Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 05:00 pm ET


Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) Q2 2020 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to Hannon Armstrong's Conference Call on its Q2 2020 Financial Results. Leadership will be utilizing a slide presentation for this call, which is available now for download on the company's Investor Relations page at investors.hannonarmstrong.com. [Operator Instructions]

At this time, I would like to turn the conference over to Chad Reed, Vice President, Investor Relations and ESG. Please go ahead.

Chad Reed

Thank you, operator. Good afternoon, everyone, and welcome. Earlier this afternoon, Hannon Armstrong distributed a press release detailing our second quarter 2020 results, a copy of which is available on our website. This conference call is being webcast live on the Investor Relations page of our website where a replay will be available later today.

Before the call begins, I would like to remind you that some of the comments made in the course of this call are forward-looking statements. And within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended. The company claims the protection of the Safe Harbor for forward-looking statements contained in such sections. The forward-looking statements made in this call are subject to the risks and uncertainties described in the Risk Factors section of the company's Form 10-K and other filings with the SEC. Actual results may differ materially from those described during the call.

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

With that, I'd like to turn the call over to Jeff who will begin on Slide 3.

Jeffrey W. Eckel

Thank you, Chad, and good afternoon, everyone. Today we are announcing another strong quarter with 33% year-on-year growth in core earnings of $0.40 per share and a 29% year-on-year increase of core net investment income for the first half of 2020 to $49 million total. Declaration of a dividend of $0.34 per share. And please note that from this call forward, earnings and dividend announcements will be combined.

We announced, after the quarter-end, another partnership with NG where we will invest approximately $540 million over the next few quarters. I will speak more on this partnership in a bit, but it does certainly contribute to our confidence that we will once again exceed our annual target of investing $1 billion in climate change solutions. All of this, despite COVID-19 disruptions.

And finally we're announcing that we've launched multiple Diversity, Equity, Inclusion and Justice initiatives, which we'll shorthand as diversity