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Is InfraREIT Inc. (HIFR) A Good Stock To Buy? This Billionaire Thinks So

Let’s now move on to the company’s financial performance during the fiscal first quarter of the year. Unsurprisingly, InfraREIT delivered very strong financial results during the quarter, which clearly indicates that the company’s activities and operations are on the right track. Specifically, the company reported lease revenue of $29.3 million, which yields an increase of roughly 19% year-over-year. InfraREIT also reported a net loss of $35.9 million for the first quarter, which includes a $44.9 million non-cash expense suffered in connection with the company’s IPO. At the same time, InfraREIT reported a net income for the same period in 2014 of $5.0 million. Therefore, considering the fact the company incurred high expenses in relation with the IPO, it is quite evident that the financial performance of the company is very strong. In the meantime, just a few days ago, InfraREIT’s board of directors announced a quarterly cash dividend of $0.225 per share that will be paid on July 23, which shows that the company is confident about its finances and cash flow. Robert Pitts’ Steadfast Capital Management is among the largest shareholders in InfraREIT Inc. (NYSE:HIFR), owning 2.01 million shares.

We will now take a glance at the other two holdings of Griffin in related companies. The billionaire disclosed selling off a large part of his stake in Lennar Corp. (NYSE:LEN) during the first quarter, 4.19 million shares in all, decreasing the overall stake to 1.19 million shares valued at $53.62 million. Lennar Corp., which is one of largest builders of homes in the U.S., is currently seen as the most promising stock in the housing building sector. The company possesses an ROE of 13.19%, which is well above the industry average of 9.25%. At the same time, the sales figures reported by the company have been continuously increasing since fiscal year 2011, which allowed Lennar to beat analysts’ estimates during the last four quarters. Within our database, Ken Heebner’s Capital Growth Management is the largest investor in Lennar Corp. (NYSE:LEN), owning 6.78 million shares.

On the other hand, Citadel Investment Group increased its holdings in DR Horton Inc. (NYSE:DHI) by 4.98 million shares to 8.74 million shares, which are valued at $248.91 million. The stock has increased by nearly 5% since the beginning of the current year despite experiencing a significant slump in mid-April. DR Horton generated revenues of $2.40 billion in the first quarter of 2015, which marks an increase of 38.2% year-over-year. The revenue growth of the company also exceeded the industry average of 7.6%. In the meantime, the debt-to-equity ratio of the company is estimated at 0.73, which is below the industry average, indicating that DR Horton has been successful in managing its debt levels. Within our database, Odey Asset Management, run by Crispin Odey, is the third-largest shareholder in DR Horton Inc. (NYSE:DHI), owning 5.24 million shares, trailing Heebner’s Capital Growth Management and Griffin’s Citadel Investment Group.

Disclosure: None

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