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No. of Recommendations: 12
Does the energy projects that HASI invest in include a land component? I think most of the time the answer would be no. Without appreciating land to offset the depreciation of manmade assets, the FFO/AFFO model does not apply in my opinion. Without adding back depreciation HASI doesn't cover its dividend.

I was talking to a rural water board member last year about the water district's declining financial strength coupled with its aging infrastructure. When he said that depreciation expense isn't real and doesn't account, I told him that for perhaps 49 out of 50 years to 73 years out of 75 years that depreciation expense didn't count, but when you have to pay to replace 50 to 75 year old water lines then in that year (or two) all that depreciation expense had been very real.

This is the reason that I have never been tempted to buy HASI.

Also HASI's CFO hasn't covered its dividend in 2018 & 2017 which is all the more reason to stay away from HASI in my opinion.
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