Palisade Investment Partners – Private Infrastructure & Real Assets

Transcript

Why does Palisade focus on investing in mid-market private infrastructure?

There are three key reasons we favor the mid-market.

First, entry valuations: we can typically acquire assets at a discount compared to the large-cap market. Buying at 12–15 times earnings instead of the widely publicized 25–30 times allows us to create value from the outset.

Second, value creation: we take a hands-on approach, actively working with management to enhance operations and drive performance, leading to greater returns.

Third, incumbency: as one of Australia’s leading mid-market infrastructure investors, we have a strong portfolio of assets to build upon, creating additional value through strategic expansion and synergies.

What is an example of a portfolio holding that exemplifies the Palisade investment approach?

The Sunshine Coast Airport stands out as a prime example of how Palisade creates value. Although owned for eight years, it remains a significant success story. We hold a 99-year lease with the Sunshine Coast Regional Council and own 100% of the asset.

A key transformation was our $300 million runway extension, allowing larger aircraft to land and expanding the route network with airlines. Given the Sunshine Coast’s rapid growth, we have doubled annual passenger numbers from under 1 million to 2 million in just seven years.

Beyond aviation, we have unlocked additional value through ancillary revenue streams, such as optimising car parking, renegotiating rental agreements, and leveraging a substantial property bank. This diversification reduces reliance on airline traffic and strengthens the airport’s long-term profitability.

What is Palisade’s outlook for the infrastructure sector in 2025?

Looking ahead to 2025 and beyond, Palisade anticipates a highly favourable market with compelling investment opportunities.

We are expanding one of the largest renewable energy platforms in the country, growing from 1 gigawatt to 4 gigawatts within the portfolio over the next five years. To enhance returns, we have assembled a development team to engage earlier in the process. This strategy extends beyond Australia, with active investments in the U.S. as well.

As a mid-market investor, we focus on regional fiber networks rather than hyperscale digital infrastructure. In the U.S. Northwest, we are consolidating fragmented fiber businesses into a single platform, capitalizing on the growing demand for connectivity.

We also continue to strengthen our portfolio across transport-related logistics, regional airports, and portside storage assets, with ongoing opportunities for expansion.

Palisade recognises in 2025 the critical need for affordable housing, so we have partnered with Mission Australia to develop social housing projects by leveraging government-backed revenue streams to support community and environmental outcomes.

With a favourable supply-demand balance in the market, these themes present investment opportunities that align with long-term growth and sustainability.

This transcript has been edited for written clarity.