We came across a bullish thesis on HA Sustainable Infrastructure Capital, Inc. on The Financial Pen’s Substack. In this article, we will summarize the bulls’ thesis on HASI. HA Sustainable Infrastructure Capital, Inc.’s share was trading at $35.15 as of February 5th. HASI’s trailing and forward P/E were 15.45 and 12.32 respectively according to Yahoo Finance.
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HA Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment 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 specialized infrastructure financier focused on energy efficiency, renewable power, and climate-related assets, earning predictable interest and rental income from long-dated, contracted projects with high-quality counterparties.
While reported GAAP earnings appear volatile due to the use of Hypothetical Liquidation at Book Value (HLBV) accounting for tax-equity partnerships, the underlying cash flows are steady and have consistently been 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 compounds gradually.
Strategically, HASI occupies an attractive niche between traditional bank lending and private equity, benefiting from reduced competition as banks retreat from complex, long-duration infrastructure financing. This has allowed the company to maintain attractive investment spreads even amid higher interest rates. Roughly 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 commodity or operational risk.
The transition to a C-Corporation has further strengthened the model by enabling retained earnings, reducing reliance on external capital, and supporting a more capital-light growth strategy through partnerships like CarbonCount with KKR. At current valuation levels—around 13x adjusted earnings and a ~5% dividend yield—the market appears to underappreciate the durability, growth potential, and improving quality of HASI’s earnings. As accounting noise fades and cash flows become more visible, the stock is positioned for a potential re-rating that better reflects its stable economics and long-term compounding profile.