HA Sustainable Infrastructure Capital, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Our Portfolio (Tables)

Our Portfolio (Tables)

9 Months Ended

Sep. 30, 2017

Asset Retirement Obligation Disclosure [Abstract]

Analysis of Portfolio by Type of Obligor and Credit Quality

The following is an analysis of our Portfolio by type of obligor and credit quality as of September 30, 2017:


	Investment Grade
	Government⁽¹⁾			Commercial Investment Grade ⁽²⁾			Commercial Non-Investment Grade ⁽³⁾			Subtotal, Debt and Real Estate			Equity Method Investments		Total
	(dollars in millions)
Financing receivables	$	574		$	478		$	10		$	1,062		$	—	$	1,062
Investments		105			26			—			131			—		131
Real estate ⁽⁴⁾		—			314			—			314			21		335
Equity investments in renewable energy projects		—			—			—			—			519		519

Total	$	679		$	818		$	10		$	1,507		$	540	$	2,047

% of Debt and real estate portfolio		45	%		54	%		1	%		100	%		N/A		N/A
Average remaining balance ⁽⁵⁾	$	12		$	9		$	5		$	10		$	20	$	12

(1)

Transactions where the ultimate obligor is the U.S. federal government or state or local governments where the obligors are rated investment grade (either by an independent rating agency or based upon our internal credit analysis). This amount includes $474 million of U.S. federal government transactions and $205 million of transactions where the ultimate obligors are state or local governments. Transactions may have guaranties of energy savings from third party service providers, which typically are entities rated investment grade by an independent rating agency.

(2)

Transactions where the projects or the ultimate obligors are commercial entities that have been rated investment grade (either by an independent rating agency or based on our internal credit analysis). Of this total, $10 million of the transactions have been rated investment grade by an independent rating agency. Commercial investment grade financing receivables include $310 million of internally rated residential solar loans made on a non-recourse basis to special purpose subsidiaries of the SunPower Corporation (“SunPower”), for which we rely on certain limited indemnities, warranties, and other obligations of SunPower or its other subsidiaries.

(3)	Transactions where the projects or the ultimate obligors are commercial entities that have ratings below investment grade (either by an independent rating agency or using our internal credit analysis).

(4)	Includes the real estate and the lease intangible assets (including those held through equity method investments) from which we receive scheduled lease payments, typically under long-term triple net lease agreements.

(5)	Excludes approximately 130 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $51 million.

Summary of Anticipated Maturity Dates of Financing Receivables and Investments and Weighted Average Yield

The following table provides a summary of our anticipated maturity dates of our financing receivables and investments and the weighted average yield for each range of maturities as of September 30, 2017:


	Total			Less than 1 year			1-5 years			5-10 years			More than 10 years
	(dollars in millions)
Financing Receivables
Maturities by period	$	1,062		$	4		$	23		$	77		$	958
Weighted average yield by period		5.2	%		8.7	%		5.2	%		4.9	%		5.2	%
Investments
Maturities by period	$	131		$	—		$	66		$	1		$	64
Weighted average yield by period		3.9	%		—	%		3.6	%		4.7	%		4.3	%

Components of Real Estate Portfolio

The components of our real estate portfolio as of September 30, 2017 and December 31, 2016, were as follows:


	September 30, 2017			December 31, 2016
	(dollars in millions)
Real Estate
Land	$	226		$	145
Lease intangibles		92			29
Accumulated amortization of lease intangibles		(4	)		(2	)

Real Estate	$	314		$	172

Schedule of Future Amortization Expenses Related to Intangible Assets and Future Minimum Rental Income Payments under Land Lease Agreements

As of September 30, 2017, the future amortization expense of these intangible assets and the future minimum rental income payments under our land lease agreements are as follows:


Years Ending December 31,	Future Amortization Expense		Minimum Rental Income Payments
	(dollars in millions)
From October 1, 2017 to December 31, 2017	$	1	$	4
2018		3		18
2019		3		18
2020		3		18
2021		3		18
2022		3		19
Thereafter		72		674

Total	$	88	$	769

Summary of Outstanding Deferred Funding Obligations to be Paid

The next five years of outstanding deferred funding obligations to be paid are as follows:


	(dollars in millions)
October 1, 2017 to December 31, 2017	$	29
2018		80
2019		69
2020		36
2021		12

Total Deferred funding obligations	$	226