Hannon Armstrong Sustainable Infrastructure Capital (HASI) 4 Nov 222022 Q3 Earnings call transcript

Greetings, and welcome to the Hannon Armstrong Third Quarter Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Neha Gaddam, Senior Director, Investor Relations and Corporate Finance. yours. is floor The

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

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

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

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

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

prior Thanks, key pleased on $X.XX like everyone. good third last strong to a annual XXXX affirm with X% annual EPS growth to of XX% per few Board has of highlights. Neha, quarterly of XX% to business demonstrated distributable the our the a And dividend afternoon, We're share, continued share. for begin over and in to increase $X.XXX earnings growth guidance XX% same our with distributable in year. I'd We quarter and slide X in our dividend performance a for declared through per period. X%

investments prices prices are improve. drive higher are the new capital at energy a with reprice of industry clean their to clients. is anticipated, yields to starting on adapting Higher price new to continuing PPA As higher starting and energy

our will as on we fund in investments. proportionately $X.X portfolio the new billion the increase yield the quarter, remains While yield expect unchanged we

later. discuss increased to clients. will the from billion, to we're over represents $X.X XX-month of $XXX existing us for ample the to operations more debt of gives quarter. liquidity to $X.X with we new deals. as last this little Our more several upside successful new Today, runway strong raise beyond cash and contributing billion, including to period time our XXXX-XXXX position, pleased the which in announce funding than million, clients IRA The come increase do still up new that well as pipeline from as has with billion with than increase Notably, $X opportunities

individual behind-the-meter markets. remains updated details pipeline, next predominantly we've XX-month in The solar page. more infrastructure portion the with on several community connected fully sustainable to expected said, as opportunities. X. of solar, market along billion grid in efficiency residential close the in with significant provide I to addressed than to greater quarters. We with increases on and The Moving pipeline in growth next each our which slide the strong more increased $X.X remains the governmental We a pipeline

Turning electric the environment. only rest sector, was agriculture the and larger to the the than come from gas believed Solutions always built emissions. GHG market represents emissions transport, X. The slide XX% which of We've of industry, power Climate page, that US greenhouse

these been now. are have building We pleased I investments with early team a successes to their will opportunities commercialize and two highlight with

First, we've projects Ameresco, a natural entered the $XXX client capacities. long-term operated gas of market investment by a with senior set a operating and programmatic renewable in million developed

pioneer we're been relationship with so to have many expand pleased been our in has in successful markets, them. and they other As Ameresco a investing RNG,

eventually a modernization we investment-grade Second, with around bus $XX and a school has software rated Zoom. client support and electrification school of among systems growing the through significant also completed Zoom in country. million transaction base

in the a superior near-term Our cash proven technology, into not tax both efficient permits shorter school transactions is more this and a fleet. involved modernization of than These because buses standard tenor case, renewable have equity projects. are many nimble, investment profile

that is in overarching decarbonize to our that Our invest massive industry flexibility evidence is one. a across strategy assets reach to sectors

meaningful credits PTC. certain we Turning lay to out on projects in current the to projects how HASI’s line economics policy anticipated ITC expect when from we step-up time improved have slide of on support and business. and and impact with a IRA to year This a expect election We X. the in extension solar of and tax pipeline next,

significant and in and certainty think is ITC, they're the behind-the-meter happening While and in because increase are about clients transport for pipeline be To connected in benefit projects projects, 'XX and development, pipeline including clear, scale grid-connected be our build, then growth a ITC opportunity XX-month stand-alone when which the our from volumes and the to We pipeline to faster could markets these to adders. the hydrogen, faster be modernization. credit provision in project is take clean to XXXX will pipeline. quicker behind-the-meter from along not it And reflect up in grid both and with transmission stems time our us speaking the clients the their clarity green ambition that and a developments, and fuel clients line, significant accelerate, hearing increases. these yet these starting develop time will of utilization our the in to RNG and respectively. of XXXX significant beyond, appear energy provisions, the IRA pipeline. our in we transferability acceleration 'XX benefits. leading does with seeing By is a grid our storage. the volume for expect resulting benefits we're to XXXX period, reflect in a transition looks pivotal to to Bottom new

results. Jeff to it turn I'll [ph] A over Now, to our detail financial

detail the $X.X of sheet balance of as grown net last our billion which XXX XX% has added our On contributing the the quarter portfolio We year, third to new Jeff. we year. past in recurring Thanks, investment X, income. investments over XXXX, slide over

we attribute. on Further, a of critical cost-effective the $XX and portfolio our are diversity to and is third was we year-over-year. and our end Our expectations, of results as investments remains XX by improving offset summarized the on prices reconciliation comparisons positive portfolio XXX quarter in performance previously now the an higher side of through asset these on which third eight QX comparison balance and have the the includes in XXXX. ongoing provide we for investments. per left We currently funded not XX% of flat XX% to X, closed of quarter distributable the do top earnings impact slide. Funding energy slide the fund of the times we slide. The million projects a with financial of these users. recorded to quarter, over detail our of investments on On share business clean over investments negatively existing $XXX portfolio remainder classes investments, the recession the expectations investments securitizations expect up transactions economic expected represent these non-cyclical underlying value commodity The is and right assets. year-to-date across within performing over of energy as of collections $X.XX gigawatts Therefore, with million year-over-year

is strong recorded $XX year-to-date XX% primarily a a had portfolio. EPS $XX In revenue up also a of of approximately the of due on we and growth higher year-over-year from was gain income XX% million. right, year-over-year, larger investment note We net upper to sale million, distributable which distributable quarter

will track million a of profitability a the $XX as lower our quarters. very the despite higher we more addition, few by on topic year with similar in right, as detail three rates, discuss revenue This through year rate number in shown strong another that of fees on last source for are In I is reflecting this minutes. environment, sale and unaffected securitization on is a gain

affirm two are balance our and asked sheet once margins. interest of address year-to-date, capital we In XX%, net which a investment income guidance. distributable rates related approximately to XX left, higher rate to targeted topic and year-over-year continued despite portfolio of able sheet about. addresses strong level our lower a the our addresses markets reflecting risk we to achieve business, in by and larger able profitability growth our driven again Page next off-balance are frequently X $XXX slides this The risk On our summary, disruption, both page were and investments. million was

maintained expect increase. As debt the phase indicates, top now our page left strong of entering on and cost margins we have we during graph X which are a to

also new important amount investments, higher as increase note to and that, debt will portfolio substantial that and our However, is of assets Jeff yields described yield most of existing cost with It a include be of liabilities. current earlier. on offset

and rates the neither rate large primary balance will move would we ROE this chart of enough percentage So investments margins modest consistent scenario, of incremental our historic initially support levels yields illustrative to sheet. in debt only a as XX% approximately quickly with costs this higher in up that is a run result debt at comprise profitability. higher The of XX% higher in of conclusion to believe figure will

to to the we On right of debt of XXXX. about coupon markets our we upper lower allow other private while have debt, will slide, the us been low public asked are and expect which maintain pivoting leverage factors, detail refinancing volatile. recently margins, maturing strong debt and in including we utilizing bank Also, the

I a over issuing Before continue to the that low-cost margins to catalyst strong addressing in substantial will XXXX of XXXX period. note XXXX be and refinancing, debt will size

rate several that potential and in the As XXXX, it next years. over relates bond to several occur this four may scenarios are there outcomes refinancing

bottom similar such profitability is offering cost However, even XXX coupon, to basis and we investment to higher historic expected had ignores of at favorably it refinancing XXX be our because credit size rating cost The by of not business below if investment XXXX this our normalized with targeted reflects depicted of than of our when current optimization profitability in its by recent illustrative ROE rate higher fact more This scenario model also simply assets to to us high will our of points yield. and that XX%. XX% a a markets a to it the range. the grade to larger targeted portion will our portfolio fall percent debt is a positions rising public back that range reconciles that This ROE a more the be time, slide rate business cause that as assume our outcome we a patterns. environment, bond return believe for debt

of been this we in consistently the capital, off stated growth. rates business maintained have low, sheet. have business earnings This we we As balance model flat, several sources and reflection have inverted steep deploy or on in both flexible and which managed have diversified is of times, using markets a high,

and to result To that mix, volume our are risen. Fluctuations not have by non-interest corresponding clear, are XX. rates. We've the in of now also impacted our be and questions received gains recently securitization Turning expected activity our activity the rates rates. slide securitization gains regarding

which on from or typically are to We securitization we hold rates an sale lock closed sale typically sale do receivables only we partner. have either clients, sold. ourselves price Our use rate purchase changes lines, rate interest investments nor risk. unhedged and securitization after transactions in the balance our within do short simultaneously in a then from to arrangements sheet, agreed exposing upon our buy these fundamentally and typically the to utilizing we warehouse We a prior period, receivables minimize being not purchase

note These or have the that that XXXX Therefore, been variety remainder market macroeconomic not companies of recorded flexible from also we markets. over primarily in less bilateral transactions had sale securitization transactions simultaneous majority conditions. example, rate this with to and the business occur including ABS exposure. by life the that the our partners, interest XXXX a days unhedged a component It capital and remains XX with and $XX market arrangements are For have than and reflecting two-thirds a of decades dynamics are of fees, the volatility of XXXX, these is important transacted risks. to increase of on impacted subject under XXXX. gain not us of hedged and ABS the year-to-date, insurance meaningful and resilient over XX% and multiple In is of outside million

are of gains rates outstanding We that despite gains Further being and not level in duplicate track sensitive. much are to these on higher. rate fees evidence XXXX

slide to Turning XX.

which Subsequent JPMorgan million credit thresholds. the We arranged our of debt to bank a three-year approximately This and six investment fundings, facilities including banks model evidence flows. we above the support spread of disruptions. on a to highlight are further transaction. basis. public Term have meaningful allowed $X.X our of can debt us avoiding third the to quarter closed our XXXX. ability $XX pro transactions, end, of long-term further by strength the with improved recent market issued $XXX XXXX carbon It pleased from average basis XXX.X business over term have total These bank we SOFR, $XXX a bears weather billion in and the quarter, of million our business portion current be billion pre-fund of to points while A our reduced successful quarter, predictable an first and debt revolver successfully Loan forma equity In we million the of even When currently our all of on expected raised combined in with at closed is our a $X based cash we has underscores count resiliency the these bank liquidity and of volatile $XX.XX, markets, price banks.

percentage and debt was to XX% A. expected rate at modestly is end, loan year-end quarter to fixed term Our due at decrease the

of sources in a and in the well to second our In is we back our million and Jeff. $XXX appendix ratio strong have performing it We cash debt-to-equity note, the and continue can that, the growth leverage uses was on cash Please I'll reliance income. was slide that investments, utilized and fund further manage we at another began reducing be excess investment quarter, profile net the on external remain XX to also that funding. X.X above as utilizing of times format earnings in the year-to-date our dividend. net collections consistent new over portfolio cash Page And our expected summary, call higher-yielding remains quarter reflecting updated range to with The in in liquidity year-end. excellent. And turn an collections

Jeff. Great job. Thanks,

in Beth And businesses Board. Beth tested renewable carbon transport the markets, our XX, pleased Slide and year. dual and have to net update partner and includes to experience an this to Slide count performed with gains our business off Ardisana our rough up joined on methodology Good is securitization this how kicking and our significant an in on Audit ESG this improved believe due engagement to We'll investment quarter our of business ESG revenue XX. program. Turning get Committee. model wrap and we activity brings sale. resilient and on We income we're sectors very finalizing Board pleased we're fuel

and dividend remarks, Session With line our up we'll XXXX. guidance growth best higher we'll Solutions yields price that, with we're the affirm Despite driven Climate questions. the are interest and This our to growing in open growth partnering Operator? and higher is best pipeline of for is investing. Question-and-Answer Our adjusting capital. clients market, pipeline to the for rates, able by earnings through the conclude

you. Thank

question conducting We take Please [Operator will now We'll Oppenheimer. session be our question-and-answer go Instructions] ahead. Noah a first from with Kaye

some Thanks taking I for incremental appreciate the questions slides. these and of

clarify to the discussion. just slide First, platform on securitization

you're is rate discount of what you're there's environment, bilateral expand where between it? acceptance much seeing that transaction that spread a higher X that constant? So should the market? kind keep about the in higher, time. selling Y the a the to way and the buying and Is is the And think pretty effectively is In at rate to for assumption same right NPV in the getting

So or seen not will I both the up rate. base years, in sides. spread Typically, go mean the rates over decades, this, The on may to go are up. last two doing I've may been the base that spreads we've the proportional

insurance of and XXXX go that's even up, That was insurance more able not AICX policies assets they And and law to the than spreads that to have need liabilities as companies with still offset long in dated over rates -- a decades. least. they So that open. a supply been markets more life from that's are and highlight not to anecdote, to still that's last The of that were the do perturbed XXXX are But quality go high have base But two Treasury. still the now physics. we've I what their when to life an premium want say up. US

then how in prepared And might remarks maybe tax position on that mentioned credits. little might in potential helpful. of utilizing a expand the the that the how be terms one-time value that yourself of Can you of you you to useful transferability Very bit the transferability? the you

it's arrange we're our to mean, for actually it problems equity it's all if just solve could to well. as way client another our us finalize regulations it But I whatever we to think to -- using tax what question. broker dealer, Good the Yeah. is. for what waiting treasury see be, by

We with of relationships corporate lots liability. have tax

years details what's lot there. out of again, before we and opportunity. of an it's the regulations it's know couple and a a really So But whole

could Maybe sneak Okay. if in. Great. one I more

tenors we asset shorter it about and have of PPAs the those versus sort makes talk with maturing where up investments. relatively in on. I offtakes sense match They newer asset new of little view, classes, you the infrastructure have early portfolio of bit expected do But tenor of shorter long-term to of maybe can of some classes these -- these highlighted the your You trends are your long-term investment to you can there a average get pair and the tenor some sustainable a guess, kind some

about which loaded, more talk approximately like life. which the even cash answer the the transactions. are me average with shortens weighted the or weighted The a flow life about Let But question cash these are average longer, tenor I I'm with cash front-end when talking flow. flow. is These loaded front-end XX-month tenor, but XX not years

certainly see… We

sorry, ahead. Yes, go

yes. Yes,

of So some effectively, front-weighted? to longer-dated the flows investments, tenor is cash but are the more your comparable

Correct.

Thanks Okay. All right. helpful That's a so much. clarification.

will our from The B. Chris take Riley. Instructions] is floor [Operator We with next Souther yours. question

a Thanks we been of next months? XX question $X.X Hi taking the and increase for billion, expect on the you're here. to Maybe incentives timeline year how any the seeing into should know also basis. come stuff just the color rates. I guys. over within my on curious, just on challenge to traditionally around pipeline weighting that I'm generally, it's of some the if a predict we've But slip given next had quarter-to-quarter volatility

there are on I'm rate is your of that So different you projects. looking be curious get guys would kind timelines up be just of returns thinking kind the customers might bumping uncertainty to interest of how kind when about

will Association talked why of line. us a of unfortunately, the yesterday grid delays reported of we're the pipeline to available any today time limited. hard Well, And I transactions ability reliable shortage and pipeline our the trying pipeline us. think about on what annually. with is Clean that American our that's multiples is It's mature that's like factors to that have or to best Again, to we solar connected, pretty which mix to detect We pattern that for predict our is invest but still being information we plagued Chris, panel Power the industry, in think true. dominant,

good and kind a go that XXXX pipeline the all almost of success go the go-forward sense. back see be that up a No, of on pipeline kind it's it's if same -- at have maybe larger kind like like go-forward a has Okay. you guys you now of the least matched should just is a so, bigger, basis, it you about the just way XX% of on historically, makes back XX-month you how lot rate or Do do any rate thinking we basis. think if kind above always that success size or And not you to sense of versus gotten there? kind but

fair for cost all that in is supply higher the in be are certainly where estimate. on side have programmatic I a telling a to not One including higher question expect us pipeline who working get larger is business, you way capital precisely growing. invest. think through is throughout market of question. we is is to a we And bit clients to client there's bad The generally we share same chains, We that capital. there's answers two to Not costs the flip more the every allows market adjust selective our that no XX% the timing.

it's right We A this grow, XX%. expect have well be lot in you it be to as stayed parts, it'd know. now, lovely however, to moving the industry to of -- but

last And just makes. Okay. That one. all

specifically you potentially out You helping you'd think that benefit was you I be overall market guys or that? opportunities just transferability specifically, something mentioned with curious able the to was if that

shouldn't First which structured if rejoice that. I tax competition should for the overall It of more equity, industry. everybody think one healthy -- all, introduce be the will a correctly, provision in should

them. to transferability projects had suppliers think clients to tax have who with I more might provision attention more the useful the to typically getting equity smaller be pay challenging big time smaller

obvious our I know think, any of the I But don't clients the tax equity. of prospect at rejoice So, on that's opportunities. one, more negotiating

be provide we extent be step competitive. So, to there to in and another can glad we'll solution, the

I'll hop sense. makes No, the queue. in Thanks guys.

with Kallo We'll Baird. from next go take question Please Ben our ahead.

evening. Hey you. Thank guys. Good

about the should of, opportunities. portfolio the change how big you more expected greater think, of or there kind Then Jeff, yield So, But we have this, of you about talked have think I I a the any follow-up. to with that? is be going the pipeline kind just pipeline, in

this, I not it's rates, higher $X doubling yield. let's in we That's move this going relatively sure It's add billion going talked year our and and is as pipeline to to but liabilities. about Jeff slowly if -- billion not proportionate in the at in be mean, well uptick a say a to investments Eckel and $X a we're not as the yields. change for radical

Just -- Yes, prepared sorry, each will be that Ben that the mass a of the we $X in moving billion, each will we amount that's year, as uptick. and said $X.X remarks, billion add and quarter the slow be

don't expect overnight. So big anything

those the highlighted Zoom Ameresco the don't but about $XXX quarter, were both you As if know that's deal. I million. the in and

the did so a results we expect what guys So bigger -- you bulk of

orso Actually, was don’t in on it also of the know which on I Ben, in out QX transaction We let release, not number. Ameresco's Ameresco talked me this QX. correct. about it's The came because press call

year question my we truck trying deals on size? deal to are or still of doing So mid-teen was, kind bigger are focus

Yes. I investments. have we're the some fundamentally in We'll way larger nothing mean investing. changed has

has in I the think that no, would range. dollar consider we're writing projects, in portfolio, three the so single checks there project changed are going but we Ameresco multi-hundred to be separate three says those assets nothing

financing. debt the on just question last And

reduction and and part me you got or can you So you if they credit came or debt there went maybe but was reduction, you for processed [ph] how if or to how talk them deal about to was get seems to new part that other

Sure.

of Okay. second the linked is Well, sustainably a to question in this category sustainability the part debt. of answer

that to a of particular for to based have lower client. metric rate already climate our will In we So that thresholds they now count. lot the provide order incentive the established an change case, in banks on address carbon

partners. of at the out if part we the maintain a do just bank we To get with level, in rate interest So the question, certain loan. we of reduction comes the dialogue our on a ongoing it have carbon count first

we of optimal at a for an as with they talking funding being capital We this banks have this our particular solution a environment the number transaction by great in loan now. term evidenced arrived notion about alternatives, and and relationship syndicated A various revolver right us markets in mutually

was dialed necessarily it coming other. wasn't one the joint So a party to it

Thank you

question take from Dumoulin-Smith [Operator go ahead. next Instructions] America. We'll our Please Julien Bank with of

hearing next and line open. your is our Your we’re We'll question button, move time a mute Osborne might you. Company. check from Cowen ahead. Jeff to go now hard Please on having with Julien, you

Good evening the equation. any guys. A end. treasury to await the as folks or with on the grid-scale PTC? late coming couple was you how of in ITC curious possibly being in changes given my guidance particular, and moving from I in IRA typically, you questions seeing projects Are delayed to from people

in one on of cycle. hi. this first would lead -- point say Jeff, list list every our I some projects our lead gets life at delayed

I that delayed. delays be pattern right honest any there's related the to the yes, now say that is everything anything, answer in wouldn't would gets So the IRA.

has, we're with infinite clarity a a some of I an chance. over log forward IRA think, runs I versus break provides of PTC. think do analysts clarity the there lot And go seeing now whether tax consternation that lot be there and The was IRA of would ITC on policy. that projects had

delays going where treasury I no that, think be the and -- any billing implement. is things regulations there to are to transfer like

make want think what's to then I here. understand it. sure helpful. I Got That's -- on And I going

of in the calendar previously XXXX. You that's for all rationales million is transactions And locked the that of are in mentioned and pipeline, one the closed and loaded funding. of $XXX

we trying visibility typical funded through, range? into end volume low XXXX that to were that at do maybe to assume So about roughly if think commitment of range the to million point? $X.X if to $X.XX about you're halfway you're billion, you this are I'm in just

funded. Jeff and to to say as So probably very some remaining be from will be closed. things XXXX, all And I already It's it make is when Not close, wouldn't XXXX. be what's the that's unfunded of this said anyway. answered. close is of completely we amount we related change reminder, what's questions of but the to this will that's identify the it from related pipeline XXXX. that from necessarily expect But always closed we we've transactions going in of have when transactions in as to are hard in subject it that. a transactions a in closed, be reporting incrementally mean funded announced. But doesn't that quarter, already XXX, amounts perspective, that earlier may transactions like to to said, that we to separate These This some them

then things, areas, one And for a sneak guess great looking I in on we've or those types the I to the the PPA B, is are? then would wanted you dynamics. I what for, of more see market, type two something while from cash if one relative in yield the RNG of there typical the flow could be, any And elevated And efforts risk structures. been it. to accelerated folks. understand to bus is Got of newer risk

in For school arbitraging buses the more example, summer out aren't setups B the moving. as months several that space, day over well -- are essentially there during vehicle-to-grid are particular in the bus companies energy as when there

that exercising to, not exposed you Zoom, And with. software someone's investment bit are made those electricity who merchant a familiar I'm more platform with prices so or the say, you efforts?

just could helpful. potential are of you be if newer these So risks highlight would what areas some with

couple a points. Mike, Sure. of

We slow. The how we like do And first movers while senior or you the to be in then we when to know, RNG that's go learn and haven't -- modernization, fleet we are. get As and we like been the perform. in, intentional. assets we

don't we not capital fair the take on I understand. of So it's potentially probably say to and risk, to not we're not around still trying think -- kind sportiest

terms we like does [indiscernible] In pricing, not we'd and release have press pricing, and about talk transaction we include but of individual rather pricing, the not that assume disclosed.

That's Appreciate it. helpful. Got it, Jeff.

All right.

We Julien take will Dumoulin-Smith next America. question our with Bank from of

Your open. now line is

before. how you expectations asset rates of the Can just about that you how first-off, time. timing, Thanks, transposing one costs think about always not an both? wanted talk little Can a bit in in relative Listen, next sort that I talk hear what incremental at right? spread should the outpace that's wanted about works. we you be talked large And back into in Bronson and portfolio. financing Is that we given filters just Appreciate was across guys. obviously, the on step-up I across a across hit of in what little quarters little a sort duration going to your talked in seeing? the you on the the of it. to to bit ask, several mean the the about how remarks. to bit I squarely sort itself we returns going way, to other to guys the

a So them yield slowly quite and Julien, next would portfolio the underlying I characterize both of and we our Again, portfolio large underlying our moving through a cost as debt. bit few quarters. of funds as move is

So impact issue as those we incrementally close dramatic take This overly either new not and debt, an of to it's on transactions going have time. numbers. will

of very expect next quarters, the -- slow both I few so would those as we move figures. And movements upward in through

assets like kind a to Yeah, returns? returns sides. market little implying little transparent, much been bit, here? It a in you dramatic incremental uptick terms in but is of both cost obviously as sounds bit an Obviously, the maybe like how on sort coming are of more right? I well responded Again, of in the the seeing has on of from just how debt what pretty take rental asset quickly of asset it's you're there, clarify

to sometimes want pricing. dramatic, it wouldn't you might the say formas wouldn't you some and get I I can Julien, where more are baked but dramatically. Yeah, dramatic. and We push be say pro

the of the the baked. that's up easiest by having everybody memo priced the our in fully gets where not overall It's we the -- It in mathematically we're is not set But been the for be, XXX And and and basis think the have conversations discussions. need, on points the something the And more expressing I hearing having aren't pick at not Jeff just market. same are are portfolio said, of cards. yields what quarters. projects we're these definitely few going are think on constructive need a the clients that day happened increased in to won't pricing. I the on as

what the IRA lot curious, That mean, across the as And take looking wide will of terms about a clearly, clearly you time. just then Excellent. of some you affords No, been the a little Yes. talk dust portfolio. bit settles a classes? guys I'm can I asset here, at in have new array.

You niche as guys renewal or traditional wind right, -- tense opportunity, coming attractive right, being of a this, are sort for you you outside the today, and looking out at clearly companies out into What given are to seeing in IRA? just past many of solar. if wider array array than of diversified there. will, get other

of So RNG that's good example around. a is market a been

more of NextEra afford into are LCFS yet. Ameresco had stand-alone almost they don't storage a closing not one is that in, great go of areas it necessarily a would a opportunity projects were the think companies deeper market. in storage The landfill storage to interested completely makes great ITC the those us where I RNG cusp the in viable. two I credits, announcement, But the that projects Does because any this on of the highlight. project would part while stand-alone other gas. on an be number we're

thank for Well, you time the Excellent. guys

Q&A End of Thanks.

at does questions thank Ladies There are no This this time. you your today's for and conclude gentlemen, further participation. teleconference.

lines, disconnect may your now have a day. You wonderful and