InfraREIT, Inc.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2019 10-Q, filed May 2, 2019. Its latest SEC filing is a SC 13G/A from Feb 12, 2020.

The sections below describe the company as of the FY2018 annual report.

What Did They Do?

Owns and leases electric transmission and wholesale distribution assets to Sharyland, a Texas regulated electric utility.

How Did They Make Money?

Sharyland pays scheduled base rent under the leases; some leases add rent when its revenue from leased assets exceeds annual thresholds.

FY2018 revenue

Who Were Their Customers?

Sharyland is InfraREIT’s tenant for all its regulated assets; it provides transmission and wholesale distribution service to other utilities and collects revenue through rates approved by Texas regulators.

Did Revenues Turn Into Profits?

Yes. It kept 31 cents of every revenue dollar as net income in FY2018 and turned 28 cents into free cash flow.

Operating income, FY2018

61% of revenue

▲ +109% vs FY2017 ($58.2M, 43%)

Net income, FY2018

31% of revenue

▲ +401% vs FY2017 ($12.3M, 9%)

Free cash flow, FY2018

28% of revenue

▲ Now profitable vs FY2017 (−$66.9M, −50%)

How Were They Changing?

Since the FY2018 annual report

Latest quarter: Q1 FY2019, the three months to Mar 31, 2019

Net income: ▲ +7%; vs $12.9M in Q1 FY2018

May 16, 2019 Oncor completed its acquisition of InfraREIT InfraREIT merged into an Oncor subsidiary and ceased to exist; Oncor took the Central, North and West Texas transmission assets, while Sharyland took South Texas assets.

Grew. Revenue grew 33% in 3 years, from $151.2M in FY2015 to $200.4M in FY2018, about 10% a year.

Asset mix The older report described a portfolio with distribution lines and electricity delivery points; the latest says retail distribution assets were exchanged for transmission assets, leaving transmission and wholesale distribution assets.

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