Fortress Transportation and Infrastructure Investors (FTAI)

Alan Andreini Investor Relations
Joseph Adams Chief Executive Officer
Scott Christopher Chief Financial Officer
Justin Long Stephens
Christian Wetherbee Citigroup
Devin Ryan JMP Securities
Ariel Rosa Bank of America Merrill Lynch
Giuliano Bologna BTIG
Frank Galanti Stifel
Robert Salmon Wolfe Research
Robert Dodd Raymond James
Brandon Oglenski Barclays
Call transcript
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Ladies and gentlemen, thank you for standing by and welcome to the Fortress Transportation and Infrastructure Investors LLC First Quarter 2020 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] Please be advised that today's conference is being recorded. [Operator Instructions]

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

Alan Andreini

XXXX I you Transportation quarter to Josh. the call. Thanks would Fortress and like Infrastructure to welcome earnings first

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

We an not have already and so. investor our our release on you have which download we if posted website, encourage presentation press you to done

being that this listen-only call is the to in is note open mode public and please webcast. Also,

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

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

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

Joseph Adams

Alan. Thanks,

to details, to I Before going into the groups. take thank a want moment two

First, have weeks. the for put to smoothly I they the want last six thank tremendous into functioning effort our employees over keeping FTAI

we made to much been primary our responded was remarkable. short has jobs concern and protect as your safety nothing you, procedures difficult. Your you challenge implemented The we more this have way of to

beat haven't of because a you. missed We and that's

than us way cases who helpful being extremely been many and a our taken just our XX out inspirational. you worked Directors more to myself, bring talented you it next behalf on have as years. in together qualities the I of and the level That It it's of lot shareholders. said, for and certain for shown is best can and the times toughest Board And to workforce want say you've seems all the of those if thank that

want and world all essential are The troubled hours healthcare putting make to working our safer group families, acknowledge risk incredible professionals, place. I and the great other a to themselves employees their are at who and first responders

courage never or you. been Your have dedication apparent. and Thank appreciated more more

Now mundane let's our the turn a I'm public XXth more and as pleased QX. and announce $X.XX to XXth start, inception. since To consecutive dividend to dividend dividend of company The our distribution. and for XX, May on share adjusted are will date EBITDA on May us record shareholder per be FAD a key The funds based or available paid metrics of XX. for

Adjusted $XX.X EBITDA of $XXX from gain XXXX XX.X% in Jefferson. gain figure $X.X of sale Long interest the and the the of interest of were the XXXX Ridge ethanol at million QX QX of XX% includes in noncore of and to a a XXXX $XX compared $XXX.X of million from XXXX acquisition of and the aviation venture remaining of joint our from assets that Note the million million. sale for gain $XX.X million QX million a QX

XXXX. and EBITDA QX On QX in excluding $XX.X million basis, FAD XXXX in a million QX XXXX sales, to $XX XXXX. compared or million these gains was million $XX.X and versus million QX adjusted was normalized million the XXXX in QX from in $XXX.X in losses $XX.X QX $XX.X XXXX

from XXXX. assets XXXX proceeds $XX.X other. QX assets, XXXX nonrecurring million $XX.X while includes million CMQR The FAD sale FAD number FAD proceeds sale $XXX.X in number the aviation for million was aviation million QX QX QX Ridge During XXXX $X.X leasing of sale compared of Long items, million first basis a corporate excluding from a $XX.X of the million and million QX negative assets. in interest $XX.X quarter portfolio, proceeds businesses our infrastructure normalized XXXX $XX.X in comprised of million FAD $XX of rail $XXX and in from of aviation the and million sale On includes FAD XXXX proceeds from and to assets. the million from XX% a the includes of $XX.X QX aviation

turn let's aviation. Now to

details Before overall Aviation, I market. go talk into aviation the let on me first FTAI about the

markets globally service. downturn Approximately disruption, and flights than result of any but long-lasting capacity As industry growing be high COVID-XX as cargo we chain XX,XXX daily are and very longer cuts. travel will dramatic demand in and prior unprecedented and will while people development. aircraft today as down disruptions of over again sit supply are passenger are a already some a is significant and and air Obviously result this by passenger an XX% parked deeper passenger air-traffic out of

markets a normalized to medium levels. to people passenger flying trip On while far the in take first domestic to XX likely resort most is our relatives visit likely back domestic more Austin to get markets When a home next in the international recover to long-haul X XX calls and months side, than from two-week to trip to certain, to scenario begin XX months a more again, the for flight Thailand. over

owners and equipment and all aircraft time Also by costs visits airlines cash extreme minimize cash. efforts, result and this maintenance period, part off their to ramp shop having generate recovery first as undertaking during of engines a will reduce unserviceable engines engine up green of conservation available burning and excess

virtually should engine we expect As every result, in a for leasing airline world. the increase to we

backdrop, of a XX% is cargo approximately as portfolio that with value, see By On and aircraft engine FTAI's XX% at engines engines, So XXX and and XX% aircraft we which positive. and and aircraft AXXX over and XX% XXX's narrowbody type aviation major portfolio composition. is basis, is XXX engines. aircraft is look let's an our overall

see large now expect to to recover. of this of talk let's segments. shortage in engines engine in and of of advantage likely models. increase to early these half number and costs very a engines year, will each shop over XXXX. VXXXX first and XXXs and the leasing we Also With workhorses and in visits prices available And domestic AXXXs CFMXX latter market and occur the the newer are of maintenance a a about low now also NGs fuel engine of airlines XXXX be fully material COs not potential

Cargo the historical and today aircraft are best-performing [ph] aviation rates of running high by very fleets segment high receive measurements.

accelerated. next for next over two minimum. likely expect many We low XXX a be also stay to the strong at will cargo be as four years to months to XX by XX the for aided and markets The retirement challenging fuel scheduled aircrafts XX will

engine which many strongly be the by passenger converted value, will these aircraft parked to However, be cargo and supported passenger market XX% is from of our freighter. of fleet will

any other. be our with extreme outsource our not terms. we leading lease to an drive engine proprietary all maintenance leasing for business practices favorable implementing in Overall, all relationships to airlines this products. price and engine portfolio aviation new crisis demand to trade flexible would with engine plan implement leasing, terms MRO us largest by world, and environment with negotiate new This cash see and services shop and airlines Also we facilitate additional for in low the a the enable will the accelerating conservation our world, company fuel value world's providing including

turn Let's now. the to numbers

of first $XXX XXXX of was million QX $XXX excluding million in and compared the QX million to For XXXX, quarter sales in annualized $XXX adjusted XXXX. asset EBITDA

on QX adjusted annualized compensation mentioned approximately lease As included $XX EBITDA XXXX income QX the return call, annualized of from million. XXXX

result as the In a due of year addition, revenue was to March normal grounding several in maintenance than of aircraft of this COVID-XX.

XX%. assets During yield of to QX million new on $XX.X and in of equity EBITDA and generate with noncore on proceeds. in XX% and million COVID-XX were able we we invested aviation impacting March, return investments aviation to closed sales which targets long-term harvest versus in XX% our our Even respectively generate XX% equity business $XX.X continue and

situation airlines assistance. capital. are have need the financial being will beginning a are by as negatively Many basis airlines avoided result order these coronavirus with opportunity historically and who we leasing investment a to raise now on affected sale-leaseback is aircraft to see One will

is Air are that example France announcement and perfect Our recent almost will a regarding fleet certainly happen. others there

the the products power proprietary leading Finally, great recently. strides goal market for developing by provider made engine of our practices, becoming CFMXX strategic and of aftermarket

materials venture for FAA joint of we which has hope product final first to the soon. to our approval Our submitted production very application in have

infrastructure. as predicted XXXX. Jefferson Jefferson, QX Jefferson during contributed we and Now call, in on EBITDA the XXXX to QX positively

Jefferson QX XXXX. generated to $X.X in million QX negative compared EBITDA QX in During and $X.X XXXX $XXX,XXX million of negative adjusted

storage by our QX refined positive volumes barrels reduction a volumes This million with coupled our quarter from by million million and contribution XXXX. driven increased XXXX. overall from by utilization the X.X businesses, at online our products XX.X were throughput core primarily a businesses that at the volumes offset Jefferson in of crude core from barrels, throughput up marketing volumes end was QX driven XX.X to crude went ethanol primarily an and of was increase The EBITDA businesses full in in discontinued The increased QX. barrels which in in

our of a seeing but materially instances Extended volumes volumes. we especially customers Canada, disruption lower COVID-XX rather result the are from Saudi-Russia where crude than shifting reducing prices and demand have some as our dispute are modes impacted

example. or us Our as via in Canada than taking largest importing to they informed ship rather recently crude rail Utah by from intend an intake customer volumes by

maximum a receive goal to pipelines months been rail, year to have long-term Our our always as provide or optionality online operational. fully products this our water, these we customers will pipe all via with modes truck, has and within or ship come

positioned [indiscernible] QX an By and expansion In a long-term existing exempt million and of debt tax long-term company of approximately additional to expense reduction future $XX the fund Jefferson refinanced to this, projects. debt debt. million new of we significant achieved interest this attractive all recourse doing of year access $XXX raised

compared debt rate X-year and on new XX-year new X% X and X retired bonds tax-exempt days both And as at of and X%. were debt priced to was Average X.X% bonds interest taxable X.X%. the substantially respectively, XX-year oversubscribed of and included rate priced the [ph] which debt average at

recourse to has approximately our reduced this debt XX%. capital all nonrecourse Importantly, total is which to to debt FTAI

market. dispute view problem, positive has our do destruction positive has we customers. ramp and created issues expect some be COVID-XX Saudi-Russia these notwithstanding at that, demand crude we current the manageable XXXX as and the but The so said more the importantly Having to EBITDA another in created issues and or Jefferson COVID-XX begun

customer build to We continue and out Jefferson problems. continue to solve

we our and projects the them customers been greater. been have with better array with relationships Our of are working on never never has

construction turn At Dock operations to and of Let's completing we which Phase liquids Repauno gas rail-to-ship our NGL X X offering. now construction export of natural completed our Repauno. are is

to due NGL the COVID-XX are both, but domestic at on takers off with refinery European demand working cutbacks and producers deals production are distribution down the slowing We process. and commercial

Hopefully putting markets advantage hoping we and other normalcy next combination return that quarter be of or we to XXXX. we in necessary markets and rail so to construction the and will start Phase two has in in in storage given of these storage the dislocated Once the to which process take deepwater liquids barrel negotiations, the place will to conclude the are commence granite X that unique the connectivity. underground of expect truck, of our East X operational commitments, Coast can meantime, in program million caverns permitting we contracts

leveraging opportunities. additional scale pursue business are capabilities and Repauno's we to multimodal Finally,

to we power handle transloading For and components the driving transloading example, wind power the large offshore and positioned wind growth become demand is a hub. for can is Repauno these believe movements development uniquely in

it to a business now transloaded. Ridge, frac in record of XXXX quarter for sand in was our volume total Turning QX Long terms

approximately sand a of Long run basis XXXX tons frac transloaded annually. XXX,XXX on or X.X QX tons During million rate Ridge

Ridge While our loading activity Long gained makes overall due Ridge in the which strategic decreased, the location provider our drilling region. share capability rapid the Long has low-cost to has and in basin market truck

data would high The developments on November construction of at budget to later from and other we looking premium time not industries facilities see short, The XXX% plants moving these capacity nicely. and be is power XXXX. and Long centers interest new Ridge. plant prices. Long level expect and than intensive a between operational along power power Furthermore, to on largest of XX% continue require In Long Ridge Ridge is cite to of we

expansions. cash from we positive flow Now now to in the has create expect ramp gotten four a has increasing year years consistently we year to conclusion, by work, the economic hard happened ago, to program what flow that infrastructure over cash being strong of expansion, it The prudent to and long-term after at EBITDA is financial we flexibility maximum Being began XXth for joined an FTAI. felt Starting a continue. aviation prepare in of infrastructure. of

for markets from down debt the of from table. to to our advantage taking cap by size and total about more to $XXX private infrastructure doubled obviously assets we We off in of took today we aggressive good million the XX% recourse that million profits revolver took ever recognized close capital those were we decisions. of to a feel taking XX%. We $XXX and that $XXX Sitting and million lot than here

industry a environment, difficult in now. Is in we this but any than environment came and if space. as infrastructure are the stressful especially but well Capital flexibility or Absolutely, not and prepared aviation into prepared any environment? leasing this firm financial better key important

conservatively do FTAI we if the as will gets always and marketplace remain industry We've and to will we be have so, and we that but so do we vigilant already worse. that started advantage run as we will setting prepared this continue to exploit in

lot a ourselves ago. have which started deleveraging levers pull, is position of and almost to exactly can the when processes in wanted We we we we a year infrastructure the sale put

we environment and well so. into this So we came remain prepared

call turn that, over Alan. the to back With me let

Alan Andreini

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


first Instructions] with comes Our Justin Long Thank Stephens. you. from question [Operator

You may question. proceed with your

Justin Long

morning. good Thanks and

the works. Joe, last other thinking stressed how France So circling multiple sizable in the league were this deals with quarter take near-term? deals type to sounded to the of can week, materialize there are The you in it was but there the in back this advantage are think you the market? announced just assets And more Air potential [ph] call that deal like of generally, about

Joseph Adams

Thanks a Justin. there. generation it’s it and see. Yes, in There to they deals looking are - I way refer every we do an is cash out more extreme every can. raise to Virtually as in moderate airline cash

And Air lease are at France backs have these point and equipment were like to you are attractive extraordinary of engine attached where older our from are very particularly buying it. us for its I and the is they So because sale flow buying. really you cash ideal know prices which it's these view you think deals very,

So they of one deal what some ways bit we're and along at that pretty looking a one least on, in There's than working kind we the little bigger at. is did were that's that's far just earlier they – are six that but then at very but airlines it's going better, stages I both everything. others beginning, looking discussion attractive. to very are months think And also are there's at probably in be

Justin Long

of secondly, this And lot environment under I energy the strategic if Make sense. to obviously has come at Jefferson. you wondering a any pivot causes was pressure. make

that range how the improve give transportation, zero, kind there us oil asset? level You to just sense by can about with modes your of should here close about and from potential for different don't of be go talked prices to the you the thinking movements but meaningfully that things EBITDA and if rail crude something we flexibility

Joseph Adams

from XXX. day. having I going come midstream gathering production XXX,XXX point one a refineries product pressure, And a bigger view, are in particularly they operating is to reasons of XXX,XXX next of and on a refineries, going we this assets in to barrels terminal because think of assets to a related. those is focused And is crude Motiva XX/X Yes of picture two that when really XXX brings are the day a barrels - - lot the gathering under of and from related in big they're bring just Exxon

always not well and any of next that they're decides case is you're flowing. going the the always produce product beauty not more. a to there's the That's So well if that

was apparent of and of and is point the that have think we strength terminals view vision very So now from gathering a very sort and always we're have we both of crude handle I that right don't our refined have pleased that we infrastructure strategic that products.

as originally the started that we what know you really rail because realized you diversifying that were in when and we away. focus we simply went recall, crude terminal XXXX And on by is

the we intermediate we to developed in we've the Exxon. and then products possibility have diversified jet export had and We've added bringing to relationship that by when you know also some oil fuel that's that And so, happened by Motiva for storing refined and it crude fuel water. plan for with with

and of as gives to opportunity well. So us it there's with needs our another potentially really that relationship add those with disruption is refinery on it about the players strengthen two going further and what's market, that the serving I diversifying customers. And think dislocation so two big much those the in and

important help this to actually I those us more strangely could So feel become environment that – players.

does the than profitable we more our plan. profitable when or as original ever market And been rebound, in be

clearly Now is year a contributor. crude this by rail

– end going run million we negatively So, we're of million Jefferson to something expected had to It's of maybe like so happen. not be EBITDA. and year to that's half that. going rate going going of $XXX to $XX to probably That's affect of be the by the

I diversifying and a said XXXX, when to longer refinery in up the position we're as term great adding pick and do in we're more But products and expands Exxon business.

positive. I net-net a little near it's as and bit, long-term said term So think but I think manageable I it’s negative

Justin Long

Very for helpful, the time thanks today.

Joseph Adams



you. Thank

Our Citi. Wetherbee question comes from next with Chris

proceed question. with may your You

Christian Wetherbee

guess out. morning comments specifically Maybe on to down picking going Kind products refined good exports, that for plays business see a just was, up the how Mexico of were seeing guys. there. you of one opportunities sort that curious thanks moment, Hey, Jefferson of the I guys

talked it’s about a products that demand there's but share in sense, perspective think market think I the quite you past. have bit, I a it's hard obviously a get to fine down opportunities guys from

a on that's playing give how of can update an out? So you bit

Joseph Adams

there pretty decline was market Exxon and disruption mean, think where is a now. Mexico when they was down, bit demand is well. of about a positive seeing some I started I as the Yes,

and So, last becoming over now increasingly there's and optimistic. of a I uncertainty, think but positive couple it's stabilized they're the little months,

As barrels. well, own they've there share their because system Exxon only PEMEX that's been use and down distribution able to really is pick one up built the market doesn't

in their premium own molecule, a market bring they more will the So pay values for it. which it and

Mobil for volumes stabilized. I They're people - they've and again. opening doing expect think and they driving, expanding when we brand up the And they've is term but will near grow, So the start well.

see I think is the way it. we

Christian Wetherbee

back And of for helpful. to that's pivoting they this, just utilization maybe Okay, there's sound okay, like of sort clearly big in business. a also the all of the so just but opportunities maybe then the hit, picture aviation understand trying to to rates some and potential interesting there's new some take

if maybe flow know sort take would can of this with face – months from that what again, you ago of the couple the we and invested But headwinds been versus of outlook XXXX deals because or a new some the you sense it's of have it don't from want happening like sensitivity of or standpoint. if for your market? the just versus EBITDA that us I So you challenging it cash a some of stuff some could now good net dollars to a in saw that's a year it give for maybe some yesterday around is generation

Joseph Adams

are have always But mean think we leases when fan with reserves, them. I revenue have doubt which of. big market. and challenging to you're they been we've don't a airlines importantly, collect going structured our I a suffer not is along to flying, there's I It that no maintenance

can is we with. million $XXX that deposit cash, you kind negotiate security of And security of So to we over which best in the form hold deposits have of get. the

and fact cargo better. we have think that the that So position makes I we engines have and our that

grounded flip probably this is the year, And seen. I But and And they're relatively to is $XX mentioned. deals will for $XXX have we're because, reasons that the effectively net-net every economics But cost best for cash. than think million the COVID-XX. then see see less we will the on again, companies world ever airline of leasing million impact scrambling all these probably this because think without that's I other are mean, the that maybe I negotiating ever us this I to what we'll of precedent side, in just

And visits that So, be mind in first. the fly really to said believe think the markets which will as best recover think they're phenomenal again, shortage to short you that actually do. also ultimately if because AXXX our terms are year. a the are of XXX people next we I I and not and believe in be will markets they these could be And we people then deals save doing cash, likely will very I

if historically couple airlines, frequently. with that fact engines you And very they didn't then that the lease

best the have or If you airlines of "one were largest engines. world" you the in wouldn't about the one leasing of talked

short will Now, everybody visit. I to think lease engines a avoid

and a confluence of could that of we sort targeted our way to XX%, in XX. that it's returns out end EBITDA EBITDA invest it up, unlevered So perfect that capital plays

I think the deals are numbers above we're meaningfully. doing those now

just So mentioned have can we think did to think, I other the there in I I pretty one other add, far later be what along, if and deal we opportunities in year. will we that's addition as

So year. $XXX it could - for investments biggest be year new million know this ever. we've million typically our investment of $XXX And per around done to you ironically,

this could bigger better economics. So and believe be I that

Christian Wetherbee


the time appreciate I you. color. helpful very this Thank morning. that's Okay,

Joseph Adams



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

with proceed question. your may You

Devin Ryan

Good Joe. morning,

up want So collection just maybe that pick to ended great here. some I color and where

position, and around take to guys know a tough for really moment yourself the capital. with You but quarters, historic clearly steps put moment few the taken you past in especially industry, a advantage over the aviation

some and just are will people the to others here. there, suspect left potentially and firm of together come kind trying I already the take you that that of some you've as deals off pipeline to capacity executed so, involved the think these And advantage of in where about see on

position to situation? advantage infirm whether capacity the selling to kind off about create try through other and this you accessing or can maximize options other of here your to capacity, be take means other how so to And more maybe of it assets capital think

Joseph Adams

mean, obviously choppy. month we're and Yes, looking I pretty hard the last markets were good question.

having So did we how this were of or we it? we do into options. multiple finance pause manage this to going how like and moments go But like are with we

We an which use. revolver undrawn have now can we

opposed many I We aircraft years a unsecured and our finance that fleet. We of market a in market $X.X to We ABF have unencumbered think ago the opted the secured great was many, to now starting have billion assets. as decision.

flexibility. that's So

then ideal And also then is definitely have assets, as market. I as some space there's time we obviously anything other to go aviation of we options the infrastructure. an funds sell raised still not next we But really you that and put infrastructure And on side sell - in on the can private that for billions the could here. there's see could the by month and have potentially cargo been monetization assets you mentioned, billions infrastructure, it's this that

of it. that And to ready, our you And are plant huge Long XXX opportunities the be potentially trillion stuff One, out data big infrastructure had three for on shovel have have out center inquiries. have have - gigawatt, one I build we then opportunity. power sites They're is Washington is projects data a as going centers looking build it's and to with we've bill. coming lots that their megawatts. and And Ridge, $X mentioned

than had we we're and think every week we're we before. thing. the And more looking So options not have I one any week to everything the more visibility wedded at is and answer

ways got that are like different fund feel attractive. like feel we think very many - deals I So to we we've

So we'll out. figure it

Devin Ryan

kind just that at Okay, the make of of just you of that over to relative and trying us kind terrific that we asset a about you. to position just infrastructure fund next the capital with color. ability can then correctly? if needs Thank the thinking development kind remind capital all the the level, just are And follow-up, to of year, sure

Joseph Adams

the - a so Yes, Ridge funded. XXX% only Long is really - the

There's under will we - This we're have do of once debt, an easy for opt we NGL just decided, so sudden X storage could had markets, if of some if project great available million it. know, like and really not we think Repauno, forward. You finance but Phase can site, build out think see in you market and the $XX it's operating crude you I to of of all that's the mint capital I construction. to we about have remaining that the we you money in off all go see opportunities a is going

opportunity is I a there's in not So manageable. think million an and huge, is business that very being $XX to benefit it is

already at I go So will debt we is then or the Jefferson, raise that through And funded at that think be either forward, doesn't that will to so basically all and require do. FTAI capital going ahead we've going raised Jefferson debt any we capital.

Devin Ryan

appreciate Joe. I color, the terrific. Okay,

Joseph Adams



Thank you.

with Rosa of Our next Ariel from comes question America. Bank

question. You may proceed with your

Ariel Rosa

Hi, good morning guys and strong quarter, all things considered.

in that infrastructure leasing years couple that between from shift something mix something between would about your said obviously you infrastructure if away want leasing appetite that's - would you So that or you I a spoken back. maybe targeted you selling for that have assets to that's XX/XX about questioning. to engine of guys consider, it what like and marketplace stay the on the of Joe, looks that line talk and

monetize what if on like those if just to do looks were little you So to - to the your some for more are look a thoughts what could potential those? color that actually assets, of the give you on and market

Joseph Adams

then it and mean, in three to at like would and it to see has recycle it up, as I Yes. said, that XX times would like we'd in XX we've We'd we EBITDA, trade to at EBITDA. to circumstances, philosophy develop XX build to - lease times, capital. sell certain general so five infrastructure that at XX to been And our times.

one have the properties we development in. So will at we of could invest each other opportunities

liquidation you we monetization say, infrastructure see start to sale doing again. or as divestment then know, and the from just So finish more don't going all it as of circle a full or over a

So to more I might there with many, this infrastructure, I big U.S. think said that that opportunity trillion potentially exists, opportunities do be $X and many the that. doing as

people few build many that people that in very that properties, So, cash lot develop. and There's infrastructure buy flowing the but stuff. mature of people world aren't there a

skill is think I knowhow set a the have that So we quite experience valuable. and and

So philosophy. really that's a

said back very an have few the it enormous today or wouldn't there or up M&A in environment, funds today, a an you of has but might been process investments I you in to tremendous private imbalance and a available. money and start of investments infrastructure do As raised who month in this be knows for infrastructure amount market normal two,

if people terminals in think invested you I and to now. wouldn't that that had now, necessarily was And you areas airports at rush look of right the or it, one do container

I So do, things of there for of expect very, as long. be in be very said, but process be to the very and way then a but could lot I that that that stay the think I valuable today, could I don't types wouldn't we demand,

Ariel Rosa

mentioned Sure. That detail $XXX an makes that from then I to a there. Thanks million could to for sense. think million lot COVID. there $XX you And that it Chris, of was of be about impact

to on where based out, for six you you that the kind a baseline to FAD that timeline understand, outlook an that million with I market. and hit if might $XX Is on aviation. from that rate, so, that you $XXX to is basically rate run that on recovery months relative mentioned do to view that assumption guys of provided domestic have have so settle million traditionally nine Just run saying to

that what looks out the uncertainties thoughts that like a market with lot obviously kind of latest of there? your understanding on there's Just

Scott Christopher

EBITDA normal. year invested that, onetime and if the in do to - capital I that's number a of of rate $XXX normalized be it's are targeted could have a we this Yes happens, XXXX that was back impact would fully rate we year. leasing the $XX And in quite is shortage, what of XX% run deals, about to this – possible it better million no year I there a be talking will we XXXX. And more to be and that expect than run what balance for expect where engines million airlines

In lower most revenues not maintenance cases next year, some this and recovery it what going I expect the end. deferring year back doing you deferrals. you're put full on if is to a So revenues the upside rent so but you're have

it would totally So year. it's this effect not lost, have a onetime but

Ariel Rosa

I Got it. me. question from then last just understood. And

negotiation assume you hit You any would is Is the would that a deal lines about couple know, of and point guarantee we some saw deals mentioned there the in sort guys in presentation $XXX guys that yesterday? the under of this that deal million you safe Air or have of to do still France along I it development. obviously at think LOIs, have

Joseph Adams

we're with, do deal I sort we Yes, attached. revenue only would to going do aircraft we of possibly, could with mean, any

deal Air So an other working France and the deal the longer it’s to easily. side particularly on other three-year that. to than actually bridge the bit little we’ll we're like average And term us get a of is

aircraft those yes, engines So, in at any buy quickly. lease can pretty have we deal don't will we various time out revenue, that points but

strong. in particular, instance, and So, is as very mentioned, I like for market, freight the

fly tremendous that on demand and engines those Pratt CFX-XXCX for right have engines XXXs XXXX there's XXXs and we and now. So

we a few those this actually So quarter. of bought

lease, on to regular will we revenues but and buy deal with do only aircraft attached. in an inventory would So, we put it engines our

Ariel Rosa

makes Thanks Joe. for it, the time, of Got a lot sense.

Joseph Adams



Thank you.

with comes BTIG. question Giuliano from next Bologna Our

with proceed your may You question.

Giuliano Bologna

and a morning, on of aviation questions. I for side. my Obviously, Good guess jumping in taking the lot thanks there's disruption.

on the the to timing your JV. perspective get You’ve of mentioned

of second first You on the that's process. the initiative update part? approval in product there for timeline an mentioned Is the the

Joseph Adams

we're change. by expecting year. I the no this There's mean, still of end

that any in COVID impacted way aware been by yet I'm not have We of.

Giuliano Bologna

and if sounds the the tightens and deferring effectively JV maintenance putting about where Then are lot of do industry? parts that deferring end somewhere year market and run good. the back a or opportunity a engines the the them That in side, effectively back out opportunities end buying the engines the of to effectively a the going approval leasebacks you airlines having timeframe, on by there effectively or thinking some those be the and of kind sitting get year the of you're in lot towards on end other two the could on pretty first lowest costs set for could that's and of lot in out service of sale

Joseph Adams

question. a that's great absolutely, softball Yes, was

Giuliano Bologna

That makes sense.

Joseph Adams

to they even as that that world Totally biggest the we programs could prior leasing see care providing don't do had in engine big manage who, I the do airlines we'll said, shop do absolutely have ourselves. tone We conversations and airlines said, take and We fleets. with shop we to we've visits own And well own our the manage us now. our different of we see so that visits.

even joint they lease way. cost the we have make shop to we parts both that engines the airlines visit the venture money to manage and and We low then and biggest put don't can then in

it's, develop airlines position. as because think could it accelerate to plan said, ironically business actually are much our in I weaker a So I that the

Giuliano Bologna

business of to or a and deal kind everyone's do some leasing of some little think are the of sense. an of full events to the airline kind a would buy go at thinking lot make overhauls. a counterparties? to and Do strategically a lot where pressure as ever shop a shops provide a makes deferring associated overhauls more lot sort of obviously, of and it acquire try That the shop out going the a to package you and you under more of sense on in-house side, of with moment Then are maintenance

Joseph Adams

Yes, another great question.

full, mean concerned has I we was out. The were engines. things the opposite our no and over our wouldn't shops about. were We we've the of shops been one that are the the And having And I've have have having been for we been conversations. priority Well has year that are mentioned so that we maintenance one of very, more. happened. last concerns emptying

position totally now So we drive. different a to in are

get help mentioned that, shop, and it deal that And But about want sort MRO the to I buying MRO one us in of things too. with will a we of this I have an business. shop. think better really don't an much eat also cake our can hesitated We've is we be because

not want it, we better. everything get to that just a that we a but and MRO environment do with the I deal think I can own got think have an lot from that And arrangement.

we expect, area one along we'll So have months. we the few deal far over a we're that with party. pretty in And hope next

piece favorable, we're the So it's trying last and of I what would to put be it quite together. think

Giuliano Bologna

the questions sense. and a good That really lot I makes appreciate luck of guys. time the for

Joseph Adams



Thank you.

Frank comes Galanti question with next from Stifel. Our

You may proceed you’re question. your

Frank Galanti

I wanted talked investment last FTAI hi, power. months. revolver investors $XXX know to about But have down the a down concerned Yes were thanks. XQ about to in to you Joe went ask but million, looking pretty has I the I I about opportunity from liquidity. lot staying the $XX hear of cash gotten is better a balance of couple sheet. And from lot Largest concern XQ, investors at balance Obviously, materially million.

XX%. but at at you mentioned get up to that your about billion know What with that realistically ability corporate is to? $X.X you'd draw could your level, Looking unencumbered billion going the net I $X.X debt-to-cap to down? is that of limit assets,

Joseph Adams

that we have do with that. announced - XXX% we we indebtedness. just deal to The purchase can to fund secured No we the for ability debt money expect

at as we some said, well. asset I look can also to as manage that and So sales

XX company as So world under which feel of is something I the percent, in any think leasing the lowest aircraft - non-recourse think. leverage the I pretty down we've to XXs the brought good we

in got ourselves as it high where good XX%. a as increase got we've We position that. So, can we

and think program I we we, – began started the before ago. a year

did can the sale. say but asset and we also bound, maybe upper offerings would I we preferred last we year that's did So probably –

dynamic downgrade within is obviously pull BB spot there unfolds of And us. we this didn't we upgraded bounds. can Moody's year it's by and but that a like we with got we're feel sort to number manage deals, in they those So a of and as levers, to good

and the So, we feel good about the flexibility. capital structure

Frank Galanti

on do you're paying? juicy maybe Kind current – big the that to look space, that at common set that, is considering? of you something at following helpful. what to worth reprioritize that to dividend kind of in super aviation that's opportunity considering investment Great, And point want the

Joseph Adams

dividend, and dividend. story and in our paid always can we it pay of always the part We’ve was thesis investment

So the dividend. it the felt our that worse, but to could not environment important shareholders. that couldn't And don't that's say to it's cut we to we want get

And way I clearest out, won't that's of coming scenario think the is dividend. can sort express it's We it. I the posted I that to cut So the through. have laid

So be choice. that our would first

Frank Galanti

Okay, Thanks very much. great.


Thank you.

Rob Our question next from with Salmon Research. Wolfe comes

proceed may your with question. You

Robert Salmon

for taking the guys question. morning, and good Hey, thanks

can like that Air include lot of the obviously us Did the what a give the a deal? like LOIs kind looked May has called we France to followup And of changed since looked look you investments, sense the presentation? what would in that $XXX in if Just terms kind you X, have of aviation of the at the a would on But the out relative quarter. end that LOIs. the with million

Joseph Adams

the answer Scott, do that? you have to

Scott Christopher

of include that are Yes, France include alluded kind necessarily some portion on Air it doesn't that. does we other of the that to, still it, deals but working the of Joe

Joseph Adams

in that. But is Air France included

Robert Salmon

sense guys. market obviously, helpful give of sense the you the engines the kind us as are ability you Can the we kind And that portfolio. a you of industry sales and asset aviation guys timing seeing played were and so aviation out the the what, aircraft throughout we're to cargo a felt lot That’s just got kind of of monetize scrapping of of better where selling get the quarter? you of to how some pain a of the airline

Joseph Adams

Yes, for Avianca the asset biggest in the the the airframes of category the QX were sales from sale deal.

we remember engines. end Avianca you year. if So of And last from aircraft the for to XX of at were XX just engines bought targeted the those keep

the that always was deal. sold we of part airframes. the So And

biggest to part we was portion sales basically the That in want was QX. keep. just asset monetizing of of the it asset the the So that didn't

forward, have think to potential I aircraft some aircraft. freighter, mentioned, Going freighter we sell I some as the the into

we a that to do very that's sell. have strong And we some we may can given that, look So market.

aircraft. LOI an freighters. to couple a conversion, would to from but converted will do going to signed We've passenger be sell sell We're that not we of the the XXs

So is that for deal I a kind of year. would what this expect

portion a too, could You sell be we've maybe know, others the deals deal we the sort some way basis recovers we France and we it's do change or got. it one if two of do possible, what very market of the might to and - and those have a Air attractive of we

Robert Salmon

in was actually is the of up surprised engines well aircraft tick of lease quarter. off actually to is terms in aircraft. Got of sequentially number four much timing that year give as the the Can we've it. going to years average a didn't us duration of on - engines aviation year? in - of I book Can a is sense off like month-to-month And a of your us the terms the that businesses, you sense currently what lease terminations in first a give my be your kind more final - a kind and of of how of quarter little of what they question roughly some of current the three duration terms seen terms lease of as the roughly you what over look

Joseph Adams

the aircraft. fleet the up Yes, that we in have – was year comes about XX% of right? it for a Is

Scott Christopher

in around between and XX%. it's XX% Yes, XX,

Joseph Adams

XX%. to XX

expect people fly So they're to obviously to because going again, but they're short-term return that's them going what return is of on as engines leases, The - get that back. it's are the going available hard be not aircraft them to on them many all for people don't are engines all the side. to

of rush people we giving seen returning see don't haven't that. - we engines, So

CFX-XX and I lot. they're And for the in the passenger service. engines and a cargo. the aircraft engine in for you XX are XXX you're back have the the the for if AXXX, first demand engine engine the to then are those VXXXX, put those and CFM So a a XXXX that and for are going And XX and engines, flying and said, the as the Pratt engines

give those back likely engines So they're to not either.

it's stickier market. So a

then those up assets everything will time, fly take prolonged going I don't when everything. come people I'm on to if it's of just give general, if they'll and I'll return people it obviously, return why they'll don't a [indiscernible]. that's because long more it But know and - In say, back will and and just goes

Robert Salmon

I perspective and guys. stay well, Makes sense. appreciate Well the

Joseph Adams



Thank you.

may Dodd, Robert from Our [Operator Robert Instructions] question. next comes Raymond Dodd James. question proceed you with with your

Robert Dodd

what the impact terms the million for passenger deferral, aircraft I sticking the million business, you're that already etc, come think etc. not that of making adjusted yet, to How on and Hi, still of of many flying the engines? that aviation relief requests of or factored of kind on a a have those How many ones to that the do the $XXX And maybe incremental kind is negative you or seen front? terms, with lease more you you kind is of guys, into ask is expect in - already lot the [indiscernible]. or just because $XX of that visibility would that mean, there visibility simple? estimates that could are is

Joseph Adams

pretty already. Now, many some the much everyone negotiated of asked we've for and deals deferrals has

did came And up number, it that lease-by-lease. with we so, asset-by-asset, we when

And the gone portfolio. so through whole basically have we

much of But assumption and happen. will what what that will flying just not people an it's it's an It's - - So happened. mentioned, as QX. again I see in assumption what pretty we what QX has start has actually

would doesn't if happen change assumption. so that And that that

to are starting flying. China on do But countries flights. recovered are planning. has it most the Italy And and side. right flights that's seems now, what that many has added added that. increased actually people domestic has Vietnam

what the that reflects it what negotiations. seeing a or now, sure people L there told and but be people one U we're So But and happen, place this stop. whatever, many XXX% plans asset-by-asset right W it's no could an if we're forecasts putting back are are that many, to wouldn't starting and pretty out says is being in that comes there or much a or

Robert Dodd

do and others of I is that. have Got one do those this about typically the that off be you passenger but been responses a it. mentioned you obviously, cargo hoping to seems don't generation where there appreciate accelerating talked of or holding aircraft and of that the you've I some your other AXXXs But of could cargo get to freighters. going does the just operators. you be out where a about stories freighter right for so lease and willingness is them, in that, an does, now? higher Do and next what environment XXX to conversions, a to maybe engine that versus that mean, you're increasing kind think allocation to demand potential

Joseph Adams

engine on Well, plane about and is or doesn't beauty the go back care if engines passenger a it and can it's the freighter, a forth.

can again. a engine XXXs, freighter, lease one and some passenger an an to and plane instance, fly fly have go and from freighter and to for engine back plane So a we some then could passenger either you

the market with you're that's I reasons you not So of one because can stuck either business the engine and it. like serve

freighter airplanes. conversions I a People passenger taking planes allow think those or AXXX freighter. in systems Only there an taking that will fly putting - already. passenger be out seeing like in flights accelerating and to are in to the seats and are putting XXX are you're today

it's So is soak there and I freighter supply. more be lot of the shift to going some conversions sure weight a up and good. for and that's mean, of

Robert Dodd

I it. Thank you. Okay. appreciate Got it.

Joseph Adams



you. Thank

Brandon comes Our next question with from Oglenski Barclays.

You may proceed with question. your

Brandon Oglenski

thanks and morning, now me here. for good Hi, Joe in getting

percentage at quarter the to I be this and through third the Joe, this, point? expense second want of what will the paying actually lease, back to So revenue come just

Joseph Adams

carriers, paying Well, be they XX% I rents. I partial mean, we are and cargo, that and mentioned then flag XX% of will have

getting not XXX% you're the rent. So of

decrease XX% second see rent the in in to think going I like probably we're So that. quarter, something

Brandon Oglenski

terms out you mind mean, restructure I – sharing? of the if much actually the with don't is or and to how Okay, portfolio renegotiate reached

Joseph Adams

Well, negotiations already. as had much pretty to airline I every with said Robert, we've

asset-by-asset, So it's been lease-by-lease.

going and about not and not talk not has to to been assumed we've keep paying spoken nobody anybody So is just it.

Brandon Oglenski


those So visibility take that around do is it's $XX the I think France market, to guess cash finite financing I you're need of the I Air balance automatic your incremental going think with by that in like I you what options liquidity, there. some along now, especially coming appreciate right the what are million with correct? lines, deals some

Joseph Adams

Yes. at could wide secured and debt for a of And do deal. is I think open. that we're alternatives range looking that We market financing

Brandon Oglenski


Joseph Adams

easiest the range we're one a would of secured debt. be alternatives considering including that there's So

Brandon Oglenski

about is that even Okay. well? if the as of any table preferred on equity form What financing, markets in

Joseph Adams

volatile a but it’s Yes, a market, was good day. yesterday

So, today be, may yes. not but

Brandon Oglenski

have Okay. such that, And that to build comfortable then committed Jefferson one contracts the two you customers. I behind that do facility? CapEx I the will ramp on think, projects of my the of pipeline last out infrastructure, pretty your large on spending you that feel guess earnings

Joseph Adams

we Yes, do. yes,

to contract pipeline three-year before you the It built, converts deal had of we well. are as products when ramp and storage an the those was recall, expect and on the instance, if refined those get So pipelines jet was completed, additional have up. added Mexico also and And And think provision. for volumes we storage we then a to Exxon, then the we've built, a deal. Motiva pipeline the fuel to deal additional once when just business a it pipeline, a five-year is deal

Brandon Oglenski

a guys position, Okay but well, managing thank I you. appreciate through difficult you pretty

Joseph Adams

you. Thank


would turn I time. at over any like now you. back this Thank to not call any for And Andreini further showing further to the I'm questions remarks. Alan

Alan Andreini

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


Thank today's call. for Thank you you, ladies and gentlemen. participating. conference This concludes

You disconnect. may now