Leading Provider of Renewable Energy Investments Positioned for Continued Strong Performance in 2020
Company Sees Surge of Interest in Assets Offering Durable Yield, Long-Term Growth Potential and Inverse Correlation to Other Asset Classes
New York, May 20, 2020 (GLOBE NEWSWIRE) -- Greenbacker Renewable Energy Company LLC (“Greenbacker”) – a leading manager of sustainable infrastructure investments for registered investment adviser (RIA) firms, independent broker-dealers (IBDs), family offices, and their clients – recently announced financial results for the full year ended December 31, 2019. Among other highlights, Greenbacker announced that gross power purchase agreement electricity sales revenue generated by projects that it manages rose from $30.1 million in 2018 to $47.9 million in 2019, a 59.3% increase. In addition, the total energy produced by its portfolio of renewable energy infrastructure projects rose by 79% in 2019.
This strong increase in production was spurred by a record-setting year of investment for Greenbacker, during which it deployed $168.0 million of capital into 12 portfolio company investments, raising the total number of renewable energy projects in its portfolio to 160. For 2019, the fair value of Greenbacker’s investments in controlled and non-controlled projects rose 55%, to $475.2 million.
Charles Wheeler, CEO of Greenbacker, noted that, “The demand for renewable power has grown in leaps and bounds in recent years. With the right in-house expertise and investment know-how, we are well positioned to take advantage of this growth. 2019 was a pivotal year for us. We built upon our expertise in identifying, developing and managing new investments and innovating new ways to produce attractive returns for our investors. As we enter a period of significant economic and market disruption, durable yield from assets that are non-correlated to other asset classes and yet well positioned to benefit from longer term market trends will become increasingly attractive to high net worth investors and the wealth managers who support them.”
Performance Highlights
| • | Increase in portfolio gross revenue: |
| Total production for Greenbacker’s renewable energy portfolio rose to 616,959 megawatt-hours in 2019, a 79% increase over 2018 and a 181% rise over 2017. In 2019, project investments managed by Greenbacker generated total gross revenue of $55.1 million for the owners of those project investments, a 54% increase over 2018, from the electricity and environmental attributes sold via long-term contracts to municipalities, utilities and businesses. | |
| • | Increase in gross assets purchased |
| As a result of its 12 portfolio company investments made in 2019, Greenbacker’s total gross assets purchased with its minority equity partners reached $353.6 million, a year-over-year increase of 160%. | |
| • | Distributions to shareholders |
| Greenbacker’s shareholder distributions in 2019 reached $25.9 million, a 46% increase from the year before and 13 times their level in 2015. | |
| Setting up for long-term growth and success | |
| • | Expansion of investment thesis to include pre-operational projects |
| In 2019, Greenbacker increased its investment in projects that had not yet been built, but which had secured all permits to commence construction. Assets under construction as of December 31, 2019 made up $128.6 million of the Company’s total portfolio, or about 19% of total assets. | |
| The Company has developed a track record of generating attractive returns by investing earlier in the life cycle of projects and then providing access to the various forms of capital to maximize the project’s value at the time it commences operations. The additional returns generated offset the lack of current earnings during the construction phase. Investing early offers the added advantage of equipment selection for the project, which is done with an eye to keeping operating costs as low possible over the life of the project. | |
| • | Broadening of geographic footprint |
| The projects in which Greenbacker invested in 2019 included assets in six states where it previously had not made investments, including the first project in Washington, D.C. These investments in projects in new states and the District of Columbia totaled $58.1 million. Broad geographic diversification across the portfolio is a hallmark of Greenbacker’s investment strategy, providing lower concentration risk among electricity buyers as well as different meteorological conditions across the fleet. | |
| • | Value creation via strategic exit of selected projects |
| In 2019, Greenbacker sold four portfolios opportunistically. These sales netted a total of $12.9 million in realized gains over cost for Greenbacker. | |
| The success achieved by the sales of these projects reinforces the value of Greenbacker’s investment approach. | |
| • | Further strengthening of in-house engineering and construction expertise |
| Greenbacker Administration, LLC, which provides operational and accounting services to Greenbacker, in 2019 continued to build its in-house team of experienced engineers and construction managers with the hiring of 8 professionals. | |
| Robust in-house technical expertise is crucial to Greenbacker’s ability to successfully execute on its investment strategy. Access to that expertise allows Greenbacker to purchase underperforming or distressed assets that, through solid technical and financial management, Greenbacker can potentially turn into profitable investments. It also augments Greenbacker’s ability to boost the value of its assets by maintaining a focus on operating cost discipline and driving incremental revenue, and increased value from aging assets through repowering and plant improvements. | |
| David Sher, Director of Greenbacker concluded, “The growth we accomplished at Greenbacker in 2019 is a product of our tireless dedication to maximizing value for our investors, while further supporting the shift from fossil fuels to renewable energy sources. We are proud to be part of the movement supporting a cleaner future for the country and the world and doing so in a way that demonstrates significant economic upside to renewable energy investing, even before factoring in potential future tax benefits.” | |
About Greenbacker Renewable Energy Company
Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability 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.
Forward-Looking Statements
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 Annual Report on Form 10-K for the year ended December 31, 2019 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.
Media Contacts
Joseph Kuo / Chris Clemens
Haven Tower Group
424 317 4851 or 424 317 4854
mediarelations@greenbackercapital.com