Hannon Armstrong Sustainable Infrastructure Capital (HASI) 5 Aug 222022 Q2 Earnings call transcript

Greetings and welcome to the Hannon Armstrong Second Quarter 2022 Results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Neha Gaddam. ahead. go Please

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

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

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

accordance meaningful with our discuss presentation. intended release primarily GAAP of our reconciliation of will as a help is measures, posted a slide not substitute information earnings be financial presentation to available which considered gain financial guidance. is we presented measures to of non-GAAP for call, or A in this During financial understanding this in on information results GAAP. A believe investors core and and non-GAAP financial isolation we

Eckel that, Slide begin Eckel, the Jeff Jeff X. are over call call and who With to COO. will and on our and today’s CEO company’s the like on me to I’d Jeff Lipson, Chairman CFO Joining turn Jeff?

year quarter, Good distributable strong Neha. of pleased year, income increase per we growth investment XX% as report $X.XX you, XX% from with $X.XXX last last and to new The net demonstrates in record everyone. afternoon, Today, $X.X X% are on of portfolio share. per to a up sheet second quarter, dividend from balance earnings ones. over last clients year-over-year a investments continued also key of programmatic XX% continued Thank well as and grew the billion in performance with of share, execution

the we annual and in pleased X% again XX% in confidence guidance to of our period. outlook, for XX% EPS growth in once through distributable the dividend business for annual are Given reaffirm XXXX our growth our to to X%

count Baltimore, this carbon in per This dollar in spent. of count relatively investment our results high quarter investment in impact building carbon has a carbon industrial our Maryland Our much higher efficiency light X.X. in upgrade an score in on a means reduction

Slide to trends the X, I climate Turning will on briefly industry. in macro solutions the touch

these energy bill last would a renewable you know, accelerating tax would tailwind to the particularly industry. If solutions, powerful in the storage provisions the the extending our and policy As by of further deployment week universe projects. introduced credits U.S. and simplifying investable would many climate on the reduction our inflation of offer expand enacted, by it and climate accelerate deployment hydrogen dramatically Further, energy

doubt would on clients and reliant the that becoming is significantly our While IRA our business no HASI passage. benefit law, there is not

clients. to increase rising than inflation the reflected pricing continuing which due average of have Next, as PPA generally power market, in prices renewable the leading our customers have by natural are adapt price increases experienced almost industry on prices, the raising the to improving to risen to are economics wholesale year-over-year. power projects less energy for price is gas These

compelling of for light inflation utility growth impacts efficiency utility keep behind to rates borne and of even higher the makes solar user natural Increasing the more rates. meter aim in elevated. and the U.S. expect investments retail war the gas We to Ukraine-Russia prices will the LNG and

investments in solutions sophistication Combining saving return in fuels, investors economic are increasing agriculture beyond more clients risk power project expanding and value the energy. transport. developing rapidly beyond and the just Finally, are and into or to user our end creates a technologies producing electric for multiple climate adjusted are

efficiency predominantly continue of our XX-month substantial renewable Slide growth remains standalone includes in XXXX. to calls. Sustainable XX% connected a water opportunities. to report, billion storm and a Behind-the-meter an along sustainable Moving smaller and with as natural foreshadowed addition the have the climate base than in last of resiliency amount to industrial we consistent gas, weighted like community growth [indiscernible], would provide pipeline onshore we half the I to greater in in highlight remains strong grid residential is pipeline, solar X, our remediation on pipeline, with pipeline further we our and of storage, diversifies The infrastructure wind. volume governmental transportation, update pipeline which investments with $X and to client pipeline. structure prior

slightly the Turning up has to this Slide billion we quarter. X, which X.X% balance and has grown picked of from $X.X yield year in XX% detail $X to portfolio, sheet our billion the

on generate of our asset portfolio month investments portfolio assets years. an the prospect each The over XX remains average classes, Our the of across business. classes, underappreciated these geography X an clients and terms important horizon. a fact of with asset fact now that is in more money strength energy of weighted recession a clean life in with XXX diversity The includes our

to to results. Jeff our turn I Now, some financial it provide detail over will on

higher dual continue and results our bolster we resulting continues $X.XX to to higher basis, portfolio of of as In approximately revenue $XX investment Jeff on a was on distributable Summarizing Slide investment per modestly million distributable yield a second gain-on-sale X, good larger from a quarter share steady quarter model the growth our revenue and net year-to-date from demonstrate distributable afternoon. gain income offset gain-on-sale. EPS. note recorded right, and $XX earnings income On we you, lower net and portfolio distributable distributable we sale strong recorded Thank growth, substantial a slightly million. XX% of year-over-year realization upper by our fees, of and year-over-year, EPS of

In that addition, typically as activity securitized million, a lower movements, $XX robust from gain-on-sale our year in than rate securitization prior demand by interest right, from investments continued partners. our assets shown that on the at strong with securitize, the was level reflects remaining coupled ongoing year-to-date we modestly for lower

year-to-date, XX% driven by growth was strong ongoing portfolio left, of million a reflecting year-over-year over lower larger margins. the On distributable investment net income $XX and

Our visibility to annual NII add growth. quarter is our provide distributable sheet, expected and XX% stability through Jeff and XX% as earnings each as assets to XXXX. Therefore, indicated, to earnings of are compound future per ongoing into balance share affirming growth we guidance grow we our the

note Although prices. in swaps grid had quarter. we GAAP energy not hedge spend project the At typically for put loss earnings, much level certain the do why to place time investments, connected we in GAAP our about are a I’ll talking of

GAAP reflection These financials period of a collected, rising, intended, our incur and by the As as nor our swaps delivered. will results. loss project driven economics Therefore GAAP cash performing marks as through exactly SWOT to the energy reverse the we on those loss mark-to-market have not although a record towers flow financials prices marks. been although

fund the is rating to than end be transactions $X Slide quarter. incremental our are We of portfolio of leverage. while investments Moody’s major we shown It of of the plan. $XXX billion a our of BAAX, financing closed of in grade to curve. credit demonstrated reflects X, several have X, in clear, To $XXX expectations strong through energy previously of on accomplishment transactions reflection of reflects Shifting of amounts detail a we the X% expect growth funded our QX at our unfunded are also of the levels pipeline. we right, in is long-term reconciliation. rating portfolio various over Turning the clean of our entirely track slips sustaining On greater pleased highlight to which noted solid Funding profitability million the credit we close, investing times in profile have is record earnings The with fluctuating a calls, this interest to inaugural XXXX. portfolio yield expected growth resulting the our portfolio. table we but in and rates, million track increasing record rates and appropriate as by from in our investment and Slide previous to and

we and our strong increases remain remain will expect margins manageable. funds of cost on Our

a also its at recent model future decreased to that those higher next yield is note the most from excess us have when year. markets I’d In fact, proceeds the debt our have the the by XXXX. increased, recent in fund flat cost needing by that future the peak with of further in Therefore, future the our over opportunistically The Notably, higher created funds in and generally forward of guidance, a continue that from forward and without approximately affirm increases we we curve $XXX now an increase debt to are rates our expectation and rates transactions, to our able corresponding pipeline for environment. our XX-year revolver, points have using XX cash million XXXX prepared coupon rates coupled pre-funding reflecting lower investments guidance. rates establish have basis to curve has public transition time. access reflected to allowed unsecured on rate we new

to are We including continue of have These the we in so us shift rates. increase well business decisions to private allowed funding debt operate diverse platform as fund to can sources we that new prudent investments. have built despite and prepared to funding a usual other debt,

grade In quarter Cash and second in public $XX total also combined efficiently and issued our liquidity We end. available million equity the availability us of investment in million in credit million assist of resulted proceeds future. debt. we markets from convertible facilities in with $XXX than of quarter, rating $XXX will believe quickly transactions accessing our these greater the at

debt market rate XX% revolver leverage, higher fixed continue debt by has debt have material risk XXXX modestly as we our to manage modest no to we due maturities and to utilizing utilization sources. Our our and funding maturities of ladder diverse declined until

detailed more non-GAAP investor and to a description received requesting of Turning feedback XX, we measures. flows cash our Page have

in few these description quarter’s take items. So more a next call, moments the provide to this I detailed of will

an project cash projects, allocated equity typical corresponding In increase investors or a tax We of the cash of percentage to accounting is project The expect tax flow receive investors. allocation profile in of solar we depicts cash flows decreasing It an which cash has depicted flows, a to resulting the receive the at accounting equity grid remaining are the project, connected Often and other prescribed the green line. by HASI book in liquidation investment. receives example value years of earnings in most utilizing the the becomes large hypothetical investor gains. equity point attributes, the the cash the as provided have flow as simplified by equity illustrative which early a GAAP. in a HLBV investors of tax GAAP some

model for earnings this graph the existing with consistent is are economic IRR distributable been these indicative As accrual since public, our typical are our our [indiscernible] investments period property have methodology. line earnings Therefore better gains we large we frequently that we our these reported have this We and rigorously utilized adjust rate reflect earnings expected we have in expected that The rate said the economics, non-GAAP IRR. but many measures our under dotted times, consistent GAAP. our not with of earnings. believe investment. We not reflects long-term

congestion In two revenue fact, this the result we rate quarter Power in a investments the in to Southwest lower first accrual as projected Pool. of had the on lowered the year, of earnings project

early earnings of As cash Note the non-cash receive than slide of result we cash methodology, structure the in the in results more to fully with any we the earning earnings on often acquisitions, distributable project. distress earnings and in earnings. X flow years, is not cash and expected allocated due cash in to it tax than years the earnings greater by in relationship, transaction, equity record depicted the cash later tax the component combining result This that is the including a of the the such

life full project earnings, expected investment, any the equal. to are distributable earnings cash and Over be of individual

of cash the comprised seasoned been on has historically right portfolio connected grid Our of and projects more investments side has earnings. graph the in depicted exceeded as which

record Xx subsequent equity Currently, In XXXX, our cash our that earnings, a an since fact, been cash investments our cash. cumulative XXXX, connected investments earnings during cumulative definitive roughly and growing are has distribution the collected realizable connected track in since earnings recent equity our which our exceed due receiving collections. on new investors been grid method our stage grid in tax cash in most of are success business our earlier have

recently highlighted adjusted we created Moving collections, cover to Page operating which appendix On historical funds the items portfolio flow, had adjusted together that a more several XX, Slide that flow about statement. statement, collections. also cash adequate XX, with provides our GAAP portfolio In cash questions we have we cash and have our to than cash on table operating is our dividend. reflects flow represent our

reflects capital table fund from and our portfolio using to dividend to portfolio flows cash our our the predictable, by the forecasted for expenses excess have flows. and also cash we summary, portfolio these raise are The activity. calibrated dividends growth collections in pay expected informed investments reasonably As raising our excess flows utilized growth. are that collections we reinvestment capital In fund by dividend our supplemented operating and portfolio incremental cash

as guidance prior growth our increase to to their of clean support compound stages we an as the dividend expect continue X% of increasing our turn over our is lifecycle, it profile Jeff. a of cash performing and our XXXX. cash cash rate flow portfolio from receive amount report not slide, cash in remains was on In annual we projects indicates, And Companies projects, flow we investments continued summary, back flows cash earnings liquidity strong that reach as more X% through will and we it do adequate another growth. later the displayed invest I As earnings to same energy to dividend have operations, those from to NII quarter consolidated the report The and of from And cash if with of flow and expected excellent. growth. to by because flows flows projects consolidate, in that, investing.

Terrific. Jeff. Thanks,

includes price XX, Turning engagement an activity ESG on establishing to SEC Slide an climate mandatory the on our with disclosures. continued update on carbon and internal

and class continue savings going we this carbon and to have water measure believe course, on in have on to Of impact metric. reporting we the best

We Slide will XX. wrap up on

robust Our our [indiscernible] execution consistent of quarter-over-quarter. pipeline drives

opportunities. our to of portfolio in growth pipeline our of into growth expect closed of in investments, in in We to and The portion to future committed will conversion convert the to stable transactions addition a fundings prospects significant Operator? the open book to time the the strong addition our XX% first and EPS period. line quarters. continue pipeline sustainable NII distributable With infrastructure margins, growth our of we XXXX-’XX XXXX bright on XX% reaffirm half that, over dividend of of and X% conclude and second we remarks for the on guidance growth X% will up to the half, questions. With for strong our

Please Kaye ahead. go Thank [Operator question Our Oppenheimer. is you. Noah from Instructions] first from

questions. the taking for thanks and afternoon Good

to I Act. with start First, Reduction want the Inflation

front. look a back like lot provisions get if wondering us could near-term at was affect are some the as what’s affects as how contained provider? overview legislation, you the for a an does obviously, customers, set how it business it in of proves what repeat better. these looks may that of it action on contemplated fairly something but But A draft capital give bill we from the As the business, you opportunity this

are simplifying transferability, think, than the huge it’s tax Well, aerodynamic to Eckel. for the equity industry. much is I more allows gain One a be transactions this the through now. Jeff It thing they structure

is extending the XX So, credits then normal tax years the gets the runway industry. easier. fantastic a that’s for for of business just sort And

then on year will emissions, most years just of but I to more actually X reduce increases credit year, tax fantastic. is of set. extensions, our remember, than energy lot transition, expanding to we tax visibility XX went include sources, and but above it a as clean which you various And opportunity used embark tax for the gas storage said, and energy years other going take credits hydrogen be greenhouse credit the then As years, to to it’s to XX

up like you carrying and saw the helpful. before has up sustainable but that’s sufficiently consider certainly, and guess way these you on are to the they in step RNG dearest mentioned big IRA storage. but goes your only the the them if to transportation It feel that development hurdle took ROI Okay, not on have I the very the pipeline like infrastructure passed, them assets these seems are gotten balance point, for really sheet? we place they that where standalone passing up rate, picking provisions, in the you

be to pipeline. for our our what the natural make a slightly meant These gas, have it’s lot longer are to a have Returns and underwriting out. proving industry And we things in sheet from are are been renewable these been lot learned learned balance instance, it’s around themselves use Yes, hope investments. better. And strong. than we to

very a am questions. sure lot of helpful. others have Okay, I

I’ll So in back queue. go

Noah. Thanks,

from is go Chris B. Riley. of Souther question next ahead. Our Please

taking executive thanks efficiency a the talk as building pipeline, of going about order how When my think assets seeing have you getting that could as to for building? this an are around energy the how federal start well of announcement do initiative, Hey, going we could of over smart change time you little be? just incremental this to question. bit been securitized mix funding Thanks. Maybe climate [indiscernible] impact December is

securitized have energy hard developed like time come but procure to on will put is cleave assets higher proposed, to which us pleased securitization on we And which respect low to takes agencies great impact Jeff. on something about us With that predict, we government the historically I yielding into order are credit mix. immediate answer say it. It these for You get we It’s executive I efficiency implemented. to have energy and efficiency, to asked an with sheet. for It have for projects opportunities yielding It will to balance have impact upgrades. will not an the however. the quality,

it. Got

just just maybe you then the equity. Reduction a And from see tax Okay. the bit could talk on Act, Inflation little we about impact

you have potentially probably of the from given guys ITC about have slice larger could to extent you and some in you a benefited think economics expiring would past I be project financing direct we the talked some that kinds in available from early the it’s projects? tell, see other or would to might different too options these some maybe that be impacts just but guys of of pay

Chris, opportunity some governmental maybe still which but on more tax I huge direct increase aerodynamic but closings necessarily make is transferability pay, the question as industry. anything create applicable Noah’s everybody for the for there is that’s us, property, supply renewable projects, conventional doesn’t a not positive small us, equity for can to it is and a in that a of said, for positive bigger projects that taxpayer not, and

that Thanks. helpful. Okay, was

Strouse from question JPMorgan. Our go next is Mark Please of ahead.

very kind have as return is getting capital, further out we return which Yes. to very section, in bit I deck, disclosures much much about taking been the a If increased as that the Jeff, very helpful. far Slide wanted it’s our you go EMI XX. Thank of capital the for just the to within you to for something questions. versus thank you could break are investors. And slide questions of from able and little we on

the going capital the primarily that’s return method reconciliation to on to in return going the HLBV primarily and to the of a the So, difference earnings. distributions operating. be is in in equity investment cash be the investments sort going line And of received. sit is the of And between capital method equity

your the predict. your had you item of it. securitizations have earlier as earlier Jeff, in grow the least contribution kind year line saying, then I go, about Got been Okay. take point to But stance? at I you how as Is ‘XX. believe revenue this And far that expected from still that to that

it similar relatively I be we said was, would believe to what XXXX.

I previous think primary that, what on in still this guidepost we at would use point. that are And think I statements. track the I made is the we have for

Yes.

pretty And as to pretty it going solar, took slide is, back this it then. then that – the portfolio. quarter on My step your Okay. mistake as like on the up the far a there residential whatever mix good it took a of sorry, looks

to Just straight go XQ maybe I the last Are see already can to mix those investments when wanted projects? If And not, investments about you in straight the of call of kind from that that you is to XQ? in increased or over kick preferred equity just do versus in? comments investments starting expect some about to your time? believe, back talking equity talk we the of quarter

foreshadow pipeline resi ago. equity. more likely half it’s And to see, are our not the that’s I equity will sure we did necessarily very It’s resi, those calls second refer investments. is think did We do skewed. two your A not a partners. busy am when we In did second to tick that I closings. with on see half. equity questions, of up. I And some And I But our kind the of an lot business of not

Got it.

Okay. you. Thank

from next question of Please go Our ahead. Stephen Morgan Stanley. Byrd is

Hi. going sort the of forward and and my the Thanks try understand sale to disclosure the just to the talk presentation. I in relationship gain the about for for on and questions wanted magnitude. taking

future? as gain us return going are look between buyer look that think any ways is think for go try whether particular other at there general, forecast income we what number concern is single some a to you the But down. any like in about Are or that to metrics guideposts I not has in for sale, to it, the targeting could the this transaction. in other as on could return been there any is, the versus that there [indiscernible], spread it’s

I the you give Yes. Once, will start Jeff background. and

the gain record going And amount level moving a have it a forecast moment should sales like we to did on had as realize of challenge some it to maintaining a ago, I as small It’s can it’s bit I – gain long in of sale. comfort forward. forward. I very a would challenge we and the try times, look add on some But been to may project of the analysts. gain because a a do for period at provide challenging track we be as what comments a for year And think sale, always on It’s episodic. directional us

On the first But interest upon was Page of remarks. related and part platform my really our the question, have point on which this X, didn’t expand there securitization does to not a in I rate actually prepared risks. bullet any much if

So, to securitization. most actual of the and transactions investment are of done closing the the closing, virtually simultaneous the the

So a and period usually that rate a enter usually short very those are and that lock. period short into will

the our there to number. impact interest in gain to be is flatness expect don’t movements nature. interest securitization And risk up, going on virtually volume down, So, we program. driven, rate that no rate sale sideways, It’s

then investment, trying through a there first that of – available and before cash we on what If plus a free to uses, we showing of it because in investments before shareholders just page, capacity – a cash collections. And Slide sort could should how Understood. thank essentially that you dividends adjusted think measure is suggesting operations to portfolio those as important of number sort free first being cash me you flow of think you. on other other to before and are are before the guess I sort business? the your trying generation before, you of very that metric that XX, strikes a sources just you is item, expand then the and flow line number cash And are flow the of make from cash or the on that’s few sort again,

Sure.

of went metric. obviously, out not new our a create I way to think we necessarily

into we sources we performance create to coming a simply understanding create We uses excess flow fund there to and to but difference intending the capital some the in metric, and dividend. the successful think metric. flow trying digestible becomes intending I raising. portfolio cash tried cash and new of There then that, was what operating of do all clarify more more a to to hopefully and We create do always weren’t is weren’t well that’s collections here expense trying free And to investments. cover as off schedule sources of statement the here. uses to were we were were the

very much. you Thank Understood.

of go ahead. next Company. is Our from Please Jeff question Osborne and Cowen

Yes.

Just on two my questions end.

going to Hancock, of MassMutual, back those back think that John I life you close. it one. curious, that’s insurance company, as side But selling just I securitization, your to counterparty locking are sorry Going to to I keep and am deals a understand typically a in the etcetera.

as you that curious maybe securitizations parts am buying I change, is around so we And rates like outlook vehicle? quickly, as from their are QX, saw what in of a you, using

financial was about fact quality, crisis at that’s long U.S. Treasury, out The give us Even cash a and to in insurance we flows back as enough premium XXXX, a can that is have Jeff, going there. more. our Fannie the of many company partners in was ‘XX that our is, to single did product when that the first volume ‘XX, Mae true. grade closing, we financial still the that biggest complaint dated scarce from

So, very tested a strong XX are cycles. side that buying years business. up through – we is It and is for down that

a That’s which that transferability There of the the One to a illustrative or helpful and assumption no? accounting XX, have if the no example safe question Jeff. project. takes change the is and I helpful place clarification, passes? you had treatment solar Is IRA is a ITC would on of Page

methodology. our it No, affect not. not will would That accounting

last your investment that side, grade? debt that reference was that the on And I it. just had what would the made to look Got you you like, detail question private Could funding. now

say debt of variety a financing. There level is a forms project sources. unsecured debt It and financing. could bank, a that be could could I be

and point and those that as options when But I us. And volatile, others it or two a find they the are examples well. to that was other those look look is comfort, certainly at open. like are available think could markets keep we we channels

that’s platform, board we to, unsecured And finance all Jeff, was on coming markets. prior in just private and the remember, funding creating our did

So, we corporate in more the got or have with of supported XX have private we market. a XX the but than unsecured, little financing ourselves years bit been years

That’s I it. helpful context. it. appreciate Got

next Julien from The Dumoulin-Smith of question go you. Thank ahead. is America. of Bank Please

Hi. chat Like with time. you the afternoon. Thanks guys. Good for to

Julien. Hi

guys. Hi

off that just going first just think that XX do the here. have a grow securitization, of kind to these norm, to cadence earnings it’s that, continues the I trajectory, growth we flattish you your or outlook that I forward, at business? then to about some expectations you on your back you Should earnings What days flattish, supplement just sources? going you we with know obviously, kind of percent will that this for want new is as hit overall other Again, of on of the do assume say So, got and earnings. think just a

the very think I a was which very, ‘XX So, increase the large flattish was over prior ‘XX, years. versus

shouldn’t have that still ‘XX ‘XX So, that to achieve seen I from as and a on could we a say that remain I think or flattish, I a for be to And able don’t context, ‘XX be we relatively would It’s guidance. flat our securitization. just robust would in on But that negative. vision ‘XX. gain sale very yet. context think

Oh, yes. Right. was just the about more composition. for it. I Yes. curious Go

Yes.

Sorry.

strong. margins As to a compared over down as earnings, percent time, of portfolio continues should are drift it to total grow, NII,

on should XX% of As over revenue. percentage gain you sale. on decrease a percent was an And basis, time as expectation On year-over-year. it can create should that a see,

with you I appreciate ago, how have or there. sense. least you reflecting don’t expense there? the years bump are here you makes that interest from you, interest guys. interest brief, of rate sizable for document this Alright, X.X cadence as excellent. of maturities, that especially mean I expense Thank of you where some to to financing up many back That to the do expect ballpark or as we Yes. the last fact year into some were have should you Yes. debt, And respect well at relative here? opportunities, maturities really tap these about going if for second And debt strategy, do maturities about as X.X, We how X at kind think the evolution private you we think here, don’t alluded of stick a in time, just to environment private you in

portfolio in think and significant context, large. of having as not the I the sort relatively debt upcoming of maturities you of is addition, said,

said, I likely are incremental a going move over issuances think so, be debt I debt will of debt, the level But they were prepared forms have modest. also the on move bit contemplated. or the that of of my it’s because the think or They should next bottom on remarks, line as before. graph, I to increase it very higher, year relatively be year in the Page last bottom So that line year X.X are much. than it’s private completely or obviously, likely they And X very whether other of not to up, was

the when guidance. we did forward we at looked our So, curve

it And that here expected We won’t guidance. little that happen, a at our will go be will pick they up level cost up, bit. to impact will a funds of

Understood. Yes.

Sorry.

makes quick an capital just ago, all from equity transferability on you you structure second saying in to what and the opportunity, to the you credits, explicit. do of were perspective? to more by renewable, tax for are want to you freeing are but being you comment. absorb a clarification make same you IRA participate IRA others for sure for Is just sure up Just what that a make credit tax transferability on your I page, a to Are saying that more saying? saying that I make understood traditional want transferability, basically here it

makes All close. I it it to was than enough more said

Yes.

you enough. Thank alright. very it much. there. leave Okay, guys Fair will I

Julien. you, Thank

for reached we This the the Ladies Thank conference. today’s end of have concludes gentlemen, us. session. you question-and-answer joining and

You may now disconnect your lines.