HA Sustainable Infrastructure Capital, Inc.

Greetings. Welcome to the Hannon Armstrong Fourth Quarter and Full Year Earnings Conference Call and Webcast. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Neha Gautam, Senior Director, Investor Relations and Corporate Finance.

Thank you, operator. Good afternoon, everyone, and welcome. Earlier this afternoon, Henan Armstrong distributed a press release detailing our fourth quarter and full year 2022 results, a copy of which is available on our website. This conference call is being webcast live on our investor relations page of our website, where a replay will be available later today. Some of the comments made in this call are forward-looking statements which 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 stated. Today's discussions also include some non-GAAP financial measures. Reconciliation of GAAP to non-GAAP measures is available on our posted earnings release and slide presentation. Joining me on today's call are Jeff Eckel, the company's chairman and CEO, Jeff Lipson, CFO and COO, and Mark Pangburn, Executive Vice President and Co-Chief Investment Officer. Before turning the call over to Jeff, I'd like to announce that we are hosting an Investor Day on March 21st, during which we will discuss the company in more detail and allow investors and analysts to meet more members of our leadership team. More details on the event will be forthcoming. With that, I'd like to turn the call over to Jeff, who will begin on slide three. Jeff?

Thank you, Neha, and good afternoon, everyone. I'm pleased to report the company continues to execute in 2022 with distributable earnings of $2.08 per share, up 11% year over year. We reaffirm our guidance for annual growth and distributable EPS of 10 to 13% through 2024, and 5 to 8% annual growth on our dividend for the same period. Our board has declared a quarterly dividend of 39.5 cents per share, an increase of 5.3%. Please note that growing earnings faster than the dividend is intentional in order to provide more retained capital for the growth and investments we are anticipating. As signaled in prior calls, we executed on strong volume in the fourth quarter with over $880 million in transactions, bringing total volume for 2022 to $1.8 billion. The average yield for newly closed transactions on balance sheet was more than 8% last quarter, a notable increase in the yield of new investments compared to average portfolio yield of 7.5%. These new transactions will fund over the course of 2023. Finally, we announced our leadership transition, which will separate the role of chairman and CEO, and thus Jeff Lipson will become president and CEO March 1st. Jeff arrived four years ago as a former bank CEO and has done simply a remarkable job building out our corporate and asset finance capabilities, as well as running operations for the last two years. The board and I have the highest conviction in his leadership of the company. Mark Pangburn will be promoted to CFO from his current role as Co-Chief Investment Officer. Mark has been with the company since just after the IPO in 2013, and has been instrumental in building out the company's investment portfolio and client base. I congratulate Jeff and Mark on their promotions, and I'm highly confident we have the right people to lead the company. In the nearly 10 years since the IPO, I'm pleased to report that we have outperformed the S&P 500 by almost one and a half times on annualized total shareholder return, returning more than 18% per year. We did this while investing on the right side of the climate change line, setting the standard for measuring impact in climate solutions investing. Most importantly, We've built a deep and highly skilled team of mission-driven professionals to continue to produce superior risk-adjusted returns while making a measurable impact on carbon emissions. I'm excited to focus on my role as chairman and confident of Jeff, Mark, and the rest of the leadership team's ability to execute our growth amidst the overwhelmingly supportive public policy backdrop. Let's talk about that policy backdrop on slide four. The Inflation Reduction Act will positively affect our business, as evidenced by our clients increasing their pipelines due to the long-term ITC-PTC policy certainty and tax credits for renewable fuels. Tax credits for battery storage has made standalone projects conducive for investment, an example of policy accelerating new investable asset classes for us. The transferability of tax credits will expand the tax capacity available for renewable projects as well as provide an opportunity for us to participate in those transactions. Finally, the Infrastructure Bill and CHIPS Act provide constructive policy backdrop for new transmission and onshoring manufacturing. In my 40-plus-year career, I never imagined this level of in-length policy support for the energy transition. This is unmitigated good news for HACI. With that, I will turn it over to Jeff Tiefel.