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Our Portfolio - Financing Receivables, Investments and Real Estate (Tables)
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6 Months Ended |
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Jun. 30, 2014
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| Receivables [Abstract] |
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| 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 June 30, 2014.
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Investment Grade |
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Federal(1)
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State, Local,
Institutions(2)
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Commercial
Externally
Rated(3)
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Commercial
Rated
Internally(4)
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Commercial
Other(5)
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Total |
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(amounts in
millions, except for percentages) |
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Financing receivables
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$ |
195.9 |
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$ |
73.8 |
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$ |
22.0 |
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$ |
163.5 |
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$ |
0.8 |
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$ |
456.0 |
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Investments available-for-sale
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— |
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— |
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43.3 |
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7.8 |
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16.6 |
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67.7 |
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Real estate(6)
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— |
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— |
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— |
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67.2 |
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— |
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67.2 |
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Total
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$ |
195.9 |
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$ |
73.8 |
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$ |
65.3 |
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$ |
238.5 |
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$ |
17.4 |
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$ |
590.9 |
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% of Total Portfolio
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33.1 |
% |
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12.5 |
% |
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11.1 |
% |
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40.4 |
% |
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2.9 |
% |
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100.0 |
% |
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Average Balance(7)
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$ |
7.7 |
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$ |
24.6 |
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$ |
21.8 |
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$ |
13.3 |
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$ |
16.6 |
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$ |
11.7 |
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| (1) |
Transactions where the ultimate
obligor is the U.S. Federal Government. Transactions may have
guaranties of energy savings from third party service providers,
the majority of which are investment grade rated entities. |
| (2) |
Transactions where the ultimate
obligors are state or local governments or institutions such as
hospitals or universities where the obligors are rated investment
grade (either by an independent rating agency or based upon our
credit analysis). Transactions may have guaranties of energy
savings from third party service providers, the majority of which
are investment grade rated entities. |
| (3) |
Transactions where the projects or
the ultimate obligors are commercial entities that have been rated
investment grade by one or more independent rating agencies. This
includes an investment grade rated debt security with a fair value
of $38.2 million that matures in 2035 whose obligor is an entity
whose ultimate parent is Berkshire Hathaway Inc. |
| (4) |
Transactions where the projects or
the ultimate obligors are commercial entities that have been rated
investment grade using our internal credit analysis. |
| (5) |
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. Financing receivables are net
of an allowance for credit losses of $11.0 million. Investments
include a senior debt investment of $16.6 million on a wind project
that is owned by NRG Energy, Inc. |
| (6) |
Includes the real estate and the
related lease intangible assets. |
| (7) |
Average Remaining Balance excludes 66
transactions each with outstanding balances that are less than $1.0
million and that in the aggregate total $16.5 million. |
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| Components of Financing Receivables |
The components of financing receivables of June 30, 2014 and
December 31, 2013, were as follows:
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June 30, 2014 |
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December 31, 2013 |
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(amounts in
thousands) |
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Financing receivables
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Financing or minimum lease payments(1)
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$ |
717,880 |
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$ |
504,688 |
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Unearned interest income
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(247,497 |
) |
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(142,366 |
) |
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Allowance for credit losses
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(11,000 |
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(11,000 |
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Unearned fee income, net of initial direct costs
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(3,310 |
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(3,451 |
) |
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Financing receivables(1)
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$ |
456,073 |
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$ |
347,871 |
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| (1) |
Excludes $24.8 million in financing
receivables held-for-sale at December 31, 2013 and that were
securitized in the three months ended March 31, 2014 |
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| Components of Real Estate Portfolio |
The components of our real estate portfolio as of June 30,
2014 and December 31, 2013, were as follows:
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June 30, 2014 |
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December 31, 2013 |
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(amounts in
thousands) |
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Real Estate
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Land
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$ |
50,318 |
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$ |
— |
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Lease Intangibles
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16,945 |
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— |
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Accumulated amortization of lease intangibles
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(38 |
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— |
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Real Estate
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$ |
67,225 |
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$ |
— |
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| Future Amortization Expenses Related to Intangible Assets |
As of June 30, 2014, the future amortization expense to be
recognized related to these intangible assets is:
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| Year Ending December 31, |
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(Amounts in Thousands)
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2014
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$ |
206 |
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2015
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413 |
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2016
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413 |
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2017
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413 |
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2018
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413 |
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2019
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413 |
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Thereafter
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14,636 |
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Total
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$ |
16,907 |
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| Summary of Anticipated Maturity Dates of Financing Receivables and Investments |
The following table provides a summary of our anticipated maturity
dates of our financing receivables and investments for each range
of maturities as of June 30, 2014:
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Total |
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Less than
1 year |
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1-5 years |
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5-10 years
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More than
10 years |
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(amounts in
thousands) |
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Financing Receivables
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Payment due by period
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$ |
456,073 |
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$ |
1,845 |
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$ |
89,083 |
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$ |
18,034 |
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$ |
347,111 |
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Investments available-for-sale
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Payment due by period
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$ |
67,640 |
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$ |
— |
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$ |
16,552 |
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$ |
— |
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$ |
51,088 |
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| Future Minimum Rental Income under Land Lease Agreements |
As of June 30, 2014, the future minimum rental income under
our land lease agreements is as follows:
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| Year Ending December 31, |
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(Amounts in Thousands)
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2014
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$ |
2,443 |
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2015
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4,886 |
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2016
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4,886 |
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2017
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4,886 |
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2018
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4,886 |
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2019
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4,886 |
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Thereafter
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173,625 |
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Total
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$ |
200,498 |
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