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 - Financing Receivables, Investments and Real Estate (Tables)

Our Portfolio - Financing Receivables, Investments and Real Estate (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015, with 98% of the debt and real estate portion of our Portfolio rated investment grade as shown below:


	Investment Grade
	Government ⁽¹⁾			Commercial Investment Grade⁽²⁾			Commercial Non-Investment Grade ⁽³⁾			Subtotal, Debt and Real Estate			Equity Method Investment⁽⁴⁾		Total
	($ in millions)
Financing receivables	$	304		$	249		$	1		$	554		$		$	554
Financing receivables held-for-sale		40			—			—			40			—		40
Investments		—			9			14			23			—		23
Real estate⁽⁵⁾		—			130			—			130			—		130
Equity method investment		—			—			—			—			138		138

Total	$	344		$	388		$	15		$	747		$	138	$	885

% of Debt and Real Estate Portfolio		46	%		52	%		2	%		100	%		N/A		N/A
Average Remaining Balance⁽⁶⁾	$	11		$	9		$	14		$	10		$	14	$	10

(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 $261 million of U.S. federal government transactions and $83 million of transactions where the ultimate obligors are state or local governments. Transactions may have guaranties of energy savings from third party service providers, the majority of which are entities rated investment grade by an independent rating agency.

(2)

Transactions where the projects or the ultimate obligors are commercial entities, including institutions such as hospitals or universities, that have been rated investment grade (either by an independent rating agency or based on our internal credit analysis). Of this total, $59 million of the transactions have been rated investment grade by an independent rating agency.

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

(4)	Consists of minority ownership interest in operating wind projects in which we earn a preferred return.

(5)	Includes the real estate and the lease intangible assets through which we receive scheduled lease payments, typically under long-term triple net lease agreements.

(6)	Excludes 73 transactions each with outstanding balances that are less than $1 million and that in the aggregate total $21 million.

Components of Financing Receivables

The components of financing receivables as of March 31, 2015 and December 31, 2014, were as follows:


	March 31, 2015			December 31, 2014
	(amounts in millions)
Financing receivables
Financing or minimum lease payments⁽¹⁾	$	733		$	723
Unearned interest income		(175	)		(166	)
Allowance for credit losses		(1	)		(1	)
Unearned fee income, net of initial direct costs		(3	)		(3	)

Financing receivables⁽¹⁾	$	554		$	553

(1)	Excludes $40 million and $62 million in financing receivables held-for-sale as of March 31, 2015 and December 31, 2014, respectively.

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 March 31, 2015:


	Total			Less than 1 year			1-5 years			5-10 years			More than 10 years
	(amounts in millions)
Financing Receivables⁽¹⁾
Payment due by period	$	554		$	5		$	62		$	36		$	451
Weighted average yield by period⁽²⁾		5.4	%		6.6	%		7.2	%		5.4	%		5.2	%
Investments
Payment due by period	$	23		$	—		$	14		$	—		$	9
Weighted average yield by period		5.3	%		—	%		5.8	%		—	%		4.6	%

(1)	Excludes financing receivables held-for-sale of $40 million.

(2)	Excludes yield on remaining $0.8 million loan balance that is on non-accrual status after the $1.2 million allowance for loan loss recorded as of March 2015.

Components of Real Estate Portfolio

The components of our real estate portfolio as of March 31, 2015 and December 31, 2014, were as follows:


	March 31, 2015			December 31, 2014
	(amounts in millions)
Real Estate
Land	$	106		$	91
Real estate related intangibles		25			23
Accumulated amortization of real estate intangibles		(1	)		(0	)

Real Estate	$	130		$	114

Future Amortization Expenses Related to Intangible Assets

As of March 31, 2015, the future amortization expense of these intangible assets is as follows:


Year Ending December 31,	(amounts in millions)
From April 1, 2015 to December 31, 2015	$	0.5
2016		0.6
2017		0.6
2018		0.6
2019		0.6
2020		0.6
Thereafter		21.3

Total	$	24.8

Future Minimum Rental Income under Land Lease Agreements

As of March 31, 2015, the future minimum rental income under our land lease agreements is as follows:


Year Ending December 31,	(amounts in millions)
From April 1, 2015 to December 31, 2015	$	8
2016		10
2017		10
2018		10
2019		10
2020		10
Thereafter		333

Total	$	391