Good afternoon, and welcome to Hannon Armstrong’s 2014 Year End Earnings Conference Call. Management will be utilizing a slide presentation for this call, which is available now for download under Investor Relations page at investors.hannonarmstrong.com. Today’s call is being recorded and we have allocated 1 hour for prepared remarks and question and answer. All participants will be in a listen-only mode. [Operator Instructions] At this time, I would like to turn the conference call over to Ms. Amanda Cimaglia, Manager, Investor Relations for the company. Thank you. You may now begin.

Thank you, operator. Good afternoon, everyone. By now, you should have received a copy of the earnings release for the company’s fourth quarter 2014 results. On the call today, we will start out with a business review from Jeffrey Eckel, our President and CEO followed by Brendan Herron, our CFO, who will review our fourth quarter 2014 financial results. As a reminder, a replay of this call will be available later today on the Investor Relations page of our website. Before we begin, I would like to remind you that some of the comments made on today’s call are forward-looking statements and within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended. The company claims the protections of the Safe Harbor for forward-looking statements contained in such sections. The forward-looking statements made in this call are subject to the risks and uncertainties described in the Risk Factors section of the company’s Form 10-K and other filings with the SEC. Actual results may differ materially from those described during the call. In addition, all forward-looking statements are made as of today and the company does not undertake any responsibility to update any forward-looking statements based on new circumstances or revised expectations. With that, I would like to turn the call over to Jeff Eckel, President and CEO who will begin on Slide 3. Jeff?

Thanks, Amanda and good afternoon, everyone and thank you for listening to HASI’s Q4 earnings call. Today, we are announcing core earnings of $0.27 per share or $7.1 million for the quarter and $0.93 per share or $20.3 million for the year. This represents a 23% increase in core earnings per share from Q3 and is in excess of our recent 18% increase in the dividend in Q4. Even with the recent stock performance, we are still paying our shareholders a 6.3% dividend yield based on Friday’s closing price of $16.63. Now that we have ramped the business and achieved our initial targets, we are prepared to offer 2-year guidance of 14% to 16% annual core EPS growth for 2015 and 2016. This would put our core EPS at the end of 2016 in the range of $1.21 to $1.25 per share. Turning to Page 4, I want to highlight our 2014 targets and achievements. As I said, we grew core earnings 23% against the target of 13% to 15%. We targeted closing $800 million of new business in 2014 and instead closed $875 million, a 9% increase. This allowed us to reach our $1 billion balance sheet goal and we continued to increase our leverage as planned with our balance sheet now levered at 1.9 to 1 and 40% of our interest rates fixed. Our historic focus on distributed energy assets remains core and we have been able to complement that business with attractive ways to invest in the utility scale wind and solar markets. We believe these results demonstrate our relentless focus on execution. Turning to Page 5, we show how our high-quality pipeline has and will continue to drive growth in the business. At the 2013 IPO, we have approximately $200 million of assets on balance sheet.…

Thanks, Jeff. Turning to the Q4 results, we generated $11.7 million of core investment revenue, a 90% increase from Q4 last year. We consider Q4 of 2013 to be the first quarter in which we are fully ramped following the IPO and thus have moved to year-over-year comparisons. The core investment income increase is due to an increase in the size of our balance sheet to over $1 billion at the end of 2014 from just under $600 million at the same time last year. The increase in core investment revenue was offset by higher interest expense as we increased our leverage to 1.9 to 1 from 1.2 to 1 last year. And we ended the year with 40% of our non-match-funded debt at fixed rates. We also realized $3.8 million of other investment revenue in the quarter which again exceeded the level of other expenses core allowing all of our investment income to continue to contribute to core earnings. Our core total revenue net of investment interest expense was $10 million in Q4, an increase from $6.2 million last year. For the year our core total revenue net of investment interest expense grew over 100% to $31.3 million as compared to $14.7 million in 2013. Other expenses core increased slightly to $2.9 million from $2.5 million last year and to $11 million for the year versus $9.2 million last year. Core earnings rose to $7.1 million compared to $3.7 million in the same quarter last year. As Jeff said core EPS grew 23% over Q4 2013 to $0.27 per share and by 100% for the year ended December 31, 2014 to $0.93 per share. For the quarter we closed $375 million of new business and ended the year at $875 million of closed transactions. On a look forward basis,…

Thanks Brendan. To summarize we believe the investment proposition represented by HASI is the combination of our yield, growth and quality. Yield comes from our long duration assets currently yielding 6%. Growth comes from our deep pipeline and the growing efficacy wind and solar markets as well as operating leverage. Quality is represented by the high credit ratings of our obligors, proven technologies and diversity of assets. Finally, a note of thanks to the HASI team again. We talked a lot about the value to investors of our internally managed platform. I am fortunate to get to work with them. All 28 people who comprised that platform worked very hard in 2014 and are continuing that effort in 2015. We appreciate you listening to our Q4 update. And will now open the call up for a few questions.

Thank you. [Operator Instructions] The first question is from Philip Shen of ROTH Capital. Please go ahead.

Hey, guys. Congrats on closing out 2014 with strength.

Thanks Philip.

Thanks Philip.

In 2014, you targeted and delivered $1 billion of assets, what is your asset targeted for 2015? And also given the visibility you have into your portfolio, how do you expect the mix in your portfolio by segment to shift if at all?

Well, first let’s talk about the shift. I think we had a pie chart in the prior quarter that showed our pipeline by the donut shape. And you could see what we have tried to do with the pipeline chart is the rectangles are really the approximate mix of efficiency wind and solar assets. It’s not a lot different than the last quarter nor is it a lot different than what we have closed. As to the first part of your question, we closed $875 million. Our target was $800 million. We certainly expect to be able to do every bit of the $875 million again in 2015.

Great, thanks Jeff. I think I heard you guys say that the Board has approved a 2.5 to 1 leverage ratio, is that correct?

Correct.

Great. So in the quarter you maintained your 1.9 times ratio. How do you expect to see your leverage ratio change and evolve through the year, can you – anyway, please go ahead.

Yes. So, what we intend to do is add additional layers of fixed rate debt through doing ABS transactions and that will allow us to take up our leverage target. And we think those two, as we have talked about on previous calls we think those will go hand in hand and by taking interest rate risk off the table, we are going to set a target of 50% to 70% fixed rate debt. By taking interest rate risk off the table, we think it’s appropriate to add additional leverage.

Great, thanks Brendan. One more and I will jump back in the queue. In the quarter, you guys had a nice bump in your renewable yields. How do you expect your segment yields to evolve through the year and what are the drivers of these yield expansions?

So, I think on the energy efficiency side as we have talked about on previous calls, a large percentage of the energy efficiency has historically been federal and state local government, so because of the high credit quality there, you tend to get a little bit tighter spread. Renewables, we continue to see good opportunities in that marketplace. And with us we have been able to expand our yields there and we have been able to do some things that we think are structurally advantaged. So, the real estate, the wind transactions are good examples of structure advantage, where we are not only able to get a very attractive risk-adjusted return, but we have structural seniority in the transaction.

Thanks to you both. Congrats again. I will jump back in queue.

Thank you. The next question is from Aditya Satghare of FBR Capital. Please go ahead.

Thank you. Good evening all. Two questions here. One is on Slide #5, is there a good way for us to think about when you talk about the $2 billion future projects and then $4 billion of future deal flow. What part of that is existing and operating assets versus assets which still have to be developed and constructed?

That’s a great question. I would say the – on the efficiency side virtually all of them still have to be constructed. On the solar side, probably most of them still have to be constructed. On the wind side, it’s because of the success of wind over the last decade there is a lot of opportunity of existing assets that are already developed and operating. And yet there is also a new build market that’s surprisingly robust. So the new wind turbine technologies are so efficient now that they are really still quite economic in even today’s low power price market.

Got it. And then – and second question maybe sort of a broad commentary, how should we think about some of the trends you are seeing in the asset yields by category given some of the competition we see in the market?

Well, I think a lot of the competition you see in the market is on the equity side. And we certainly think from the numbers we have heard that people are paying. If I was a seller I would be very attracted at selling at some of those prices. On the debt side, I think on the renewable energy side we have said throughout the quarters that we need to pick our markets. I think the large scale, well sponsored renewable energy project that’s fully contracted does not have a senior debt yield that looks that interesting to us and hasn’t for about a year. But that’s where we have found ways to add value to our clients through the land transactions and on the wind equity investments. I think the senior debt is frankly less bid up than may be the equity side on renewable energies. But you still have to pick your spots.

Got it. Thank you. Thanks for the update and I appreciate all the new disclosure here.

Thanks Aditya.

Thank you. [Operator Instructions] The next question is from Tyler Frank of Robert W. Baird. Please go ahead.

Hi, guys. Thanks for taking the question and congratulations of the nice quarter. Can you discuss just a little bit of what drove Q4 being so strong in terms of the amount of transactions that you were able to close during the quarter. And then how should we think about 2015, I know you just said you expect to do at least $875 million in transactions this year, but can you give us a sense on how you expect those transactions to flow through on a quarterly basis?

Well I think Brendan summarized it as quarter-to-quarter, I think the difference between Q3 and Q4 is pretty sizable in 2014. Yet we don’t really look at that as very significant from our core earnings power. If something doesn’t happen in Q3, it happens in Q4. We had some transactions that were pretty interesting to do at the end of the year and it was a great quarter. But really with infrastructure, what happens this quarter and next quarter is really not as important to us as it probably is to the market. The transactions in the pipeline generally don’t go away they generally do get pushed out in time. And given enough transactions, we will be able to have pretty good quarters and pretty reliable quarters.

Great. And then in terms of your guidance for this year, should – how should we think about that in terms of prospective capital raises, does that – is that including an equity raise this year and do you need to get two and half one – 2.5 to 1 in terms of your leverage ratio to hit that guidance?

So, the answer is we do include in our analysis additional capital raises. And as we have talked about in the past, you can kind of take the target assume a percentage of hold transactions which increased this year and then and divide by a leverage target. We don’t anticipate getting to the 2.5. It will take us during the year to get to the 2.5 as I think we have talked about before especially with our intention to do 8 larger ABS $100 million type byte size of ABS transactions, they tend to be a little bit lumpy, so much like some of the deal originations lumpy. So, those things will happen when they happen. The two and a half is a gradual goal for us. It’s not something we are going to do with some of them we will be working on, but not necessarily achieve, don’t look for us to achieve it in Q1, for example. And so we will continue to kind of make our progress towards that much as we did with the 2 to 1 in the past.

Okay, great. Thanks guys.

Thank you. We have no further questions at this time. I would like to turn the floor back over to management for any additional or closing remarks.

Thanks for the great questions. And we are – Brendan and I will be hitting the road and talking to a lot of investors and a lot of analysts here in the next few weeks. So, we look forward to expanding on this. Thanks so much.