HA Sustainable Infrastructure Capital, Inc.

Good afternoon and welcome to Hannon Armstrong's conference call on its Q3 2020 financial results. Leadership will be utilizing a slide presentation for this call, which is available now for download on the company's investor relations page at investors.hannonarmstrong.com. Today's call is being recorded and we have allocated 30 minutes for prepared remarks and Q&A. All participants will be in a listen-only mode. If you need Any operator assistance, please press star zero on your telephone keypad. At this time, I would like to turn the conference call over to Chad Reed, Vice President, Investor Relations, and ESG.

Thank you, operator. Good afternoon, everyone, and welcome. Earlier this afternoon, Hinton Armstrong distributed a press release detailing our third card 2020 results, a copy of which is available on our website. This conference call is being webcast live on the Investor Relations page of our website, where a replay will be available later today. Before the call begins, I would like to remind you that some of the comments made in the course of this call are forward-looking statements, and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The company claims the protections of the safe harbor for forward-looking statements contained in such sections. The forward-looking statements made in this call are subject to the risks and uncertainties described in the risk factors section of the company's Form 10-K and other filings with the SEC. Actual results may differ materially from those described during the call. In addition, all forward-looking statements are made as of today and the company does not take any responsibility to update any forward-looking statements based on new circumstances or revised expectations. Please note that certain non-GAAP financial measures will be discussed on this conference call. A presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is available on our posted earnings release and slide presentation. Joining me on today's call are Jeff Echol, the company's chairman and CEO, and Jeff Lipson, our CFO. With that, I'd like to turn the call over to Jeff, who will begin on slide three. Jeff?

Thank you, Chad, and good afternoon, everyone. Today, we are announcing that we've grown core earnings year-to-date 18% to $1.19 per share with $0.36 core earnings for the quarter. closed 716 million of transactions in Q3. This is inclusive of the previously announced $500 million investment with Engie, which puts us at a $1.1 billion of investments year-to-date. We've lowered our cost of corporate debt and extended its duration through our successful issuance of more than half a billion dollars of green bonds, which Jeff will describe in more detail later. We recorded our highest quarterly avoided carbon emissions with an estimated 1.2 million metric tons representing a carbon count score of 1.67. Finally, we declared a dividend of 34 cents per share. We're pleased to report these results and also note that since the global pandemic and resulting economic recession erupted in March, we've raised and committed to invest over $1 billion in climate change solutions. while our portfolio continues to perform and generate historically strong earnings. Our teamwork has been excellent during this extraordinary period, and we remain, thankfully, in good physical health. Furthermore, we're continuing our ESG leadership. We've been using carbon count since 2013 in order to measure the efficiency with which our capital is reducing carbon. With our recent membership in the Partnership for Carbon Accounting Financials, or PCAF, we have joined with over 70 financial institutions to help drive the development of a global, transparent standard that will build on the carbon count concept. We've also continued to move forward on a number of social initiatives, which we'll discuss in the subsequent slide. Before we move on, a few words about the election. The resiliency of the Hannon Armstrong business model to political changes has been proven over the last 40 years, and particularly over the last four years. We expect our clients to continue to drive the low-carbon energy future independent of what happens with federal climate policy. As an example, the recent formation of the American Clean Power Association indicates the clean energy industry is showing its strength and maturity to create a powerful and unified voice for the industry in advocacy efforts going forward. A special recognition to our Susan Nickey for her leadership in helping form the ACPA. To conclude, given the likely congressional election results, it is clear the private clean energy sector working with states will have to continue our leadership to decarbonize the U.S. power system. Let's turn to slide four. We provide an update on our 12-month pipeline, which remains greater than $2.5 billion, even as we converted the $500 million energy transaction from the pipeline to an investment. We continue to see strong growth in virtually every one of the approximately 10 end markets where we invest. The behind-the-meter portion of our pipeline remains very strong and has weighted toward energy efficiency opportunities in the governmental and industrial sectors. In addition, residential, CNI and community solar pipelines remain strong and increasingly include a storage component. The grid-connected portion is similarly well balanced between wind and solar, including solar land. Finally, we continue to source climate resilience opportunities as reflected in our sustainable infrastructure pipeline. On slide five, we detail our $2.2 billion balance sheet portfolio at the end of the third quarter. The expected portfolio yield of 7.7% is derived from more than 200 diverse investments with an average size of approximately $11 million and a weighted average life of approximately 16 years. And please note that as of 9.30, we've funded four of the 13 projects of the energy portfolio investment we announced in July, and the balance will be added in the coming months. The behind-the-meter market represents nearly 60% of our portfolio investment. and generates a forward-looking yield of 8.1%. The strong credit profile and attractive yield of these assets is driven by the fact that virtually all of these assets save money for the obligor, and that consumers and organizations are increasingly focused on the sustainability and the reliability and resiliency of power where they live and work. 40% of our portfolio, and generating a forward-looking yield of 7.1%, The grid-connected market continues to be driven primarily by wind and solar. We expect next quarter to add a new category called utility-scale solar projects once we start to fund some of those projects from the NG portfolio. We remain very pleased with the technological and geographic diversity of our portfolio and believe this is a key driver of our consistently strong portfolio performance. Now I will turn it over to Jeff Lipson to detail our financial performance.