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Fortress Transportation and Infrastructure Investors (FTAI)

Participants
Alan Andreini Investor Relations
Joseph Adams Jr. Chairman of the Board and Chief Executive Officer
Justin Long Stephens, Inc.
Brandon Oglenski Barclays Capital
Devin Ryan JMP Securities
Christian Wetherbee Citigroup
Ariel Rosa Bank of America Merrill Lynch
Robert Salmon Wolfe Research, LLC
Robert Dodd Raymond James
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Fortress Transportation and Infrastructure Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the call over to your conference speaker today, Alan Andreini. sir. ahead, go Please

Alan Andreini

would Transportation welcome XXXX and I to earnings of the Fortress Infrastructure like you. all to you call. Thank third quarter

Executive our here and me today Joe our Joining are Scott Financial Chief Chief Christopher, Officer. Adams, Officer,

is open and listen-only Also, We press webcast. our this please being you download note release encourage mode not have is our if have that we investor you which to already on in an to posted and the presentation public website, done call so.

In including of non-GAAP directly call to addition, be discussing measures financial some most supplement. can we will FAD. be found during the earnings in comparable the those today, GAAP measures reconciliations the The measures

certain to the release I forward-looking be call regarding regarding disclaimers earnings. statements, our may We will over the future turn including out in forward-looking with encourage results. from quarterly materially like and report to and press statements statements are Before financial you uncertain non-GAAP factors that nature review the made filed our by statements contained actual SEC. risk presentation differ their These I in review measures today investor Joe, would the to and to and point

to call turn I Now, like would over to the Joe.

Joseph Adams Jr.

November dividend start The To based of public XXth on dividend $X.XX company XX. pleased share the as XX Alan. you, inception. of to November per Thank be a dividend shareholder consecutive and I'm call, announce on paid since our record our date will XXrd

$XXX.X million $XX.X of to of key of or XXXX Adjusted and for funds compared FAD, for million. available QX adjusted was distribution are $XX.X EBITDA XXXX and EBITDA of The for QX XXXX QX metrics us million

million QX in million XXXX $XXX.X in was QX of versus and million XXXX. of QX $XX.X in FAD $XX.X

was $XXX.X and this million paydown from million $XX.X negative During a of from the corporate from million happened which leasing aviation in minus quarter, and infrastructure which the revolver of comprised million $XX million our portfolio, other. FAD number includes quarter, $XXX.X third one-time $XX.X

cylinders. $XXX Strong gains million million let's In Now, from to drove excluding aviation. or turn utilization $XX.X annualized, asset hit on $XXX.X up million in QX. record all EBITDA QX, aviation of

of sale value engines gains aircraft million. produced $XX.X $XX of book with of million a the Second, X XX and

And investment us QX growth XXXX this pipeline new thirdly, our generate ahead. attractive continued allow and to will year in in

Run rate high investments in generally QX new QX, due that that leases QX EBITDA nearly increased engines. in XX% over of were made to on new came XXXX and utilization

of overhaul, this assets that EBITDA that were mostly contribution sold was quarter less $XXX,XXX than so or either Importantly, those we scheduled the sold assets quarter. for off lease per

QX, we bringing closed of over $XXX new in disposals. $XXX In QX, and million investments $XXX total investments $XX million of all of XXXX million for over and investments net to expect gross million

and EBITDA with ROE our targets, of capital of Profitability metrics XX.X% XX.X%. exceeded an invested to

XXXX, joint for products expected with year, commercial a to Repair launch first venture. Engine the Next promises aviation, the our Advanced be very from exciting of year

saving have and the many engine of these repair airlines our believe begun discussions of largest cost active is timing the with world proprietary in We introduction products perfect. with the

over Now, modestly grow while to expected is and an is over spending XXXX spending offshore continues XXXX let's signs next to anticipated still contributor the recovery. Offshore several show The industry, outsized generally offshore. to to upstream marine to turn and of oversupplied, be years.

good vessel utilization perform news as very converted And can market the high vessel us. being from which is into repair that well in inspection enhancement Pride for experiencing the stated, previously only well is intervention and, up, services. and well a charter going an rates XXXX such, intervention maintenance we are As is

and We the two booked received event a from covered a which in million was has loss total fleet third vessel now fully insurance. reduced cash casualty vessel our to $X three by Finally, as $XX gain. experienced million

The a to by compared barrels Canadian second quarter of XXXX, committed producer. quarter third growth highlights including volume XXX% large crude include third-party in Jefferson's

for supply expands be door crude will will first refineries ships also barrels export additional This regional for US in Those and export. Jefferson's and the markets reach Gulf globally Coast shipment customers. open onto loaded to the opportunities and

from in material all crude on second blending our with pay by for was rail. pipeline line, are, Canadian the three refinery the of operating to XXXX. brought supply connection Cushing Uinta Secondly, And in the half progress which which Jefferson pipeline Permian to made gives be inbound they access will projects, connection of barrels the and Basin and barrels and firstly,

Port to largest pipeline Motiva, is America to crude Aramco. owned North in who connection the outbound Saudi largest our Arthur refinery and our direct Second, and customer by

River thirdly, multiple is largest pipelines XXXX. refinery, with expansion the to us North the America connecting in undergoing Neches which in refinery Beaumont under Exxon's And become

resolved essentially Refined products permits have obtaining Mexico. and begin volumes expect Jefferson in receiving delays for in increasing to due Mexico to versus been These issues at was flat we shortly. QX to tanks largely new

offsetting Canadian WCS/WTI program marketing did the production levels to Alberta contribute remaining low positively continuing to Somewhat due limits. are these not due crude gains at crude spread

moves Going basis, is given opportunistic fine. volumes, only growth but a forward, expect we the to in just our committed that participate on in these third-party purely

EBITDA enabled in the rapid start. to the through pipeline Jefferson the With ramp about of coming by velocity terminal increased at products is the connectivity,

had ramping and railroad, Turning seeing million now operation customers. multiple $X.X is up as EBITDA Central we're QX the repeat car cleaning railroad in to The to $XXX,XXX XXXX. million $X.X of compared of of Maine-Québec and QX in the XXXX

projects, call begun at operational has now continue make Construction project expect liquids X. we rail-to-ship to the the of QX we to XXXX. we end of with be and Repauno, Turning good the to phase export progress gas natural what

take-or-pay active contracts and shortly. for agreements in we multiple three-year counterparties negotiations to those with sign expect We're

going and year. margin Additionally, realized of QX to the in annually, generating million butane $X with cavern a $X.X of operations are we between well million anticipate [indiscernible] this

$X million back in the on sand River, million part are Long flooding Turning year. QX due frac between to $X Ridge, this Ohio to operations a slow to for EBITDA track after large in on

fact, with exclusively In an use which of them the a radius. contract new requires companies with just Long largest agreed-upon we Ridge signed one to sand

construction plant is November We're The on than and pouring completing schedule piping concrete and the power budget on for have underground completion project with begun no The later remains foundations. XXXX. underway. set well

low Ridge gas cash of plan. The is environment is the million. power original And obtain cost EBITDA our plan plant to us presenting ahead to annual the price to line $XXX of lower with bottom is Long which opportunities relative projected even

have approximately infrastructure equity. conclude, which equipment, $X.X in jet is commercial billion million invested today, To $XXX and in we invested engines, approximately primarily

and investment with management opportunities. returns lots of high and leasing Engine is terrific a business sustainable

today jet market public to we reinvest so values monetizing business. market private meaningfully generate are the high-return are return infrastructure, and than higher in engine to On capital gains values, investments these

We underway, CMQ processes stages are and to in expect have have we Both the advanced interest well sales two XX% the in signed railroad plant. power soon. a and Long agreements Energy asset Ridge

Assuming will these look XXXX. monetizations market continue, conditions we infrastructure to more in

I that, Alan. turn back with call to So will

Alan Andreini

you Thank open now Q&A. you, Operator, the to call may Joe.

Operator

Stephens. our of comes [Operator And Instructions]. with first line question from Justin the Long

Your line now is open.

Justin Long

going start, last expand some And the if Joe, infrastructure monetizing forward. was assets around that point morning. wondering I Thanks. of potentially you on company's could good To

get a capital? would Could color mentioned how you market focus sounds you provide that for You be assets bit you $XXX your redeploying would to more would little these invested and aviation you today's that there, in those what feel assets. about you've think a maybe on could but in around primary get It million like love like thoughts.

Joseph Adams Jr.

is to total, going asset we've individually cost except not say that more in worth we've or really basis. values I'm in what question. every infrastructure asset – that in than project to I think Good our invested

expect to sell. I have we everything So, gains from

I aviation, take you all and about, you million example infrastructure, we XX% say pick a target if in which monetize an for billion from around was $XXX just in if that, invested been and So, some aviation we've consistently EBITDA reinvest we that of return our thinking is that achieving. as math $X what number,

well, And $XXX if and $X.X That's at million pick a probably times current aviation be to could $XXX at And have be in trade but would think, that you argue that billion add should least our of would debt. $XXX billion X. million an number, in that X you EBITDA. then the EBITDA. an portfolio, million if I EBITDA on So, $X.X you'd incremental multiple, probably higher

$XX So, the equity price. billion, a value stock would is which be $X.X

that's to kind try when an of – about of well, achieve, not could a sort So, that's end we think what we think point bad roadmap. I and

Justin Long

crude generation? to capable quarter, could mentioned rail sometime much you secondly, Great. was on cash Jefferson $XXX EBITDA other you middle of $XXX helpful. that is Is million rate expectation? of basis that how That's a still think that million year. versus run next your of around in of areas really related the I And share last And by

Joseph Adams Jr.

the by year, Yes. half I achievable do latter of believe next that's XXXX.

we've about for fixed of that barrels $XX $XX $XX think a with And – million million think you in terminal year If typically to when million about of million EBITDA. indicated annual generate storage, costs. the we Jefferson, starts I every

add were can first you X is even which storage. our then, amount the we're the that turns you is off EBITDA. So, end that what million incrementally of you barrels, at storage you XXXX, covering we costs do And where breaking the of increase get and of and

could to increase barrels of next than higher go significantly X of we'll X that. pipeline potentially then, the addition, that flows the this it million so, of velocity targeting through end in year, And with the end should and we with up connectivity, We're the product million terminal. And year storage.

the that I sort you to very how those of to blocks that's are million – think $XXX the So, get is building achievable.

between two-thirds swing the a going market rail refined probably products, be in But the crude big I other back out projects The towards there that products. crude one-third are it's terminal mix through by refined now couple could products. and think, and to

So, it's can't different just predict good substantively It's us. mix accurately the that not I to really that's a thing. and

the barrels out. shipping make make do storing we will them, we think then moving in and them highest by blending contribution Canada – from rail, then them by is I

full that you products might But could the you other times of four And products have so, Chinese a have that's could fees. menu you tank five the turn or tank the refined month. refined a businesses, and

good. all it's So,

Justin Long

Great. I appreciate the time.

Joseph Adams Jr.

Thanks.

Operator

line Barclays. Thank comes question Oglenski the with Brandon from And you. of next our

now is open. line Your

Brandon Oglenski

the Joe morning, aviation. I Joe, I to to wanted Alan. good come Hey, on guess back discussion and

job the decent the from know of portfolio, project? clearly a I with something scale about engine and are But mentioned also now. pretty us little guys that's Can joint a couple venture but, repair doing scope just a you about [indiscernible]. the your benefiting obviously, I this tell something more you up is that bit that think side. times come You on

Joseph Adams Jr.

Yes.

So, big mentioned, year as I that. for XXXX be a will

the to have talk improved, selling venture be is XXXX. about. available first to really broad expect products those I the market can which the in products airline out it on the we engine for remember, and focused We CFMXX the who of always And engine, that is, so it's joint

So, world. it's biggest in the engine the market

Just And two at different money some say and joint that. venture, put the we contribution, venture, things that to and at is a add can least But because upside, other lot way least – in make XX% we are of that we equity big have development first of a could can which in we the that the joint ways. own I there's to. of

owner, So, be the in – by near power – will covered will aftermarket engines future. words, as other XX,XXX contracts that the not in about there hour an the by be in

went visits a it's into XX% X,XXX capture historical that year. to And we So, market. about the assume could we that joint unreasonable on when precedent, of venture to X% shop the not represents based approximately

to no we that that produce means that joint visits and million $XX represents XXX per XXX additional supply in capital. and the on venture, our could shop service with $XXX that of margins between profits annum would of based million which out XX% and the interest between So, us

that's is million. one our is total investments pretty venture good. the which number So, [indiscernible] $XX joint in And

So, one. that's number

at of manufacturer, And words, we The for buy equipment do, is. the from the part with that we're the estimating visit. for cost. the right producer, agreement, from represents, the venture we In that the shop no price second profit, of off we per to way that we can list make shop original visit have markup manufacturer every million save is have products we other joint as that the $X venture those – money no joint

shopping for XX our if ticket annum. savings engines that's fleet of us another $XXX we're XXX XXX – is number per year, So, and engines million a

cost. So, $XXX from able JV $XX million at from million the to $XXX and million from owning to JV over the buy being

Brandon Oglenski

when on Joe. the proposed timing that, what's appreciate And or is going ramp timing this really I up? the to

Joseph Adams Jr.

in It will stages. be

in year would the we got behind think second have first then of first the the all we that, I the of of and have, half product available year, so half available in additional coming be then expect second the we've and the products the by to products product expect, to XXXX. we

Brandon Oglenski

Okay. Appreciate that.

I prepared can leasing of to advantage exciting. guess, guess really comments remarks we of IPO, equipment cycles when and Should a pretty significant or to aviation you going this becoming invest that and asset long company went here, values the your come when come infrastructure just and And take infrastructure then, pretty be do Sounds was end idea thinking across at see the role leasing still now up you forward? we playing an down. more is I of term

Joseph Adams Jr.

be fair. to know, I don't

not from people, higher than infrastructure values. today conditions that the market from market just public I that much think is and values private us, it of you other see many are the exist

and investments. again – of I this off our we good don't do make Whether company, repeat or So money in we'll know. infrastructure that

Brandon Oglenski

All right. Thank you.

Operator

our you. question Thank with And comes of Devin the JMP Ryan line from Securities. next

line now Your is open.

Devin Ryan

morning, Joe. Good Great.

Joseph Adams Jr.

morning. Good

Devin Ryan

First question.

some Canada little leak a saw and pipeline. around rail on bit the blow made crude Just announcement along and production statements out the Keystone on you by with WCS/WTI the at –

I'm at thinking the about by Jefferson all crude think along made so, implications of on you what And are and rail comments you're other Jefferson. you that the about how curious with implications just

Joseph Adams Jr.

which effectively And very being The and think years, I next crude is the by and most use the is over active the Alberta positive I've what crude Canadian It's rail said great. as see for three strong us. producers rail, to over – participants very market. by to encouraging for from four government rail the market industry

is mentioned, that. storage have a first I has have to time so, And producer. that the as in Canadian refiners we just having our happened. well-positioned addition position, took And we producer, which we're local that capture terminal a to

see I most three next coming do more as the of So, four over that years or people.

invest rail. hardware happen. been and diluent years hopefully, we XX I DRU. have And a made permanent mean of And up Beyond for supply of – mentioned, by the helping, And XX I but is going We're moving investing that, the end project developing yet, have year, that's in and, likely XX have be in to you'd a money permanent, a consumers the as crude recovery that to firmed producers to time which meaning time going a means very I progress. unit, encourage think to to by XX-year who DRU make because up take-or-pay. we and will sign not

the hazardous get not And you get is view, the classified it can benefit, you different added than that that also railcars, the point crude, use railroad diluent when the out not – rail then XXXJ. as rates of – take from becomes you means you crude has which of lower

out a What they're on short to the in think lot turn this a hear focused doing into I trying this to long-term really term. morning. spreads I to and XX effective But positive XX-year we're pipeline. it's XXXX, So, the now back

Devin Ryan

detail. quick the Appreciate follow-up on just then, CMQR. And a Great.

if give else provide Just detail for you. and there? helpful. little a and Thank where would you And maybe bit timing asset that can around anything the us can be potential more you sale stands

Joseph Adams Jr.

close. to stick I'm just to I going think

Devin Ryan

Okay, enough. fair Thanks, Joe.

Operator

Wetherbee comes with our Thank line you. next Citi. And from of question the Chris

Your line is now open.

Christian Wetherbee

the the in evolving comment mind. we the assets. the generate of scenario with some cash, and anticipate Do lease of guys. for to the terms sort our think on that? a to guess, how view these of of Hey, of having significantly sort about of been thanks. of split you monetization back Joe, from the of potential lot at to Good that maybe sort to of I like initial a a duration a infrastructure do of aviation balance having wanted relative aviation good That's infrastructure always term? generate lot morning, to come I the about sort appropriate infrastructure the

or Just not as about right that want I'm understand way. viewed is it changing if thinking to that's maybe make sure I the

Joseph Adams Jr.

No.

values feel And think I it credit we're stock from saying we the than public a the market lot EBITDA clearly, are infrastructure like of have of lot think doesn't private of values. of is from is we're for price yet. getting value our that, higher what what a market infrastructure, that given we don't that contribution

those numbers. the the flow aviation, So, to to turn playing we at value value. we're If cash around it highly be of just should with highly, into accretive were

current think take on determination. stuck would view way. not a we be It's what for years market of few one to it sort a just market be we final and made particular So, and of next environment haven't the what the then doing trying

Christian Wetherbee

think a terms potentially can Okay. maybe thinking in timing then, the connections, of contracting we No, pipeline? little Jefferson, fair. about about related be as And that's we how talk pipeline to you about should and then bit

Joseph Adams Jr.

pipeline a each customers, opportunity, of speak, so I would And one those additional we allow lot a to say then, up and pick projects anchor tenant, for lot of all not those say, anchor place in kind QX maybe the the in of should the – the of Yes. on I three We it. QX middle pipeline completed see of sort arrangements be will us and I already. think, in of said contractual contracted, fully volume. end And QX to one those in optionality, of have one of it's I but some having is each we in that have one business would additional and customer. in of way an year. around available an

Christian Wetherbee

Okay.

Joseph Adams Jr.

option. the have. want option. every people it's one now, our every And that important piece didn't puzzle we we have And because the of It's

We have excellent rail. written

truck. have We

Aframaxs we load we barges barges. we'll gap, XX can now, in can have have and can we so ship out in out. foot We pipe bring and And and water

Christian Wetherbee

helpful. That's okay. Okay,

Joseph Adams Jr.

pipe very in to hard it's for anybody someone, once to And you. you're wired by undercut

Christian Wetherbee

the very imagine back the of of products, been coming move expect that as those into in Yeah. expected a view just XXXX. relationship accelerate half you back I that's lastly we it? sticky offtake then, you comments year? on Obviously, to of Would at refined delay to how makes Mexico. terminal ramp first would to that making And That see begin in it's believe up understand. some sort in sense. Is volumes there's first certainly point. to your I you part sure next

Joseph Adams Jr.

Yes. being we're That's in Obviously, our expectation It mean, I kind letter But the not that get stuff that took every what final that those it's that told. decision. Mexico finished. that It's is – had customer's. to it's they four months happened. issues were of on. the facilities

told year. volume we're ramp should next So, that

refined the Today, product reasons of across for is XX,XXX to One which for running XX,XXX. the building a day. barrels is they flow, main river under to to about ramp that that pipeline the And have the – Exxon want. we're plan

Christian Wetherbee

okay. Yeah,

you this that sense. for Appreciate much Thank very time makes morning. Okay, it. the

Joseph Adams Jr.

Thanks.

Operator

comes our Thank the question Bank with of of Ariel Rosa from you. line next And America.

Your line open. is now

Ariel Rosa

Hey, good strong a morning, here. Congrats Joe. really on quarter

think to be little modeling Obviously, the as of terms from asset the asset up stability stepped maybe cash there's assets first generated Maybe of you little look sales sell basis. flows a talk from anything could you better a expect if consistent and which about we a a on standpoint side. on can fairly sense here the the portfolio So, bit us in – to give of about aviation you the you guys at how question. sales

Joseph Adams Jr.

the was and think, $X.X mentioned, a as previous had fleet book us. It end of I year value appraised calls, billion. – billion program the of $X.X was And will be value we regular at for I in

opportunity continue And so, and to prove as we an that out. see show gains that to

we And parts number a now. call, right then, quarter, the of in the engines. terms I of is shortage in lot in evaluating sold there mentioned And market of assets, this a of as last

are scrambling parts. people So, for

engine just that We And the so, could've of six them months we was parts. engine, that some shop, for sold we Like an for them engines instead and is was we a put million. that through the shop, ago, what we $X took worth run-out did putting million. $X through sold

represents today. – ever would over that's the and profit years the we XX probably from total that million So, engine that next $X make

So, turn hard it's to down. those

– it and but are look on of And what the so, yielding the will go portfolio those. see investments predict lower focus can't I But regular we'll program. at part the cash quantum, MO. monetizing through I then be our a the it's and

Ariel Rosa

Fair enough. just expect it be I to guess lumpy. we'll

just And there's activity are seems it little progressing so, things second how are kind on market so at other of how sometimes what maybe conditions you spending if CapEx could and question, bit saying on a because terms at deemphasized color an locations, like more but development maybe just that much the give Repauno. progressing and update there, you in gets there. us of you're kind just of guys And

Joseph Adams Jr.

Yes. well. question. going Good It's quite

I for being gas natural from As excellent. exported the States the liquids macro mentioned, is United

focused you've production production volume. continue we're and the Marcellus got really to So, rising volume on

there's lots and increased effective there's consumption very US really of increase or increased – little. volume So, in no

So, all water. that way has of its to find the to

so, sign And customers very about I as one mentioned, volumes. We're phase three-year to have with contracts. dialogue good looking, we

near the have started day middle through of before that a XXXX XX,XXX we some want we construction shortly. of have we do happen that. we flowing not barrels But the to expect in major terminal. be and probably the XX,XXX operational the preliminary to a between And should We contract – part with

volumes – then, engage customers And that. us is phase with additional is load which but to built which most from allow we way efficient will the we have caverns have to do export to profits to we that, two, that and can and two, after do we phase will gain VLGCs, about

on caverns. the So, design the that works. Very engineering that do we're confident actively continuing work to

a to just So, it's expect marching continue and we macro. forward all great

Ariel Rosa

do at could valuations. market along as public Maybe that a Joe. But kind That's that, maybe terrific – what private gap look what some and for last just you between valuations I is of update. esoteric, you I market And with that then, this these the EBITDA it's obviously, and seems, like and sounds stage that's in kind or more Long is maybe of farthest public market which Do kind that valuations? of of projects, they're whether yet that it not the the pipeline Jefferson, you think along essentially? but of stable on me, And for shifts it you balance between guess, Ridge even to Repauno one speculate attribute little generating XXXX. market just think obviously, private and at

Joseph Adams Jr.

stock parts the sold And owns shares building – Okay. captured reason somebody I to I start would last the the explain that. the to when rather an month – the article office office building LA day a There's that LA. in of to sort several the that I'll people about $X.XX. happening. in own and that with FT don't thought the I was a was in want article an what that of XX,XXX what read than to what REIT have investors an ago went stock think And of quarter happened is is that on down anybody was

is all and infrastructure. and the own want real the there of – investment So, people assets over to lots world

investors X%. So, assets. And funds looking week up infrastructure every Japan show in new that are new there's for and almost yields

great. X% So, sounds

some today, XX. cases public you between you values, to as private might between a the whereas trade that EBITDA think market in at XX XX private – the market infrastructure assets in might trade XX and I see stock times So,

the of other parts There question… are

Ariel Rosa

sorry. I'm ahead. Go

Joseph Adams Jr.

exactly. There parts are your can't other of I remember question,

Ariel Rosa

itself color. is That great

and of you're public that was maybe The more more really attributing of Ridge, other markets that's But as sounds the private at just and versus you at Jefferson it what materializes like gap dynamics if close. part Long to. essentially talking to stable maybe kind see markets about difference asking, the EBITA start you're

if – it so, regardless a in compelling way. And monetize like it sounds that you can that's opportunity

Joseph Adams Jr.

can spectacular are that a off adjusted they off And that – markets And adjustments go but actual EBITDA. when Yes. everybody people markets some to is shows do adjusted. and today, right assets EBITDA trade that's buying you call also, private good now tend out markets sell make public the and point actual, of adjusted what

at So, you you and could contracts potentially you could you sell without looking that. of have EBITDA, Jefferson if have at off adjustments, trailing

of markets So, the amount – the flow the based funds, differences, differences don't see be private slowing capital from don't raised I infrastructure to several – and being I between money public now and that seems right of sort there's down. and significant of that that on the

Ariel Rosa

Okay. That's great color. time, Thanks for Joe. the

Operator

you. question from Salmon Thank of Research. next And Robert line comes our with Wolfe

line now Your is open.

Robert Salmon

And see process little bit that Chris the revenue guys. on should how think service infrastructure to, are the in guess, is of kind continue morning, particular more thought there Joe, we different the business, the aviation the as to because, question. for if side required equipment I thereof. Good Hey. with between to – from shift streams FTAI's the a could of about infrastructure we dividend thanks offering investment away you two kind guys there more and the alluding play out of leasing, towards

you about if growth I'm you think how curious So, out, and longer-term? play – to guys get this dividend dividend a do

Joseph Adams Jr.

that as think up as sort well is works – same now, for it EBITDA of both reinvested aviation. I in took don't equipment approach the a policy. infrastructure right good would maintain in growth. the beginning our is as we're we of our to leasing. I XX% in to going XXX% and of The well obviously, And, And to to that be pay yield gives And model, minds we capital that So, as change. a the think FAD allows equity

be then in today that assets, have monetize if into EBITDA no – it's and assets we assets turn to monetize EBITDA those growth. So, more invest were going and to

Robert Salmon

to about out give thinking the there, Jefferson. at us it the timing should we CapEx? for all changed projected Clearly, to looking you XXXX? gears within bit in in that outlook short the there perspective. I from here, follow-up be a a growth with guess a definitely regard infrastructure at term, anything that little Can be update business or an the of Has shifting tailwind the the terms

Joseph Adams Jr.

bond of conclude No, offering close the launching that expect the mentioned fund Jefferson, soon. capacity, storage, yield additional that million with to I rail projects, all CapEx which this pipeline raise $XXX a call, be here fairly very would an XXXX as would we so for last we're would which additional incremental to of the funded for capital

Robert Salmon

That's Right. helpful.

internally noted still to that us relative of there. expecting give investment the a kind CMQR XX% felt prepared bit Can into were could event XXXX? or funding interest you'd closer you we as In on Should close. sale. like of of your generated kind remarks, a kind sale? that It little of be So, sense we that push XXXX the early the infrastructure

Joseph Adams Jr.

Yes. said both they're close. No, I

So…

Robert Salmon

All right, the time. I appreciate guy.

Joseph Adams Jr.

Thanks.

Operator

our line Thank you. Robert comes [Operator the next Instructions]. with Dodd And Raymond of from James. question

Your now line open. is

Robert Dodd

guys. about about couple A I if aviation, can. and then couple Jefferson Hi,

adjusted tying than third-party presumably WTI/WTS the your Canadian talking of kicking On going higher the about you're getting about $XXX go spread. run you're a of rather versus contractor in third-party crude long-term much marketing, contractor year, Jefferson whether next how kind second – mid when that side, EBITDA, in EBITDA maybe temporary come multiples with with half million the comment revenue from some of rate, is to

Joseph Adams Jr.

Right.

third-party assumption our business. from come now So, will is XXX%

so As only on do basis, the we'll program Canadian and I whether opportunistic. an will don't be know spreads what opportunistic and marketing mentioned, we'll the we be

in. we're taking not any So, of that

Robert Salmon

aviation, maybe it. here. Got on Then, get color it. Got

you get add not you if goes to portfolio the starting about which a JV, on the a visit $XXX for buy to run obviously think shop it. million With your a price Obviously, – year include $X That were you talk you engine. million. engine $XXX more them a next JV. sale right you of versus price you kind to is manage year? doing visits put engines cost can through capacity of – got contingency is engine, original to an How can it just got current to those the of whatever sell guess, is, yourself value does the value if on repair I can visit end that many have that per I and sell the shop cycle million purchase questions run going XXX% the infrastructure – that is cost gain the the visit the billion. live for engine the kind kind the million you've that. shop in $X actually You savings, shop could what's generating through the the average of get think bring on you yourself, of And you've about one now then

Joseph Adams Jr.

– do the Our JV to not current visits. is to It's plan the a is just product. way, shop by going

Robert Salmon

Right, right.

Joseph Adams Jr.

term. XX is visit. shop visits and a growth shop portfolio the of in own engines based assumption in XX our own. have that [indiscernible] we between on number That's our CFM probably But than year we'll near today a reasonable on

ultimately capacity advantage. an in could just a probably our we lower and think I XXXX. which I heck capacity today, a world, own that's we have XXXX we be anyone – CFMXX ambition else will, is our of our XXX the cost and engines if think than And

I an think opportunity is. how this, is at what Every it this time – big look at I'm and just I amazed

So, ago. this we four, started years five

it's going off So, program of these are the it selected. And coming that up those market anybody else all by be it's A the in programs it's stunning XX,XXX covered hour And happen really a I under for then. next couple power to years. and are was lot in size. engines grabs aftermarket. engines think don't of will these of the Like, doing

Robert Salmon

capital – to of the you required to right? in the terms – I XXXX you taking from get Got the it. visits shop talked And well don't would that, you've handle – much how in were past Got a taking reinvest [indiscernible], the as capacity – up which that have you X infrastructure engines, many factor of think, if it. you of to from talked do you On by longer to and the and apart visits could longer. that shop

Joseph Adams Jr.

a good That's point.

we've partnerships year, time last and lot shop the of about arrangements Over spent itself. thinking a on working and on the

align effectively parties multiple airlines, right small figure with to be and out that them manage major the shop way try visits to going conversations we now, able ourselves. will control that more shops all ourselves, to down have we so, and our such And to

some modules. about I've mentioned We shop how change visit really to and modules practice how as the to four engine ideas different also before is CFMXX a have

whole sit to it need for shop don't only you work – if have you so, the the six you module, And need one engine to on in engine to send don't need a months.

swap shorten out that could three You to module and a months. actually weeks six of instead

don't So, ourselves it, to to make control we importantly. can don't visits to and a that beholden be We manage shop whole on we both that parties of have third list that of that there incidents we want we're number sure control. working

It's actually a working priority our and So, on something on. list. very that's to-do question it's we're good

Robert Salmon

it. appreciate the you it. for color. thank I got Okay, And

Operator

call remarks. And today's I to Andreini back the further you. question-and-answer like now Thank Alan for this would to session. turn concludes any

Alan Andreini

in today's to call. Thank We forward conference you look participating updating after for QX. you all

Operator

gentlemen, concludes participating. today's this Thank for you and call. Ladies conference

You may now disconnect.