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Fortress Transportation and Infrastructure Investors LLC (FTAI)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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18.71-0.22 (-1.16%)
At close: 04:00PM EDT
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  • H
    Hillsdale89
    I emailed the FTAI investor relations folks today. They confirmed that the spin off is still targeted for late June.
  • M
    Matthew
    So the new company/spin-off (FTAI Infrastructure), is to take on $500 MM in new debt and $285 MM in preferred equity and this spin-off company lost >$42 MM in Q1-22.

    Sign me up...not. I get it that these banks are charging fees but this company is a dead, it just hasn't fallen yet.
    Bearish
  • F
    Francis
    FTAI print today of 5.1mm shares...any color?
  • M
    MichaelR
    The conversion and spin is confirmed. Stock is over-reacting today. Aviation alone is worth $35 based on ‘23 ebitda.
  • Y
    Yahoo Finance Insights
    FTAI reached a 52 Week low at 19.14
  • A
    Anonymous
    so what happens to the preferred with the spin transaction?
  • R
    RLK
    What's going on here?
  • J
    Jack
    what is going on
  • F
    Francis
    Spin should happen in the next 2 weeks and Aviation side should get included in the Russell 2000 rebalancing that will be announced May 6th. Good things coming
  • M
    Matthew
    Once the infrastructure business is spun off this company will actually have a chance at making a profit and shed the incredible amount of Debt from the jefferson terminal (granted it is very cheap government financed debt).

    Of course the Jefferson Turd has never been able to make a dime in profits but that's a detail.
  • H
    Hillsdale89
    FTAI received FAA approval for their new parts business. This should give them a greater share of this segment and positions them very well when the airline industry begins to ramp back up.

    When all this happens, look for an increase in the dividend as the business ramps up......probably a year off.
  • F
    Francis
    Why I LOVE this stock. Looking for 2-3x return over 12-24 months. Here is quick math:

    Aviation leasing- 285 aircraft and engines plus service / parts - 580mm EBITDA, 20% ROE, NO DEBT worth 9x or 5.22B
    Jefferson Terminal - Beaumont Texas-2.5mm BPD of oil refined- ONLY oil handler in Beaumont TX 100mm EBITDA worth 10X less 425 Debt = 575mm
    Repauno Port and Rail- 1630 acre seaport and logistics in Philly plus liquid storage and warehouse 15mm EBITDA worth 10X = 150mm
    Long Ridge Energy - 50% owned 1660 acre Port and Rail facility PLUS 465MW Power plant. 130mm EBITDA worth 10X less 575mm Debt = 725mm x 50% = 363mm
    Transtar- 6 Freight rail properties servicing US Steel and hooked to all 6 Class 1 Railroad Cos. 90mm EBITDA at 10X = 900mm

    Corporate Overhead 60mm at 10x = (600mm)
    So:
    Aviation - 5.22B
    Jefferson -575mm
    Repauno-150mm
    Long Ridge-363mm
    Transtar -900mm
    Less Corp-(600mm)
    Total Value -$6.61B over 98mm Shares = $67 / share plus 5.2% Dividend

    Near term catalysts:
    C-Corp conversion could happen next 6 months???
    Phase 2 Repauno FID happens any day.
    Aviation spin could happen 1H 2022 after COVID aviation market stabilizes. Pushed stock to $35 mid July last time discussed.
    Oct 27th Earnings - Growth across port.
    Bullish
  • F
    Francis
    FTAI - Please stop worrying and know what you own. 550mm of FTAI's EBITDA this year is Aviation related and ~5% of their aviation assets are in Russia. If oil stays very high that hurts air travel miles so there "could be" some weakness in their numbers. The Spin and conversion to C-Corp is a Capital markets transaction and relies on an Equity raise and Debt offering. As market Volatility stays high it gets a little harder to do Capital Markets Transactions.
    POSITIVES
    In my opinion these risks are GREATLY outweighed by the prospects for this stock and near term valuation. Planes can't put off maintenance for ever so we will make that $$$ back. The world is opening up post covid so when this Russia crisis calms down people will be traveling like crazy - great summer months. Our infrastructure assets are world class and very hard to replicate and inflation is great for these assets so I believe a deal will get done and we will no longer be a C-Corp which will unleash huge new audience as well as ETF funds for both stocks.
    Our stock pays a 5.7% cash dividend at current prices.
    I believe the Aviation assets at a market multiple covers the stock at current prices and you are getting the Infrastructure Assets for Free.
    My one year price target is still a DOUBLE from here.
  • M
    Matthew
    Will someone tell me why the company is holding on to its interest in Jefferson. The investment has never had a positive net income and the company's equity position decreased by $145 MM Yr/Yr...I know the asset allows for sizable leverage but if its clearly hemorrhaging losses each year and within one quarter the minority shareholders will have no equity left so FTAI will get 100% of the losses. I would hate to see the numbers if we accurately allocated the corporate expenses on this dog...its performance would be considerable worse.
  • Y
    Yahoo Finance Insights
    FTAI reached a 52 Week low at 18.81
  • M
    MichaelR
    This story is just starting. It has almost everything I look for: catalyst of C-Corp conversion, low valuation, reopen beneficiary, great mgmt, and under the radar. I’ll keep adding until above $50.
  • B
    Bulvan
    I can't figure this out. This stock has tanked and this article seems to ignore it
    https://finance.yahoo.com/news/btig-3-high-yield-dividend-144633240.html
  • A
    Andrew
    Preferred (A shares) are cheaper than the regular line. Reallocate to ftai-a. It’s cheaper than ftai with a much higher dividend.
  • N
    Nasdaq Picker
    I am a growth/value investor and just recently discovered this gem! Their infrastructure division delivers huge capital gains cash flow to the aircraft/engine leasing division for 25-30% EBITDA returns, what's not to like? Plus 8% dividend---are you kidding???
    Bullish
  • K
    Ken C
    Currently 85 million shares outstanding. 12 million new shares issued = 14% dilution of our equity.
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