InfraREIT: An Innovative Way to Finance

Infrastructure InvestmentJune 2015

The Elevator Speech: An Advantaged Financing

Vehicle for an Industry in Transition

Change in the utility industry inevitably takes time, but there is no

doubt that a fundamental transformation is underway

Coal, simple cycle gas, and nuclear retirements; renewables

expansion; distributed generation and smart grid

Innovation in all areas of the value chain will be critical for a cost-

effective transformation

1

The Opportunity in

Electric Infrastructure

The Analogue

The REIT Solution

The REIT provides an advantaged financing vehicle for

infrastructure investments

REITs established by Congress to create access for investors to

large-scale investments in real properties and related dividend

streams (while mitigating double taxation)

10+ years ago, this meeting might have focused on an innovative

structure called an MLP as an innovative financing vehicle for the

pipeline industry

Today, MLPs for pipelines are the established model

Discussion Topics

Company Overview

What Is A Transmission & Distribution REIT?

InfraREIT History And Business Strategy

Q&A

2

Introduction to InfraREIT

InfraREIT (NYSE ticker: HIFR) owns electric transmission & distribution

infrastructure assets, with a focus on the Texas market and the Southwest

InfraREIT’s current asset base centered in the Texas Panhandle, West Texas,

and South Texas

InfraREIT is an externally-managed REIT

InfraREIT has no employees; management services are provided by Hunt Utility

Services (a subsidiary of Hunt Consolidated) under a Management Agreement

Hunt Consolidated is also InfraREIT’s largest equity holder

InfraREIT’s Board is controlled by independent Directors

As of June 23rd market close, HIFR total equity market value of $2.0 bn and

total enterprise value of $2.6 bn

3

InfraREIT’s Asset Profile

4

Dallas

Austin

San Antonio

Houston

El Paso

Amarillo

Texas

StantonCeleste

Brady

McAllen

Railroad DC Tie

Service Territory

Panhandle Transmission

Railroad DC Tie

PanhandleTransmission

~75% of our rate base

~ 620 miles

Transmission

Operations Center

Railroad DC Tie with

Mexico (300 MW)

Distribution ~25% of our rate base

~10,500 miles

Over 50,000 electric

delivery points

InfraREIT (NYSE: HIFR) Ownership Breakdown

5

Founding Investors:

John Hancock

Marubeni

OP Trust

TIAA-CREF

100% = 60,593,728 common shares/units (1)

Other Investors(2)

37%

Hunt25%

Public Stockholders

38%

1) This reflects the breakdown of common shares assuming that all InfraREIT Partners, LP (the operating partnership) units have

been exchanged, one-for-one, for common shares, as of March 31, 2015.

2) Includes shares and units held by the Founding Investors, Directors, and current and former employees.

Discussion Topics

Company Overview

What Is A Transmission & Distribution REIT?

InfraREIT History And Business Strategy

Q&A

6

Real Estate Investment Trust (REIT)

7

First created by Congress in 1960

Treated as a C-Corporation by the IRS

Formed to own income-producing real property

Allows average taxpayers access to large-scale real-estate projects and a

source of steady income while mitigating double taxation

Over 50 million Americans own REIT shares (directly or indirectly)

A REIT must distribute at least 90% of its taxable income to shareholders

Distributions are deductible for tax purposes

Will pay tax on the amount of taxable income not distributed

Form of dividend includes different options, including cash, consent, and

stock dividends

At least 75% of the REIT's gross income must consist of rent, mortgage

interest, and real property gains; at least 75% of the value of the REIT's

assets must consist of real estate and cash

Asset Classes Eligible For REIT Ownership

8

Traditional and specialty REITS

Offices, apartments, warehouses, shopping centers

Hotels, healthcare centers, billboards

Mortgage/residential and commercial finance

Infrastructure REITs

Cell towers

Bridges and roads

Electric transmission and distribution

Gas transmission

Gas storage

Water, marinas, offshore platforms

InfraREIT and Sharyland – How We Operate

9

Control and management of the Lessor and Lessee are separated; the relationship

is governed by lease and contractual terms

The Lessor – InfraREIT

Owns the real property

Finance, Treasury, Tax, Investor

Relations, Corporate M&A

The Lessee – Sharyland

Operates the system

Operations, Construction,

Customer Interactions, Regulatory

InfraREIT Functions (The Lessor)

10

Owns the Real Property (transmission

and distribution power lines, poles,

conductors, transformers, meters –

collectively, the “T&D Assets”)

Leases the T&D Assets to Sharyland

Utilities

Arranges the equity and debt financing

for T&D assets and funding for new

construction, upgrades and replacements

Manages the interface with InfraREIT’s

Board of Directors

Oversees InfraREIT’s SEC filings and

interactions with public shareholders

Sharyland Utilities Functions (The Lessee)

11

Employs all of the people needed to operate the transmission and

distribution utility

Leases the Real Property

Owns the personal property

Trucks

Tools

Computers

Office Equipment

Holds the regulatory authorization granted by the Public Utility

Commission of Texas to operate the utility – called the “Certificate

of Convenience and Necessity” (CCN)

Sharyland is 100% owned by members of the Hunt family

Sharyland Utilities Functions (continued)

12

Operates the system as a whole

Maintains and repairs the system

Constructs new facilities, including upgrades to and replacements of existing

facilities

Performs connections/disconnections

Interacts with regulatory bodies and typical utility counterparties

PUCT

ERCOT

Texas Reliability Entity

Other Utilities

Municipalities within service territory

NERC

Manages insurance, property tax, state taxes and franchise taxes

Manages all regulatory compliance

FERC

REPs

Service Providers

Customers

Generators

Discussion Topics

Company Overview

What Is A Transmission & Distribution REIT?

InfraREIT History And Business Strategy

Q&A

13

InfraREIT’s Innovative and Distinctive History…

A 15 year journey from an Onion Field to $1.1 bn of Rate Base

Hunt established Sharyland in 1999 - the first greenfield U.S. utility since the 1960s

Private Letter Ruling approving the InfraREIT structure in June 2007

Railroad DC Tie completed in October 2007

CREZ project participation approved in March 2009

Cap Rock acquisition in July 2010

EIAA (legacy entity to InfraREIT) formed in November 2010 with an initial

commitment of more than $2 bn of equity capital

Began operation of a new Transmission Operations Center in April 2013

Energized CREZ project transmission lines and substations in 2013

Completed transition of Stanton Service Territory from SPP to ERCOT in December

2013

Railroad DC Tie Expansion completed July 2014

Completed IPO in January 201514

…Has Driven >80% Annual Growth Since 2009

15

0

250

500

750

1,000

Rate Base $ millions

2009 2014 YE

$60

$1,100

25%

75%

Distribution Transmission

InfraREIT has grown rapidly over the past five years

2014 Rate Base

InfraREIT Q1 2015 Highlights

Successfully completed Initial Public Offering and began trading on the

New York Stock Exchange on January 30, 2015

Strong Q1 performance, in line with expectations

Strong growth relative to last year in revenue, adjusted EBITDA, and CAD

Progress on major ROFO projects

Construction proceeding for the Golden Spread Electric Cooperative

Interconnection and the Cross Valley Transmission Line

Southline achieved Phase 3 status in the WECC Ratings Process with an

“Accepted Rating” and filed for a FERC declaratory order

Company reaffirmed prior guidance when it announced Q1 results:

2015 CAD per share of $1.07; quarterly dividend for remainder of 2015 of

$0.225 per share

10%-15% cumulative annual growth rate in CAD per share for 2015-18

16Note: For a reconciliation of non-GAAP measures to their most directly comparable GAAP measures, please see Schedules 1-3 included

with the Company’s Q1 2015 Earnings Press Release and Q1 2015 Results & Supplemental Information posted to the Company’s webs ite

(Infrareitinc.com) on May 13, 2015.

InfraREIT Q1 Performance Summary$ millions

17

Strong Q1 performance, in line with expectations

Cash Available for Distribution

$12.7

$18.3

Q1 2014 Q1 2015

+44%

Lease Revenue

$24.8

$29.4

Q1 2014 Q1 2015

+19%

Adjusted EBITDA

$28.2

$34.4

Q1 2014 Q1 2015

+22%

Note: For a reconciliation of non-GAAP measures to their most directly comparable GAAP measures, please see Schedules 1-3 included

with the Company’s Q1 2015 Earnings Press Release and Q1 2015 Results & Supplemental Information posted to the Company’s webs ite

(Infrareitinc.com) on May 13, 2015.

Disciplined, Multifaceted Pursuit of Growth

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Footprint Projects

(Funded by InfraREIT)

Hunt Development

team members

have an average of

15 years’ industry

experience

ROFO Projects

Growth Strategy Growth Drivers

• Population and economic growth across Texas

• Energy-driven economic expansion

• Generator interconnections to Panhandle

Transmission assets

• Specific Hunt T&D projects under construction

or in development

• Cross Valley and Golden Spread

Interconnection have approved CCNs and are

under construction

• Accretive M&A Transactions that build on:

• Hunt’s industry relationships and

reputation

• Expertise with REIT structure

• Future T&D projects developed and constructed

by Hunt

• Primarily focused on Texas and the Southwest

Other Hunt

Development Projects

Acquire other T&D assets

from third parties

Renewable Energy Development and Interconnection in the Panhandle

and South Plains (CREZ Project)

Connects high-potential renewables zones to the North and Central Texas

load pockets

ERCOT reports 6,266 MW of new capacity in the Panhandle that has

signed generation interconnection requests

The GSEC Interconnection (ROFO Project) connects to Panhandle

Transmission Lines

Economic Expansion in West Texas

Investment required to ensure reliability and meet identified customer

requirements

Midland County population grew by 30.6% between 2000-2013 and is

projected to grow by 16.4% between 2013-2023

Regional electricity usage has grown rapidly; significant unmet needs

Economic and Population Growth in South Texas

Sharyland’s McAllen service area and Railroad DC Tie benefit from strong

population growth in the Rio Grande Valley and expanding economic

activity on both sides of the Texas and Mexico border

Track record and relationships in South Texas contributed to Cross Valley

Transmission Line (ROFO Project) opportunity

Economic Drivers of Footprint Growth

19 Source: ERCOT, US Census Bureau, Texas State Data Center

Robust Pipeline of Development Projects

20

NV

CA

OK

TX

AZNM

MEXICO

Additional U.S. –

Mexico DC Ties

Additional South Texas

Transmission / Generation

Interconnections

Import capacity from

New Mexico and

Arizona to California

PJM and MISO

interconnection

ERCOT

Southeast Loop

Transmission

Line

South Plains

Reinforcement

NM

TX

AZ

NV

CA

M E X I C O

ROFO (1)

Project

Estimated (2)

Project CostExpected

Completion Status

Cross

Valley Line $160-$185mm 2016

Under

construction

GSEC Inter-

connection$100-$120mm 2016

Under

construction

Southline $700-$800mm --Draft EIS

Published

Verde $60-$80mm --In

development

Southline

Transmission

Project

Verde Transmission

Project

Cross Valley

Transmission Line

Golden Spread

Electric Coop

(GSEC)

Interconnection

Lubbock Power & Light

Interconnection

Under Construction Other ROFO Additional Development Opportunities

(1) ROFO projects are identified projects that are being developed by Hunt Consolidated, Inc. and its affiliates with respect to which InfraREIT has a right of first offer.

(2) The Company publicly disclosed this information on May 13, 2015, and is not updating or reaffirming it.

Robust Growth Targets (1)

21

Targeting a 10% - 15% CAGR of CAD /

share from 2015-18

Expect to achieve the lower half of

the range based on Footprint

Projects

Ability to exceed the midpoint of

the range through acquisitions of

Cross Valley Line and GSEC

Interconnection

Ability to achieve the top of the

range through additional Footprint

Projects or acquisitions

Cash Available for Distribution (CAD) per Share $ millions

$1.07

0.002015E 2018E

($/S

ha

re)

2

10%+

15%

CAD/Share

CAGR

(1) The Company publicly disclosed this information previously and is not updating it or reaffirming it in this presentation.

(2) Based upon a total of 43,565,495 common shares and 60,593,728 OP units outstanding as of 3/31/2015.

Attractive Asset

Portfolio

Stable Cash Flow

Strong Track

Record

Constructive

Regulatory

Environment

Efficient Structure

High-Growth

Opportunities

~$1.1 bn in regulated electric T&D assets (rate base)

Transmission assets currently comprise ~75% of rate base

100% of revenue driven by regulated asset base

REIT revenue governed by multi-year leases

Increased rate base from $60 mm in 2009 to ~$1.1 bn in 2014

Successfully developed 300 miles and 4 substations of CREZ

transmission system

Closed acquisitions and completed rate case under REIT structure

Constructive T&D regulatory framework in Texas

Texas regulation supportive of REIT structure

Ability to do interim rate filings minimizes regulatory lag

REIT structure enables structurally advantaged cash generation

Hunt is highly aligned with shareholders

Company has indicated that Footprint Projects are expected to enable

>10% CAD / share CAGR through 2018

Robust pipeline of right of first offer (ROFO) projects, other T&D projects

from Hunt and 3rd party acquisitions

Company has targeted CAD / share CAGR of 10% - 15% through 2018

InfraREIT Highlights

22

Discussion Topics

Company Overview

What Is A Transmission & Distribution REIT?

InfraREIT History And Business Strategy

Q&A

23

Thank You

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