HIFR

InfraREIT Inc

Finance/Real Estate


Presented:01/12/2016
Price:$17.12
Cap:$0.75B
Current Price:$21.11
Cap:$0.93B

Presented

Date01/12/2016
Price$17.12
Market Cap$0.75B
Ent Value$1.89B
P/E RatioN/A
Book Value$15.34
Div Yield5.26%
Shares O/S43.57M
Ave Daily Vol184,851
Short Int1.00%

Current

Price$21.11
Market Cap$0.93B
InfraREIT, Inc. operates as a real estate investment trust. The company owns rate-regulated electric transmission and distribution assets, such as power lines, substations, transmission towers, distribution poles, transformers and related property and assets in Texas. InfraREIT was founded in November 2001 and is headquarters in Dallas, TX.

Publicly traded companies mentioned herein: InfraREIT Inc (HIFR)

Highlights

A recent IPO, InfraREIT is the first and only REIT to own electric utility assets. The company owns transmission and distribution lines in Texas, representing fully regulated rate of return assets with little to no commodity exposure. HIFR was formed and is run by the politically connected Hunt family in order to house utility projects they have been building in Texas and elsewhere in the Southwest, with HIFR retaining the first option to buy additional Hunt utility projects as they come on line. The family continues to own about 27% of the company, and appears appropriately aligned with shareholder interests. The presenter regards the company as a one-of-a-kind vehicle that has effectively been orphaned as a result of the ongoing meltdown of various yieldco/ MLP securities in the energy space, the majority of which are overlevered and throw off uncertain cash flows. Cash flows, however, are far more certain in the case of regulated utilities. 

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