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HASI Investing in Climate Solutions® Earnings Presentation Second Quarter 2026
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Forward Looking Statements 2 Some of the information contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," "target," or similar expressions, are intended to identify such forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements are discussed under the caption "Risk Factors" included in our Form 10-K filed for the year ended December 31, 2025 (the “Form 10-K”) with the U.S. Securities and Exchange Commission (“SEC”), as well as in other reports that we file with the SEC. Other important factors that we think could cause our actual results to differ materially from expected results are summarized below, including the impact of the One Big Beautiful Bill Act on the U.S., regional and global economies, the U.S. climate solutions market and the broader financial markets. Other factors besides those listed could also adversely affect us. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except where otherwise noted, forward-looking statements are based on beliefs, assumptions and expectations as of June 30, 2026. The guidance discussed herein reflects our estimates of (i) yield on our existing portfolio; (ii) yield on incremental portfolio investments, inclusive of our existing pipeline; (iii) the volume and profitability of transactions; (iv) amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of our forecasted operations; (vi) disruptions to the renewable energy supply chain that may result from changes in the regulatory environment and other factors; (vii) the general interest rate and market environment; (viii) the impact of the One Big Beautiful Bill Act on our industry and our business; (ix) and our ability to expand into new markets. All guidance is based on current expectations regarding economic conditions, the regulatory environment, the dynamics of the markets in which we operate and the judgment of our management team, among other factors. In addition, actual dividend distributions are subject to approval by our Board of Directors on a quarterly basis. The Company has not provided GAAP (as defined below) guidance as forecasting a comparable GAAP financial measure, such as net income, would require that the Company apply the hypothetical liquidation at book value (“HLBV”) method to certain investments. In order to forecast under the HLBV method, the Company would be required to make various assumptions related to expected changes in the net asset value of the various entities and how such changes would be allocated under HLBV. GAAP HLBV earnings over a period of time are very sensitive to these assumptions especially in regard to when a partnership transaction flips and thus the liquidation scenarios change materially. The Company believes that these assumptions would require unreasonable efforts to complete and if completed, the wide variation in projected GAAP earnings based upon a range of scenarios would not be meaningful to investors. Accordingly, the Company has not included a GAAP reconciliation table related to any adjusted earnings guidance. The Company disclaims any obligation to update, or publicly release the results of any update or revisions to, these forward-looking statements, including to reflect new estimates, events or circumstances after the date of this presentation.This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Additional information concerning these non-GAAP financial measures as well as reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein. Estimated carbon emission savings are calculated using the estimated kilowatt hours, gallons of fuel oil, million British thermal units of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of carbon dioxide equivalent emissions based upon the project’s location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis. The carbon and water savings information included in this presentation is based on data from a third-party source that we believe to be reliable. We have not independently verified such data, which involves risks and uncertainties and is subject to change based on various factors. Past performance is not indicative nor a guarantee of future returns.
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31. See Appendix for an explanation of Adjusted EPS and reconciliation to the relevant GAAP measure 2. See Appendix for an explanation of Adjusted ROE and reconciliation to the relevant GAAP measure 3. See Appendix for an explanation of Adjusted Recurring Net Investment Income and reconciliation to the relevant GAAP measure4. As of 6/30/26. See Appendix for an explanation of Managed Assets and reconciliation to the relevant GAAP measure Raising Guidance Following Solid Results $0.75Q2 2026 Adjusted EPS1Up 25% Y/Y+27%Adjusted Recurring Net Investment Income Y/Y growth in 1H 20263$17.6bManaged Assets4Up 20% Y/Y15.3%Adjusted ROE21H 2026Increasing guidance for Adjusted EPS to $3.55 - $3.65 in 2028, up from $3.50 - $3.60
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Strong Results & Outlook Bolstered by Three Catalysts 4 Robust Investment Activity Heightened demand for new electricity generation capacity $1.7b closed transactions YTD with our pipeline remaining >$6.5b Lower Cost of Capital Spread improvement to +170 bps in June bond issuance Interest rate hedging program reduces risk and enhances margin stability Minimal equity issuance expected in 2026 Deep Access to Capital Co-investment vehicles Investment grade bonds Commercial paper backed by $2.25b revolverExpanding investment opportunities
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Solar energy generation grew 25% Y/Y to 49 TWh in May 2026, while coal generation declined (7%) Y/Y to 46 TWh1 Over the twelve months through May 2026, solar and wind generation totaled 895 TWh, 27% greater than the 706 TWh of coal generation over the same period1 5 Growth in Renewable Energy Underpinned by Cost and Speed to Market Advantage 1. EIA data via Ember Energy’s Electricity Data Explorer2. EIA’s Annual Energy Outlook (April 2026)3. Lazard’s “Levelized Cost of Energy Plus” (July 2026) 2040608025-Jun 25-Aug 25-Oct 25-Dec 26-Feb 26-AprU.S. Monthly Electricity Generation (TWh)SolarWindCoalU.S. solar energy generation surpassed coal generation for the first month ever in May 20261New solar and wind installations are forecast to far exceed new gas-fired generation capacity even after 20302149 25 (70)168 65 (73)Solar & WindPowerNatural Gas(Combined Cycle)Coal Net Increase (Decrease) in U.S. Generation Capacity (GW)2026-302031-35 New solar and wind capacity additions are forecast to grow to 168 GW in 2031-352 Lazard’s July 2026 LCOE study confirmed that solar energy and wind energy remain the lowest cost electricity, >20% below the cost of natural gas3
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SunZia & Solar Are Transforming California’s Electric Grid 1. California ISO Key Statistics. Based on hourly generation2. EIA’s Hourly Electric Grid Monitor62468Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26CAISO Peak Wind Generation (GW)1SunZiaCoDSolar and wind generation accounted for 44% of CA’s electricity generation in 1H26, up from 26% in 20232SunZia drove CAISO’s peak wind generationto a new record after coming online in Q2 2026 HASI invested in the 2.6 GW SunZiaSouth wind project, which came online in April 2026 and became fully operational in June 2026 In May 2026, CAISO’s wind peak generation rose to a new record of 8.3 GW, >560 MW higher than the prior record In June 2026, peak demand in CAISO served by renewables rose to 30 GW, or ~2x 2023 levels26%31%34%44%2023 2024 2025 1H26Solar & Wind as % of CA's Annual Electricity Generation
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1.5% 1.5%6.0%3.4%2.6%4.5% 4.5%6.0%2.0%4.0% 7 Increased Investment Margins Despite Higher Interest Rates Improving our debt spreads while maintaining our asset spreads has increasedour investment margins even as base rates have risen 2021 Net Investment SpreadsAsset SpreadBase RatesDebt Spread 2026New AssetYield: 7.5%New AssetYield: 10.5%New DebtCost: ~4.9%1 New DebtCost: <6.5%<> 1. Based on average spreads of our debt issuances in 2020-21
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Broad Opportunity Set Continues to Replenish Our Pipeline 8 Behind-the-Meter:•U.S. utilities filed for $18.6b in rate increases across 56m customers in 1H 2026, further enhancing BTM’s value proposition2•Expanding market from residential battery installation growth of 86% Y/Y to 1.3 GWh in Q1 2026 with attach rates up from 38% to 45%3Grid-Connected:•>170 GW of solar and 23 GW of wind projects safe harbored through 20304•Based on hyperscalers’ 100% clean energy commitments, the 32 GW of data centers under construction/planned would require >100 GW of new solar power5Fuels, Transport & Nature:•RNG facilities in operation have doubled since 2023 to >600 with >450 projects under construction or in development6•Neogenyx delivered RNG to the Europe compliance markets using Int’lSustainability and Carbon Certification, opening up a new end market Grid-Connected 51%Other Sustainable Infrastructure5% Behind-the-Meter 35%Fuels, Transport & Nature 8%>$6.5b 12-mo Pipeline1BTM EnergyEfficiency20%BTM Solar & Storage15%1. As of 6/30/26. Figures may not sum due to rounding2. Powerlines' "Utility Bills Are Rising Q2 2026“3. American Clean Power’s “U.S. Energy Storage Market Q1 2026 Sets Records Across Sectors” (June 23, 2026)4. According to American Clean Power, Crux, and Wood Mackenzie5. UBS report “Hyperscaler 100% Clean Energy Mandates Update” (July 14, 2026)6. RNG Coalition (July 8, 2026)
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Investments Continue to Expand into New Asset Classes 91. Bluefield Research’s “U.S. & Canada Industrial Water & Wastewater Market: Key Trends and Forecasts, 2024-2030”2. Mark & Spark Solutions’ “U.S. Vertical Farming Market Analysis” (December 2025) Positive environmental impact Long-lived infrastructure asset Proven technologies Contracted cash flows with high-quality off-takersCore Investment Attributes First investment closed in Q3 2022Cumulative investments of >$325m through 6/30/26To date, centered on electric commercial vehicle fleets Transportation Closed new investment in Q3 2026The North American industrial water and wastewater management market is forecast to surpass $60b by 20301driven by data centers, domestic manufacturing, and decades of underinvestment Water Infrastructure Multiple late-stage opportunities in our pipelineTotal U.S. spending on sustainable agriculture infrastructure is forecast to exceed $10b between 2026 and 20302, driven by greater focus on health and wellness, cleaner water and pollution reduction Sustainable Agriculture
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10 Sound Execution Across the Business Managed Asset Growth •Closed $975m in balance sheet/CCH1 transactions in Q2•Total Managed Assets up 20% Y/Y to $17.6b1•Fee-generating CCH1 assets up ~167% Y/Y to $1.5b2 Attractive Returns •New asset yields >11% YTD3•Portfolio Yield in Q2 of 9.2%4•Adjusted ROE >15% in 1H 20265Capital Platform Optimization •No ATM share issuances during 1H 2026•Issued $1b in senior unsecured notes at effective cost of ~5.6% •Increased capacity of revolver and extended its maturity, while refinancing term debt at lower cost in Q31. As of 6/30/26. See Appendix for an explanation of Managed Assets and reconciliation to the relevant GAAP measure2. As of 6/30/263. Represents yields on new portfolio investments only; excludes follow-on investments of previous transactions 4. See Appendix for definition of Portfolio Yield which was updated in Q2 20265. See Appendix for an explanation of Adjusted ROE and reconciliation to the relevant GAAP measure
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111. See Appendix for an explanation of Adjusted EPS, Adjusted Earnings, and Adjusted ROE and reconciliation to the relevant GAAP measure Solid Growth in Adjusted EPS and Adjusted ROEAdjusted EPS1$153m$200m1H 2025 1H 2026+ 31% Y/YAdjusted Earnings1Adjusted ROE1$1.23$1.521H 2025 1H 2026+ 24% Y/Y12.3%15.3%1H 2025 1H 2026+ 300 bps Y/Y No share issuance through our ATM 2026 YTD
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12 Continued Growth in Recurring Investment Income and Fees 1. See Appendix for an explanation of Adjusted Recurring Net Investment Income and reconciliation to the relevant GAAP measure2. Based on GAAP revenue that includes our proportionate share of upfront origination fees earned from co-investment structures of $0.6m in Q2 2025 and $3.2m in Q2 2026 that is eliminated in Income from Equity Method Investments Adjusted Recurring Net Investment Income1+ 50% Y/YGain on SaleOrigination Feeand Other Income2+ 183% Y/Y$164m$208m1H 2025 1H 2026+ 27% Y/Y$26m$39m1H 2025 1H 2026$6m$17m1H 2025 1H 2026
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Balance Sheet/CCH1 Transactions Grew 140% Y/Y 13$476$285$598$1,437$339$538$296$2601H20231H20241H20251H2026SecuritizationsBalance Sheet/CCH11. Figures may not sum due to rounding2. Represents asset class mix of total transactions ($b) closed in 1H 2026; figures may not sum due to rounding3. Represents yields on new portfolio investments only; excludes follow-on investments related to previous transactions $1,697$897$823$815Closed Transactions ($m)1 New Asset Yields3 2022 2023 2024 2025 1H 2026>10.5%>11.0%>9.0%>7.5%>10.5%Closed Transactionsby Asset Class2 Remain on track to close $2b - $3b of balance sheet / CCH1 transactions in 2026 40%RNG30%Residential Solar & Storage19%Grid-Connected Solar & Storage7%Public Sector5%Community Solar<1%C&I
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Managed Assets Up 20% Y/Y to $17.6 Billion 14 Managed Assets1$3.6$4.3$6.2$6.6$7.6$8.22021 2022 2023 2024 2025 Q22026$17.6$13.7$12.3$9.8$8.8$16.1Portfolio1. As of the end of each period. Includes our Portfolio, our partner’s share of CCH1, and assets securitized off balance sheet2. As of 6/30/26. Figures may not sum due to rounding3. See Appendix for a definition of average annual realized losses•Up 20 % Y/Y•Average annual realized losses remain <10 bps3Off-Balance Sheet •Total CCH1 assets at $2.9b, up 167% Y/Y, with $1b of CCH1-level debt outstanding2•CCH2 discussions with potential investors progressing 2Receivables29%Equity Investments 71%Community Solar 5%C&I 4%Resi Solar & Storage 48%GC Solar & Storage19%RNG 7% By Investment TypeBy Asset ClassOnshore Wind17%Transportation 1% Portfolio2Portfolio:$8.2bPublic Sector 2%Community Solar 7%Other 1%C&I5%Resi Solar & Storage35%RNG15%Onshore Wind16%GC Solar & Storage16%•Up 14% Y/Y•Highly diversified across nine asset classesTransportation3%
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Minimizing Debt Costs Despite Rising Interest Rates 15Lowered effective cost of $1b bond issued in June by ~40 bps despite a 24 bps increase in base rates since last issuance in February •Record low spread of 170 bps (vs. 195 in Feb. 2026)•Improvement of ~200 bps vs. 2021 •Monetized ~$30m in hedges in Q2 •Lowers interest cost by 46 bps over 7-year bond term •Coupon of 5.95%•Effective cost of 5.6% net of discount and hedge benefit •10-yr. Treasury yields were 4.08% at 2/26 pricing•7-yr. Treasury yields were 4.32% at 6/26 pricing6.0%6.3%5.6%0.24%0.25%0.46%Cost of 10-yr.bond issued inFeb. 2026Implied cost of7-yr. bond withhigher base ratesImprovementin HASI'sdebt spreadsHedgingbenefitsEffective cost ofdebt issued inJune 2026Increase in base rates from Feb to JuneNote: Figures may not sum due to rounding
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16 Continuing to Fortify Our Balance Sheet and Liquidity 1. Reflects maturities of term debt only and excludes commercial paper outstanding as of 6/30/262. As measured by credit rating agencies (assigning 50% equity credit to jr. subordinated notes)3. Includes fixed rate or hedged base rate debt. See Appendix for details on our hedges Total liquidity of $2.2 billion as of 6/30/26 (before the July upsize and refinancing described above)$0$200$400$600$800$1,000$1,2002026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 … 2056Debt Maturities ($m)1 Maturity extended to 2031 from 2028 Reduced spread by 10 bps for drawn capital Capacity increased to $2.25b from $1.825b with all 18 relationship banks recommitting Unsecured term loans ($228m due 2027 and $250m due 2028) consolidated into one $400m term loan due 2029Spread reduced by 30 bps to 150 bps5 Convertible NotesSr. Unsecured NotesBank Term LoansJr. Subordinated Notes4. Closed in July 20265. Green toggle spread reduced by 33 basis points to 145 bps, depending upon CarbonCount New upsized 5-year revolver4Unsecured term loans refinanced4Lengthened and laddered maturities 1.7xDebt-to-Equity ratio2(within 1.5-2.0 target)95%of debt at fixed rates or hedged3
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2Q26 Sustainability and Impact Highlights 17 Carbon Emissions1CarbonCount: 0.23 (2Q26)Water Savings2WaterCount: 100 (2Q26) (6.0)(6.6)(7.4)(8.2)(9.9)(10.4)(11)(10)(9)(8)(7)(6)(5)(4)(3)(2)(1)02021 2022 2023 2024 2025 2026 YTD (9)(8)(7)(6)(5)(4)(3)(2)(1)02021 2022 2023 2024 2025 2026 YTDEfficiency Measures Avoided Grid MWhsCumulative Metric Tons of CO2Avoided Annually3(in millions)Cumulative Gallons of Water Saved Annually3(in billions) (4.2)(6.3)(7.0)(7.3) (7.6)(7.8) >280k MT CO2avoided from new investments originated in Q2 >100m gallons of water savings from new investments in Q2 1. CarbonCount® is a proprietary scoring tool for evaluating real assets to determine the efficiency by which each dollar of invested capital avoids annual carbon dioxide equivalent (CO2e) emissions2. WaterCountTMis a scoring tool that evaluates investments in U.S.-based projects to estimate the expected water consumption reduction per $1,000 of investment3. Cumulative metric tons of CO2e emissions avoided and water saved annually through HASI’s closed transactions from 2013 through Q2 2026 Published 9thAnnualSustainability & Impact Report
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18 Raising Guidance for Adjusted EPS in 2028 Return on EquityReaffirming guidance for Adjusted ROE of >17.0% in 2028Adjusted EPSRaising guidance to $3.55 - $3.65 in 2028On track for $2-3b of new balance sheet/CCH1 transactions in 2026New InvestmentsPayout RatioReaffirming guidance for reduction to <50% by 2028 and <40% by 2030Minimal ATM share issuances in 2026 based on current outlook for new transactions Share Issuances
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Appendix19
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Portfolio and Related Debt Metrics 20 Q2 2026Q1 20262025202420232022202115.2%15.7%13.4%12.7%12.1%11.5%11.5%Adjusted ROE1 >11.0%>10.5%>10.5%>10.5%>9.0%>7.5%>7.0%New Asset Yields2 9.2%9.1%8.5%8.0%7.5%7.5%7.6%Portfolio Yield3 6.2%6.1%5.8%5.6%5.0%4.3%4.6%Interest Expense / Avg. Debt Balance4 $ millionsPortfolio Bridge: Q1 2026 to Q2 2026$7,618Portfolio at 3/31/26$431Funding of new investments$114Funding of prior investments($167)Principal collections5 ($30)Syndications and securitizations$235Other$8,201Portfolio at 6/30/261. See Appendix for an explanation of Adjusted ROE and reconciliation to the relevant GAAP measure 2. Represents yields on new portfolio investments only; excludes follow-on investments of previous transactions.3. See Appendix for definition of Portfolio Yield which was updated in Q2 20264. As measured by interest expense divided by avg. debt balance at the end of each period; excludes incremental interest expense related to debt prepayments.5. Reflects principal collections of receivables and total distributions from our equity method investments
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Adjusted Cash Flow from Operations Plus Other Portfolio Collections1 21 20242025Q2 2026 (TTM)$ millions2 $891$1,200$1,419Cash collected from our Portfolio$325$33$31Cash collected from sale of assets3 ($86)($89)($103)Cash used for compensation and benefits and G&A expenses($173)($228)($222)Interest paid4 $33$50$62Management Fees and retained interest income + Origination Fees and Other Income($73)($7)($7)Principal payments on non-recourse debt($8)($1)($7)Other$910$959$1,173Adjusted Cash from operations plus other portfolio collections($192)($210)($220)(-) Dividend$718$749$953Cash Available for Reinvestment($1,075)($1,566)($1,972)(-) Investments Funded5 $419$953$1,233(+) Net Capital Raised$13($141)($37)Other Sources/Uses of Cash$75($5)$177Change in Cash1. See Appendix for an explanation of Adjusted Cash Flow from Operations Plus Other Portfolio Collections and Cash Available for Reinvestment2. Amounts may not sum due to rounding3. Includes cash from the sale of assets on our balance sheet as well as securitization transactions4. Includes impact from the settlement of derivatives designated as cash flow hedges. Does not include receivables held-for-sale5. Does not include receivables held for sale
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Strong Portfolio with Positive Credit Attributes 22 Recent Portfolio PerformanceObligor CreditStructural SeniorityPortfolio(%)5Asset Class>523k consumers WAVG FICO: “Very Good” 6Subordinated Debt or Structured Equity35%ResidentialTypically IG corporates or utilitiesTypically Super Senior or Structured Equity16%GC SolarTypically IG corporates or utilitiesTypically Structured Equity16%WindVarious incentivized offtakersTypically Senior18%Fuels, Transport & NatureTypically creditworthy consumers and/or IG corporatesTypically Structured Equity7%CommunityTypically IG corporatesTypically Structured Equity5%C&IPredominantly IG govt or quasi-govt entitiesSenior or Structured Equity2%Public Sector Positive Credit AttributesPerformance MetricDescriptionRating~98%Performing11~2%Slightly below metrics220%Significantly below metrics330.17%Average annual recognized loss on Managed Assets (GAAP)40.08%Average annual realized loss on Managed Assets (Non-GAAP)4Outstanding Credit History1. This category includes our assets where, based on our credit criteria and performance to date, we believe that our risk of not receiving our invested capital remains low. | 2. This category includes our assets where, based on our credit criteria and performance to date, we believe there is a moderate level of risk to not receiving some or all of our invested capital | 3. This category includes our assets where, based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital | 4. Average Annual Recognized (GAAP)/ Realized (Non-GAAP) Loss on Managed Assets is the average rate of our annual recognized (GAAP)/ realized (Non-GAAP) losses, calculated as a percentage of recognized (GAAP)/ realized (Non-GAAP) losses incurred in each year relative to average Managed Assets. This metric includes the 10-year period ending June 30, 2026. These losses include both losses related to equity method investments and receivables and investments. | 5. Total may not sum due to rounding | 6. As of March 31, 2026; located across 21 states and the District of Columbia, Puerto Rico, and Guam; qualitative FICO Rating corresponds to average FICO Score range for consumer obligors (as of lease origination dates)
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Summary of Total Debt and Hedge Portfolio 231. As of 6/30/20262. Interest rate includes hedge rate where applicable3. CP is renewed periodically on short term basis. Maturity of 2028 reflects that of our revolving line of credit, under which capacity is reserved for CP Maturity YearEffective Interest Rate2Debt Amount (millions)1Debt Facility20275.74%$228 Term Loan A2028N/A$-Commercial Paper Notes3 20283.75%$403 Convertible Notes2028N/A$-Revolving Line of Credit20285.30%$250 Delayed-Draw Term Loan20303.87%$375 Corporate Senior Unsecured Notes20316.09%$600Corporate Senior Unsecured Notes20335.58%$1,000Corporate Senior Unsecured Notes20346.21%$1,000Corporate Senior Unsecured Notes20356.57%$400Corporate Senior Unsecured Notes20365.93%$400Corporate Senior Unsecured Notes20567.95%$500Junior Subordinated Notes (Nov. 2025 Issuance)20567.125%$600Junior Subordinated Notes (Feb. 2026 Issuance)2026 to 20423.15%-7.23%$120Non-RecourseHedge Period EndHedge StructureAverage Fixed RateNotional ($ in millions)Hedged Instrument1` 12/31/2033Fwd-starting Pay Fixed / Receive SOFR3.63%$100Pre-issuance hedges-13/31/2034Fwd-starting Pay Fixed / Receive SOFR3.91%$105Pre-issuance hedges-23/27/2033Pay Fixed / Receive SOFR3.79%$200Term Loan AFixed Rate DebtFloating Rate Debt, Swapped to Fixed Where Noted Below
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Tobe Income Statement 24
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Balance Sheet 25
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Statement of Cashflows 26
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Cash Available for Reinvestment 27(1) Represents return of capital distributions from our equity method investments included in cash provided by (used in) investing activities section of our statement of cash flows which is incremental to any equity method investment distributions found in net cash provided by operating activities. (2) Included in Other in the cash provided (used in) investing activities section of our statement of cash flows.
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Reconciliation of GAAP Net Income to Adjusted Earnings 28(1) The per-share data reflects the GAAP diluted earnings per share, which is the most comparable GAAP measure to our Adjusted Earnings per Share.(2) This is a non-GAAP adjustment to reflect the return on capital of our equity method investments as described below in the “Supplemental Financial Data” section.(3) This adjustment is to eliminate the intercompany portion of up-front origination fees received from co-investment structures that, for GAAP net income, is included in the Equity method income line item. Since we remove GAAP Equity method income for purposes of our Adjusted Earnings metric, we add back the eliminations through this adjustment.(4) This adjustment is to eliminate the intercompany portion of ongoing asset management received from co-investment structures that, for GAAP net income, is included in the Equity method income line item. Since we remove GAAP Equity method income for purposes of our Adjusted Earnings metric, we add back the elimination through this adjustment.(5) Included in Interest expense within our statements of operations.(6) Includes impact of cash paid for state income taxes during the three and six months ended June 30, 2026.(7) Shares used to calculate Adjusted Earnings per share represents the weighted average number of shares outstanding, including our issued unrestricted common shares, restricted stock awards, restricted stock units, long-term incentive plan units, and the non-controlling interest in our Operating Partnership. We include any potential common stock issuances related to share-based compensation units in the amount we believe is reasonably certain to vest. As it relates to Convertible Notes, we assess whether the instrument is more akin to debt or equity based on the value of the underlying shares compared to the conversion price during each period. If the instrument is determined to be more debt-like, then we will include any related interest expense and exclude the underlying shares issuable upon conversion of the instrument. If the instrument is determined to be more equity-like and is more dilutive when treated as equity, then we will exclude any related interest expense and include the weighted average shares underlying the instrument. We will consider the impact of any capped calls we hold in assessing whether an instrument is equity-like or debt like.
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Reconciliation of GAAP Net Income to Adjusted ROE 29(1) Average Stockholders’ Equity is calculated as the average of the Stockholders’ Equity at the beginning and end of each quarterly period.
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Reconciliation of GAAP-based Net Investment Income to Adjusted Recurring Net Investment Income 30(1) GAAP-based net investment income (loss) as reported in previous periods was not defined to include Management fees and retained interest income. It has been included here in comparative periods to reflect the new definition. (2) This is a non-GAAP adjustment to reflect the return on capital of our equity method investments as described below in the “Supplemental Financial Data” section.(3) Included in Interest expense within our statements of operations(4) GAAP net income includes an elimination of the intercompany portion of ongoing asset management fees received from co-investment structures in the Equity method income line item. Since GAAP Equity method income is not a component of this metric, we include the elimination of the management fee through this adjustment.
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Reconciliation of GAAP-Based Portfolio to Managed Assets 31(1) In the quarter ended June 30, 2026, we exercised certain of our protective rights under a loan agreement to a project company, which caused us to obtain the ability to direct the significant activities related to the projects, and accordingly to consolidate the project company to which the loans were made. This amount includes $165 million of in-construction fixed assets we consolidated, net of a $25 million liability to be paid upon project completion and $14 million of non-controlling interest, representing our economic claim on these assets(2) Represents assets in our co-investment structures which are attributable to our co-investors and on which we earn an asset management fee. Total assets in co-investment structures are $2.9 billion and $1.9 billion as of June 30, 2026, and December 31, 2025, respectively. (3) Represents assets in our co-investment structures which are not attributable to our co-investors and therefore are not fee-generating. Such assets are attributable to us but were financed with debt issued by the co-investment structure and therefore are not reflected in the carrying value of the equity method investment we hold in the structure.
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Explanatory Notes 32 GuidanceThe Company expects Adjusted Earnings per Share to range between $3.55 and $3.65 in 2028. The Company also expects Adjusted ROE to be more than 17% in 2028. In addition, the payout ratio of distributions of annual dividends per share as a percentage of annual Adjusted Earnings per Share is expected to decline below 50% by 2028 and below 40% by 2030. This guidance reflects the Company’s judgments and estimates of (i) yield on its existing portfolio; (ii) yield on incremental portfolio investments, inclusive of the Company’s existing pipeline; (iii) the volume and profitability of transactions; (iv) amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of the Company’s forecasted operations; and (vi) the general interest rate and market environment. In addition, distributions are subject to approval by the Company’s Board of Directors on a quarterly basis. The Company has not provided GAAP guidance as discussed in the Forward-Looking Statements. Adjusted Cash from Operations plus Other Portfolio Collections We operate our business in a manner that considers total cash collected from our portfolio, after making necessary operating and debt service payments, to assess the cash we have available to fund dividends and investments. We believe that the aggregate of these items, which combine as a non-GAAP financial measure titled Adjusted Cash from Operations plus Other Portfolio Collections, is a useful measure of the liquidity we have available from our assets to fund both new investments and our regular quarterly dividends. This non-GAAP financial measure may not be comparable to similarly titled or other similar measures used by other companies. Although there is also not a directly comparable GAAP measure that demonstrates how we consider cash available for dividend payment, set forth further in the Appendix is a reconciliation of this measure to GAAP Net cash provided by operating activities.Also, Adjusted Cash from Operations plus Other Portfolio Collections differs from Net Cash Provided by (Used in) Investing Activities in that it excludes many of the uses of cash used in our investing activities, such as Equity Method Investments, Purchases of and Investments in Receivables, Purchases of Debt Securities, and Collateral Provided to and Received from Hedge Counterparties. In addition, Adjusted Cash from Operations plus Other Portfolio Collections is not comparable to Net cash provided by (used in) financing activities in that it excludes many of our financing activities, such as proceeds from common stock issuances and borrowings and repayments of unsecured debt.Cash Available for ReinvestmentCash Available for Reinvestment is a non-GAAP measure calculated as Adjusted Cash from Operations Plus Other Portfolio Collections less dividend and distribution payments made during the period. We believe Cash Available for Reinvestment is useful as a measure of our ability to make incremental investments from internally generated capital, after factoring in all necessary cash outflows to operate the business. Management uses Cash Available for Reinvestment in this way, and we believe that our investors use it in a similar fashion.
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Supplemental Financial Data 33 Adjusted Earnings and Earnings on Equity Method InvestmentsWe calculate Adjusted Earnings as GAAP net income (loss) excluding equity-based expenses, provisions for loss on receivables, amortization of intangibles, losses or (gains) from modification or extinguishment of debt facilities, non-cash tax charges, and the earnings attributable to our non-controlling interest of our Operating Partnership. We also make an adjustment to eliminate our portion of fees we earn from related-party co-investment structures and for our equity method investments in the renewable energy projects, as described below. We will use judgment in determining when we will reflect the losses on receivables in our Adjusted Earnings, and will consider certain circumstances such as the time period in default, sufficiency of collateral as well as the outcomes of any related litigation. In the future, Adjusted Earnings may also exclude one-time events pursuant to changes in GAAP and certain other adjustments as approved by a majority of our independent directors.We believe a non-GAAP measure, such as Adjusted Earnings, that adjusts for the items discussed above, is and has been a meaningful indicator of our economic performance in any one period and is useful to our investors as well as management in evaluating our performance, including as it relates to expected dividend payments over time. Additionally, we believe that our investors also use Adjusted Earnings, or a comparable supplemental performance measure, to evaluate and compare our performance to that of our peers; as such, we believe that the disclosure of Adjusted Earnings is useful to our investors. Certain of our equity method investments in renewable energy and energy efficiency projects are structured using typical partnership “flip” structures, where the investors with cash distribution preferences receive a pre-negotiated return consisting of priority distributions from the project cash flows, in many cases, along with tax attributes. Tax equity investors typically realize a large portion of their return through an allocation of the majority of tax attributes, such as tax depreciation and tax credits, as such credits are realized by the project. Once this preferred return is achieved, the partnership “flips” and the common equity investor, often the operator or sponsor of the project, receives more of the cash flows through its equity interests while the previously preferred investors retain an ongoing residual interest. We have made investments in both the preferred and common equity of these structures. Given that our equity method investments are in project companies, they typically have a finite expected life. We typically negotiate the purchase prices of our equity investments based on our underwritten project cash flows discounted back to a net present value, based on a target investment rate, with the cash flows to be received in the future reflecting both a return on the capital (at the investment rate) and a return of the capital we have committed to the project. We use a similar approach in the underwriting of our receivables.Under GAAP, we account for these equity method investments utilizing the HLBV method. Under this method, we recognize income or loss based on the change in the amount each partner would receive if the assets were liquidated at book value, after adjusting for any distributions or contributions made during such quarter. The amount received in a liquidation is typically based on the negotiated profit-and-loss allocation, which may differ from the allocation of distributable cash in any given period. The amount allocated to a tax equity investor during the hypothetical liquidation is typically reduced over time as tax attributes are allocated to them and they achieve portions of their preferred return. Accordingly, tax equity investors are allocated losses as they receive tax benefits, while the sponsors of the project and other investors subordinate to tax equity are allocated gains of a similar amount. Tax equity investors can generally elect either investment tax credits or production tax credits, which are each recognized over different time periods. This results in different HLBV income profiles despite the fact that cash allocations are typically not directly impacted by such a tax credit election. In addition, the agreed-upon allocations of the project’s cash flows may differ materially from the profit and loss allocation used for the HLBV calculations in a given period. The application of the HLBV method described above, results in GAAP income or loss in any one period that is often significantly different from the economic returns achieved from the investment in any one period as a result of the impact of tax allocations, the high levels of depreciation and other non-cash expenses that are common to renewable energy projects and the differences between the agreed upon profit and loss and the cash flow allocations. Thus, in calculating Adjusted Earnings, we adjust GAAP net income (loss) for certain of our investments where there are characteristics as described above to take into account our calculation of the return on capital (based upon the underwritten investment rate), as adjusted to reflect the performance of the project and the cash distributed. In calculating the underwritten investment rate, we make certain assumptions, including the timing and amounts of cash flows generated by our investments, which may differ from actual results, and may update this yield to reflect our most current estimates of project performance. We believe this equity method investment adjustment to our GAAP net income (loss) in calculating our Adjusted Earnings measure is an important supplement to the income (loss) from equity method investments as determined under GAAP that helps investors understand the economic performance of these investments where HLBV income can differ substantially from the economic returns in any one period.Adjusted Earnings does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (determined in accordance with GAAP), or an indication of our cash flow from operating activities (determined in accordance with GAAP), or a measure of our liquidity, or an indication of funds available to fund our cash needs, including our ability to make cash distributions. In addition, our methodology for calculating Adjusted Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Adjusted Earnings may not be comparable to similar metrics reported by other companies.
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Supplemental Financial Data 34 Managed AssetsWe consolidate assets on our balance sheet, securitize assets off-balance sheet, and manage assets in which we co-invest with other parties via equity method investments. Therefore, certain receivables and other assets are not reflected on our balance sheet, where we may have a residual interest in the performance of the investment, such as a retained interest in cash flows. Thus, we present our investments on a non-GAAP managed basis. We believe that our Managed Asset information is useful to investors because it portrays the amount of both on- and off-balance sheet receivables that we manage, which enables investors to understand and evaluate the credit performance associated with our portfolio of receivables, equity investments, and residual assets in off-balance sheet assets. Our management also uses Managed Assets in this way. Our non-GAAP Managed Assets measure may not be comparable to similarly titled measures used by other companies.Adjusted Recurring Net Investment IncomeAdjusted Recurring Net Investment Income is calculated as GAAP-based Net Investment Income (Interest and Rental Income and Management Fees and Retained Interest Income, less Interest Expense), as reported within our financial statements prepared in accordance with US GAAP, plus Adjusted Income from Equity Method Investments plus loss on debt modification or extinguishment and amortization of real estate intangibles, less the elimination of our proportionate share of ongoing asset management fees earned from co-investment structures. We utilize this measure in operating our business and believe it is useful information for our investors and management for the reasons discussed in our Adjusted Earnings measure. Our Adjusted Recurring Net Investment Income measure may not be comparable to similarly titled measures used by other companies.Portfolio YieldThe calculation of Portfolio Yield was updated in Q2 2026. It now reflects Interest and Rental Income plus Adjusted Income from Equity Method Investments divided by the average Portfolio balance. Average Portfolio balance is calculated as the average of the Portfolio at the beginning and end of each quarterly period. Average Portfolio balance for year-to-date periods is calculated as the average of the Portfolio at the end of the preceding year and as of the end of each of the relevant period’s quarters. Previously, Portfolio Yield was calculated as the as the weighted average underwritten yield of the investments in our Portfolio as of the end of the period. We have recast prior periods to conform with this calculation methodology. Adjusted ROEAdjusted Return on Equity is a measure of the economic performance of our invested equity capital. Adjusted Return on Equity is calculated as our adjusted earnings divided by our average stockholders’ equity for the period. The direct comparable GAAP measure is GAAP-based return on equity. Adjusted Return on Equity differs from GAAP-based return on equity in that the numerator of the calculation contains those adjustments described in the Adjusted Earnings section. We believe that Adjusted Return on Equity gives investors an understanding of our performance after considering the effects of financial leverage. Our management uses it in this way. Our Adjusted Return on Equity measure may not be comparable to similarly titled measures used by other companies.
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Visit our website at www.hasi.comSecurities are offered by HASI Securities, LLC, a registered broker dealer, member FINRA and SIPC and subsidiary of HA Sustainable Infrastructure Capital, Inc. Listen to the HASI Climate Positive podcast