Macquarie Infrastructure Company focuses its efforts on owning, operating and investing in a diversified group of infrastructure businesses that provide basic, everyday services in the United States. These businesses typically have sustainable, growing long-term cash flows due to consistent customer demand and strong competitive positions.
The strong competitive position these businesses hold are the result of many factors, including: high initial development and construction costs, competitors’ difficulty in obtaining suitable land such as suitable land near or at airports for parking facilities or FBOs, required government approvals which may be difficult or time-consuming to obtain, and long-term exclusive concessions and customer contracts.
Additionally, infrastructure assets – especially those newly constructed – are usually long-lived, require predictable and manageable maintenance capital expenditure and generally aren’t subject to major technological change or rapid physical deterioration. This built-in sustainability and predictable income allows infrastructure assets to support more debt than other businesses, resulting in increased returns to shareholders.
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