Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI): Business Model Canvas [Apr-2026 Updated]

Honestly, after spending two decades mapping capital for firms like BlackRock, I see Hannon Armstrong Sustainable Infrastructure Capital, Inc.'s business model as a highly focused machine built for the climate transition. It's not just about green energy; it's about structuring complex, long-term contracts to generate reliable income. As of late 2025, they are managing $15.0 billion in assets, which translated to $105 million in recurring income last quarter while avoiding 8.4 million metric tons of CO2 annually. This canvas shows you the exact mechanics-from their key partnerships with developers to how they rotate assets to keep yields consistently above 10.5%-so you can see the precise engine driving their growth.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Key Partnerships

You're looking at the financing backbone of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI), which relies heavily on strategic partners to deploy capital into climate solutions. The structure is built around co-investment vehicles, bank relationships, and the federal incentive landscape.

Investment firm KKR for the CCH1 co-investment vehicle

The CarbonCount Holdings 1 LLC (CCH1) joint venture with KKR is a primary off-balance sheet funding source. This vehicle was initially established in May 2024 with each firm committing up to $1 billion for an aggregate initial capacity of up to $2 billion.

By June 2025, an expansion via a private bond offering raised $592 million, growing CCH1's total investment capacity to approximately $2.6 billion. As of the third quarter of 2025, CCH1 had already completed funding of $1.2 billion in investments. Separately, as of Q2 2025, the structure had $1.1 billion of funded assets and an expected additional capacity of $1.5 billion to be filled before the end of 2026.

Financial institutions providing credit facilities and debt capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) maintains a diversified funding platform that includes significant debt capital markets activity. In the second quarter of 2025, the company issued $1,000,000,000 of term debt. Furthermore, in November 2025, the firm priced an offering of $500 million of Green Junior Subordinated Notes.

The overall leverage profile shows that the total carrying value of debt outstanding stood at approximately $5,189 million as of the third quarter of 2025. The weighted-average interest cost for the company was 5.7% in the first quarter of 2025.

Programmatic relationships with renewable energy project developers

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) structures its business around programmatic relationships to ensure a steady deal flow. One such partnership is with The AES Corporation (AES), which possesses a 51-gigawatt (GW) development pipeline in the U.S..

Through this relationship, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) made a common equity investment in an approximately 1.3-GW portfolio of operating solar and wind projects from AES, acquiring a 49% equity interest in that portfolio. Another key programmatic partnership is a joint investment collaboration with Empower Energies focused on the commercial & industrial (C&I) and municipal, university, school and hospital (MUSH) markets.

Government agencies for accessing green energy incentives and tax credits

Accessing federal incentives is a crucial component of structuring deals. The Residential Clean Energy Credit (Section 25D) offers a 30% tax credit, which officially expires on December 31, 2025, with no phase-down period. The Energy Efficient Home Improvement Credit (25C) provides up to $3,200 annually, requiring improvements to be placed in service by December 31, 2025.

Under proposed legislation as of mid-2025, several credits face sunsetting or changes:

• The Clean Vehicle Credit (30D) and Commercial Clean Vehicle Credit (45W) are eliminated for new projects beginning after December 31, 2025.
• The Clean Hydrogen Production Tax Credit (45V) is proposed to sunset for facilities where construction begins after December 31, 2025, though other proposals suggest an extension to 2028.
• The Production Tax Credit (PTC) and Investment Tax Credit (ITC) for clean electricity are proposed to phase out for facilities placed in service after 2028.

Credit Facilities and Relationship Banks

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) utilizes a syndicate of banks for its corporate unsecured credit facilities. As of April 2024, the total committed capacity across the revolving credit facility, term loan facility, and green commercial paper program totaled $1.625 billion.

The CarbonCount-Based Revolving Credit Facility capacity was increased to $1.25 billion, maturing in 2028. This facility, along with the term loan A, is supported by a 14 bank syndicate. JPMorgan Chase Bank acts as the administrative agent, sustainability structuring agent, lead arranger, and bookrunner for this bank group.

The structure of the bank facilities includes pricing tiers based on the company's CarbonCount metric, with the revolving line of credit margin set at 187.5 bps.

Facility Component	Committed Capacity (as of April 2024)	Maturity Date	Applicable Margin
CarbonCount-Based Revolving Credit Facility	$1.25 billion	2028	187.5 bps
CarbonCount-Based Term Loan Facility	$250 million	2027	212.5 bps
CarbonCount Green Commercial Paper Note Program	$125 million	2026	140 bps
Total Committed Bank Facilities	$1.625 billion	Varies	N/A

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Key Activities

You're mapping out the core engine of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) as of late 2025, and honestly, the numbers show a firm executing on scale. The key activities revolve around deploying capital into climate solutions and efficiently managing that capital base.

Origination and underwriting of climate-positive infrastructure investments

This is where Hannon Armstrong Sustainable Infrastructure Capital, Inc. finds its deal flow. They are actively originating and underwriting assets across energy efficiency, renewable energy, and resilient infrastructure. The pipeline remains robust, which is crucial for feeding the growing asset base.

Here's a look at the recent deployment activity:

• Closed new investments totaling over $700 million in the first quarter of 2025 (Q1 2025), marking a record for that quarter.
• For the first three quarters of 2025 (YTD Q3 2025), the firm completed $1.5 billion in transactions, which is a 25% year-over-year increase in closed volume.
• The weighted average yield underwritten on new portfolio investments through Q1 2025 was greater than 10.5%.
• The average yield on new asset investments for the nine months ended September 30, 2025, averaged more than 10.5%.

Structuring and executing asset securitizations and sales (asset rotation)

Asset rotation-selling or securitizing assets-is a key activity that recycles capital back into new investments, which helps maintain a high level of deployment without solely relying on new equity raises. This is the financial engineering that keeps the machine running smoothly.

The scale of assets managed off-balance sheet via securitization shows the importance of this function:

Metric	Amount as of September 30, 2025
Total Managed Assets	$15.0 billion
Assets Managed Through Securitization Vehicles (Not Consolidated)	Approximately $7.5 billion

The impact of asset rotation on immediate earnings can be variable. For instance, gain on sale and other income in Q1 2025 was $24 million, which was lower than the $30 million seen in the prior year, partly due to higher-than-normal asset rotation activity in the prior year period.

Managing the $15.0 billion Managed Assets portfolio

The core of the business is managing the assets that generate predictable, long-term cash flows. As of the third quarter of 2025 (Q3 2025), Hannon Armstrong Sustainable Infrastructure Capital, Inc. reported $15.0 billion in managed assets, representing a 15% increase year-over-year. This growing asset base directly supports the recurring income stream.

The recurring income metric, Adjusted Recurring Net Investment Income, is the proof point here:

• In Q3 2025, Adjusted Recurring Net Investment Income grew 42% year-over-year.
• Year-to-date through Q3 2025, this recurring income was up 27%.
• The portfolio yield stood at 8.3%, and management expected it to increase as higher-yielding assets closed in the past year were funded.

Capital raising via green bonds and private debt offerings

To fund the origination activity, Hannon Armstrong Sustainable Infrastructure Capital, Inc. actively taps debt markets, often using instruments that align with their mission. They recently executed a significant move to strengthen their long-term funding.

Key capital raising events in late 2025 include:

• In November 2025, the company priced an offering of $500 million aggregate principal amount of 8.000% Green Junior Subordinated Notes due 2056, with estimated net proceeds of approximately $493.3 million.
• In June 2025, they issued $1 billion in green senior unsecured notes, using $900 million of the proceeds to repay nearer-term debt maturities.
• The company maintains a strong liquidity position, having increased the capacity of its revolver by $200 million to $1.55 billion as of Q1 2025.

Utilizing the proprietary CarbonCount® tool for impact measurement

Hannon Armstrong Sustainable Infrastructure Capital, Inc. uses its proprietary CarbonCount® tool to measure the efficiency of capital deployment in terms of carbon reduction. This is a key differentiator, as they were the first U.S. public company to report this metric.

The tool evaluates investments to determine the efficiency by which each dollar of invested capital reduces annual carbon dioxide equivalent (CO2e) emissions. While the latest 2025 metric isn't explicitly stated, the historical impact shows the scale of this activity:

• As of December 31, 2024, the cumulative metric tons of carbon dioxide avoided annually through their investments was over 8 million metric tons.
• The company also tracks water savings, estimating a cumulative 4.2 billion gallons of water saved annually from its investments as of the same date.

Finance: draft 13-week cash view by Friday.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Key Resources

You're looking at the core assets that power Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)'s ability to execute its climate solutions investment strategy. These aren't just line items; they are the tangible and intangible strengths that allow HASI to deploy capital effectively and maintain its market position.

The scale of capital under management and the strength of the funding platform are central to the Key Resources.

Managed Assets and Pipeline Strength:

• $15.0 billion in Managed Assets as of Q3 2025.
• Robust investment pipeline exceeding $6 billion as of Q3 2025.
• New asset yields on recent investments consistently exceeding 10.5%.

The firm's ability to secure high-quality, long-term assets is reflected in its portfolio yield metrics, which are critical for maintaining attractive spreads over their cost of capital.

Metric	Value as of Late 2025	Reference Period
Total Managed Assets	$15.0 billion	Q3 2025
Investment Pipeline	Over $6 billion	Q3 2025
Portfolio Yield	8.6%	Q3 2025
New Asset Yields	Exceeding 10.5%	Q3 2025
New Transactions Closed YTD	$1.5 billion	First Three Quarters of 2025

Financial Flexibility and Capital Access:

Liquidity is a key differentiator, allowing Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) to act decisively when opportunities arise, even in volatile markets. You can see the strength here:

• Strong liquidity, including $1.3 billion available as of Q1 2025.
• Reported available liquidity of over $1.4 billion as of Q2 2025.
• Credit facility capacity of approximately $1.6 billion.

The achievement of investment-grade status across all major agencies significantly lowers the cost of debt capital, which is a crucial resource for a capital-intensive business like Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI).

Investment-Grade Credit Ratings:

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) secured ratings that allow for inclusion in investment-grade indices, improving access to low-cost, long-duration debt capital.

• Moody's Investors Service: Baa3.
• Fitch Ratings: BBB-.
• S&P Global Ratings: BBB- (Upgraded in June 2025).

Deep Expertise in Energy Markets and Financial Structuring:

The firm's intangible asset is its deep, decades-long experience in structuring complex financing for sustainable infrastructure. This expertise is operationalized through vehicles like the CCH1 joint venture with KKR, which completed funding of $1.2 billion of investments as of Q3 2025. This structure helps Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) scale deployment while managing balance sheet leverage.

The firm's weighted-average interest cost was 5.7% in Q1 2025, while new asset yields were over 10.5%, showing a healthy spread driven by structuring skill. Finance: draft 13-week cash view by Friday.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) attracts capital and clients; it's all about the specialized financial engineering supporting climate assets.

Providing innovative, customized financing for sustainable infrastructure is central to the Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) value proposition. They actively partner with clients to deploy capital primarily into income-generating real assets that are supported by long-term recurring cash flows. This is evident in their deal flow, such as closing a new $\mathbf{\$1.2}$ billion investment in a $\mathbf{2.6}$ GW utility-scale renewable project in October 2025. They use intricate financial structures, including off-balance sheet co-investment vehicles like $\text{CCH1}$, to align capital with specific investor and project needs.

The firm delivers superior risk-adjusted returns with long-term contracted cash flows. This stability is reflected in the growth of their core recurring income. For instance, Adjusted Recurring Net Investment Income soared $\mathbf{42\%}$ year-over-year in the third quarter of 2025. The underlying portfolio yield stood at $\mathbf{8.6\%}$ as of Q3 2025, built upon assets secured by long-term contracts. The total Managed Assets base grew to $\mathbf{\$15.0}$ billion as of September 30, 2025, showing the scale backing these cash flows.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) is accelerating the energy transition through climate-positive investments. Their investment screen mandates that every project must either reduce carbon emissions or provide other tangible environmental benefits. This focus is what drives their entire asset base.

The measurable environmental impact is a key differentiator. As of Q3 2025, the cumulative annual $\text{CO}_2$ avoidance through their investments reached $\mathbf{8.5}$ million metric tons. That's a tangible result of their strategy. The company also tracks water savings, with cumulative annual water savings reaching $\mathbf{7.5}$ billion gallons as of the same period.

You see the direct financial benefit of this focus in the returns generated from new business. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) has been offering new investment yields consistently above $\mathbf{10.5\%}$. This was true for new investments closed in Q1 2025 and for the average yield on the $\mathbf{\$1.5}$ billion in transactions closed through the first three quarters of 2025.

Here's a quick snapshot of the financial metrics underpinning these value propositions as of late 2025:

Metric	Value (as of Q3 2025 or latest reported)
Managed Assets	$\mathbf{\$15.0}$ billion (as of September 30, 2025)
New Asset Yields (Recent Closings)	$>\mathbf{10.5\%}$
Portfolio Yield	$\mathbf{8.6\%}$ (Q3 2025)
Adjusted Recurring Net Investment Income Growth (YoY Q3 2025)	$\mathbf{42\%}$
Adjusted Return on Equity (Year-to-Date Q3 2025)	$\mathbf{13.4\%}$
Cumulative Annual $\text{CO}_2$ Avoided	$\mathbf{8.5}$ million metric tons (Q3 2025)

The value proposition also rests on the operational strength that supports these numbers. You can see the diversification and scale in their asset management:

• Investments are diversified across utility-scale solar and wind, behind-the-meter assets, and public sector efficiency projects.
• The investment pipeline remains robust, exceeding $\mathbf{\$6}$ billion as of Q3 2025, giving clear visibility into future deployment.
• The firm maintains investment grade credit ratings from all three major agencies, which helps keep the cost of capital competitive.
• The cost of newly issued debt in 2024 was $\mathbf{6.6\%}$, while the portfolio yield was $\mathbf{8.3\%}$ in Q1 2025, showing healthy initial margins.

Finance: draft $\mathbf{13}$-week cash view by Friday.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Customer Relationships

You're looking at how Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) manages the crucial connections that fuel its specialized finance model. The relationships are built on a foundation of long-term commitment to climate-positive assets.

Long-standing, programmatic client partnerships for repeat business

HASI explicitly states it combines its expertise with long-standing programmatic client partnerships to deliver superior risk-adjusted returns. This approach is validated by the consistent growth in assets under management, which serves as the engine for recurring revenue.

• Managed Assets reached $15.0 billion as of September 30, 2025, a 15% year-over-year increase.
• Managed Assets stood at $14.5 billion at the end of Q1 2025, showing 12% growth year-over-year.
• The company closed more than $700 million in transactions during Q1 2025, a Q1 record.
• HASI is on pace to close more than $3 billion in new transactions for the full year 2025.

Direct engagement and consultative approach with project sponsors

The direct engagement focuses on sourcing and underwriting high-quality, long-term contracted assets. This consultative role is key to maintaining the quality of the investment flow, which directly impacts profitability metrics.

• New asset yields on Portfolio investments have been consistently greater than 10.5% in 2025.
• The pipeline of opportunities available for investment exceeded $6 billion as of Q2 and Q3 2025.
• The portfolio yield, a measure of asset performance, climbed to 8.6% as of September 30, 2025.

High-touch relationship management for complex financing structures

Managing complex, large-scale deals requires deep, hands-on involvement with project sponsors, often through specialized vehicles. The milestone $1.2 billion investment in the SunZia project in October 2025 is a prime example of this capability, showing HASI can execute at a monumental scale.

The co-investment vehicle, CCH1, is central to managing these large structures while keeping leverage in check. As of the end of Q3 2025, CCH1 had completed funding of $1.2 billion of investments, with potential capacity to increase to $1.8 billion with additional debt, while maintaining a leverage level below a debt-to-equity ratio of 0.5 at the CCH1 level.

Investor relations for capital providers (debt and equity)

Investor relations is about demonstrating the stability and predictability of the recurring cash flows to attract and retain capital providers across the debt and equity spectrum. The focus is on the core engine: Adjusted Recurring Net Investment Income (ARNII).

The ARNII growth is a powerful signal to capital providers, showing the fundamental business is firing on all cylinders. For Q3 2025, ARNII totaled $105 million, a 42% surge year-over-year. This recurring income supports the reaffirmed guidance for 8% to 10% compound annual EPS growth through 2027.

Here's a look at the recent activity with debt providers, which is critical for a finance-focused entity like Hannon Armstrong Sustainable Infrastructure Capital, Inc.:

Metric	Date/Period	Amount/Value
Senior Unsecured Notes Issued	Q2 2025	$1 billion
Blended Effective Yield on New Notes	Q2 2025	6.3%
Bonds Repurchased (2026/2027 Maturity)	Q2 2025	$700 million
Convertible Notes Repaid	Q2 2025	$200 million
Total Debt Outstanding (Carrying Value)	Q3 2025	Approximately $5,189 million
Stockholders' Equity	Q3 2025	Approximately $2,686 million
Debt-to-Equity Ratio (Company Level)	Q3 2025	1.9x

The company actively manages its liability platform, for instance, by executing hedges in April 2025 to lock in a SOFR base rate of approximately 3.5%, giving debt providers more certainty on the cost of future funding.

Finance: draft 13-week cash view by Friday.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Channels

You're looking at how Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) gets its deals financed and deployed, which is defintely more complex than a simple loan book. The channels they use show a sophisticated, multi-pronged approach to capital sourcing.

Direct origination team engaging project developers and sponsors

The direct origination channel feeds the entire machine, evidenced by the strong pipeline and recent closing volumes. This team is responsible for sourcing the assets that Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) then finances, either on-balance sheet or through its various funding channels.

• Investment pipeline stood at more than $6 billion as of September 30, 2025.
• For the first three quarters of 2025, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) completed $1.5 billion in transactions.
• Q3 2025 saw closed transactions totaling approximately $649 million.
• New portfolio asset yields for the nine months ended September 30, 2025, averaged more than 10.5%.
• Management expects full-year 2025 transaction volumes to exceed $3 billion.

Co-investment vehicles, like CCH1, for joint capital deployment

The co-investment vehicle, CarbonCount Holdings 1 LLC (CCH1), is a key channel that allows Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) to scale deployment without solely relying on its own balance sheet or public capital markets. This vehicle is a partnership with KKR.

Metric	Date/Period End	Amount
Total CCH1 Investment Target	Launch (2024)	Up to $2 billion
CCH1 Completed Investment Funding	Q3 2025	$1.2 billion
CCH1 Funded Balance	Q1 2025	$1 billion
Partner's Share of Co-investment Vehicles (Assets Held by Partners)	September 30, 2025	$592 million
Partner's Share of Co-investment Vehicles (Assets Held by Partners)	June 30, 2025	$550 million
Total Assets in Co-investment Structures	June 30, 2025	$1.1 billion
CCH1 Share of Equity Method Investments	September 30, 2025	$576 million

The growth in this channel is clear; assets held by partners in co-investment vehicles grew from $57 million as of June 30, 2024, to $592 million as of September 30, 2025.

Capital markets for debt and equity issuance (e.g., Green Junior Subordinated Notes)

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) actively taps capital markets to secure long-term, diversified funding. The November 2025 issuance of Green Junior Subordinated Notes was a strategic move to diversify the capital stack away from just senior debt and common equity.

• Offering of Green Junior Subordinated Notes (November 2025): $500 million aggregate principal amount.
• Coupon on the 2056 Notes: 8.000%.
• Estimated Net Proceeds from the Notes Offering: Approximately $493.3 million.
• Total Debt Outstanding: $5.2 billion as of September 30, 2025.
• Revolver Capacity: Increased by $200 million to $1.55 billion in March 2025.
• Senior Unsecured Notes Issued (Prior to Q3 2025): $1 billion at a blended effective yield of 6.3%.
• Exchangeable Notes Outstanding: $402,500,000 as of September 30, 2025.

The company also executed hedges in April 2025 to lock in a SOFR base rate of approximately 3.5% on floating-rate debt.

Securitization markets for asset rotation and funding

Securitization is a crucial channel for asset rotation, allowing Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) to recycle capital from assets held off-balance sheet. This is a core component of their recurring income stream.

Securitization Metric	As of September 30, 2025	As of June 30, 2025
Assets Managed Through Securitization Vehicles (Not Consolidated)	Approximately $7.5 billion	N/A
Retained Interests in Securitization Trusts, Net of Allowance	$278 million	$272 million
Management Fees and Retained Interest Income Revenue (Q3 2025 vs Q3 2024)	$9 million (Q2 2025 vs Q2 2024)	N/A

A landmark transaction in this channel was the $900 million asset-backed securitization (ABS) of residential solar assets closed in October 2025, co-led by Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) and GoodFinch.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Customer Segments

You're looking at Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) and trying to map out exactly who is paying for the sustainable infrastructure financing they provide. Honestly, the customer segments are best understood by looking at the asset classes they finance, as these directly correspond to the counterparties they work with.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) focuses its capital deployment across distinct areas that serve different types of clients, from large utilities to public sector entities. As of the third quarter of 2025, the firm's Managed Assets reached $15.0 billion, a 15% jump year-over-year, showing the scale of their client base and asset deployment.

The core customer base is served through the financing of assets categorized into Behind-the-Meter and Grid-Connected projects. For instance, as of the second quarter of 2025, the on-balance-sheet Portfolio stood at approximately $7.2 billion, split between these primary customer-facing asset types.

The customer segments Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) serves include:

• Renewable energy project developers financing distributed solar, community solar, and onshore wind projects.
• Energy Service Companies (ESCOs) and government entities involved in energy efficiency upgrades, often categorized under public sector projects.
• Institutional co-investors participating in large-scale joint ventures.

The focus on these segments is reflected in the asset composition and the pipeline Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) maintains. For example, the pipeline at the end of Q1 2025 showed a significant allocation to the asset classes that serve these customers.

Customer Segment Proxy (Asset Class)	Latest Portfolio Value (as of Q2 2025)	Pipeline Allocation (as of Q1 2025)	New Investment Yield (Q2 2025)
Renewable Energy Developers (Behind-the-Meter: Distributed Solar/Efficiency)	$3.5 billion	49%	>10.5%
Renewable Energy Developers (Grid-Connected: Utility-Scale Solar/Wind)	$2.7 billion	30%	>10.5%
Government/Municipal Entities (Public Sector Efficiency/Infrastructure)	Implied within Portfolio/Pipeline	Implied within Pipeline	Implied within New Investment Yield
Institutional Co-investors (Via CCH1 Vehicle)	Equity Method Investments: $4.1 billion (Q2 2025)	N/A	N/A

The relationship with institutional co-investors is a key part of the funding structure, allowing Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) to scale investments without solely relying on its own balance sheet or public capital markets. The partnership with KKR, for instance, through the CCH1 co-investment vehicle, had a funded balance of $1 billion as of July 2025, and the partnership was extended through 2026. This structure directly addresses the need for large capital deployment, such as the $1.2 billion structured equity investment closed in the SunZia wind project, contributing to over $3 billion in total 2025 investment volume.

The focus on government and municipal entities is evident through investments in public sector energy efficiency projects, which contributed to robust profitability in Q1 2025. Furthermore, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) is recognized as a key organization in the broader Carbon-Smart Municipal Bond Market, which was valued at an expected $136.72 billion in 2025.

The weighted average yields on new Portfolio investments have remained strong, underwritten at >10.5% through the first quarter of 2025, which is significantly higher than the more than 9% yields seen on investments underwritten in 2023. This high yield on new assets is crucial for maintaining margins across all customer segments, especially as the weighted-average interest cost on debt was 5.7% through the first half of 2025.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Cost Structure

You're looking at the Cost Structure for Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) and seeing the direct impact of their financing-heavy, asset-backed model. The costs are dominated by the price of capital itself, which is standard for a specialty finance company like this one.

The most significant recurring cost is the interest expense tied to their debt-fueled investment strategy. For the third quarter of 2025, the significant interest expense on debt totaled $71 million. This is a direct function of the capital they deploy to fund their growing portfolio of sustainable infrastructure assets.

Operating expenses, while smaller than interest costs, reflect the need for high-level expertise. The costs associated with the team-the specialized financial minds structuring deals and the technical experts vetting the assets-are bundled. For Q3 2025, the combined Compensation and benefits for specialized financial and technical staff and General and administrative expenses (excluding Equity-Based Compensation) were approximately $28 million. This figure is a key operational outlay you need to track.

The structure of the balance sheet itself generates a specific cost consideration related to risk management. Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) actively manages a high-leverage profile, which is intentional for return amplification in this sector. As of September 30, 2025, the company was managing a 1.9x debt-to-equity leverage ratio, which sits within their stated target range of 1.5x to 2.0x. This leverage requires constant management of debt covenants and maturity schedules, which is an embedded cost of their business model.

Here's a breakdown of the capital structure costs and key operational expenses as of late 2025 data points:

Cost Component	Financial Metric/Period	Amount (USD)
Interest Expense on Debt	Q3 2025	$71 million
Compensation & G&A (Excl. EBC)	Q3 2025	$28 million
Provision for Loss on Receivables	Q1 2025 (Latest Reported)	$4 million
Total Carrying Value of Debt Outstanding	Q3 2025	$5,189 million
Stockholders' Equity	Q3 2025	$2,686 million

The risk of credit loss is an ongoing, though currently low, cost factor. For the first quarter of 2025, Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) recorded a provision for loss on receivables and securitization assets of $4 million, primarily driven by macroeconomic assumption changes. While the realized loss rate remains minimal, under 10 basis points, this provision is a necessary accounting cost reflecting forward-looking credit risk assessment.

The management of this leverage involves continuous capital market activity, which carries its own costs:

• Costs associated with managing the 1.9x debt-to-equity leverage.
• Expenses related to debt issuance and refinancing activities, such as the June 2025 issuance of $1 billion in green senior unsecured notes.
• Costs to maintain investment-grade credit ratings across major agencies, which helps keep the cost of debt manageable.
• Potential costs from early debt repayment, like the approximately $900 million in nearer-term debt repurchased following the June 2025 issuance.

Finance: draft the 13-week cash flow view incorporating the Q4 2025 interest accrual by Friday.

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI)'s earnings power as of late 2025, focusing on the streams that deliver predictable, long-term cash flow.

The most critical metric for understanding the recurring profitability is the Adjusted Recurring Net Investment Income, which hit $105 million in Q3 2025. This number reflects the core, predictable cash flow from the deployed asset base, showing a substantial 42% increase year-over-year from Q3 2024's $74 million.

The foundation of this recurring income comes from the assets on the balance sheet and equity method investments. Specifically, the Interest and Rental Income from debt and real estate investments component of revenue was $69 million in Q3 2025. This growth was supported by higher yields on the overall investment base.

To capture the full picture of the Q3 2025 performance, we look at the components that make up the Adjusted Earnings calculation, which includes both recurring and non-recurring optimization gains. The Gain on Sale of Assets from securitization and asset rotation contributed $25 million in Q3 2025. This type of income, often from optimizing existing assets like the SunStrong residential solar refinancing, is recognized but is distinct from the steady recurring income.

The fee-based revenue streams, which are tied to the scale of assets managed, are also key. For Q3 2025, the combined Management Fees and Retained Interest Income Revenue totaled $8 million. This figure reflects income derived from co-investment structures, such as CCH1, and retained interests in securitization trusts, though the reporting combines these two sources.

Here's a breakdown of the key financial metrics underpinning these revenue streams as of the end of Q3 2025:

Metric	Value as of Q3 2025 / For Q3 2025
Adjusted Recurring Net Investment Income	$105 million (Q3 2025)
Interest and Rental Income Revenue	$69 million (Q3 2025)
Gain on Sale of Assets	$25 million (Q3 2025)
Management Fees and Retained Interest Income Revenue	$8 million (Q3 2025)
Origination Fee and Other Income	$1 million (Q3 2025)
Total Managed Assets	$15.0 billion (As of September 30, 2025)
Portfolio Yield	8.6% (As of September 30, 2025)
New Portfolio Investment Yields	>10.5%

The growth in the asset base directly fuels the recurring income, as you can see from the scale of deployment:

• Managed Assets grew 15% year-over-year to $15.0 billion as of September 30, 2025.
• New asset yields on Portfolio investments are consistently underwritten at >10.5%.
• Total transactions closed through the first three quarters of 2025 reached approximately $1.5 billion.
• The company expects full-year 2025 transaction volumes to surpass $3 billion.

The Income from Retained Interests in Securitization Trusts is included within the $8 million figure for Management Fees and Retained Interest Income Revenue for Q3 2025. This structure allows Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) to earn fees and residual income from assets that have been sold into securitization trusts, keeping some of the upside.

Also, note that the GAAP-based Net Investment Income (Loss) was only $6 million in Q3 2025, which highlights why the non-GAAP Adjusted Recurring Net Investment Income of $105 million is the metric management focuses on to show the true operating earnings power.

Finance: draft 13-week cash view by Friday.