Saturday, July 18, 2015

Seeking Alpha: Fortress T & I : One Of The Newest Infrastructure Options

Infrastructure investing is a reasonably hot space now, and one of the end results is more investment options for the regular investor. Fortress Transportation and Infrastructure (NYSE:FTAI) isn't a brand new company, and the investment team behind is most definitely not new to infrastructure investing, but it is a newer kid on the block, and its recent IPO gives the company more financial ammunition to build its investment portfolio.

Relative to Brookfield Infrastructure (NYSE:BIP) and Macquarie Infrastructure (NYSE:MIC), I think there's more risk here. The larger pool of uncommitted capital makes it quite a bit harder to model future revenues and cash flows, and the company's involvement in offshore energy and crude terminaling seems to me to carry more market and execution risk. That said, a mid-to-high teens return on investments (at the lower end of management's target) would work back to a fair value of around $21 today with a mid-single-digit yield in the same ballpark as BIP and MIC.

Read the full article here:
Fortress T & I : One Of The Newest Infrastructure Options

No comments: