5 unchanged sentences
We have invested in mezzanine loans and, as a result, we are exposed to additional credit risk.
−Removed: We are exposed to credit risk in our other projects that do not benefit from governments obligors such as on-balance sheet financing of projects undertaken by universities, schools and hospitals, as well as privately owned commercial projects.
+Added: We are exposed to credit risk in our commercial investments such as on-balance sheet financing of projects undertaken by universities, schools and hospitals, as well as privately owned climate solutions projects.
While we do not anticipate facing significant credit risk in our assets related to government energy efficiency projects, we are subject to varying degrees of credit risk in these projects in relation to guarantees provided by ESCOs where payments under energy savings performance contracts are contingent upon achieving pre-determined levels of energy savings.
We seek to manage credit risk through thorough due diligence and underwriting processes, strong structural protections in our transaction agreements with customers and continual, active asset management and portfolio monitoring.
−Removed: Nevertheless, unanticipated credit losses could occur and during periods of economic downturn in the global economy, our exposure to credit risks from obligors increases, and our efforts to monitor and mitigate the associated risks may not be effective in reducing our credit risks.
+Added: Nevertheless, unanticipated credit losses could occur and during periods of economic
+Added: downturn in the global economy, our exposure to credit risks from obligors increases, and our efforts to monitor and mitigate the associated risks may not be effective in reducing our credit risks.
We use a risk rating system to evaluate projects that we target.
6 unchanged sentences
Interest rate risk is highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control.
−Removed: We are subject to interest rate risk in connection with new asset originations and our floating-rate borrowings, and in the future, any new floating rate assets, credit facilities or other borrowings.
+Added: We are subject to interest rate risk in connection with new asset originations, as increasing interest rates may reduce the demand for our investments while declining interest rates may increase the demand.
+Added: We are subject to interest rate risk in connection with our floating-rate borrowings, and in the future, any new floating rate assets, credit facilities or other borrowings.
Because short-term borrowings are generally short-term commitments of capital, lenders may respond to market conditions, making it more difficult for us to secure continued financing.
1 unchanged sentence
We face particular risk in this regard given that we expect many of our borrowings will have a shorter duration than the assets they finance.
−Removed: Increasing interest rates may reduce the demand for our investments while declining interest rates may increase the demand.
Both our current and future revolving credit facilities and other borrowings may be of limited duration and are periodically refinanced at then current market rates.
5 unchanged sentences
If interest rates rise, and our fixed rate debt balance remains constant, we expect the fair value of our fixed rate debt to decrease and the value of our hedges, if any, on floating rate debt to increase.
−Removed: See Note 3 to our financial statements in this Form 10-Q for the estimated fair value of our fixed rate long-term debt, which is based on upon the terms of comparable debt that could have been borrowed at the date presented, at prevailing current market interest rates.
+Added: See Note 3 to our financial statements in this Form 10-Q for the estimated fair value of our fixed rate long-term debt, which is based on upon observed transactions for those assets in active markets.
We have $5.6 billion of debt with either fixed rates or which we have hedged pursuant to strategies described above to hedge floating rate debt.
−Removed: We have no debt outstanding as of March 31, 2026 with unhedged variable interest rates.
−Removed: Accordingly, an increase in benchmark interest rates would not increase the quarterly interest expense related to our variable rate borrowings.
+Added: We have $278 million of debt outstanding as of June 30, 2026 with unhedged variable interest rates.
+Added: Accordingly, an increase in benchmark interest rates of 0.5% would increase the quarterly interest expense related to our variable rate borrowings by $348 thousand, while a decrease of 0.5% would lower the quarterly interest expense by the same amount.
Such hypothetical impact of interest rates on our variable-rate borrowings does not consider the effect of any change in overall economic activity that could occur in a rising interest rate environment.
12 unchanged sentences
The performance of renewable energy projects that produce electricity or natural gas can be impacted by volatility in the market prices of various forms of energy, including electricity, coal and natural gas.
−Removed: This is especially true for GC utility scale projects that sell power on a wholesale basis, as BTM projects compete against the retail or delivered costs of electricity which includes the cost of transmitting and distributing the electricity to the end user.
+Added: This is especially true for GC utility scale projects that sell power on a wholesale basis, whereas BTM projects compete against the retail or delivered costs of electricity which includes the cost of transmitting and distributing the electricity to the end user.
Projects in which we invest, or in which we may plan to invest, may also be exposed to volatility in the prices of environmental attributes which the project may produce, such as renewable energy credits (“RECs”) or renewable identification numbers (“RINs”).
−Removed: Although we generally focus on renewable energy projects that have the majority of their operating cash flow supported by long-term PPAs or leases, many of the projects in which we invest have shorter term contracts (which may have the potential of producing higher current returns) or sell their power, energy or environmental attributes in the open market on a merchant
−Removed: The cash flows of certain projects, and thus the repayment of, or the returns available for, our assets, are subject to risk if energy or environmental attribute prices change.
+Added: The cash flows of certain projects, and thus the repayment of or returns available for our assets, are subject to risk if energy or environmental attribute prices change.
+Added: Although we generally focus on renewable energy projects that have the majority of their operating cash flow supported by long-term PPAs or leases, many of the projects in which we invest have shorter term contracts (which may have the potential of producing higher current returns) or sell their power, energy or environmental attributes in the open market on a merchant basis.
We also attempt to mitigate our exposure through structural protections.
17 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.