Infrastructure Trust

DEFINITION of 'Infrastructure Trust'

A type of income trust that exists to finance, construct, own, operate and maintain different infrastructure projects in a given region or operating area. The infrastructure trust will also provide distribution payments to units holders on a periodic basis.

BREAKING DOWN 'Infrastructure Trust'

When evaluating an infrastructure trust, it is important to consider the trust's underlying holdings before making a purchasing decision. As with any trust, it is useful to determine the trust's intrinsic value by using any number of valuation techniques, including a discounted cash flow, or price/EBIT and price/EBITDA multiple.