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The following is an analysis of our Portfolio as of December 31, 2019:
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Investment Grade |
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Commercial
Non-Investment
Grade (3)
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Subtotal,
Debt
and Real
Estate
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Equity
Method
Investments
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Total |
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Government (1)
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Commercial (2)
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(dollars in millions) |
Equity investments in renewable energy and energy efficiency projects |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
477 |
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$ |
477 |
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Receivables (4)
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263 |
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209 |
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687 |
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1,159 |
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— |
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1,159 |
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Real estate (5)
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— |
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362 |
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— |
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362 |
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22 |
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384 |
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Investments |
33 |
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42 |
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— |
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75 |
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— |
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75 |
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Total |
$ |
296 |
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$ |
613 |
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$ |
687 |
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$ |
1,596 |
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$ |
499 |
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$ |
2,095 |
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% of Debt and real estate portfolio |
19 |
% |
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38 |
% |
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43 |
% |
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100 |
% |
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N/A |
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N/A |
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Average remaining balance (6)
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$ |
7 |
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$ |
7 |
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$ |
20 |
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$ |
10 |
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$ |
19 |
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$ |
11 |
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(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 $186 million of U.S. federal government transactions and $110 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.
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(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, $8 million of the transactions have been rated investment grade by an independent rating agency. This total includes $89 million of lease agreements where we hold legal title to the underlying real estate which are treated under GAAP as receivables since they were deemed to be failed sale/leaseback transactions as described in Note 2.
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(3) |
Transactions where the projects or the ultimate obligors are commercial entities that either have ratings below investment grade (either by an independent rating agency or using our internal credit analysis) or where the nature of the subordination in the asset causes it to be considered non-investment grade. This category of assets includes $451 million of mezzanine loans made on a non-recourse basis to
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special purpose subsidiaries of residential solar companies where the nature of the subordination causes it to be considered non-investment grade. These loans are secured by residential solar assets and we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries. The remaining $236 million of transactions are projects where the ultimate obligors are commercial entities that have ratings below investment grade using our internal credit analysis. Approximately $357 million of our commercial non-investment grade loans were made to entities in which we also have non-controlling equity investments of approximately $40 million.We have fully reserved $8 million of loans that are on non-accrual status. See Receivables and Investments below for further information.
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(4) |
Total reconciles to the total of the government receivables and commercial receivables lines of the consolidated balance sheets. |
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(5) |
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. |
(6)
Excludes approximately 140 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $49 million.
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