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.Â 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, competitorsâ€™ 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 arenâ€™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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