HASI - Earnings call transcript Q3 2019 | Hannon Armstrong Sustainable Infrastructure Capital, Inc.

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Operator

Good afternoon, and welcome to Hannon Armstrong's Conference Call on its Q3 2019 Financial Results. Management will be utilizing a slide presentation for this call, which is available now for download on the Investor Relations page at investors.hannonarmstrong.com. Today's call is being recorded, and we have allocated 30 minutes for prepared remarks and question-and-answer. All participants will be in a listen-only mode. [Operator Instructions]

like Vice the ESGS President, Company. I'd to call for time, Reed, Chad Investor this to conference turn over the At Relations and go Please sir. ahead,

Chad Reed

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

Securities claims the Act The like XXA Before Section statements Act made to as amended. you that and this call protections XXXX the course contained and Exchange harbor of amended call statements of in the meaning of XXXX of as for Company comments of the the remind within the begins, and of I the forward-looking are safe Section Securities sections. would some forward-looking in of such the of XXE

The this described forward call may from risks during Company's in of Actual the section the filings looking uncertainties SEC. call. Form those the to the with materially Factors statements the results and and are other Risk subject differ made XX-K described in

the are as statements forward-looking to all addition, In not of Company today undertake any statements made or based expectations. circumstances revised and forward-looking does update responsibility any on new

available reconciliation this posted to not measures financial with non-GAAP financial is as financial earnings presentation. of A call. discussed of and the substitute or on presentation our be is in non-GAAP slide for in certain information will release that note Please GAAP accordance measures to information a be isolation GAAP. on conference A presented intended considered this

the are Jeffrey Joining Jeffrey and CFO. Company's on CEO; me call Chairman today's our Lipson, Eckel,

to will that, who I'd on the Jeff? X. to Jeff, begin Slide call over like turn With

Jeffrey Eckel

to a GAAP earnings announcing due later one per the discussed earnings core that will good per Thanks, $X.XX share. we're Chad, Today provision everyone. earnings of be of and GAAP $X.XX in afternoon, decreased and share, call. time

a year-over-year realized of in stands in share This X.X% our a half and investments core now one than X% In XXX of and We income improvement more million and growth now investment growth for and we was track an the XX% a intend yield, $XXX per portfolio of quarter, earnings core the in points transactions of $XXX on which XX%. times to closed basis of $X the we of leverage which lower third growth debt-to-equity. balance billion driven on by transactions of quarter, of net remain closed fund Year-to-date, well close full over third year. we've million to sheet. in position

our to our add $XXX addition, corporate discussed million capital to access continue inaugural up In $XXX we on to liquidity following million and with green by unsecured bond. position improve our previously

carbon offsetting count We our growth calculate every to per X% XXXX as earnings is we emissions. third And of for every for also reiterate three from share carbon metric over the X% of our investment, investments. annual the reductions in year base. from through tons The and carbon XX,XXX we investment do XXXX quarter, guidance X.XX, quarter our core

companies investment flow programmatic these reminder, premier source infrastructure in markets. to from diversified basis the and of Grid our X, and development do we future. engineering energy in we endeavor a Slide the this a pipeline We that classes Across operating system markets, a uncorrelated Turning XX as approximately of Connected the the the driving the each and provide Meter, sustainable of opportunities. Behind highly invest asset on

will to annual we our opportunities, remained $X our comfortable and meet target. year-to-date or on Given billion quarter view we our fourth exceed be able investments

bulk are the recent including billion of as toward X.X other months remains With continues securitized. regard the classes, energy opportunities, end to those reflective governmental of pipeline have will commercial third pipeline totaling to weighting portion more of grow, and future resiliency indicated the of energy is BTM with and industrial in which several asset our announcements efficiency decarbonized. Behind facility be community for BTM XX% energy of all which that potential with of or the XX programmatic The new opportunity of pipeline of C&I well our business, a decentralized, safe efficiency our quarter, of this strong Meter solar, the belief set. BTM of C&I opportunities clients, the As solar of than demonstrate remained opportunities Sun The opportunities majority BTM our and the pipeline C&I the digitalized as as and power relationships. and harbor

due and up have associated The with has power to our California. makes resi portion expand to resiliency catastrophic need growing to market of residential once quickly system, continues have addition a outages modest still storage ongoing note home but pipeline. how added a gone nice home wildfires the I'd to solar, also in from to is solar

and Approximately This our of XX% climate The amount pipeline chasing driving deals capital opportunities of market sustainable returns. change, of includes to investments. Grid assets. set the down resiliency adaptation, of Connected infrastructure consists diverse remains competitive

whom new As utility slice of them land help business. clients to remain our for towards we compete solar opportunities offer a an investments, result, with capital scale weighted for existing accretive

we're like the landlord fluctuations senior price short also As bankruptcy. cash flows, PG&E energy with the from protected term credit largely position counterparty and a risk

the will focused term climate horizon on execute adjusted a To given on opportunities broad page, the long in investment risk investment a the that summarize solutions, and with we change this continue returns. to platform provide best quarter

respectively. is assets X% and we additions making balance our higher managed lower billion Connected sheet. sustainable as of XX% QX, grown sheets and has X, portfolio, to our more of to X.X billion our off of with up assets Slide rotation by the at assets portfolio end into infrastructure than of yielding BTM offset remainder balance the from comprised our assets Grid the portfolio. assets XX% view Since X.X to yielding and provide Turning a

have investments a we with which $X of size, average to million total, diversity speaks the XXX In our portfolio. investment

investment. a single previously of we treat As as we noted, assets portfolios some

and number obligors So diversity is more figures total robust assets even than of larger and these is the thus suggest. substantially physical

While residential larger adjusted of support become portfolio several of portion we attractive portfolio syndicating level of to continued large ensuring of retains growth. have because a risk in and experience return focused decades solar returns, our our the our the appropriate on has diversity and positions are

detail now our Jeff it L turn to performance. I'll financial over

Jeffrey Lipson

good and Jeff, afternoon. Thanks,

Turning we on primarily sale to resulting our we from from originally. fees Net emphasize and our that to broadly two investment of sheet assets portfolio, securitization earnings and the servicing gain of sources income are presentations revenue. Slide our of the result and revised X, that balance

status, remains XX.X now investment. from from due related cumulative in of million losses and the of share $X.XX I'd our in matter in recent royalty related that initially also same which to court since we very have XXXX provision approximately acquisition a successful provision result or part of earnings recorded underlying X.X losses basis land a nonaccrual diluted quarter to litigation portfolio points. ruling this primarily are nonaccrual The and disclosed receivables, This year. a which these assets This was last per previously million assets aggregate for GAAP XXXX on in an per quarter, were diluted note zero projects. XXXX. are the share XX the to decrease were status $X $X.XX million down on was lease placed

related One investments. our further the method GAAP include effect cash that equity do we GAAP item from to of is earnings not results the full receive

and million as our per equity compared cash in core same XX.X to from XX% quarter Year-to-date, is of quarter to the million last fees XX X% XX.X XX% year. share XX.X as earnings million we've million return last per Gain increased earnings a core the were the $X.XX XX the last both method XX.X Core to XX in million, million share, sale to primarily of million. quarter to This to collected in in year. which year. net investment the $X.XX include or or of compared compared investments, quarter third component in investment and up same increase same a on due income

Turning lower two yield driven that Slide demonstrate is investment portfolio by income increasing and net we to growth X, leverage. in factors,

XXXX. the been the of our yielding yielding reduced sheets them interest our leveraged balance and with Therefore off currently leverage we've we in replacing upward investment lower discussed expense. rotating experienced assets As higher core for XXXX, highly to in we've we've quarters, continue are few since has track assets. net last income The lower on trend

we year XX our life for this average the assets, to continue. well are trend of Given positioned

to to we and success Turning want continued funding flexibility adding highlight to in our we've more had Slide diversity platform. recent X,

$XXX original to to an the year $XXX million fund launch on unsecured which debt and X.XX%. and to both Following of demonstrate liquid deep, markets, access our when yield These of XXX with to with upsize transaction Note stable the our consistently our In X.XX%. transactions secured as coupled market, access million bond inaugural our were at a aggregate and July equity in corporate September, these bonds the to the to we enabling forward. oversubscribed, green established offerings positions sizes. well growth of flexibly going issued five issuance add that million maturity notes

of ratio against range we our is largely non-recourse the that movements. This proceeds target underlying that facility debt The convertible until debt when debt amortizes the maturity result rate debt of the of unsecured no near rates, that utilizing previously the the term mature. debt of all is maturities interest to our XX% have combined XX% assets, and to reduce bounce. and we are the our with risk that temporarily offerings fixed contracted XX% Note our XX%. fixed of bonds within above largely This at profile, rate disclosed is material assets credit our demonstrate primarily terms recourse of inoculated XXXX refinance fact approximately on

of are rate source facilities the credit the primary debt. As floating our

remains as the Turning quality right. upper of in credit depicted X, the pie the to on our portfolio chart strong Slide

All of government grade vast majority of our investment and enjoy ratings. commercial our obligors the

our by assets method themselves obligors credit preferred of to we consumers in the typically credit in lend obligors equity simple their do nature are investment senior which are solar structure. high residential analysis, not quality or the addition, In investments,

many of a back us the about As fans Washington game. as the wish to want quick and not I of and World X are shout Nationals Game Series in turn I out to we're the to success some call tonight, excited very Jeff, just give the over

I'll Jeff. And with over turn back to that,

Jeffrey Eckel

Thanks, Jeff.

that common XX, few Turning believe investors we opportunities broadly offer that seeking to are characteristics. a Slide

First, they're yield looking low interest rates. environment an in capture to historically with

can they're Second, sustainable to recession in finally, resilient late stage ESG strongly companies they're leadership. companies economy. looking growth for And committed demonstrate for that environmental looking a and

resilient And Further investors. the total diversified we through our industry counterparties, of compelling a Hannon and an focused of demonstrated yield comprised terms a change all history return, and opportunity sourcing opportunity long government With yield history business providing presents offer across of the our growth, solutions, ESG for decades mission many disclosures, other sustainable dividend Armstrong of very our a of recession hungry with and attractive platform, flexible accretive opportunities, demonstrated funding have for plus utility we the and funding growth cycle. climate practices a and investor. leading ESG investment

today. please us for joining few the for Operator, you questions. line open Thank

Operator

Thank Please take question go our Noah Oppenheimer. you. ahead. And Instructions] [Operator Kaye from we'll today first with

Noah Kaye

know, just of Maybe Thanks. investment installations could for like looking under be panels JV years. here the for safe couple can next you SunStrong question more runway megawatts Good XXX a Seems the on the and over at, there with we distributed ITC. solar afternoon. the harbor forecasts start by

So how down? ramps over opportunity growth on term and the can this the as you view medium you ITC comment short

Jeffrey Eckel

Noah. Hi,

down, commented the we've goes Armstrong ramps Hannon for tax in that replaced as investment calls prior equity think cash the equity. is up I as with opportunity ITC

period, picture. big in as What an harbor business, our some certainly as the Hannon our an the certainly opportunity. solar you as for increased is about being see and overall very talking other the transition know, opportunity with constructive we see solar we which, that's So growth facility powers in And for well clients. safe we're this distributed

I than that we ones opportunity other business. in and add are it's the for to be to a good more winners are clients our going this what the think sure not think So Hannon

Noah Kaye

partnership what makes service is about of what for why Okay. that mid-sized Maybe kind you You platform? energy approach buildings? or market believe brings you the deal know on the investment management to of this talk in GridPoint, the sense pipeline a you? can target Maybe you opportunities attracted

Jeffrey Eckel

market. profitable, very evolution be capital When service in – you invested a grown first cost say look investment it's ago, of years. of so amount impactful probably frankly, really very, doing savings know, want sector. of We of the know consistent like Energy very this which industry. a assets. took think to GridPoint, user, get investments, significant of are profitable, transactions. in to GridPoint know, of of energy the transactions, do investing that aggregate You of access series carbon XX with you to very general digitalization the limited an of way not taking in much another we for in terms a the We and granular sell But as future. to would investment and commercial a PACE you needs it's business as actual an in of savings. all, transaction. some the smaller not effective very at they've This a for what is at energy but through them we to something certainly is our I really it PACE GridPoint gain example to in practices an that's the amount the They're company, is assets, an the known investments systems for an the It's years very while. able – tried than to opportunity looked XX We've opportunities corporate they're very of now. clients, small and been it But end the at

Noah Kaye

follow-up Okay. And maybe here. a as

market seems management partnership, service very You the partnered so under yield C&I opportunity of opportunity there for a know, potential an you the now, for with penetrated area and you companies is is mentioned like is you. and higher the PACE the approach, energy as

more company? with growth segment? talk for timetables Do for the any building So targets share can you know, to have become I material you that efficiency respect guess, you think to you for about reasons can start growth the any commercial can or to

Jeffrey Eckel

question. Good

of what You know greenhouse is XX% the emissions. C&I U.S. is the market gas

said, it's quite more And new when million on So more terrific talked the profitable about market them interesting when we a been That is be we clearly one of of about we kinds $XXX think think that still these or market. to We solution. of resistant and an have think about services. or we other it's historically it's calls generally annual can some talk markets, PACE investment. PACE

energy days, I it a we still So think say promising. early that's seems service as case. quite the would but is

transactions make of like anybody's with to with in a financials. start You is meaningful small know, got lot But the to difference GridPoint. and problem takes are you a them somewhere we where we

Noah Kaye

course nets Okay. color. good Thanks of luck should to it very much the your tonight, And for be good game.

Jeffrey Eckel

Thanks Noah.

Operator

question today go Partners. Please Capital from next Philip with comes ROTH Shen Our ahead.

Philip Shen

for Hey the guys, questions. thanks

the to Can what's you Empower be assets near perhaps to expect able add first about of examples to to of For projects, added the might university, of the explore be terms balance but sheet. you in talk docket municipal what types partnership. it's the the term the I guys would know C&I, love Energies one, in the do you sheet? balance to some pipeline When give and

Jeffrey Eckel

to focused the concept is really on on the And assets and Empower developing we and that are similar financing operating. engineering GridPoint,

is get with will with now we've exploding the a struggled scale. origination I a allow And think to excited think figure done management job great they've out one to them. of developing the the just contract comfort They have new participate. well This us of I a know, to finance deal on Empower good – to past a market in assets. and we're basis. as do platform that You them is how team. a model with a And as basis have to that we nationally, It's of a have we

and As big. one our again, of consistent no assets, transaction, theme you no all client is one all a that know,

but So think returns. us while we're that attracted of and adjusted risk we're either think certainly don't good market excited these about we Empower to. materially, bend I GridPoint. curve into gets has the a it And

Philip Shen

Jeff. Thanks,

about model? there, size you this follow-up expect be that mentioned code? struggled and you know crack average in and past did You the What's the What into a you've to differentiate do the now to you this guys as market. just would get to deal

Jeffrey Eckel

of more And they And doing. on think companies And a you it business, focus programmatic our what are lot then there know, every actually a started good it. a with of pretty world a I that Empower compete figured to number have to clients. the corporate is a finance while. are companies of And do with. But It's with their out are takes like clients they've work and how basis on fit. there programmatic naturally, things

than did think won't with companies anything the on other – there. your Empower capital, to we stay is to try culturally, talk knew match just our us. fit don't team I of be the we with think We And also up a persistent ones innovative a you find that for great particularly market. and So the very one lot but we

Philip Shen

quarter Shifting XX% resi portfolio solar, of being your resi, over was last you're at XX%. Okay. to

is as is going much percentage some You being At base year in much you your What a or to at too asset how get on point, end look XX know, this growing – your mix. and overall this to do like a it's keep resi by just majority this does rate, you're fast adding? of solar. of

Jeffrey Eckel

is the growing of solar resi Well, we on to of as that. address I added piece think reasons relatively small the pipeline comments as well pipeline part is some that and the

are. sheet? of I You it is that balance unlikely. Can do know, majority where we Will highly think we Sure. love more? our we become a

Philip Shen

outlook the for solar? past And for expect then term has great. to solar add the couple pretty estate estate real you theme, years. real the the near opportunities with do staying balance solar to estate scale sheet? Okay, the any What's real flat been for And utility item line

Jeffrey Eckel

good It's a Phil. question,

asset of would think was pretty And business. I all doing think see years much the of guys but solar of ago, lousy it scale very we a one projects. job of a couple of developing thinking it's the a not are Yeah, it's case. a much that value that's our over. classes, utility business, run terrific Again, If I I lumpy. scale the good like was flow great just did, – risk. good, we us think a That's consistent utility as pretty for we kind

see more So, to portfolio. we expect in do land the

Philip Shen

Okay, thanks, it pass on. I'll Jeff.

Jeffrey Eckel

Thank Phil. you,

Operator

Dumoulin-Smith Please go comes Bank Our from ahead. Julien of next America. question with today

Anya Shelekhin

this filling Anya is Julian. Hey, in for

Jeffrey Eckel

Anya. Hey,

Anya Shelekhin

Hey.

So you had? pipeline could historically? maybe I guess growth growth target any X% roughly around the in terms potential the asset to level first, the of billion And you've there then overall, your discuss that you've past from thoughts for acceleration is X EPS X% had

Jeffrey Eckel

we've Anya, So about talking history our had pipeline. of a

I than billion you at X be about of a proposing doing less out that discipline least can Can pipeline or bigger? a there we but we X you and And IPO order that pipelines, required then and to to it it's talk and a coverage, We our X.X on, investment. earnings And discipline about billion and with that's lot more to is, believe earnings. than what talk XX That's particularly the second X.X know, us is a enough. and Sure, to we're us. to actual be And billion and then to pipeline don't X.X we're think less judged billion more a pipeline the grow then there's talking if for to – we're investment continue a is, is size reason is the about metric. at billion lot hit want to to now billion. coverage on what targets a the year, pipeline XX started carrying continue more certainly invest. focused than sufficient X

to of earnings X% but think comfortable we'll to kind So, growth. respect in energy the we future future, will that certainly know, the earnings, we're assets And address of to the at behind meter. be you certainly With our expect X% reiterating guidance we grow.

Jeffrey Lipson

prepared or Anya, remarks, keep the three to the addressed balance rotation said question times, sheet we that going at been mind reference through. I And in think of sheet least we made balance two the your we've in portion growth,

robust we've been we to although sheet balance go through volume you we've So seen balance optimize, you've a also been amount selling closing, transactions, of as not where so that's this sheet as decent know, growth large rotation.

Anya Shelekhin

thanks. Okay,

Jeffrey Lipson

itself – sheet interest balance goal. net the is growing income the So

Jeffrey Eckel

Correct.

Anya Shelekhin

quality, on and this the portion, reading you lot. was non-IG Thanks a And of portion, range it of maybe how a think portfolio I'm like a under it XX% has if what as XX% reasonable do Because slightly forward? couple around to the ago? would declined going looks quarters correctly, credit be XQ it IG

Jeffrey Lipson

the lend grade themselves know, know, rating. know, not off-takers. essentially, from grade, or non-investment grade they're obligors collectively. portfolio of as equity getting prepared terms it I or entire try you So X, that components investment to likewise, migrate investments, for think portion being remarks, going to non-IG you the method of portfolio even Page two primary the And in in metric the be away certainly you being in consumer we we IG investment And, in of top as because, grade a you we've and to investment show don't the have individually relates the the we're either not of to really notion know, big large are that this

But primary the the notion from we portfolio little comfortable grade, will over of very, in become away steer less this think portfolio. with and the non-investment credit So, trying credit We're investment the portfolio meaningful being in that metric. describing risk very in to level of has detail. to time grade, quality are the describe I in continue a

Anya Shelekhin

community for What thanks be? a Alright, How end. could lot. it And question market about talk my the can see? kind of a more last of returns solar? big you Could prospects from you

Jeffrey Eckel

for than a ago. we that, rooftop solar roof that's were potential which thinking XX%, a about heard of years much like max just bigger implies community just couple that a XX% I because that think something have resi solar I things and and like opportunity statistic orientation or shading

pretty a of benefits model committed a announced with of solar the think of market the we interesting some scale utility solar the continue market benefits transaction to have expand solar. some scale the that's and with to residential So of in –

know, projects they're those them to up commercialize enthusiastic I the pretty go about to investable. and talked possibilities. it's You when them, develop our think And those we make clients to and

Anya Shelekhin

thanks. talk And terms could it how portfolio you the in your of about returns be more Okay, meaningful for could and size of own portfolio?

Jeffrey Eckel

would really. we talk asset with anyone metaphor I of But mean, Not XX factual, actually, it engine because XX really and asset be asset don't class, like, anyone the we you not we about classes use our driving the results. – cylinder know classes.

of know, is class this to $XXX starting an than a It's had I that year. asset You be potentially particularly meaningful investment be could anticipated interesting new more million today.

Anya Shelekhin

a Thanks lot. Okay.

Jeffrey Eckel

Anya. Thanks

Operator

with Mark Please sir. question comes next from ahead, JPMorgan. Strouse go Our

Mark Strouse

much Yeah, for our good taking you afternoon. very Thank questions.

just update of spoke, forward? of there's tone, then Jeff. by if mix just been any yield, And competitive noticed how going for time securitizations in most change open search in we now, had material you've on similar we the mean, your rates about just of I an landscape? Thanks, global So change the answered been should them since that but high given the last for a kind the think wondering kind on of level,

Jeffrey Eckel

Mark. Sure,

much to more of level not of that that the yield the level type first be originate. it the even curve tends of slope or necessarily absolute of question, it's the we on rates drives securitization, the asset So the

and assets a of our balance solar classes, or tend securitize efficiency, energy resi keep of to we many the we other like sheet. to land, on solar like tend certain So asset

most energy we've or noted put that So as of to level not decision interest this be And – way, business, it the monthly. times be many to the by tends let's rates. driven of tends efficiency absolute

deals, second when large go this percentage both know, see And that go percentage securitization quarters those where securitization you a of those down. have you'll So close volume see and many of third transactions, – in do year, of where quarter didn't too up. a we quarter we you'll when we like

the So think to about that's it. more way appropriate

And then I'll answer. question, the let second Jeff

Jeffrey Lipson

ability our the you your search answer, second who adapt for to business our search model are that It was know, investors global I or that to participants absorbed and, persists so forgotten yeah. Global yield, our with I've continue for just question. put as looking in sheet to from rather we don't That yield. client’s than standpoint, how classes do be means on for balance – securitized really we and than profitably long capital. asset care the it several can have the they as securitized, access rather which

some the these just so for not to utility in take fundamentally, developers the those of sizes bids seeing size the wind really players it's of is things an There reason. particularly and we're average better an Those know, we're are not precisely balance And million, sheet. $X hard take you capital players the But the play opportunities investment with scale of large rather off for to than the for and those sheet of That's to actually I they're us transaction compete balance otherwise at business. using transaction. and as look know, abundance that our assets many good Grid with or on to to a those $X them think of necessarily our solar. million That's opportunity you partner where an aggregate willing compete with them. That's projects, about, what we choosing Connected, areas talked global projects.

Mark Strouse

Got it.

helpful. you very Thank both. Okay,

Jeffrey Eckel

Thanks, Mark.

Operator

comes Souther go Please Chris ahead. with Our question next Cowen. from

Christopher Souther

versus go SunStrong given Could different it kind you bit seems that be, the period just a term. thanks JV, for how similar know, to my I new of that longer like about transition structure Hey, safe a a little question. JV back you to with to shorter harboring. timeframe, talk become the want taking during for SunPower just

there's kind this know, of with can that along be to kind going and that lender does have that senior and stuff. where How that You similar guys of work? you a all

Jeffrey Lipson

to true think a capture that's oranges, than apples of more of underlying bit of venture many off transactions run your a harboring some facility I finance a to these of a is series it's transactions is whereas a in the Well, joint these point will of and strong ITCs JV little transaction to receivables and quickly. portfolios safe invested lease

– So two quite it's they're transactions, client. there's same the quite different not being really

Christopher Souther

the And quarter ramping transaction here? that is it. got then did Okay, fourth in occur or up that's that kind third of quarter

Jeffrey Lipson

the third quarter. closed in It

Christopher Souther

Okay. the seeing little and talking about a you kind just at end strength point? And this of markets plus then the, are talk markets. bit else or where solar sitting know, you're kind you where of so kind beyond XX of a Could about other XX

Jeffrey Eckel

any but We the this quarter, are see climate business, either. the transactions the into in in continue get getting resiliency flow resiliency problem to for fixed, governmental United government Those efficiency change. of Didn't larger lumpy. do good States didn't particularly and

the still about transactions We've service in a the C&I market. So energy the as persist. talked

the have its away. the takes that's but small the And certainly more know, year mentioned And again, pretty business. interesting. an cope again, engine they in dollars PACE, to storms hundred we now, severity the in be getting to we quarter. is with pipeline, I've communities but that grow past. to issue know, and In again small in is hit they fixed the frequently, the you develop, think but the on it's going because the that that markets, You all infrastructure sustainable they're it's can the developing don't problem PACE time really as like perhaps good of to they're maybe try continue then our to XX adapt happened area cylinders have it's not or episodic, same

haven't we necessarily wind. wind for number that we is much returns business. quarters of capital a the of area we've adjusted the There's and talked the seen there. know, not lot saying And we're that a risk in activity You want about

that's think I survey. a So

Jeff, the would you you know add anything color?

Jeffrey Lipson

you covered. think I No,

Christopher Souther

an wanted one. idea Obviously, quarters. management quarter but there just last are get couple some the over the big still move, within we've And moves seen to the the active a of I was of where Excellent. second last here. is we

You know, of the investments quarter, looking about receivables X%. the below that of XXX second are and at million end

color Or, know, know, continue that. you going that You you down a you that guys are little to Could is come just to opportunistically, here? provide at there? looking really,

Jeffrey Lipson

Sure.

characterize would third second the than the has our yet. calling your we've rotation I complete to So process being point, in what point there not larger been was the quarter in quarter.

on are our So may do I there of. out that we remain – sheet rotate balance assets some think

to your point... And to But surprised be so don't see that.

Jeffrey Eckel

been the Probably to would logical do attractive ones first. have us more for

So probably some diminishing to marginal rotation. future returns

interrupt you, to Sorry but.

Jeffrey Lipson

taking to is way just not is. about that. low yeah, opportunities say to of the with your at marketing out is agree advantage yet. that about opportunistic, opportunistically going of some it to I think And totally being yielding it. I likely it certainly aggressively was would Chris, characterize I no, these as point times rotate to assets, assets, not But of complete more No, We're

Christopher Souther

send Okay, and you luck tonight. good ring you Bryce Harper Make win. sure [ph] guys if

Jeffrey Lipson

Thank you.

Jeffrey Eckel

Thank you, all.

Operator

it further queue there time. no are questions at this And in the appears

We'd today's disconnect. conclude may now will call. and so to you for like thank you participation this So much your

Hannon Armstrong Sustainable Infrastructure Capital (HASI) 30 Oct 192019 Q3 Earnings call transcript