Marc Pangburn: So just as a, for some context, the total portfolio collections was higher and around $500 million. And that is relative to an average portfolio of $5.3 billion, which is roughly a 10% cash yield and that has been somewhat consistent over time. The two primary drivers that you mentioned is we’ve discussed before new transaction — for new transactions, the cash by expectation during the tax equity window is a little bit lower and then it flips to be higher thereafter and given the substantial growth in the portfolio that dynamics on display here. The other dynamic which we’ve actually talked about a few times throughout the course of the year and you might have seen in some other asset owners is wind performance.
So, in 2023 wind we’ve seen poor wind performance. It was a P99 year which means we would not expect it to continue and additionally given our preference, we expect it’s as you already identified a delay of distributions and not a loss. So, yes we do see line of sight into those — into those starting to catch up and we’ve already reflected any updates into our guidance and portfolio yield.
Noah Kaye: Very helpful. I’m sorry. Go ahead, Jeff.
Jeffrey Lipson: Sorry. I just want to make sure we’re not talking past each other on guidance and there’s good understanding. So, to get more specific on your math question a moment ago, if we hit the midpoint of our guidance in 2024, that would be 9% growth, which would be $2.43. If I divide the $1.66 dividend by $2.43, I get 68%, which is right in that 60% to 70% range. So, hopefully that holds together. I just want to make sure we’re not talking past each other.
Noah Kaye: Yeah. Absolutely. It’s at the higher end of the payout, but that makes perfect sense. Thanks, Jeff.
Jeffrey Lipson: Okay.
Operator: Our next question is from Davis Sunderland with Baird. Please proceed with your question.
Davis Sunderland: Hey, guys. Thanks for taking my question. Brian, I know, kind of already asked in a different roundabout way. So, I don’t mean to beat a dead horse here, but I guess maybe asking from the perspective of willingness to assume risk or risk appetite, Has the higher rate environment had any impact on appetite for risk in any particular asset class? And I guess just asking a bit more about maybe have yields become too attractive to ignore for anyone in particular or any details that would be helpful?
Jeffrey Lipson: I think as a general matter, we’ve not changed our risk appetite. I think our underwriting has been very consistent. I think the higher yields, as I think we said in the prepared remarks, are mostly the market adapting to higher rates, some economics at the project level, some credit spread dynamics in the market. But I think we’ve fundamentally kept a very stable risk profile that we’re very comfortable with and results in an enormous amount of opportunity. So we haven’t really felt the need to change the risk profile. We found these higher yielding investments and this ongoing margin expansion available to us without changing our risk parameters.
Davis Sunderland: Perfect. That’s all from me. Thanks, guys.
Jeffrey Lipson: Thank you.
Marc Pangburn: Thank you.
Operator: Ladies and gentlemen, thank you for your participation. This does conclude today’s conference call. You may disconnect your lines and have a wonderful day
Jeffrey Lipson: Thank you.
