Alternative Investment Awards 2016
www.wealthandfinance-intl.com 51 Infrastructure Trust, Inc. Company: CorEnergy Infrastructure Trust, Inc. Name: David Schulte, President and CEO Web Address: http://corenergy.corridortrust.com/ Address: 1100 Walnut St. Suite 3350 Kansas City, Missouri 64106 AI16051 CorEnergy CorEnergy Infrastructure Trust, Inc. primarily owns US infrastructure assets used by energy companies under long-term triple net participating leases. We invited the firm’s President and CEO David Schulte to tell us more. CorEnergy Infrastructure Trust invests in utility-like assets including pipelines, storage tanks, transmission lines and gathering systems. Our structure as a real estate investment trust (REIT) offers US and non-US investors direct exposure to energy infrastructure in a tax-efficient man- ner. CorEnergy’s objective is to provide stockholders with a stable and growing cash dividend, supported by long-term contracted revenue. For investors seeking access to energy infrastructure, their main option often comes in the form of purchasing units of an MLP. However, this type of investment also limits the type of investor who can purchase it (tax exempt accounts such as retirement, non-US investors and certain institutional funds are unable to invest in MLPs) and causes additional tax considerations, by issuing a burdensome K-1. As a REIT, CorEnergy issues a 1099 tax form, similar to investments in other corporations and can be held by all types of investors. We currently have three publicly traded financial instruments: convertible debt, preferred equity and common equity. Investors benefit from our management team’s expertise in structuring acquisitions and triple-net leases which provide stable cash flows on which CorEnergy bases its dividend. Lease agreements have base rents which are required to be paid, regardless of utilization, throughout the duration of the lease. This limits commodity price and volume risk, but a participating rent feature allows for CorEnergy to benefit from the upside of these two factors. Our structure is currently being tested in a stressed energy environment, however the criticality of our assets and the relatively low cost of our leases to operators supports our belief that our contracts will be honoured even in a bankruptcy scenario. Looking ahead, CorEnergy is still a relatively small company with a large opportunity for growth both on an asset portfolio basis and through an investor base. Therefore, providing investors with accessibility to information is key for us. As the first energy infrastructure REIT, there are many misunderstandings on how we are structured and CorEnergy is focused on growing our investor awareness and knowledge. It is our goal to have our stakeholders benefit in the growth of our stable divi- dend as we expand and diversify our portfolio. Best Real Property Asset Manager – USA & Best Energy Infrastructure REIT: CorEnergy Infrastructure Trust
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