Attractive Asset Portfolio
InfraREIT holds $1.4 bn in regulated electric Transmission and Distribution assets as of December 31, 2016. Our transmission assets comprise approximately 75 percent of our rate base. These assets have an average life span of 40 years, and their average age is less than five years.
Reliable and Visible Cash Flow
All of InfraREIT’s revenue is driven by its regulated asset base. Rates for utilities are set by the Public Utility Commission of Texas (PUCT) and are paid by high-quality counterparties. Generally, REIT revenue is governed by multi-year leases with tenants.
Strong Track Record
InfraREIT has increased its rate base from $60 mm in 2009 to more than $1.4 bn as of December 31, 2016. It has successfully developed five segments of Texas’ Competitive Renewable Energy Zone (CREZ) transmission system, closed acquisitions and completed a rate case with PUCT under the REIT structure.
Constructive Regulatory Environment
Texas has a constructive transmission and distribution regulatory framework that is supportive of critical infrastructure investment.
The REIT structure enables structurally advantaged cash generation and supports InfraREIT's ability to return capital to investors. The InfraREIT management team and Hunt are aligned with the shareholders.