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
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