HASI Reaffirms 2028 Outlook After a Third Quarter

The Tip Desk · November 7, 2026 · 3 min read

Adjusted recurring net investment income reached $121 million in the third quarter as managed assets hit $19.0 billion and year-to-date deal volume reached about $2.5 billion.

HA Sustainable Infrastructure Capital (HASI), an investor in sustainable infrastructure assets, reported GAAP diluted earnings of $1.04 a share in the third quarter of 2026, compared with $0.61 a year earlier. Adjusted earnings were $0.82 a share, versus $0.80 in the third quarter of 2025.

Adjusted recurring net investment income was $121 million, up 15% from $105 million a year earlier. That year-over-year pace slowed from 26% growth in the second quarter and 29% in the first. Sequentially, the measure rose from $107 million in the second quarter. GAAP-based net investment income was $0.4 million.

Adjusted earnings of $108 million included $8 million of gain on sale of assets and $10 million of origination fee and other income. The company said the $6 million increase in adjusted earnings from a year earlier largely reflected a $16 million rise in adjusted recurring net investment income and a $9 million rise in origination fee and other income, partly offset by a $17 million decrease in gain on sale of assets.

Adjusted recurring net investment income included a $35 million unrealized gain on a solar asset servicing platform for which the company had elected the fair value option, which it said was driven by growth in the platform’s profitability. That gain was partly offset by a $21 million economic loss on a project company consolidated in the second quarter after the company exercised protective rights under a loan agreement. The company said remediation costs were higher than expected, that the loss had not been realized, and that it moved those assets to Category 3 in the third quarter.

Adjusted income from equity method investments was $145 million, up 45% from $100 million a year earlier, including the $35 million solar-servicing gain. Interest and rental income was $83 million, which the company attributed to higher yields and investment fundings. Management fees and retained interest income were $14 million, versus $8 million a year earlier, due to higher managed assets in the co-investment vehicle. Interest expense was $96 million. Weighted-average interest cost was 6.2%.

Managed assets were $19.0 billion as of September 30, 2026, up 27% from $15.0 billion a year earlier. The GAAP-based portfolio was about $9.1 billion. Equity method investments were $5.5 billion, including a $1.3 billion proportionate share of co-investment vehicle CCH1. Fee-generating assets at co-investment vehicles were $2.0 billion.

The company closed about $1.1 billion of new transactions in the third quarter, to be held on the balance sheet or at co-investment structures, and about $2.5 billion year-to-date through the third quarter. Weighted-average yields on new portfolio investments were underwritten at more than 11% through the first three quarters. Portfolio yield was 9.2% for the nine months ended September 30, 2026. The pipeline exceeded $6.5 billion.

Total debt outstanding was $6.5 billion as of September 30, 2026. The debt-to-equity ratio was 1.8x, within a target range of 1.5x to 2.0x. Unrestricted cash was $102 million and total liquidity was $2.0 billion.

The company reaffirmed guidance for adjusted EPS of $3.55 to $3.65 and adjusted ROE of at least 17.0% in 2028, after raising the EPS range from $3.50 to $3.60 in the second-quarter release. It also reiterated an expected reduction in the payout ratio to below 50% by 2028 and less than 40% by 2030, and minimal ATM share issuances in 2026. The board approved a quarterly cash dividend of $0.425 a share, payable January 8, 2027.