Sustainable Infrastructure REIT Focusing on Reducing Carbon Output

Jody Clark, vice president of Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI), joined REIT.com for a video interview at NAREIT’s 2015 Leader in the Light Working Forum in Reston, Va.

Hannon Armstrong makes debt and equity investments in sustainable infrastructure projects. Clark explained that every investment the company makes is focused on the carbon-reduction benefit achieved by its clients. “This is core to our company,” she said.

According to Clark, many property owners have very limited access to capital. As a result, they focus on short-term projects with quick paybacks, the “low hanging fruit,” she said.

By working with Hannon Armstrong “they are able to look at projects much further in duration,” Clark said.

In terms of measuring the impact of its investment, “every single investment we make we evaluate in (terms of) the reduction of the carbon benefit,” Clark noted. That enables them to measure the benefits of their investments relative to the cost of the investments.

Meanwhile, Clark said a project currently underway with a large REIT exemplifies Hannon Armstrong’s mission.

Hannon Armstrong is working with the REIT to provide it with financing through property assessed clean energy (PACE). Clark said the tenant benefits both from the actual energy savings as well as from receiving a tax benefit.

“The net result of the savings always being greater than the debt payment is that there is increased net operating income (NOI) and increased net asset value (NAV) for the property,” Clark said. “Overall, it’s a win-win.”