Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) continues to be an exercise in patience and frustration for shareholders. The idea here is sound, invest attractively-priced capital into a variety of infrastructure projects that throw off cash flows that can be returned to shareholders later on as dividends. While that sounds great and companies like Brookfield Infrastructure Partners (NYSE:BIP), Macquarie Infrastructure (NYSE:MIC) and numerous midstream energy companies have used this basic outline successfully, companies have to actually invest and acquire assets for the model to work.
I will immediately acknowledge that it's important for FTAI management to acquire the right assets and not just acquire whatever assets it can right now. Still, expectations for distributable cash flow have plunged over the last 18 months as the company has been much slower to expand the assets under management than expected. I believe these shares are still undervalued on the basis of what the company has done with its aviation leasing business and what it is in process with at Jefferson and Repauno, but this is really only suitable for aggressive investors who have the patience to sit tight during this protracted ramp-up period.
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With Fortress Transportation, It's About The Finish Not The Start