Ha Sustainable Infrastructure Capital Inc.

Appearance date: May 07, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Ha Sustainable Infrastructure Capital Inc (NYSE: HASI) closed over 700 million US dollars in new investments in the first quarter of 2025 and marked the most active first quarter in its history.

• The company reported an average return for new investments of more than 10.5%and showed a strong financial service.

• Hehi has a significant liquidity of over 1.3 billion US dollars, which improves the ability to capitalize market opportunities.

• The company confirmed its guidelines of 8 to 10% -composed annual growth of the adjusted EPS by 2027, which indicates the trust in its business model.

• HISI's business model is resistant and not cryclical, whereby growth and profitability are not directly connected to macroeconomic cycles, which offers stability in uncertain times.

• There is an increased political and economic uncertainty that could possibly affect future business companies.

• The potential effects of tariffs on future projects are still a problem, although the current projects are largely unaffected.

• A recession in 2025 could slightly affect investments in the generation of clean energy, although the company only expects limited financial effects.

• The company's sales and other income were lower in this quarter with $ 24 million compared to $ 30 million in the previous year.

• There are continuing uncertainties in relation to the IRA and potential changes that could affect future investment strategies.

Q: Can you discuss the lever profile and the interest strategy for debts at CCH1 level? A: Jeff Lipson, President and CEO: The leverage at CCH1 would be relatively low, with more equity than debts. It is expected that the interest rate is similar to the fund costs for investment quality, probably in the same environment as the interest rate of HISI.

Q: How do the needs of equity financing affect your investment pace, especially with the current share price? A: Jeff Lipson, President and CEO: We have reduced the number of shares that are necessary to grow our business through strategies such as CCH1 and withdrawal rates. This direction enables us to spend fewer shares per invested dollar, which is positive over time.

Q: Does the expansion of the CCH1 term give a delay when reaching the financing goal of 2 billion US dollars by the end of 2025? A: Jeff Lipson, President and CEO: The expansion reflects an increase in the capacity of CCH1 and no delay. It was a mutual decision with KKR to extend the investment time because the vehicle will be larger than originally planned.