Greenbacker Reports Significant Year-Over-Year NAV Growth in 2Q21

Greenbacker Renewable Energy Company, a publicly registered, non-traded limited liability company, has reported its financial results for the second quarter of 2021.

Greenbacker Renewable Energy Company, a publicly registered, non-traded limited liability company, has reported its financial results for the second quarter of 2021.

As of June 30, 2021, the company’s net asset value was roughly $1.1 billion, an increase of 9.1 percent from March 31, 2021 ($994.9 million) and 137.2 percent ($457.9 million) from June 30, 2020.

Greenbacker raised $97 million in capital over the second quarter, in addition to the $455.8 million raised during the first quarter of the year. The company added roughly 485 new investors to its shareholder base during the second quarter of 2021.

Greenbacker acquires and manages renewable energy and energy efficiency projects, and other energy-related businesses. Its projects, such as solar and wind facilities, sell power under long-term contracts to counterparties such as utilities, municipalities, and corporations. The second quarter saw Greenbacker’s portfolio of sustainable infrastructure projects assets expand to include 302 assets.

Total revenue from the sale of energy and environmental attributes rose 35.1 percent quarter-over-quarter and 38.8 percent year-over-year. During the second quarter of 2021, Greenbacker produced 360,941 megawatt hours (MWh) of energy and posted total revenues of $27.7 million. This compares to 324,470 MWh produced and $20.5 million sold in the previous quarter, and 244.197 MWh produced and $19.9 million sold in the second quarter of 2020.

During the second quarter of 2021, Greenbacker deployed $315.2 million of capital into new or existing investments and added nine new renewable energy projects to its portfolio. The company deployed $169.8 million the previous quarter and $80 million during the same period last year.

The fair value of its investments in both controlled and non-controlled projects topped $1 billion in the second quarter of 2021, marking quarterly and year-over-year increases of 33.1 percent and 93 percent, respectively.

“Despite renewed concerns around the global pandemic, our core business of purchasing and operating renewable energy projects continued to expand in the quarter,” said Charles Wheeler, chief executive officer. “The total capacity of our fleet increased to over 2 gigawatts (GW), 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).”

By the end of the second quarter of 2021, Greenbacker’s total gross investment value topped $1.5 billion, a quarter-over-quarter increase of 5.4 percent and a year-over-year increase of 77 percent.

Shareholder distributions totaled $16.6 million in the quarter, up from $12 million in the first quarter and $7.2 million in the second quarter of last year, marking quarter-over-quarter growth of 39 percent and a 132.1 percent 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, its pre-operational and non-earning assets had grown from $128.6 million to $144.4 million, an annual increase of 12.3 percent. As of June 30, 2021, the pre-operational portfolio increased to $429.8 million, climbing 93.9 percent quarter-over-quarter and nearly tripling in size since the second quarter of 2020. Pre-operational assets totaled $221.7 million during the previous quarter and $144.9 million in the second quarter of 2020.

During the second quarter of 2021, Greenbacker entered contracts to acquire assets in five new states: Illinois, Ohio, Washington, Wisconsin, and Wyoming (after adding Arkansas to the portfolio, as well, in the first quarter). The company’s portfolio now includes assets in 34 states.

During the quarter, construction began on the Graphite solar project in Carbon County, Utah. The project is one of Greenbacker’s largest solar assets that is expected to reach commercial operations in the fourth quarter of 2021, when it will contribute renewable energy to Facebook’s new data center.

Also during the second quarter, the firm purchased Altamont in Alameda County, California, its largest wind asset at 57.5 megawatts, which entered commercial operation in early July.

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.

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