HA Sustainable Infrastructure Capital, Inc.

Cassie's second 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. 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, HACI distributed a press release detailing our second quarter of 2023 results, a copy of which is available on our website. This conference call is being webcast live on Investor Relations' webpage, where a replay will be available later today. Some of the comments made in this call are forward-looking statements, which are subject to risks and uncertainties described in risk factors section of Companies 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. 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 Lipson, the company's President and CEO, Mark Pengburn, CFO, and Susan Nicky, our Chief Client Officer. Now I'd like to turn the call over to Jeff, who will begin on slide three. Jeff?

Thank you, Neha, and good afternoon, everyone. July 2023 is likely to be recognized as the hottest month in history to date, and 2023 is trending to be the hottest year on record. Unfortunately, climate risks continue to escalate, but these trends also highlight the enormous amount of projects and capital that will be required to mitigate these risks. In this context, HACI continues to actively engage with our clients, providing capital, industry expertise, and advocacy to address these growing challenges. Our business remains uniquely positioned to invest in the increasing number of projects being developed with a climate positive focus. As evidence of these trends and our growing opportunity set, I am pleased to announce that our investment volume for the first half of the year is the highest ever at $815 million, including $426 million for the second quarter. This is paired with our highest investment yields ever over the same period, with a weighted average yield of 8.5% for balance sheet investments. This combination of larger volumes and higher yields provides significant momentum for the business and for future earnings growth. In addition, our portfolio yield has increased from 7.5 to 7.7%. We also closed on a successful capital raise, sustaining long-term equity growth capital that provides the foundation for another $1 billion of accretive balance sheet investments or roughly $2 billion of total investments if we include securitized investments. And we upsized our bank revolver, providing enhanced financial flexibility. For the second quarter, we announced a shriveled EPS of 53 cents and GAAP EPS of 14 cents. We have declared a quarterly dividend of 39.5 cents per share and are affirming our earnings and dividend guidance. On our investor day in March, we disclosed we were performing a thorough analysis of our tax and corporate structure. As a result of this process, we have determined that the growth opportunity in renewables, fuels, and other non-requalifying investments can best be obtained outside of a REIT structure. Therefore, we have preliminary concluded our optimal structure going forward is to discontinue electing REIT status beginning in 2024. This change in tax selection will not impact our dividend policy nor our strategy. And I will make a few additional comments on this matter towards the end of our prepared remarks. Moving to slide four, we are very excited about our investment pipeline of greater than $5 billion. The pipeline has grown recently due to both growth in our business development efforts and our investment team, as well as increased project volumes from our clients. Notably, the yield on the pipeline transactions targeted for the balance sheet are consistent with the higher yields on newly closed transactions in the first half that I discussed earlier. The pipeline also remains extremely diverse, with no asset class comprising an outsized portion of the total. Our FTN business has grown from 12% of the pipeline in Q1 to 15% in Q2, as we continue to see strong opportunities in fuels and transport. Our behind-the-meter business has a large pipeline of attractive opportunities, as community solar, energy efficiency, and resi-solar all remain active asset classes. And our grid-connected business is experiencing robust growth as the IRA has triggered an increasing volume of development. And recently, we have also added several standalone storage transactions to our pipeline. In summary, this diverse pipeline provides substantial optimism regarding our ability to continue to grow our business and continued confidence in our business model. Turning to page five, we provide additional detail on our record $815 million of closed transactions year-to-date. As always, diversity remains the strength of the business. As displayed on the left, the transactions are for all three of our target markets with six different asset classes represented. On the right, we note five transactions that have been previously disclosed as a reminder of the types of projects and clients that comprise our portfolio. Highlighting one transaction, our credit facility with GridPoint, which has been established to finance a portfolio of commercial energy efficiency retrofits and has a carbon count of 5.2, representing a very significant emissions impact. A reminder that energy efficiency is often the most impactful and economic way to address carbon emissions. A good example of a profitable investment is significant impact as we continue to execute effectively, converting our pipeline into closed transactions. Now I'd like to turn it over to Mark Pangburn to detail our financial results.