have been getting a lot of comments/emails about CORR and HASI. I wrote
a novice analysis on Corr earlier in my blog and Brad Thomas recently
wrote an interesting piece on Seeking Alpha HERE.
just wanted to take a second and talk about my second REIT; Hannon
Armstrong Sustainable Infrastructure (HASI). HASI is not Solyndra or a
solar panel manufacturer. HASI is a reit that "makes debt and equity
investments in profitable sustainable
infrastructure projects that increase energy efficiency, provide cleaner
energy or make more efficient use of natural resources." In other
words; HASI is a bank. But for some reason many investors think HASI is
an mreit (which it's not). HASI is more of a specialty Reit.
Their money making formula is as follows:
Buy land + put in renewable resources + sell the energy to places/people = profit.
Lets look at their strategy. The attached pictures were taken from HASI presentation at the Wells Fargo Energy symposium.
TBDI, you just gave me a bunch of data but what does any of this mean? I'm glad you asked random reader.
1) high risk high reward.
2) Management has 30+ years of running renewable energy companies.
3) Management has clear goals and means of achieving their goals.
4) Dividend friendly management.
5) Relatively increasing EPS except for Q1 2014.
1) HASI is a relatively new company with a sustainable plan...but it is very speculative.
2) Renewable energy stocks suffer from shorts and lack long term investors.
3) Low oil prices will decrease HASI market price.
4) High leverage. 2:1 ratio. If management fails to meet expectations, dividends WILL be cut.
5) Suffers from interest hike fears. Investors treat HASI as an mreit.
I currently 41 shares of HASI or 2% of my portfolio. I will eventually own 50 shares total.
If you are interested in owning or shorting HASI, the fair market value is $13.60; low $13.50; and high $15.00.
Disclaimer: I am not a financial broker, planner, lawyer, adviser, etc. LONG HASI.
Below is a copy of HASI revenue. I'm still learning excel.