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HASI Announces Third Quarter 2025 Results with Record Adjusted EPS of $0.80 and a New $1.2b Investment

ANNAPOLIS, Md., November 6, 2025 -- (BUSINESS WIRE) -- HA Sustainable Infrastructure Capital, Inc. (“HASI,” “we,” “our” or the “Company”) (NYSE: HASI), a leading investor in sustainable infrastructure assets, today reported results for the third quarter of 2025.
Key Highlights
•GAAP EPS of $0.61, compared with $(0.17) in Q3 2024, and Adjusted EPS of $0.80, compared to $0.52 in Q3 2024.
•GAAP-based Net Investment Income (Loss) was $6 million in Q3, and Adjusted Recurring Net Investment Income totaled $105 million in Q3, up 42% year-over-year.
•Adjusted ROE increased to 13.4% year-to-date through Q3.
•Managed Assets grew 15% year-over-year to $15.0 billion as of September 30, 2025.
•Closed approximately $1.5 billion in transactions through the first three quarters of 2025 with new asset yields on Portfolio investments >10.5%.
•New $1.2b investment in a 2.6 GW utility-scale renewable project closed in October.
•Adjusted EPS growth in 2025 expected to be ~10% and guidance reaffirmed for compound annual growth in Adjusted EPS of 8-10% through 2027 relative to the 2023 baseline.
“We are pleased to deliver an exceptional Q3 report with strong results in every one of our key metrics including new investment volumes and yields, Managed Assets, Adjusted Recurring Net Investment Income and Adjusted EPS,” said HASI President and Chief Executive Officer Jeffrey A. Lipson. “In addition, we are on pace to close more than $3 billion in new transactions in 2025 and the outlook for our business remains particularly robust.”
A summary of our financial results is detailed in the table below:




For the Three Months Ended September 30,For the Nine Months Ended September 30,
2025202420252024
(in thousands, except for per share data)
GAAP Net Income$83,257 $(19,616)$238,314 $129,949 
GAAP Diluted earnings per share0.61 (0.17)1.79 1.09 
Adjusted earnings102,543 62,624 255,598 215,213 
Adjusted earnings per share0.80 0.52 2.04 1.83 
GAAP-based net investment income (loss)
5,919 13,832 11,402 35,944 
Adjusted recurring net investment income
105,144 74,083 268,703 211,038 


GAAP Net Income and Adjusted Earnings
“Our results this quarter are the culmination of our business strategy where we have demonstrated multiple facets of our value creation capabilities and have increased our year-to-date Adjusted ROE to 13.4%. With improvements in our equity efficiency and earnings growth, we are realizing a higher incremental ROE that will accelerate the trajectory of shareholder returns,” said HASI Chief Financial Officer, Chuck Melko.

GAAP Earnings and EPS
GAAP net income (loss) to controlling stockholders was $83 million in Q3 2025, compared to $(20) million in Q3 2024. GAAP diluted earnings (loss) per share was $0.61 in Q3 2025, compared to $(0.17) in Q3 2024. GAAP income in the current period was driven by total revenue of $103 million and income from equity method investments of $125 million, which were offset by total expenses of $108 million and income tax expense of $34 million.

Adjusted Earnings and EPS
Adjusted earnings were $103 million in Q3 2025, driven by Adjusted Recurring Net Investment Income of $105 million, Gain on Sale of Assets of $25 million, and Origination Fee and Other Income of $1 million, while Compensation and Benefits and General & Administrative expenses (excluding Equity-Based Compensation) were approximately $28 million.

Adjusted Earnings in Q3 2025 increased $40 million compared to Q3 2024, due to a $31 million increase in Adjusted Recurring Net Investment Income driven by a larger Portfolio and project refinancing proceeds, and a $17 million increase in Gain on Sale of Assets. These items were partially offset by an $8 million increase in Compensation and Benefits and General & Administrative expenses (excluding Equity-Based Compensation) primarily due to timing of incentive-based compensation accrued in the third quarter.



Adjusted EPS was $0.80 in Q3 2025, compared to $0.52 in Q3 2024, due to the increase in Adjusted Earnings described above.

An explanation and reconciliation of GAAP Earnings and EPS to Adjusted Earnings and EPS can be found at the end of this release.

Adjusted Recurring Net Investment Income

HASI’s Managed Assets consists of three major components: our Portfolio, our co-investment structures, and our securitized assets. HASI generates recurring income from each of these components: (1) income generated from our Portfolio, including both our debt investments (“Receivables” and “Real Estate and Debt Securities”), and our equity investments (“Equity Method Investments”), (2) management fee income from our securitization trusts and our partner’s share of our co-investment structures, and (3) income from our retained interests in our securitized assets. Adjusted Recurring Net Investment Income measures the recurring income we generate from these three sources, net of interest expense.

GAAP-based net investment income captures Interest and Rental Income revenue as well as Management Fees and Retained Interest Income, less interest expense. However, it does not include the income generated from our Equity Method Investments (as defined below), and thus fails to capture all of the economic returns earned by our Portfolio. GAAP-based net investment income was $6 million in Q3 2025.

Adjusted Recurring Net Investment Income captures not only our management fee income and income from our retained interests in our securitized assets, but also our income from our entire Portfolio, including both our equity and debt investments, net of interest expense. As a result, management views Adjusted Recurring Net Investment Income as a helpful indicator of the full underlying economics of our investments, enabling a useful comparison of financial results between periods. Adjusted Recurring Net Investment Income was $105 million in Q3 2025, an increase of 42% from $74 million in Q3 2024.

A reconciliation of GAAP-based Net Investment Income to Adjusted Recurring Net Investment Income is shown below, and further explanation can be found at the end of this release.



Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in thousands)
Interest and rental income$68,976 $64,151 $202,894 $197,551 
Management fees and retained interest income8,424 9,082 24,412 19,197 
Interest expense(71,481)(59,401)(215,904)(180,804)
GAAP-based net investment income (loss) (1)
5,919 13,832 11,402 35,944 
Adjusted income from equity method investments (2)
100,068 59,436 249,024 174,189 
Loss (gain) on debt modification or extinguishment 293 953 11,171 953 
Amortization of real estate intangibles3 3 9 177 
Elimination of proportionate share of management fees earned from co-investment structures (3)
(1,139)(141)(2,903)(225)
Adjusted recurring net investment income$105,144 $74,083 $268,703 $211,038 

(1)GAAP-based net investment income (loss) as reported in previous periods was not defined to include Management fees and retained interest income. It has been included here in comparative periods to reflect the new definition.

(2)This is a non-GAAP adjustment to reflect the return on capital of our equity method investments.

(3)GAAP net income includes an elimination of the intercompany portion of management fees received from co-investment structures in the Equity method income line item. Since GAAP Equity method income is not a component of this metric, we include the elimination of the management fee through this adjustment.


Adjusted Recurring Net Investment Income represents the sum of (1) Interest and Rental Income Revenue, (2) Adjusted Income from Equity Method Investments, and (3) Management Fees and Retained Interest Income, net of (4) Interest Expense and (5) the elimination of our proportionate share of fees earned from co-investment structures. It also excludes other non-cash items such as Amortization of Real Estate Intangibles and, when applicable, Loss (Gain) on Debt Modification or Extinguishment:

•Interest and Rental Income Revenue

As of September 30, 2025, our Receivables, Net of Allowance, and Receivables Held-for-Sale totaled $3.3 billion, up 14% from $2.9 billion as of September 30, 2024, due to the funding of additional investments over the previous 12 months.



Interest and Rental Income Revenue was $69 million in Q3 2025, compared to $64 million in Q3 2024, driven by higher yields on our investments and investment fundings.

•Adjusted Income from Equity Method Investments

As of September 30, 2025, our Equity Method Investments were $4.1 billion, an increase of 23% from $3.4 billion as of September 30, 2024. Equity Method Investments includes our proportionate share of our co-investment vehicle CCH1, which was $576 million as of September 30, 2025, compared to $84 million as of September 30, 2024. Approximately 75% of the assets in CCH1 were receivables or debt securities, and 25% were equity method investments as of September 30, 2025.

Adjusted Income from Equity Method Investments1 was $100 million in Q3 2025, an increase of 68% compared to $59 million in Q3 2024, driven by both growth in Equity Method Investments and higher yields, as well as the impact of project refinancing proceeds received in the third quarter of 2025.

•Management Fees and Retained Interest Income

As of September 30, 2025, assets held by our partners in our co-investment vehicles were $592 million, compared to $74 million as of September 30, 2024. In addition, our Retained Interests in Securitization Trusts, Net of Allowance, were $278 million, an increase of 8% from $258 million as of September 30, 2024.

Management Fees and Retained Interest Income Revenue was $8 million in Q3 2025, compared to $9 million in Q3 2024, due to the timing of servicing fees recognized from securitized assets.

•Interest Expense

As of September 30, 2025, our total debt outstanding was $5.2 billion, as compared to $4.1 billion as of September 30, 2024, and our weighted-average interest cost, as measured by GAAP interest expense as adjusted for loss on debt modification or extinguishment divided by average debt outstanding, was 5.9% in Q3 2025, compared to 5.6% in Q3 2024.

Interest expense was $71 million in Q3 2025, an increase of $12 million compared to $59 million in Q3 2024.

Managed Assets and New Investment Activity
As of September 30, 2025, our Managed Assets totaled $15.0 billion, up 15% from September
1 Adjusted Income from Equity Method Investments is calculated using our underwritten project cash flows discounted back to the net present value, based on a target investment rate, with the cash flows to be received in the future reflecting both a return on the capital (based upon the underwritten investment rate) and a return of the capital we have committed to our equity method investments, as adjusted to reflect the performance of the project and the cash distributed.


30, 2024, and consisted of (1) our Portfolio, (2) our partners’ portion of our co-investment vehicle CCH1, and (3) assets we have securitized. As of September 30, 2025, our Portfolio was approximately $7.5 billion. Portfolio yield was 8.6% as of September 30, 2025, compared to 8.1% as of September 30, 2024, due primarily to the funding of higher yielding portfolio assets.

We closed new transactions totaling approximately $649 million in Q3 2025. Through the first nine months of 2025, closed transactions totaled approximately $1.5 billion. Subsequent to the end of Q3 2025, we closed a new $1.2b investment in a 2.6 GW utility-scale renewable project in October. As of September 30, 2025, our pipeline was more than $6.0 billion, even after excluding the $1.2 billion investment in October.

Weighted average yields on new Portfolio investments were underwritten at more than 10.5% during Q3 2025, consistent with the weighted average yields on Portfolio investments over the prior five quarters.

As of
September 30, 2025September 30, 2024
(in millions)
Managed Assets
$15,047 $13,117 
GAAP-Based Portfolio
7,542 6,296 
Portfolio Yield
8.6 %8.1 %

An explanation and reconciliation of GAAP-based Portfolio to Managed Assets can be found at the end of this release.

Our Portfolio remains well-diversified across established clean energy end markets with approximately $3.7 billion of Behind-the-Meter assets, approximately $2.8 billion of Grid-Connected assets, with the remainder comprising assets in Fuels, Transportation, and Nature.



We continued to experience strong credit performance and negligible losses across our Portfolio of investments. The following is an analysis of the performance ratings of our Portfolio as of September 30, 2025.


Portfolio Performance
CommercialGovernmentCommercialCommercial
1 (1)
1 (1)
2 (2)
3 (3)
Total
(dollars in millions)
Total receivables$3,091 $31 $30 $— $3,152 
Less: Allowance for loss on receivables
(54)— (4)— (58)
Net receivables 3,037 31 26 — 3,094 
Receivables held-for-sale232 3 — — 235 
Debt securities and real estate
76 2 — — 78 
Equity method investments (4)
4,107 — 28 — 4,135 
Total
$7,452 $36 $54 $— $7,542 
Percent of Portfolio99 %— %1 %— %100 %
(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 of not receiving some or all of our invested capital. In the second quarter of 2025, we moved into this category a receivable previously included in Category 1 where the underlying assets are experiencing project-specific operational challenges which are currently in the process of being remediated.
(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. Receivables or debt securities in this category are placed on non-accrual status.
(4)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. 


Liquidity and Leverage
As of September 30, 2025, cash and cash equivalents totaled $302 million and our total liquidity was $1.1 billion, including approximately $834 million of unused capacity under our revolving credit facility and commercial paper program. Subsequent to quarter-end, we closed a $250 million delayed-draw term loan facility which can be drawn upon between March 16, 2026 and June 15, 2026. Drawn loans, if any, mature on June 15, 2028, and bear interest at current applicable margins of 1.650% for SOFR-based loans and 0.650% for alternative base rate-based loans.

Total debt outstanding was $5.2 billion at September 30, 2025, and our debt-to-equity ratio was 1.9x, within our target range of 1.5x to 2.0x and below our internal limit of 2.5x. Approximately 88% of our debt outstanding at September 30, 2025, was either fixed-rate or hedged base rate debt, and 12% was floating-rate debt or short-term commercial paper notes.





Sustainability and Impact Highlights
An estimated 54,000 metric tons of carbon emissions will be avoided annually by the transactions closed this quarter, equating to a CarbonCount® score of 0.12 metric tons per $1,000 invested. In total, including assets not retained in our Portfolio, our Managed Assets are avoiding approximately 8.4 million metric tons of carbon emissions annually, based on our proprietary CarbonCount score.







Guidance
We expect Adjusted Earnings per Share to increase approximately 10% year-over-year in 2025. In addition, we reaffirm our 2027 guidance for both Adjusted Earnings per Share and dividend payout ratio. We continue to expect Adjusted Earnings per Share in 2027 to increase at a compound annual rate of 8% to 10%, relative to the 2023 baseline of $2.23 per share, which is equivalent to a midpoint of $3.15 per share in 2027. We also expect distributions of annual dividends per share of common stock to decline to between 55% and 60% of annual Adjusted Earnings per Share by 2027. This guidance reflects our judgments and estimates of (i) yield on our existing Portfolio; (ii) yield on incremental Portfolio investments, inclusive of our existing pipeline; (iii) the volume and profitability of transactions; (iv) amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of our forecasted operations; and (vi) the general interest rate and market environment. In addition, distributions are subject to approval by our Board of Directors on a quarterly basis. We have not provided GAAP guidance as discussed in the Forward-Looking Statements section of this press release.

Dividend
The Company is also announcing today that our Board of Directors approved a quarterly cash dividend of $0.42 per share of common stock. This dividend will be paid on January 9, 2026, to stockholders of record as of December 29, 2025.


Conference Call and Webcast Information
HASI will host an investor conference call today, Thursday, November 6, 2025, at 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone by dialing 1-877-407-0890 (Toll-Free) or +1-201-389-0918 (toll). Participants should inform the operator that they want to join the “HASI Third Quarter 2025 Results” call. The conference call will also be accessible as an audio webcast with slides on our website. A replay after the event will be accessible as on-demand webcast on our website.

About HASI
HASI (NYSE: HASI) is an investor in sustainable infrastructure assets advancing the energy transition. With more than $15 billion in Managed Assets, our investments are diversified across multiple asset classes, including utility-scale solar, onshore wind, and storage; distributed solar and storage; RNG; and energy efficiency. We combine deep expertise in energy markets and financial structuring with long-standing programmatic client partnerships to deliver superior risk-adjusted returns and measurable environmental benefits. HA Sustainable Infrastructure Capital, Inc. is listed on the New York Stock Exchange (Ticker: HASI). For more information, please visit hasi.com.




Forward-Looking Statements
Some of the information contained in this press release is forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” or similar expressions, we intend to identify forward-looking statements. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements.

Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption “Risk Factors” included in our most recent Annual Report on Form 10-K as well as in other periodic reports that we file with the U.S. Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances, including, but not limited to, unanticipated events, after the date on which such statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement.
The Company has not provided GAAP guidance as forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the hypothetical liquidation at book value (“HLBV”) method to these investments. In order to forecast under the HLBV method, the Company would be required to make various assumptions related to expected changes in the net asset value of the various entities and how such changes would be allocated under HLBV. GAAP HLBV earnings over a period of time are very sensitive to these assumptions especially in regard to when a partnership transaction flips and thus the liquidation scenarios change materially. The Company believes that these assumptions would require unreasonable efforts to complete and if completed, the wide variation in projected GAAP earnings based upon a range of scenarios would not be meaningful to investors. Accordingly, the Company has not included a GAAP reconciliation table related to any adjusted earnings guidance.
Estimated carbon savings are calculated using the estimated kilowatt hours, gallons of fuel oil, million British thermal units of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of CO2 equivalent


emissions based upon the project’s location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis.
Contacts
Investors:
Aaron Chew
investors@hasi.com
410-571-6189
Media:
Kenny Gayles
media@hasi.com
443-321-5756


HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
 For the Three Months Ended September 30,For the Nine Months Ended September 30,
 2025202420252024
Revenue
Interest and rental income
$68,976 $64,151 $202,894 $197,551 
Gain on sale of assets24,898 7,678 51,395 62,084 
Management fees and retained interest income
8,424 9,082 24,412 19,197 
Origination fee and other income
766 1,054 6,989 3,466 
Total revenue103,064 81,965 285,690 282,298 
Expenses
Interest expense71,481 59,401 215,904 180,804 
Provision (benefit) for loss on receivables and retained interests in securitization trusts
3,026 1,233 7,876 (944)
Compensation and benefits27,388 17,221 70,498 58,711 
General and administrative6,326 6,993 22,201 24,001 
Total expenses108,221 84,848 316,479 262,572 
Income before equity method investments(5,157)(2,883)(30,789)19,726 
Income (loss) from equity method investments124,560 (23,405)370,227 162,019 
Income (loss) before income taxes119,403 (26,288)339,438 181,745 
Income tax (expense) benefit(34,497)7,112 (96,552)(49,429)
Net income (loss) $84,906 $(19,176)$242,886 $132,316 
Net income (loss) attributable to non-controlling interest holders
1,649 440 4,572 2,367 
Net income (loss) attributable to controlling stockholders$83,257 $(19,616)$238,314 $129,949 
Basic earnings (loss) per common share$0.66 $(0.17)$1.94 $1.12 
Diluted earnings (loss) per common share$0.61 $(0.17)$1.79 $1.09 
Weighted average common shares outstanding—basic
124,590,160 116,584,392 121,848,113 114,518,199 
Weighted average common shares outstanding—diluted
139,610,248 116,584,392 138,403,054 129,562,463 


HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
September 30, 2025December 31, 2024
Assets
Cash and cash equivalents$301,824 $129,758 
Equity method investments4,135,445 3,612,394 
Receivables, net of allowance of $58 million and $50 million, respectively
3,093,573 2,895,837 
Receivables held-for-sale (includes $191 million and $0 million at fair value)
235,153 75,556 
Real estate and available-for-sale debt securities
78,054 9,802 
Retained interests in securitization trusts, net of allowance of $3 million and $3 million, respectively
278,356 248,688 
Other assets81,561 108,210 
Total Assets$8,203,966 $7,080,245 
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable, accrued expenses and other$329,082 $275,639 
Credit facilities161,196 1,001 
Commercial paper notes670,484 100,057 
Term loans payable
391,733 407,978 
Non-recourse debt (secured by assets of $308 million and $307 million, respectively)
123,365 131,589 
Senior unsecured notes3,443,024 3,139,363 
Convertible notes399,211 619,543 
Total Liabilities5,518,095 4,675,170 
Stockholders’ Equity:
Preferred stock, par value $0.01 per share, 50,000,000 shares authorized, no shares issued and outstanding— — 
Common stock, par value $0.01 per share, 450,000,000 shares authorized, 126,073,482 and 118,960,353 shares issued and outstanding, respectively
1,261 1,190 
Additional paid-in capital
2,794,548 2,592,964 
Accumulated deficit(215,500)(297,499)
Accumulated other comprehensive income (loss)24,677 40,101 
Non-controlling interest
80,885 68,319 
Total Stockholders’ Equity2,685,871 2,405,075 
Total Liabilities and Stockholders’ Equity$8,203,966 $7,080,245 



HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
(UNAUDITED)
 Nine Months Ended September 30,
 20252024
Cash flows from operating activities
Net income (loss)$242,886 $132,316 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for loss on receivables and retained interests in securitization trusts
7,876 (944)
Depreciation and amortization596 690 
Amortization of financing costs11,507 12,994 
Equity-based expenses
24,023 19,002 
Equity method investments(235,764)(122,042)
Non-cash gain on securitization
(34,376)(58,978)
(Gain) loss on sale of receivables and debt securities
— 7,717 
Loss on debt extinguishment10,850 — 
Changes in receivables held-for-sale(175,462)(16,763)
Changes in accounts payable and accrued expenses77,078 69,357 
Change in accrued interest on receivables and debt securities
(34,543)(52,244)
Cash received (paid) upon hedge settlement17,696 19,261 
Other8,277 7,689 
Net cash provided by (used in) operating activities(79,356)18,055 
Cash flows from investing activities
Equity method investments(341,933)(200,202)
Equity method investment distributions received52,258 26,705 
Proceeds from sales of equity method investments— 2,107 
Purchases of and investments in receivables(627,921)(501,548)
Principal collections from receivables460,830 508,704 
Proceeds from sales of receivables8,344 124,150 
Proceeds from sale of real estate— 115,767 
Purchases of debt securities and retained interests in securitization trusts
(70,558)(10,537)
Collateral provided to hedge counterparties(5,670)(26,380)
Collateral received from hedge counterparties5,860 16,150 
Other7,803 (845)
Net cash provided by (used in) investing activities(510,987)54,071 


 Nine Months Ended September 30,
 20252024
Cash flows from financing activities
Proceeds from credit facilities580,000 831,792 
Principal payments on credit facilities(420,000)(1,116,792)
Proceeds from issuance of term loan— 250,000 
Principal payments on term loan(17,868)(563,148)
Proceeds from issuance of non-recourse debt
— 94,000 
Proceeds from (repayments of) commercial paper notes
572,000 (12,000)
Principal payments on non-recourse debt
(6,484)(72,302)
Proceeds from issuance of senior unsecured notes996,174 900,355 
Principal payments on convertible notes(200,000)— 
Redemption of senior unsecured notes(700,000)(400,000)
Net proceeds of common stock issuances187,170 179,722 
Payments of dividends and distributions(155,627)(142,178)
Redemption premium and fees paid
(8,395)— 
Payment of financing costs(10,193)(27,100)
Collateral provided to hedge counterparties(124,340)(134,150)
Collateral received from hedge counterparties71,890 124,700 
Other(5,453)(1,471)
Net cash provided by (used in) financing activities758,874 (88,572)
Increase (decrease) in cash, cash equivalents, and restricted cash168,531 (16,446)
Cash, cash equivalents, and restricted cash at beginning of period150,156 75,082 
Cash, cash equivalents, and restricted cash at end of period$318,687 $58,636 
Interest paid$211,085 $142,808 
Supplemental disclosure of non-cash activity
Interests retained from securitization transactions
$15,164 $31,662 
Equity method investments retained from securitization and deconsolidation transactions— 32,564 
Equity method investments retained from sale of assets upon establishment of co-investment structure— 54,655 
Deconsolidation of non-recourse debt— 51,233 
Deconsolidation of assets pledged for non-recourse debt— 51,761 
Removal of deferred financing obligation upon securitization
29,051 — 



EXPLANATORY NOTES
Non-GAAP Financial Measures
Adjusted Earnings
We calculate Adjusted Earnings as GAAP net income (loss) excluding non-cash equity expense, provisions for loss on receivables, amortization of intangibles, non-cash provision (benefit) for taxes, losses (gains) from modification or extinguishment of debt facilities, non-cash tax charges and the earnings attributable to our non-controlling interest of our Operating Partnership. We also make an adjustment to eliminate our portion of fees we earn from related-party co-investment structures, and for our equity method investments in the renewable energy projects as described below. We will use judgment in determining when we will reflect the losses on receivables in our Adjusted Earnings, and will consider certain circumstances such as the time period in default, sufficiency of collateral as well as the outcomes of any related litigation. In the future, Adjusted Earnings may also exclude one-time events pursuant to changes in GAAP and certain other adjustments as approved by a majority of our independent directors.

We believe a non-GAAP measure, such as Adjusted Earnings, that adjusts for the items discussed above is and has been a meaningful indicator of our economic performance in any one period and is useful to our investors as well as management in evaluating our performance, including as it relates to expected dividend payments over time. Additionally, we believe that our investors also use Adjusted Earnings, or a comparable supplemental performance measure, to evaluate and compare our performance to that of our peers, and as such, we believe that the disclosure of Adjusted Earnings is useful to our investors.

Certain of our equity method investments in renewable energy and energy efficiency projects are structured using typical partnership “flip” structures where the investors with cash distribution preferences receive a pre-negotiated return consisting of priority distributions from the project cash flows, in many cases, along with tax attributes. Tax equity investors typically realize a large portion of their return through an allocation of the majority of tax attributes, such as tax depreciation and tax credits, as such credits are realized by the project. Once this preferred return is achieved, the partnership “flips” and the common equity investor, often the operator or sponsor of the project, receives more of the cash flows through its equity interests while the previously preferred investors retain an ongoing residual interest. We have made investments in both the preferred and common equity of these structures. Given our equity method investments are in project companies, they typically have a finite expected life. We typically negotiate the purchase prices of our equity investments based on our underwritten project cash flows discounted back to a net present value, based on a target investment rate, with the cash flows to be received in the future reflecting both a return on the capital (at the investment rate) and a return of the capital we have committed to the project. We use a similar approach in the underwriting of our receivables.

Under GAAP, we account for these equity method investments utilizing the HLBV method. Under this method, we recognize income or loss based on the change in the amount each partner would receive if the assets were liquidated at book value, after adjusting for any distributions or contributions made during such quarter. The amount received in a liquidation is typically based on the negotiated profit and loss allocation, which may differ from the allocation of distributable cash in any given period. The amount allocated to a tax equity investor during the hypothetical liquidation is typically reduced over time as tax attributes are allocated


to them and they achieve portions of their preferred return. Accordingly, tax equity investors are allocated losses as they receive tax benefits, while the sponsors of the project and other investors subordinate to tax equity are allocated gains of a similar amount. Tax equity investors can generally elect either investment tax credits or production tax credits, which are each recognized over different time periods. This results in different HLBV income profiles despite the fact that cash allocations are typically not directly impacted by such a tax credit election. In addition, the agreed upon allocations of the project’s cash flows may differ materially from the profit and loss allocation used for the HLBV calculations in a given period.

The application of the HLBV method described above results in GAAP income or loss in any one period that is often significantly different from the economic returns achieved from the investment in any one period as a result of the impact of tax allocations, the high levels of depreciation and other non-cash expenses that are common to renewable energy projects and the differences between the agreed upon profit and loss and the cash flow allocations. Thus, in calculating Adjusted Earnings, we adjust GAAP net income (loss) for certain of our investments where there are characteristics as described above to take into account our calculation of the return on capital (based upon the underwritten investment rate), as adjusted to reflect the performance of the project and the cash distributed. In calculating the underwritten investment rate, we make certain assumptions, including the timing and amounts of cash flows generated by our investments, which may differ from actual results, and may update this yield to reflect our most current estimates of project performance. We believe this equity method investment adjustment to our GAAP net income (loss) in calculating our Adjusted Earnings measure is an important supplement to the income (loss) from equity method investments as determined under GAAP that helps investors understand the economic performance of these investments where HLBV income can differ substantially from the economic returns in any one period.

We have acquired equity investments in portfolios of renewable energy projects which have the majority of the distributions payable to more senior investors in the first few years of the project. The following table provides our results related to our equity method investments for the three and nine months ended September 30, 2025 and 2024.
Three Months Ended
September 30,		Nine Months Ended September 30,
2025202420252024
(in millions)
Income (loss) under GAAP$125 $(23)$370 $162 
Collections of Adjusted earnings$68 $26 $141 $57 
Return of capital25 6 46 10 
Cash collected $93 $32 $187 $67 
Adjusted Earnings does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), or an indication of our cash flow from operating activities (determined in accordance with GAAP), or a measure of our liquidity, or an indication of funds available to fund our cash needs, including our ability to make cash distributions. In addition, our methodology for calculating Adjusted Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance


measures, and accordingly, our reported Adjusted Earnings may not be comparable to similar metrics reported by other companies.
Adjusted ROE
Adjusted ROE is not a financial measure calculated in accordance with GAAP. It is calculated as Adjusted Earnings as described in this Appendix divided by our GAAP stockholders’ equity over the relevant period, presented on an annualized basis. GAAP stockholders’ equity at each date is located in the respective quarter’s Form 10-Q or that year’s Form 10-K.
Reconciliation of our GAAP Net Income to Adjusted Earnings
We have calculated our Adjusted Earnings and provided a reconciliation of our GAAP net income to Adjusted Earnings for the three and nine months ended September 30, 2025 and 2024 in the tables below.


Three months ended September 30,Nine months ended September 30,
2025202420252024
$per share$per share$per share$per share
(dollars in thousands, except per share amounts)
Net income attributable to controlling stockholders (1)
$83,257 $0.61 $(19,616)$(0.17)$238,314 $1.79 $129,949 $1.09 
Adjustments:
Reverse GAAP (income) loss from equity method investments(124,560)23,405 (370,227)(162,019)
Add adjusted income from equity method investments (2)
100,068 59,436 249,024 174,189 
Elimination of proportionate share of fees earned from co-investment structures (3)
(1,441)(236)(5,716)(347)
Equity-based expenses
5,751 4,118 24,023 21,459 
Provision for loss on receivables (4)
3,026 1,233 7,876 (944)
(Gain) loss on debt modification or extinguishment293 953 11,171 953 
Amortization of intangibles3 3 9 177 
Non-cash provision (benefit) for income taxes34,497 (7,112)96,552 49,429 
Net income attributable to non-controlling interest1,649 440 4,572 2,367 
Adjusted earnings$102,543 $0.80 $62,624 $0.52 $255,598 $2.04 $215,213 $1.83 
Shares for adjusted earnings per share (5)
128,255,027 119,799,985 125,391,042 117,568,734 
Average stockholders’ equity
$2,637,253 $2,323,133 $2,537,581 $2,306,560 
Adjusted return on equity
15.6 %10.8 %13.4 %12.4 %
(1)
The per share data reflects the GAAP diluted earnings per share and is the most comparable GAAP measure to our Adjusted Earnings per share.
(2)
This is a non-GAAP adjustment to reflect the return on capital of our equity method investments as described above.
(3)
This adjustment is to eliminate the intercompany portion of both up-front origination fees and ongoing asset management received from co-investment structures that for GAAP net income is included in the Equity method income line item. Since we remove GAAP Equity method income for purposes of our Adjusted Earnings metric, we add back the eliminations through this adjustment.
(4)
In addition to these provisions, in the nine months ended September 30, 2024, we concluded that an equity method investment, along with certain loans we had made to this investee, were not recoverable. The equity method investment and loans had a carrying value of $0 due to the losses already recognized through GAAP income from equity method investments as a result of operating losses sustained by the investee. We have excluded this write-off from Adjusted earnings, as this investment was an investment in a corporate entity which is not a part of our current investment strategy and is immaterial to our Portfolio. The loss associated with this investment is included in our Average Annual Realized Loss on Managed Assets metric disclosed in the Management’s Discussion and Analysis found in our Form 10-Q.
(5)
Shares used to calculate Adjusted Earnings per share represent the weighted average number of shares outstanding including our issued unrestricted common shares, restricted stock awards, restricted stock units, long-term incentive plan units, and the non-controlling interest in our Operating Partnership. We include any potential common stock issuances related to share based compensation units in the amount we believe is reasonably certain to vest. As it relates to Convertible Notes, we will assess the market characteristics around the instrument to determine if it is more akin to debt or equity based on the value of the underlying shares compared to the conversion price. If the instrument is more debt-like then we will include any related interest expense and exclude the underlying shares issuable upon conversion of the instrument. If the instrument is more equity-like and is more dilutive when treated as equity then we will exclude any related interest expense and include the weighted average shares underlying the instrument. We will consider the impact of any capped calls in assessing whether an instrument is equity-like or debt-like.


Adjusted Recurring Net Investment Income

We have a Portfolio of investments that we finance using a combination of debt and equity, and we also generate recurring income from our retained interests in securitization trusts and from ongoing management fees from our securitization trusts and our co-investment vehicle. We calculate Adjusted Recurring Net Investment Income as shown in the table below by adjusting GAAP-based net investment income for those earnings adjustments that are applicable to Adjusted Recurring Net Investment Income. We believe that this measure is useful to investors as it shows the recurring income generated by our Portfolio after the associated interest cost of debt financing and from our asset management activities. Our management also uses Adjusted Recurring Net Investment Income in this way. Our non-GAAP Adjusted Recurring Net Investment Income measure may not be comparable to similarly titled measures used by other companies. This measure also differs from our previously reported “Adjusted Net Investment Income”, as Adjusted Net Investment Income did not include Management fees and retained interest income. For further information on the adjustments between GAAP-based net investment income and Adjusted Recurring Net Investment Income, including information about our equity method investments, see the discussion above related to Adjusted Earnings.

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
(in thousands)
Interest and rental income
$68,976 $64,151 $202,894 $197,551 
Management fees and retained interest income8,424 9,082 24,412 19,197 
Interest expense(71,481)(59,401)(215,904)(180,804)
GAAP-based net investment income (loss) (1)
5,919 13,832 11,402 35,944 
Adjusted income from equity method investments (2)
100,068 59,436 249,024 174,189 
Loss (gain) on debt modification or extinguishment 293 953 11,171 953 
Amortization of real estate intangibles3 3 9 177 
Elimination of proportionate share of management fees earned from co-investment structures (3)
(1,139)(141)(2,903)(225)
Adjusted recurring net investment income
$105,144 $74,083 $268,703 $211,038 
    

(1)GAAP-based net investment income (loss) as reported in previous periods was not defined to include Management fees and retained interest income. It has been included here in comparative periods to reflect the new definition.

(2)This is a non-GAAP adjustment to reflect the return on capital of our equity method investments as described above.

(3)GAAP net income includes an elimination of the intercompany portion of management fees received from co-investment structures in the Equity method income line item. Since GAAP Equity method income is not a component of this metric, we include the elimination of the management fee through this adjustment.



Managed Assets

We consolidate assets on our balance sheet, securitize assets off-balance sheet, and manage assets in which we coinvest with other parties via equity method investments. Therefore, certain of our receivables and other assets are not reflected on our balance sheet where we may have a residual interest in the performance of the investment, such as a retained interest in cash flows. Thus, we present our investments on a non-GAAP “Managed Assets” basis. We believe that our Managed Asset information is useful to investors because it portrays the amount of both on- and off-balance sheet assets that we manage, which enables investors to understand and evaluate the credit performance associated with our portfolio of receivables, equity investments and residual assets in off-balance sheet assets. Our management also uses Managed Assets in this way. Our non-GAAP Managed Assets measure may not be comparable to similarly titled measures used by other companies.

The following is a reconciliation of our GAAP-based Portfolio to our Managed Assets as of September 30, 2025 and December 31, 2024:
 As of
 September 30, 2025December 31, 2024
 (dollars in millions)
Equity method investments$4,135 $3,612 
Receivables, net of allowance3,094 2,896 
Receivables held-for-sale235 76 
Real estate and debt securities
78 10 
GAAP-Based Portfolio7,542 6,594 
Assets held in securitization trusts6,913 6,809 
Assets held in co-investment structures (1)
592 300 
Managed assets$15,047 $13,703 
(1)    Total assets in co-investment structures are $1.2 billion as of September 30, 2025. Not included in this amount is an additional $254 million related to closed transactions not yet funded as of September 30, 2025.


Adjusted Cash from Operations Plus Other Portfolio Collections

We operate our business in a manner that considers total cash collected from our Portfolio, reduced by necessary operating and debt service payments to assess the amount of cash we have available to fund dividends and investments. We believe that the aggregate of these items, which combine as a non-GAAP financial measure titled Adjusted Cash from Operations plus Other Portfolio Collections, is a useful measure of the liquidity we have available from our assets to fund both new investments and our regular quarterly dividends. This non-GAAP financial measure may not be comparable to similarly titled or other similar measures used by other companies. Although there is also not a directly comparable GAAP measure that demonstrates how we consider cash available for dividend payment, below is a reconciliation of this measure to Net cash provided by operating activities.

Adjusted Cash from Operations plus Other Portfolio Collections also differs from Net cash provided by (used in) investing activities in that it excludes many of the uses of cash used in our investing activities such as in Equity method investments, Purchases of and investments in receivables, Purchases of debt securities, and Collateral provided to and received from hedge counterparties. In addition, Adjusted Cash from Operations plus Other Portfolio Collections is not comparable to Net cash provided by (used in) financing activities in that it excludes many of our financing activities such as proceeds from common stock issuances and borrowings and repayments of unsecured debt. We evaluate Adjusted Cash from Operations plus Other Portfolio Collections on a trailing twelve month (“TTM”) basis, as cash collections during any one quarter may not be comparable to other single quarters due to, among other reasons, the seasonality of projects operations and the timing of disbursement and payment dates.

Cash available for reinvestment is a non-GAAP measure which is calculated as Adjusted Cash from Operations plus Other Portfolio Collections less dividend and distribution payments made during the period. We believe Cash available for reinvestment is useful as a measure of our ability to make incremental investments from reinvested capital after factoring in all necessary cash outflows to operate the business. Management uses Cash available for reinvestment in this way, and we believe that our investors use it in a similar fashion.



For the year
ended,		Plus:Less:For the TTM
ended,
For the nine months ended,
December 31, 2024September 30, 2025September 30, 2024September 30, 2025
(in thousands)
Net cash provided by operating activities$5,852 $(79,356)$18,055 $(91,559)
Changes in receivables held-for-sale29,273 175,462 16,763 187,972 
Equity method investment distributions
received (1)
39,142 52,258 26,705 64,695 
Proceeds from sales of equity method investments 9,472 — 2,107 7,365 
Principal collections from receivables600,652 460,830 508,704 552,778 
Proceeds from sales of receivables171,991 8,344 124,150 56,185 
Proceeds from sales of land115,767 — 115,767 — 
Principal collections from debt securities (2)
47 383 266 164 
Proceeds from the sale of a previously consolidated VIE (2)
5,478 — — 5,478 
Proceeds from sales of debt securities and retained interests in securitization trusts
5,390 — — 5,390 
Principal payments on non-recourse debt(72,989)(6,484)(72,302)(7,171)
Adjusted Cash from Operations plus Other Portfolio Collections910,075 611,437 740,215 781,297 
Less: Dividends(192,269)(155,627)(142,178)(205,718)
Cash Available for Reinvestment$717,806 $455,810 $598,037 $575,579 
(1) Represents return of capital distributions from our equity method investments included in cash provided by (used in) investing activities section of our statement of cash flows which is incremental to any equity method investment distributions found in net cash provided by operating activities.
(2) Included in Other in the cash provided (used in) investing activities section of our statement of cash flows.
For the year
ended,		Plus:Less:For the TTM
ended,
For the nine months ended,
December 31, 2024September 30, 2025September 30, 2024September 30, 2025
(in thousands)
Components of Adjusted Cash from Operations plus Other Portfolio Collections:
Cash collected from our Portfolio891,250 813,778 718,588 986,440 
Cash collected from sale of assets (1)
325,051 25,363 252,847 97,567 
Cash used for compensation and benefit expenses and general and administrative expenses(85,519)(71,772)(62,516)(94,775)
Interest paid (2)
(172,679)(193,389)(123,548)(242,520)
Management fees and retained interest income and origination fees and other income
33,044 31,818 22,223 42,639 
Principal payments on non-recourse debt(72,989)(6,484)(72,302)(7,171)
Other(8,083)12,123 4,923 (883)
Adjusted Cash from Operations plus Other Portfolio Collections$910,075 $611,437 $740,215 $781,297 
(1) Includes cash from the sale of assets on our balance sheet as well as securitization transactions.
(2) For the nine months and TTM ended September 30, 2025, interest paid includes a $18 million benefit from the settlement of derivatives which were designated as cash flow hedges. For the nine months ended September 30, 2024, interest paid includes a $19 million benefit from the settlement of a derivative which was designated as a cash flow hedge.