Hannon Armstrong Announces 2021 Dividend Income Tax Treatment

Rhea-AI Summary

Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI) reported a total distribution of $1.3900 per share for 2021. The distributions include ordinary income of $0.1950 and a return of capital of $1.1950. The distribution record dates were 12/28/2020, 4/5/2021, 7/2/2021, and 10/1/2021, with payment dates following shortly after. Notably, the January 2022 distribution will be classified as a 2022 distribution for tax purposes. Investors should consult tax advisors regarding their distributions.

Positive

• Total distributions for 2021 were $1.3900 per share.
• Ordinary income reported was $0.1950 per share, signaling a return to shareholders.

Negative

• The majority of the distribution was classified as a return of capital ($1.1950), which could raise sustainability concerns about cash reserves.

ANNAPOLIS, Md.--(BUSINESS WIRE)-- Hannon Armstrong Sustainable Infrastructure Capital, Inc. ("Hannon Armstrong," or the "Company") (NYSE: HASI), a leading investor in climate solutions, today announced the estimated Federal income tax treatment of the Company’s 2021 distributions on its common stock (CUSIP #41068X100).

The Federal income tax classification of the aggregate $1.3900 distribution per share on the Company's common stock with respect to the calendar year ended December 31, 2021, is shown in the table below:

Record Date	Payable Date	Total Distribution Per Share	Ordinary Income Per Share	Return of Capital Per Share	Capital Gain Per Share
12/28/2020	1/8/2021	$0.3400	$0.0477	$0.2923	$0.0000
4/5/2021	4/12/2021	$0.3500	$0.0491	$0.3009	$0.0000
7/2/2021	7/9/2021	$0.3500	$0.0491	$0.3009	$0.0000
10/1/2021	10/8/2021	$0.3500	$0.0491	$0.3009	$0.0000
2021	Total	$1.3900	$0.1950	$1.1950	$0.0000
12/27/2021	1/11/2022		To Be Reported on 2022 1099-Div

As the Company's aggregate distributions exceeded its taxable earnings and profits, the January 2022 distribution declared in the fourth quarter of 2021 and payable to stockholders of record as of December 27, 2021, will be treated as a 2022 distribution for Federal income tax purposes and is not included on the 2021 Form 1099. Stockholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company's distributions.

About Hannon Armstrong

Hannon Armstrong (NYSE: HASI) is the first U.S. public company solely dedicated to investments in climate solutions, providing capital to leading companies in energy efficiency, renewable energy, and other sustainable infrastructure markets. With more than $8 billion in managed assets, Hannon Armstrong's core purpose is to make climate-positive investments with superior risk-adjusted returns. For more information, please visit www.hannonarmstrong.com. Follow Hannon Armstrong on LinkedIn and Twitter @HannonArmstrong.

Forward Looking Statements

Some of the information contained in this press release is 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 that are subject to risks and uncertainties. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, we intend to identify 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 include those discussed under the caption “Risk Factors” included in our most recent Annual Report on Form 10-K as well as in other periodic reports that we file with the U.S. Securities and Exchange Commission (the "SEC").

Forward-looking statements are based on beliefs, assumptions and expectations as of the date of this press release. We disclaim any obligation to publicly release the results of any revisions to these forward-looking statements reflecting new estimates, events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220128005493/en/

Investor Relations Inquiries:

Chad Reed

investors@hannonarmstrong.com

410-571-6189

Source: Hannon Armstrong Sustainable Infrastructure Capital, Inc.

FAQ

What is the total distribution per share from HASI in 2021?

The total distribution per share for Hannon Armstrong in 2021 was $1.3900.

When was the January 2022 distribution record date for Hannon Armstrong?

The record date for the January 2022 distribution was December 27, 2021.

How much of the 2021 distribution is ordinary income for HASI shareholders?

Hannon Armstrong reported ordinary income of $0.1950 per share for the 2021 distributions.

What portion of the 2021 distribution was a return of capital?

The return of capital per share for Hannon Armstrong in 2021 was $1.1950.

Why is the January 2022 distribution considered a 2022 distribution for tax purposes?

The January 2022 distribution is considered a 2022 distribution because the total distributions exceeded its taxable earnings.