Greenbacker Delivers Second Quarter Results
NEW YORK, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”)—a leading owner and operator of sustainable infrastructure and energy efficiency projects—recently announced financial results for the three-month period ended June 30, 2021.1 There were many positive trends to showcase, both on a quarter-over-quarter basis (comparing the second quarter of 2021 with the first quarter of 2021) and on a year-over-year basis (comparing the second quarter of 2021 with the second quarter of 2020).
Growing production and revenue from an expanding fleet
The Company posted sizable quarter-over-quarter and year-over-year increases in total revenue from the sale of energy and environmental attributes, which rose 35.1% and 38.8% in the respective timeframes. The second quarter also saw Greenbacker’s portfolio of sustainable infrastructure projects assets expand to include 302 assets.2
The total energy produced by Greenbacker’s fleet amounted to 360,941 megawatt-hours (MWh) during the second quarter, which represents quarter-over-quarter and year-over-year increases of 11.2% and 47.8, respectively.
|Total revenue from the sale of energy and environmental attributes (millions)||$||27.7||$||20.5||$||19.9|
|Total energy produced (MWh)||360,941||324,470||244,197|
Company’s investment activity doubles quarter-over-quarter, quadruples year-over-year
Greenbacker also had significant investment activity in the second quarter, deploying almost double the amount of capital the Company deployed in the first quarter—and nearly quadruple the total invested over the same period last year.
During the second quarter of 2021, the Company deployed $315.2 million of capital into new or existing investments and added nine new renewable energy projects in its portfolio.2 In the same period, the fair value3 of Greenbacker’s investments in both controlled and non-controlled4 projects topped $1 billion, marking quarterly and year-over-year increases of 33.1% and 93.0%, respectively.
|Total capital deployed (millions)||$||315.2||$||169.8||$||80.0|
|Fair value3 of investments in controlled and non-controlled projects (millions)||$||1,044.1||$||784.4||$||541.1|
Charles Wheeler, CEO of Greenbacker, noted that, “The already massive demand for renewable power continues to grow exponentially, as businesses and municipalities increasingly realize the benefits of using cheaper, cleaner power to meet society’s growing energy needs. Mounting development opportunities and our ongoing industry relationships have contributed to a robust investment pipeline for Greenbacker that extends well into the future. This is only helped by the policy tailwinds and impact investor momentum that the sustainable infrastructure space is also currently enjoying. We believe the case for our investment thesis—which seeks to provide durable yield from real assets that have low correlation with other segments of the market—remains stronger than ever today.”
He added that “Despite renewed concerns around the global pandemic, our core business of purchasing and operating renewable energy projects continued to expand in the quarter. The total capacity of our fleet increased to over 2 gigawatts (GW),2 as we added several individually significant projects during the period, including contracting to acquire our single largest asset to date at 617.5 megawatts (MW). The fact that these milestones coincide with GREC’s five-year anniversary and Greenbacker Capital Management celebrating 10 years of sustainable infrastructure investing makes it all the more special.” (Greenbacker Capital Management, founded in 2011, is the external investment advisor to GREC.)
Fleet value, shareholder distributions, and pre-operational portfolio all saw significant increases
By the end of the second quarter, Greenbacker’s total gross investment value (GIV)5 topped $1.5 billion—a quarter-over-quarter increase of 5.4%, and a year-over-year increase of 77.0%.
Greenbacker’s shareholder distributions totaled $16.6 million in the quarter, up from $12.0 million in the first quarter and $7.2 million in the second quarter of last year, marking quarter-over-quarter growth of 39% and a 132.1% increase on a year-over-year basis.
In 2019, Greenbacker announced its objective to increase investment in its pre-operational portfolio. By the end of 2020, our pre-operational and non-earning assets had grown from $128.6 million to $144.4 million, an annual increase of 12.3%. As of June 30, 2021, our pre-operational portfolio increased to $429.8 million, climbing 93.9% quarter-over-quarter and nearly tripling in size since the second quarter of 2020.
Our pre-operational assets provide a number of benefits to the GREC portfolio. Oversight during the construction phase allows Greenbacker to exercise quality control that helps ensure optimal asset performance in the long run. To-be-constructed projects also generally increase average contract length within the portfolio.
|June 30, 2021||March 31, 2021||June 30, 2020|
|Total gross investment value5 (millions)||$||1,543.0||$||1,464.2||$||871.7|
|Pre-operational and non-earning assets (millions)||$||429.8||$||221.7||$||144.9|
Portfolio’s geographic diversity expands into five new states
During the quarter, we continued to expand the geographical footprint of the portfolio, increasing the total states in which we conduct business activities to 34. We entered contracts for the acquisition of assets in five new states: Illinois, Ohio, Washington, Wisconsin, and Wyoming (after successfully adding Arkansas to the portfolio, as well, in the first quarter).
This continuing expansion delivers on the Company’s ongoing strategy of broad diversification across many factors, including differing state regulatory regimes, diverse weather systems, multiple high-quality offtakers (to purchase the power produced by its assets), and different energy sources (i.e., solar, wind) and technologies to generate electricity.
A high-profile groundbreaking in an area with long history of power generation
During the quarter, construction began on Graphite solar (104 MWdc / 80 MWac) in Carbon County, Utah. The project is one of Greenbacker’s largest solar assets and is expected to reach commercial operations in the fourth quarter of 2021, when it will contribute renewable energy to Facebook’s new data center in the state. With a long-term power purchase agreement in place with the investment-grade utility PacifiCorp on behalf of Facebook, the Graphite solar project supports the social media giant’s goal of 100% renewable energy for its operations.
Graphite is being built in Wellington, Utah, a town with several coal mines, a recently retired coal plant, and a long history of generating power for the area. With the construction of this solar facility, the community further diversifies its contributions to the local energy infrastructure and catalyzes the region’s economic development.
Largest wind asset to date
Also during the second quarter, we acquired Altamont, our largest wind asset to date at 57.5 MW. Located in Alameda County, California, the project harnesses wind from the Altamont Pass, an area home to operating wind assets since the 1980s. The project, our second in the state, is near the Bay Area load pocket, giving it strategic value from the perspective of future energy usage and capacity needs. Additionally, the project reflects an evolution in wind technology that is more energy efficient and productive, while also making the facility safer for wildlife and bird migratory patterns. While this wasn’t required to complete the transaction, we felt it a necessary addition to the project.
Although we acquired Altamont during the final stages of commissioning, the asset has since entered commercial operation in early July.
Significant new capital investment and impact investor appeal
Greenbacker raised $97.0 million in capital over the second quarter, on top of the $455.8 million raised during the first quarter of the year, providing significant capital for additional growth.
As of June 30, 2021, the Company’s net asset value (NAV) was roughly $1.1 billion, which was an increase of 9.1% from March 31, 2021, and an increase of 137.2% from June 30, 2020.
|June 30, 2021||March 31, 2021||June 30, 2021|
|Net asset value (millions)||$||1,085.9||$||994.9||$||457.9|
The Company also added roughly 485 new investors to its shareholder base during the second quarter of this year.
These increases are a testament to the Company’s continued focus on delivering results to shareholders by executing on a core strategy of purchasing, operating, and increasing the efficiency of world-class sustainable infrastructure. New tailwinds have also boosted Greenbacker’s business and capital raising; strong fundamentals in the renewable energy sector, along with the new Administration’s professed support for renewable energy expansion, have been quite supportive.
Moreover, Greenbacker continues to draw the attention of an increasing amount of impact investors, people seeking to invest their money in opportunities that align with their values. As this investor base continues to grow—and the demand for lucrative environmental, social, and governance (ESG) investment opportunities continues to increase—Greenbacker has become an increasingly attractive destination for a marketplace that prioritizes reliable sources of yield and responsible investing.
The Company believes it continues to have a strong plan to deploy its investor capital into new high-quality solar and wind assets. As of June 30, 2021, Greenbacker’s pipeline of potential transactions reached a new high of $436.9 million (surpassing the first quarter’s previous record of $383.9 million).
|June 30, 2021||March 31, 2021|
|Forward pipeline of potential unlevered investment (millions)||$||436.9||$||383.9|
David Sher, Director of Greenbacker, shared his thoughts on the Company’s performance and path forward: “The positive quarterly and year-over-year trends that Greenbacker has experienced are a direct result of our commitment to facilitating society’s transition toward a clean energy future. Now more than ever, we remain dedicated to making renewable power both a solid investment opportunity and logical solution to our energy needs. We will continue to invest in the path of sustainable infrastructure, supporting the shift away from emissions-heavy fossil fuels and into cheaper, cleaner energy sources.”
About Greenbacker Renewable Energy Company
Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability energy company that acquires and manages income-generating renewable energy and energy efficiency projects, and other energy-related businesses. The projects in which we invest, such as solar and wind facilities, sell power under long-term contract to high credit worthy counterparties such as utilities, municipalities, and corporations. For more information, please visit www.greenbackercapital.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 and in subsequently filed periodic reports that we file with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. The Company undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in the Company’s expectations.
This information has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, or to participate in any trading or investment strategy. The information presented herein may involve Greenbacker’s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.
Senior Writer & Media Communications
1 The 2021 financial and portfolio metrics set forth herein are unaudited and subject to change.
2 As of Q2 2021, total assets and megawatts statistics include those projects where we have contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”).
3 Fair value figures reflect the fair value of the asset type as reported in GREC’s latest quarterly financial statements. These figures are unaudited and subject to change.
4 Controlled investments are defined as investments in companies in which the Company owns 25% or more of the voting securities of such company, have greater than 50% representation on such company’s Board of Directors, or are investments in limited liability companies for which the Company serves as managing member. Non-controlled investments consist of secured loans.
5 GIV reflects the fair market value of our investments and cash as reported in GREC’s latest quarterly financial statements, as well as project-level debt related to our projects. This figure is unaudited and subject to change.