On April 18th, Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) IPOed on the New York Stock Exchange. HASI is one of only two publicly traded Real Estate Investment Trusts (REITs) dedicated to sustainable infrastructure. The other such sustainable REIT is Power REIT (NYSE:PW), which I have written about extensively. PW is both illiquid and involved in significant litigation, two factors which may put off the conservative investors who gravitate towards REITs.
In December, Power REIT purchased the land under the 5.7MW True North Solar Farm in Salisbury, MA. Photo Source: Power REIT
HASI, on the other hand, has market capitalization approximately ten times larger than PW, and traded over five million shares on its first day. That is about as many shares as PW trades in nine months. HASI’s liquidity will fall as its shares enter the hands of long term investors, but the company will remain far more liquid than PW.