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Our Portfolio - Financing Receivables, Investments and Real Estate (Tables)
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9 Months Ended |
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Sep. 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 September 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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$ |
201.4 |
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$ |
73.3 |
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$ |
22.1 |
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$ |
180.3 |
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$ |
0.8 |
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$ |
477.9 |
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Financing receivables held-for-sale
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7.2 |
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— |
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— |
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— |
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— |
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7.2 |
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Investments available-for-sale
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— |
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— |
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21.1 |
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7.9 |
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14.4 |
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43.4 |
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Real estate(6)
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— |
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— |
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— |
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81.6 |
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— |
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81.6 |
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Total
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$ |
208.6 |
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$ |
73.3 |
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$ |
43.2 |
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$ |
269.8 |
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$ |
15.2 |
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$ |
610.1 |
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% of Total Portfolio
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34.2 |
% |
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12.0 |
% |
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7.1 |
% |
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44.2 |
% |
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2.5 |
% |
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100.0 |
% |
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Average Balance(7)
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$ |
7.6 |
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$ |
24.4 |
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$ |
21.6 |
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$ |
12.9 |
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$ |
14.4 |
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$ |
11.2 |
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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 $21.1 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 $14.4 million on a wind project
that is owned by NRG Energy, Inc. |
| (6) |
Includes the real estate and the
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 $17.1 million. |
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| Components of Financing Receivables |
The components of financing receivables as of September 30,
2014 and December 31, 2013, were as follows:
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September 30, 2014 |
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December 31, 2013 |
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(amounts in
thousands) |
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Financing receivables
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Financing or minimum lease payments(1)
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$ |
761,421 |
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$ |
504,688 |
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Unearned interest income
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(269,256 |
) |
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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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(3,232 |
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(3,451 |
) |
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Financing receivables(1)
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$ |
477,933 |
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$ |
347,871 |
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| (1) |
Excludes $7.2 million in financing
receivables held-for-sale at September 30, 2014 and $24.8
million in financing receivables held-for-sale at December 31,
2013 that were securitized in the three months ended March 31,
2014. |
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| Components of Real Estate Portfolio |
The components of our real estate portfolio as of
September 30, 2014 and December 31, 2013, were as
follows:
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September 30, 2014 |
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December 31, 2013 |
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(amounts in
thousands) |
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Real Estate
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Land
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$ |
63,313 |
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$ |
— |
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Lease Intangibles
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18,424 |
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— |
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Accumulated amortization of lease intangibles
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(148 |
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— |
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Real Estate
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$ |
81,589 |
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$ |
— |
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| Future Amortization Expenses Related to Intangible Assets |
As of September 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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From October 1, 2014 to December 31, 2014
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$ |
112 |
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2015
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450 |
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2016
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450 |
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2017
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450 |
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2018
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450 |
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2019
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450 |
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Thereafter
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15,914 |
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Total
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$ |
18,276 |
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| Summary of Anticipated Maturity Dates of Financing Receivables (Excluding Financing Receivable Held-for-Sale) and Investments and Weighted Average Yield |
The following table provides a summary of our anticipated maturity
dates of our financing receivables (excluding the financing
receivable held-for-sale) and investments and the weighted average
yield for each range of maturities as of September 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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(in thousands,
except for interest rate data) |
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Financing Receivables
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Payment due by period
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$ |
477,933 |
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$ |
9,825 |
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$ |
52,562 |
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$ |
28,356 |
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$ |
387,190 |
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Weighted average yield by period(1)
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5.63 |
% |
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6.02 |
% |
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7.50 |
% |
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5.05 |
% |
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5.40 |
% |
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Investments
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Payment due by period
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$ |
43,447 |
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$ |
— |
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$ |
14,434 |
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$ |
— |
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$ |
29,013 |
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Weighted average yield by period
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5.49 |
% |
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— |
% |
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5.76 |
% |
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— |
% |
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5.36 |
% |
| (1) |
Excludes yield on remaining $0.8
million loan balance that is on non-accrual status after the $11.0
million allowance for loan loss recorded in December 2013. |
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| Future Minimum Rental Income under Land Lease Agreements |
As of September 30, 2014, the future minimum rental income
under our land lease agreements is as follows:
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| Year Ending December 31, |
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(Amounts in Thousands)
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From October 1, 2014 to December 31, 2014
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$ |
1,404 |
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2015
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5,616 |
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2016
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5,616 |
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2017
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5,616 |
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2018
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5,616 |
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2019
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5,616 |
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Thereafter
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198,798 |
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Total
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$ |
228,282 |
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