FTAI Infrastructure (FIP) 16th Annual Midwest Ideas Conference summary

Strategic transformation and asset sales

• Executed major refinancing, reducing holdco interest expense from $130M to $100M and improving cost of capital from 14% to 8.25%.

• Completed $1.5B acquisition of Wheeling, West Virginia short line railroad, expanding rail portfolio and diversification.

• Plan to sell Long Ridge, Repauno, and Jefferson assets within 18–24 months, targeting $1B–$1.2B in equity extraction and full debt repayment.

• Anticipates $400M–$500M EBITDA from rail business post-asset sales, aiming for a 15x multiple and minimal leverage.

• Repauno facility to benefit from underground storage permit, enabling cost-effective expansion and competitive positioning.

Operational outlook and execution

• Current annualized EBITDA stands at $184M, with $200M expected by year-end from combined rail assets.

• Wheeling acquisition expected to yield $40M in incremental EBITDA through cost cuts and new contracts.

• Management team has deep experience in short line rail consolidation, with a track record of high-return exits.

• John Giles, with prior success at RailAmerica, will chair the combined rail entities.

• Emphasis on patient capital due to development project nature and multi-year execution timeline.

Industry dynamics and acquisition strategy

• U.S. has 500 short line railroads, mostly family-owned, providing ample consolidation opportunities.

• Diversified short lines attract more buyers; concentrated lines are riskier but fit well into a diversified portfolio.

• Short line rail business is considered a monopoly, supporting strong pricing power and premium multiples.

• Major railroads prefer long-haul operations, leaving last-mile short lines to specialized operators.

• Potential for future sale of consolidated rail business to larger players like Genesee & Wyoming or Brookfield.