InfraREIT Inc. on March 1 reported a 9% year-over-year increase in fourth-quarter 2017 adjusted EBITDA to $53.0 million, from $48.7 million for the same quarter of 2016. Non-GAAP net income was $30.3 million, or 50 cents per share, in the most recent quarter, compared with non-GAAP net income of $27.2 million, or 45 cents per share, in the fourth quarter of 2016.
Fourth-quarter adjusted funds from operations grew year over year to $42.1 million, compared to $38.7 million in the fourth quarter of 2016. The company's cash available for distribution rose year over year to $31.1 million, from $27.5 million in the comparable quarter of 2016, according to the news release.
The company booked a fourth-quarter net loss attributable to shareholders of $18.3 million, or 42 cents per share, in the quarter, compared to net income attributable to shareholders of $20.0 million, or 46 cents per share, in the corresponding quarter of 2016. The company attributed the decline to the impact of the recently passed Tax Cuts and Jobs Act.
On a full-year basis, InfraREIT's 2017 adjusted EBITDA was up 9% year over year to $168.8 million, from $154.3 million in 2016. The company booked $76.4 million, or $1.26 per share, in non-GAAP net income, compared with $73.3 million, or $1.21 per share, in 2016.
The company reported full-year 2017 adjusted funds from operations of $126.9 million, compared with $116.3 million in 2016. Cash available for distribution rose to $80.4 million, from $74.5 million in 2016.
InfraREIT posted 2017 net income attributable to shareholders of $12.3 million, or 28 cents per share, a decrease from $50.0 million, or $1.14 per share, in 2016.
The company expects to maintain its quarterly dividend of 25 cents per share and an annual dividend of $1.00 per share.
InfraREIT expects 2018 net income of $1.29 per share to $1.39 per share and non-GAAP EPS of $1.22 to $1.32.
Sharyland Distribution & Transmission Services LLC and its affiliate Sharyland Utilities LP are majority-owned by InfraREIT, a real estate investment trust, which is managed by a group of investors including Hunt Consolidated Inc. In the earnings release, InfraREIT said Hunt disclosed in a Jan. 16 filing its intent to evaluate and develop a "going private" transaction for InfraREIT that would require outside financing from one or more investors.
On Jan. 11, InfraREIT said it is considering terminating its REIT status and converting to a traditional C-corporation structure because of the effect on its revenues from the recent tax reform, which lowered the corporate income tax rate to 21% from 35%.
