer-term, to Our XXXX. on timing for have was of equity higher experienced we for excellent move out our better liabilities up. spreads us, fixing returns XX% started and rates higher in XXXX mean rates as

bit our capital. is lumpier, sale a economic us. our environment. of new said earnings suggests a using securitizing make it institutional times will a and but rising better core welcome gain traditional we fee flat income better which will yield history we've of rate on spread off some and curve for sources That we are for choice in It quarterly So a several our corporate seen

Finally, policy some sustainable the the cycles many Trump like so administration regulations. Reagan administrations. we supportive not asset supportive and our Clinton like today We've class often get asked witnessed I, and Bush dismantling and II Bush the around of some EPA about policies and Obama the infrastructure

otherwise end industry this caused impact. over law our until first Focus the Our is without grid not policy. on that changes connected technology the tax best on conclude but drivers renewable are improvements transactions at To assets behind-the-meter defense where have defense. like fairly in the to government asset are subsidies and economics page year limited the economic law, the changes will became pause of government holidays tax

the breakdown to wildly relative remains ultimate going reporting X, XX-month We're which we on our Turning to based start pipeline obligor. strong, the location growing. of Slide diversified pipeline to asset the and

we As in this opportunities a our the earlier discussed smarter is way think and pipeline. think assets to the about

very project prices. solar on behind-the-meter connected the wind assets the the on panel to efficiency to upgrade the left is residential commercial utility with economics solar and to the natural grid that while wind scale shifting new today's use solar low in the generally a better instance Converting pipeline show pipeline combined and our than efficiency gas For scale panel and with different is same utility generally and right pipeline. category, solar the presentation solar involves

historically capitalize despite risk We opportunities we XX.X%. sheet of Generally some sheet growing while company today balance uncorrelated XXXX. our profile. and that to adjusted be maintain believe years in the a is periods look balance XXXX doubled model four our an doubled long-term over positioned by attractive and business different and will more clearly the such yields Turning illustrating debt the our of last portfolio. than returns X, uniquely pursue today Since quarters diversified size the are risk on with long The strength Slide performance. of please we the forward-looking and detail highlight fixed attractive opportunities market billing financial to business climate set working. we’d Brendan model durations return assets should evolution nearly equity change with the address rate continue to the quite of rate to like those low on core of than over to the upcoming more have of flexibility conditions amount our return as to interest of seen

Brendan Herron

Thanks Jeff.

growing investment size average assets. X, and sheet diversified Slide approximates balance to The an geographic portfolio portfolio high is quality $XX obligors across and our of year-over-year. XX% credit portfolio with billion million approximately our regions. $X remains Turning of of XXX investments of technologies, comprised Overall, markets, consists

over portfolio the yields consistent quarters year at have ended and remained the last relatively Forward-looking X.X%. several

is steepens, the rise. a base spreads higher for good due there for mentioned, rates increasing in Thus see largest have more we to been an the expect result connected Spreads rate both search Jeff to in rig us. yield so especially and environment yield, search interest will at curve normalized interest low levels transactions. spreads rise the and likely is for which as yield rates As

impacting returns, Additionally, gas natural continued prices connected especially in wind grid low projects. are

purchase power structural especially in preferred of position, our impact as in such power seeing most agreements projects While dated are returns. our some longer have a we impact expected protections curves the which

part in in prices. of book its position overall because that assets. to gas of have of a a of X% made to natural the acquired represents one the an discount approximately we investment as a example, For We portfolio project equity our value projects exposure

natural low we're prices We diversified The portfolio. on impacting of protection such which gas widely returns a with our project. a is impact only of continued beauty are sponsor will that The any working trend the have some hopefully a portion small expected to maximize. flip this portfolio

portfolio growth Slide $XX time approximately income an year, as X, $XXX from to as for GAAP of the in we equity XX% generated GAAP method a well approximately year, last this increases of as in result million, investments allocations. increase Turning the and last year million from investment

$XX million $XX For year. $XX $XX million, investment revenue the year. in income approximately We prior generated the last same grew to million from compared of investment million other in the quarter, quarter in

we year. margins general Given of assets achieved this the conditions, sold nature higher and the market

curve the of transactions increase institutional expect we the flatness we to the are of the yield for XXXX. Given investment appetite of and revenue other current types originating, in investors

As balance securitization more than is our attractive gain sale on adding sheet. to

earnings our the X.X%. XX% XXXX As between of increase thus and coupon last higher at securitizations variability debt approximately million result of fund in primarily second $XX discussed of increased of of completed control quarters used to to in the between and rate from a not we the grew years. these to in of lead $XX over transactions half timing year, do Interest closing also average a debt likely million an approximately fixed as portfolio even will million growth. expense have the We the level we of the year $XXX

approximately cost the will While a an rate believe XX% have $X.XX we the level fixed risk largely rate debt we associated minimized basis share. moving interest On to annual cost.

cost our Our year higher in XX approximately average in debt in all end cost all than XXXX. points debt was forward-looking basis

primarily $X.X $X.XX to the XXXX. and month of a period. approximately income, LIBOR $XX the per Compensation, with $X.XX four the to As we over rose is approximately general or interest see one In This $XX or in have increased expenses per share year-to-date even additional million due XXXX. hikes to cost Fed points XXX XX-month company. compared three million comparison by for continue protection projecting of will rate growth administrative last the total quarter million for we associated or basis share the if $X the GAAP and X.X% million

cost. losses, earnings GAAP cash on larger collected we investment including $X limited a return XXXX investment. core full equity based allocation not on back recognize which In our million. adjustment other income higher investments million on of received of to capital. equity future the our flows, a of present make approximately million thus have $XX by and $XX core the received from adjustments $XX of represents amortization $XX invested energy compared we we and reflects approximately of tax a million gives approximately these believe return cash return Since receive on million. of earnings GAAP the million by cash. $XX the to return discounted And $X cash reminder investments the alongside equity for In a as include million especially year, to rose have we core a we As when added although our of in $XX GAAP cash the we million approximately $XX Stock where these allocation million expenses we million $X a core Thus value, our renewable of investments, both from the a return of a total do rose and and much effect non-cash total other tax to year-to-date and a profits improvement. XX% investment, of lease the comp were

and core quarter quarter I share earnings per to Jeff. turn the will For last were year. this over With increased back $XX the million that $X.XX call

Jeffrey Eckel

Brendan. Thanks

X Slide or want environmental, to social we to to our Turning emphasize ESG and commitment metrics. governance

temperatures to reflects As or or for IPO, defined our GHGs our most world in environmental gas today right many warm record D.C. then a for capital. earn of XX°, X° greenhouse prior superior other neutral change must incremental not XX°. the attractive we've we negative in climate February side be done warmer emissions experience thesis hit adjusted adjusted that years and will than on risk all before the we carbon investment change deliver for investing nation's evaluate those by line. of record And and transactions nothing investments returns. This risk the the on for It's benefit. climate We Washington by the some increasingly returns

or In As E its tons metric capital metric the of carbon on the in per our offset of XXXX this and of to were COX. Disclosure aggregate we strategy, reduced greenhouse TCFD part XXX,XXX carbon Climate will X.XX our card Financial company chaired $XXXX by risks that December, on quickly commit an Board Force $X,XXX governance, of and disclosure approximately framework Standards first targets. the have investment reporting disclosure believe Task the investments annual In of language report initiative annually a of to through for of sustainability published equivalent disclosing of risk gas or is public and the Disclosures we greenhouse Michael count. We count ESG, to gases from change, tons metric per Bloomberg. climate tons commitment Climate-related core becoming the universal encouraging risks elements, management, U.S. to implementing four

We are in XXXX to we and plan our XXXX negative leadership We strategy alignment TCFD proud will X setting on process by start position to for to close and this the given X. zero emissions take to to X thesis. discussions our and in detail Scope We topics. business we implementation various look with Board aspects our increased stakeholders a emissions forward of for on disclosures today and targets the investment our oversight we Scope and these phase various look of ESG employee our to on at been and engagement XX-K more have the actions active on policies director has and important independence. with business the for invite diversity, governance related you taken social Scope and

closing, some leadership. a is is to enormously think, grow call evolve the proud, the together, of from XX, to asset for our market our define we and Slide five-year is an and as portfolio the offer attractive platform, thoughtful that Brendan, by while of people to we and that we an create the quality alongside total helping market. in dividend attractive committed our an highlighted that by diverse I'm best important a street way In anniversary compared enormous to individuals lead to return adjusted internally field of various and believe ESG the XXth managed Turning We yield sustainable I and in all the yield business investment generated our IPO we've risk managed believe in conservative, high this assets credit classes. an approach

X% Thank today. questions. We call us open employees we’ll this alongside shareholders for you of in for the own are as business. not a And our the few up business approximately invested you joining

Operator

our take Partners. Philip you. [Operator Instructions] Capital from first ROTH with Shen will Thank We

Philip Shen

for your on guidance. earnings stock to is decide your enough your part did that to price, are down He I'd your – XX%. your X% the questions. guy in moreover stock year-on-year you thanks was hit stock flat start It your in Why base appears with the to price? and yield guidance such on like guidance based core your guidance part could if you

Brendan Herron

cover that So ratio read that cover price to time issue. we on release, to on so price the relatively if relatively to by earnings to exact you ratio, earnings tried consistent off press Phillip standard off

Our total look curve, the are of the story in that thought We're growth. our our some look is we the a think future. the at investors at some it return look of – we – investors yield is trying more way to growth is at

just compare points. if against we just it doesn't about both were highlight we earnings so without growth And growth And well really trying talking to the story. us pure about talked dividend,

appeal to markets trying both to there. So we're

Philip Shen

fair. that's and Okay,

for may you preps the expectation be or the guidance more dividend at can spell bit so for numbers maybe year? have you a might out you yield, alluded prepared growth, but that X% flat growth It out for the just your the spell year-on-year, in or more earnings implies but is earnings, if year-on-year of And this us…. what X% that core can X% remarks higher to kind a core

Jeffrey Eckel

Yes XX% to X% X% implies said We good earnings is range the X% is growth. the I Phil think talk core Jeff again. to that of dividend to yield to X% if its

Philip Shen

Okay, great.

Brendan Herron

Phil. part rate changing for the lumpiness years years environment a) and that's the three was: over two And of securitization. of the the reason three And

the be end that up we So had transactions have timing we in the of transaction. control may because quarter less impact earnings in control over how the and which will securitization than we past we’ll don't

more move we to why three-year guidance. that's So

Philip Shen

a sale goal to do what do out on how how about the that’s selling might take view environment have and you quickly – guys for know environment the historically think as opportunity, sounds I flat I is kind how the you like – it about to but talked long in And guess do expansion tough an – great. environment Okay, you here in have think as And rate this gain said normalize? know of I a margin it securitizations. you super to well that it? guys rising

Brendan Herron

flatter of last a would be a correctly. is my economics But no future. those think predictor history curves of very course remember generally I There's that more year. don’t inverted period than I – typically yield for long the if

Jeffrey Eckel

is change – that think model what securitization the to enough is in that is Phil flexible another any toolkit, we the tool we've environment. in highlighting environments to will model business work. say And tried I using what And here always the our work so we're we're

until to profitability And you point continue We work at that normalize out we expect and hopefully normalize. levels higher rates overall the us. for mean spreads base better and the as when higher higher rates, rates will

So this is environment, it going transition look through economy through that to we in forward another that meantime advantage to we're we have. going the but take of tool going the use and while it's

Philip Shen

pass I'll Great. you I one efficiency that half And and in securitized I’ll of originations your question on. Historically about it market. last especially recall point energy guys the

more do as much ballpark – us what there. of can more it can sense a to as now, like, You'll or might XX% give be mean is between I somewhere kind of look can you in you XXX%

Brendan Herron

way be always put XXX% balance shocked. XX%, to a sheet down The There's that. no I is coming is XX% on we would or securitized from model the get XX%

we've could So south or XX% on be the giving of than we're that, going not done really historically. it it's – to but guidance more be

Philip Shen

you both. to thanks, pass it I'll Okay on.

Jeffrey Eckel

Thanks Phil.

Operator

with Baird. W. Tyler our Frank next it comes from question Robert take We’ll

Tyler Frank

guys thanks question. the taking for I guess Hi switching…

Brendan Herron

it’s Sorry. guys Ben. Hey

Tyler Frank

Hi Ben.

Brendan Herron

be Sorry my could voice I didn’t know here.

Tyler Frank

can you energy break or just that deals in I they you’ve if this the your haven’t done at of were think got just out that. first So kind fields what this we is quarter efficiency renewables? you quarter, look

Brendan Herron

closed we've you We that broken the it’s quarter-to-quarter no, think never not we Actually of portfolio. quarter. which assets a compare don't quarter out if in the type frankly report in we've big and a report the pipeline the difference. got And I done,

data in no not there’s but the never it's actually we've So report. fact in past, that I don't reported news the this the and have

Tyler Frank

year billion. It why million on $XXX like the – balance down of that’s it sheet there looks the for $X looks your like that was

Brendan Herron

actually that’s core – Phil Ben. pay Yes down

sense can better in to get yield we the at a – if when you'll filed. closed when over sense a year, the quarter little But chart, you compared time like transactions, get the $X.X to $X get a sense you you'll or it if where you’ll from portfolio rough billion, billion you you'll the see year. last compare and chart get case So it look you a last press this rough it's of from last a sense release, the is

Tyler Frank

[Indiscernible]

Brendan Herron

we $XX million I then we had the And alone. equity method talked back – investments about got as from

So number that that would then so. bring down,

Tyler Frank

about for we How think volume? deal year this that year total for this do

Brendan Herron

comment is the we Well made that strong. the pipeline

$X to growing. lot billion think I it's said another billion. forward a is look And we believe definitely $X always We've of doing we a business.

the targets we'd billion. aren't us on $X volume top For rather – way. economics that the and start that rather of than the It’s optimize going pretty as that as accretive comfortable from chasing deals

Tyler Frank

I’ve I've very competitive had solar guys. know And more little than you is because On like efficiency right energy that’s that heard the market the move front, let’s how past I completion now? our competitive. market with in But aside, a

Jeffrey Eckel

changed deals. competitor we're to is a a it high. the the problem institutions just small Big switching a relatively want think the so and small. with much to and assets market fairly It's into in just We decade. standpoints local I It's think stable. are good to is the interesting lot niche-y. in the with risk market the Federal the big understand file market. get the providers having benefit And it's But really just federal of state don't business it and that series There's of efficiency from out The doing competitors as The – is is lift PACE fuss problem been stable, markets, don't a not market PACE developing. so last pretty and is is of there.

of specialty experience have classes. all these decades So in asset lenders, there’s a not of of like ourselves, who lot just

continue of on the the asset. behind to focus to that's meter So the reasons one

Tyler Frank

like somewhat like balance like than leads the sounds on front year? billion transactions what think about right less your of And capital to it this over guess and now. I next of do But changes mix on sheet, it $X putting your it you sounds

Brendan Herron

platform the beautiful institutional Well of one getting securitizations happy we benefit transactions. that or owners I capital. of thing with securitization X% something a is our flows It’s that about mean equity on leverage to of the all And business. the some like these the

the it's to will So lessens in the increased amount capital make been need of of we at the certainly XXXX point end and try XXXX. we also has liquidity that

of that So a imply capital-light in approach all certain should XXXX.

Tyler Frank

Brendan my next is… question

Jeffrey Eckel

Wait Ben.

Tyler Frank

energy there year, market? where use down guys On or there you storage, is can that enough an cost opportunity

Jeffrey Eckel

of of one actually both changes grid the that. value we behind connected. things really that’s reasons assets of think meter the and about Ben Storage on the sides

we have starting when projects efficiency to So to utility. plus see storage of many solar that a be close micro-grid

one element we perhaps their but think, we're standalone see several well. storage there in I storage new some see storage some of over side, are we storage, of as wind years. have in the next the and with transforming the transactions retrofits projects as on doing solar in projects we'll connected it business. So most not certainly of the And And grid doing technologies

Tyler Frank

guys. Thank great Alright, you.

Jeffrey Eckel

Thanks Ben.

Operator

with comes from Noah Oppenheimer. next Kaye question Our

Noah Kaye

afternoon. good Hey

portfolio has commodity overall exposure, one at point? commodity to bit it’s power, what you exposure of power market, the the assets, us can just of Brendon Brendon this the in Before percentage fluctuation for noted

Brendan Herron

a specifically high not break know don't percentage I it Noah. out Yes it's we

is As either long a dated we've protected. the said flip we PPA the look The expected make power point are protected or most we to of we're trying curves. on returns things have at

the eventually have will probably if PPA. a point of come it switch those market's point project, and the in even doesn't life the a projects forecasting That to where At just to down do XX-year necessary having isn't you you it’s XX-year returns over curves some up. So merchants. off get as some future life have

will So those returns impact.

and more even we’re a typically protection we right just that's flip of just now there merchant. we have selling projects some headed we're portfolio do that have We But merchant the the percentage sponsor. where have small

Noah Kaye

efficiency to and Okay. about for larger [indiscernible] energy help trade-offs ability but maybe these interest to And larger you. transactions between margin you us talked about before, think for do

of the having kind project, up at transaction the rates relatively of efficiency and see that’s cost or little keep higher you to of pricing now? price for If energy stable the your compression? of margin go get price you expense an base are bit kind able As a to size coming of

Brendan Herron

More I of is aren't with balloon if risks We interest – it projects former. rate variables. taking like three really of the think a on those

the tenure lop off does early on to economic good in in descope been transaction resized. basis in interest project rates, the savings this We've the or what the ESCOs the cycles You’ve XX-year of completely time goes is a got to always we've get point or The or fit a to project, and Margins has market, a period compressing There's the AAA where geared to We commercial transactions. The have to little runup through less the it all XXXXs. the on fed. up. the It it's if dozens go basis are And shouldn't take. there's point the the least not in pace then lot their is U.S. credit get savings within of XX margins and more it's a is federal federal ESPC. That’s and a do rate. scope a this. transactions measure not risk size work The ESPC rate XX interest down. the we in saw and industry take said this have movement. sensitive of –

Noah Kaye

[Indiscernible] that good was a answer.

Operator

sorry. I’m

Noah Kaye

Alright.

Operator

B.Riley with question Driscoll Carter next from our take We’ll FBR.

Carter Driscoll

three-year more guidance to then moving as a – of kind to just to to, is I'm you Hi the to of as understand maybe on introducing trying guys. described and margin the May maybe guidance you total global in potentially last growth in curve of of those going on variability, long especially and metrics, is of flattening search implying end, think over how of year? why in pressure the in more that longer what and guidance. Phil what return sense terms not trying some three-year, get securitizations two a you than of core to just short, portfolio, to as sublevel the increasing I get square Or kind your – than on as that is of to return sense going just a that I earnings. be But back Do up I'm certainly trying the fast for to that focus yield get period. just guess the trying much ESCO is circling

Jeffrey Eckel

at I the even total think we’ve talked about IPO, return. always,

So view we money other how this certainly make yield we few no hope case. historically, the than at But a last, a than, through – have don't they been year. more having a that's flat And curve times, very what last capital this. It's long on yielding and purpose. not capital. the using might using balance low very to any having best we time capital assets probably really put our did That's to XX be at good this before but for we're institutional the for on years sheet, we

It's quite were investors crisis to do for decades. is good go us. should sheet. signal deal now feel securitized to we should us better be Even it the a there's So to been there's It's on when right time a during that be a profitably. for balance securitization just there line able or – a financial bight no it probably when of the for market

some a the this time money. of institution's use is to good So

Brendan Herron

higher is then, of debt us fixed next Carter a kind this couple headwind And think that year. our cents a year. estimate rate In of it it's $X.XX I with costs

that the top we saying to that, on in that that of we’re we’re $X.XX means plus order growth. were get to growing overcoming when So

do But with someone really So that can environment… we're we we while so we're made curve this to going the know last, we're the comfortable point saying securitizations. in is long the earlier, to how don't

Jeffrey Eckel

be That’s Brendan. what [Indiscernible]. it will

Brendan Herron

long So curve made, to that point know the we the don't will Jeff how last.

continue normalized that get a – until overcome environment. So more we've a we to a until more got we will $X.XX that normalized cost rate to $X.XX get as to headwind

Carter Driscoll

follow-ups. quick of maybe then And a just couple

keeping distribution year-over-year, to the in [indiscernible] of more is reported and an is of much because you on payout you opportunistic, a then of be composition capital flat versus of keep have how do just for versus the that XXXX? return to cushion order just changing expectation what is that terms simply that In of kind

Brendan Herron

expect bit range So income into think not it's that it's a it's of keeping would The probably as that far $X.XX. around think think, a of – sub we it that's the year, as be. we That's it far XX% where but portion as is year-to-year. things that XX% – decision. that to the moves to go dividends, that about XX% the want the you past, versus how one XX% average, RSS on of I from about that at on There's have talked the continue a the way those our get reported think, We the don’t would that. of it it income we �� return variety REITs the I somewhere I is things, This four-year We kind in to in math is to expect capital. is range. sub

Carter Driscoll

Okay. take the Thanks Alright, rest I’ll offline. guys.

Operator

Instructions] Osborne Jeff We’ll question take a [Operator Co. Cowen & from with

Jeff Osborne

good Yes afternoon.

us double-digit moved X% XX%. growth earnings earnings or just to from Brendan, think, my But walk core through, so, kind follow-up months over to Another the past, can narrative you around XX on growth I the end. core of

sort to of $X.XX implying impact from move, X%. to in the Now Is that your eyes, you're the… entire attributable EPS X%

Brendan Herron

consistent, decision, remained side the to has it was the guidance of Yes. decision. a because the last I headwind was year, when we've right people yield most higher changed the right was the it's quarter we decision. And mean, – We need I I think, rates. was if to move this you continue look think so that to the to of believe at talked the think that was thought the that right relatively

this like, off we've year's table. So the where which were affected range. which growth cost the that. was to taken I There's cents is a of a risk we couple earnings in to XX% this that X% as It year, said,

as that, year. now we're it's of We interest on until it's a about we are this, so said And we that the that order a to just what be in And think have grow can. $X.XX just So was seeing cents we again, per of realistic for trying quarter. earn grow, we and it about rates affected means to we last normalize. quarter how couple top can to much is to as –it

Jeff Osborne

a yields And to three-year that on of year. point, just I Jeff you between typically for and either guess what I think flat giving even was the thought process, year are or said Board, Jeff guidance? that the

be You more ultraconservative but I'm to kind a will be seems if years. over that rate we to seem next everything locked guidance to the years. is three down for point Maybe at move the some reading environment three to it be as of implying normalized wrong,

now, but on let bold know to look in seem core is me to be implying A going growth what more, we B, the year. instead going is, We're earnings which tough XXXX, a what to to So pretty move. world's like say based securitize just you

Jeffrey Eckel

we given, comfortable pipeline the report do – guidance but and visibility that. have do pipeline, think we beyond XX actually XX-month are that years I we've Actually, we with supports we levels, – the the or

meant So good provide the that feeling about it actually was pretty to some we're business. actually comfort

Jeff Osborne

of was thinking core was the time of XX% the digits, IPO to that's yield I that. at with top supposed earnings on that facet X% double the and now the the grow to just of

Jeffrey Eckel

would for out think think, grow, and we said continue that I as I look to we moved total Jeff, always returns. double-digit we

environment. what So I we're in is a think we holding still to that think rough

we think pretty about always consistent were So I that.

Jeff Osborne

or cadence a have safe securitization securitization the you that might through Okay. and that given you strategy end the the year relates as the But instruments certainly change assumption, strategy, last assuming behind-the-meter with the vast you that. finance is the lower be get. will last which be channel finding of – very back-end year, I on experience the in implies it as that half And the And in to of just the the the question and first had decided on a year just to a I half kind that these finance does the year of that in the at there loaded? strategy? was partners of that of sort creating as so, the three the change something and of projects of first it types months just well the Is timing given

Jeffrey Eckel

couple I to sheet on a We wouldn’t the timing the We've infer had for from don't any decade. clients. nimbleness putting are more of clients put investors impact turn are And we to to look ability We We've balance left balance right No. the The of for decades. that's securitization structures. quarterly had securitizations. do from so really securitize of, relatively would on the have relatively conditions. investors, to a not given timings. the for don't look but I market have shift sheet for infer the that set to have we stable have go proud any on a them things impact to,

Brendan Herron

lumpier it think is trying be that is. I Yes, say is to trying the we're to really only we're say to there than really going there it's

That's quarter one what of higher bunched quarter, versus quarter we're trying much could the be it another really to series income So quarter. one say. much income transactions are into lower of all next

there'll but timing, necessarily not lumpiness. increased be So

Jeff Osborne

other you one, there or growing you and highlight in that have? like anything XXXX in the And areas prior the about talked that pipeline for that not on last lines, is that's Is the XXXX call, behind distribution based then Okay. that the in realm meter water. could you’ve transmission you

Brendan Herron

assets, meter, possibilities areas it's country fairly think water larger good often, remediation storm not infrastructure and but [indiscernible] for projects. projects on by that it's We're but also but small the for profound need the type President, still the whether probably I on as all or featuring those this infrastructure assets, in noted relatively we specific profound see as larger is assets, cleanup-type very upgrade, they're in. behind are

see those. will We

Jeff Osborne

you. it. it, Got thank Appreciate

Brendan Herron

Yes Jeff.

Jeffrey Eckel

Thanks Jeff.

Operator

today’s back concludes I’d At Mr. question-and-answer closing call remarks. to to That turn like time session. conference this Eckel any the for

Jeffrey Eckel

out again. we'll some I and Thanks you talking analysts questions to to on getting asked talk forward this. road to We know look good after you. the And

soon. So Speak with thanks again. you

Operator

you conference today’s thank concludes your for participation. and That

Hannon Armstrong Sustainable Infrastructure Capital (HASI) 21 Feb 182017 Q4 Earnings call transcript