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We came across one bullish thesis to HA Sustainable Infrastructure Capital, Inc. in The Financial Pen’s Substack. In this article, we will summarize the bulls’ thesis on HASI. The share of HA Sustainable Infrastructure Capital, Inc. it was trading at $35.15 on February 5. According to Yahoo Finance, HASI’s trailing and forward P/E were 15.45 and 12.32, respectively.
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HA Sustainable Infrastructure Capital, Inc., through its subsidiaries, is engaged in investing in energy efficiency, renewable energy and sustainable infrastructure markets in the United States. HASI represents a case where market volatility largely reflects accounting complexity rather than underlying economic instability. The company operates as a specialist infrastructure financier focused on energy efficiency, renewable energy and climate-related assets, earning predictable interest and rental income from long-term contracted projects with high-quality counterparties.
While reported GAAP earnings appear volatile due to the use of hypothetical liquidation to book value (HLBV) accounting for tax equity partnerships, the underlying cash flows are stable and have been consistently collected as expected. When viewed through a cash lens, HASI’s business model is simple: contractual payments accrue over time, obligations are met, and value gradually increases.
Strategically, HASI occupies an attractive niche between traditional bank lending and private equity, benefiting from reduced competition as banks retreat from long-term, complex infrastructure financing. This has allowed the company to maintain attractive investment spreads, even with higher interest rates. About half of the portfolio is concentrated in behind-the-meter assets such as on-site solar, storage and energy efficiency projects, a segment poised to benefit from accelerating electricity demand driven by data centers and AI workloads without exposing HASI to operational or commodity risk.
The transition to a C corporation has further strengthened the model by allowing for retained earnings, reducing reliance on external capital and supporting a more capital-light growth strategy through partnerships such as CarbonCount with KKR. At current valuation levels of around 13x adjusted earnings and a dividend yield of 5%, the market appears to be underestimating the durability, growth potential and improving quality of HASI’s earnings. As the accounting noise fades and cash flows become more visible, the stock positions itself for a potential re-rating that better reflects its stable economy and long-term capitalization profile.
