GATX at Wells Fargo Conference: Strategic Expansion and Growth

Published 10/06/2025, 20:30
GATX at Wells Fargo Conference: Strategic Expansion and Growth

On Tuesday, 10 June 2025, GATX Corporation (NYSE:GATX) presented at the Wells Fargo Industrials & Materials Conference 2025. The company highlighted its strategic growth initiatives and addressed both opportunities and challenges. While GATX is optimistic about its recent Wells Fargo Rail acquisition and growth in India, it faces uncertainties due to tariffs affecting customer decisions.

Key Takeaways

  • GATX acquired Wells Fargo Rail assets through a joint venture, enhancing its railcar leasing capabilities.
  • The company is optimistic about growth in North America, Europe, and India.
  • GATX aims to maintain a strong balance sheet and return capital to shareholders.
  • Tariffs have introduced uncertainty among customers, affecting new railcar placements.
  • GATX’s engine leasing business, in partnership with Rolls Royce, shows strong performance.

Financial Results

  • Accretion: The Wells Fargo Rail acquisition is expected to be modestly accretive in the first full year, with more significant contributions anticipated later.
  • Capital Allocation: GATX focuses on reinvesting in its businesses, maintaining a strong balance sheet, and returning excess capital to shareholders. Dividends have been consistently paid since 1919, and share repurchases occur when excess capital is available.
  • Engine Leasing Investment: The joint venture with Rolls Royce plans to invest over $1 billion this year, with GATX directly investing around $250 million in engines, contingent on Rolls Royce’s production schedule.

Operational Updates

  • Wells Fargo Rail Acquisition: In partnership with Brookfield Infrastructure Partners, GATX acquired 105,000 railcars, with GATX managing these assets. Brookfield also acquired 23,000 cars and 400 locomotives, managed by GATX.
  • Fleet Management: GATX scraps 2,500 to 3,000 railcars annually, necessitating replacements.
  • European Expansion: Celebrated its 30,000th wagon in service.
  • India Growth: Currently managing 10,500 wagons, with plans to add 800 to 1,000 wagons annually over the next five years.

Future Outlook

  • North America: Focus on integrating the Wells Fargo Rail portfolio.
  • Europe: Facing economic challenges, particularly in Germany, with lighter growth expected this year.
  • India: Plans to expand wagon numbers and explore maintenance service opportunities.
  • Engine Leasing: Investments depend on Rolls Royce’s production schedule.
  • Capital Allocation: Prioritizing high-risk adjusted returns, especially in India due to its growth potential.

Q&A Highlights

  • Tariffs: Uncertainty due to tariffs affects customer decision-making, particularly in sectors like food, agriculture, chemicals, and autos.
  • Class One Railroads: Currently account for 14-15% of the total 1.6 million railcars in North America.
  • Secondary Market: High demand with robust buyer interest.
  • Renewal Lease Term: Average renewal terms are 4-5 years.
  • Auto: Fleet utilization remains high.

For a complete understanding of GATX’s strategic plans and market outlook, refer to the full transcript.

Full transcript - Wells Fargo Industrials & Materials Conference 2025:

Unidentified speaker: Okay. Well, thanks very much everybody and appreciate you jumping back in after lunch. We’re very excited to get back started with our transport and transport related track this afternoon. So we have GATX joining us to start off the afternoon. From the company, we have Robert Lyons, he’s President and CEO.

Very happy to have you back at the conference. So thanks for the support. And maybe the best way to start is to kind of kick it over to you to talk a little bit about the company’s sort of competitive advantages, how do you think you maintain market position, sort of just kind of where you see yourself in the market and the competitive landscape today?

Robert Lyons, President and CEO, GATX: Sure. of all, thank you for the opportunity to be here, and thank you all for attending and hearing the GATX story. It’s always nice to play a home game. We’ve been in Chicago for a hundred and twenty seven years. Started here as a railcar leasing company in 1898.

That’s still what we do today. I’ll spare you the details on the other intervening one hundred and twenty seven years, but we are focused on the railcar leasing market. We also have a sizable aircraft engine leasing portfolio and a container leasing business based out of The Netherlands. But the bulk of what we do is, as I mentioned, in railcar leasing, and our expertise in that market has been really honed over years. We are a full service operating lessor.

So we put the cars out on lease to our customers, over 800 of those here in North America. And whether it’s over a five or seven or ten year term of that lease, we have the cars that will meet our customers’ needs, highly diversified fleet, and we do the maintenance. A competitive advantage for us and a big differentiator. We touch the assets every single day, and that affords us a relatively deep asset knowledge on how those assets are going to behave over their thirty, forty year life, and something that our customers have come to rely on GATX for safe, quality, efficient service.

Unidentified speaker: So some news recently with the Wells Fargo Rail asset acquisition. So maybe you could talk a little bit about that, provide an overview of the transaction, maybe talk about what was the drivers of you guys executing here.

Robert Lyons, President and CEO, GATX: Sure. So yes, roughly a week and a half ago, we announced that in partnership with Brookfield Infrastructure Partners, we would form or had agreed to form a joint venture which will acquire all of Wells Fargo Rail’s assets. The joint venture is going to acquire 105,000 railcars directly, of which will be in the joint venture with GATX as the controlling partner and manager of those assets, and we have options to buy Brookfield down over a multiyear period. In addition to that, Brookfield is going to buy 23,000 cars and roughly 400 locomotives directly from Wells. Those are on finance leases.

That’s a bit of a different animal than what we typically do, but fits well within the Brookfield universe, and we’ll manage those too. And the opportunity there really is to fully leverage the platform we have here in North America. We have the best commercial and operational team in railcar leasing in North America, outstanding customer base, a highly diversified fleet, and we can add to all of that through the acquisition of this portfolio.

Unidentified speaker: So you talked about that option with Brookfield to kind of buy them down, get you up to 100% of the JV over So I guess, how do we think about that? So what are the what’s the value creation opportunity for you? What would be the trigger points that you’d look at to kind of execute on those options over time? So maybe walk through the structure a little bit.

Robert Lyons, President and CEO, GATX: Sure. So it’ll initially be a 70% equity ownership of Brookfield, 30% of GATX. And we have annual options which will allow us to essentially buy them down if everything kind of proceeds according to plan over a ten year period. So 10 options, if they actually extend longer than that to the extent we choose not to exercise one option, there’s cure periods. The benefit of doing it this way, of all, is bringing the partnership together, our asset knowledge, our operating expertise in the market, with many benefits that Brookfield brings to the table in terms of their relationship with Wells, which was very important here, financial scale, structuring capabilities, all are beneficial.

From our perspective, doing it in this manner allows us to control the assets from day one and control the portfolio from day one, but keeps GATX in a very flexible financial position. We want to continue to be able to invest in all of our markets, in Europe, in India, in aircraft engines, in our tank container leasing business. And through this joint venture structure, we retain that flexibility. We retain our credit ratings, our investment grade credit ratings, which all three agencies reaffirmed shortly after we made the announcement. So a lot of benefits on both sides.

Unidentified speaker: And like you said, if this plays out according to plan, it will get exercised sort of prorated over the ten year period.

Robert Lyons, President and CEO, GATX: Correct. Our expectation is that we will exercise those options and eventually take 100% of the ownership of the pool, but the key is we’re not obligated to. So if something transpired in the financial markets or in other, could it be in the rail market? Unlikely. But if something unforeseen occurred, we would have the flexibility to not exercise in a given year and make it up at a later date if we wanted.

Unidentified speaker: Can you pull any of that forward?

Robert Lyons, President and CEO, GATX: Not technically, but based on the use of cash flows and asset sales during that ten year period, some of those proceeds can be used to buy down shares, And so it may not be a full ten years, it could be something shorter.

Unidentified speaker: Okay, got it. That’s helpful. So I think you talked about the transaction being modestly accretive in the full year after closing with I think more material contribution beyond that. Talk a little bit about certain of the revenue and platform opportunities that you see and maybe kind of walk through what that material contribution afterwards might look like.

Robert Lyons, President and CEO, GATX: Sure. You’ll do your best to try to pin me down what material contributions mean. And I’ll do my best to give you some guidance, but

Unidentified speaker: I appreciate that.

Robert Lyons, President and CEO, GATX: Until we close and truly own the assets, it’s a little bit difficult to weigh in. But accretion is the order of the day. The benefits long term for GATX are the fact that, again, we’re going to continue to diversify our fleet. I think it’s a very good outcome for our customers. We’ll have a broader pool of assets to be able to make available to them.

They can manage their railcar needs now through one entity as opposed to ourselves and Wells. So we think many of the benefits we bring to the assets we buy today, whether it be commercially or operationally, we can bring to this portfolio, too. And from an operational perspective, Wells Fargo Rail, because of regulatory reasons, they have to outsource all their maintenance to parties. We’ll continue to do that initially, but being a maintenance provider and an owner of facilities in North America, we have a pretty deep knowledge of the maintenance cycle, and we think we can bring a number of benefits to bear on the portfolio through that avenue as well. Additionally, we’re one of the on top of being one of the biggest buyers of railcars in North America, I think most assets as well in what is a pretty liquid secondary market here in North America.

This is a nice inventory addition to be able to selectively pull assets from this pool and potentially sell down at some point in the future.

Unidentified speaker: Got it. So I think maybe talk a little bit about the North American business and sort of the percent of lease versus owned in North America has increased over time. I guess maybe what do you think of the outlook, the long term outlook, about sort of the mix of the business? And do you see a similar trend on the international side?

Robert Lyons, President and CEO, GATX: Yeah. Well, the biggest shift in the lease versus owned has really been among the class ones. So they’ve pared down the number of railcars that they own. They’re probably down to 14% or 15% of the total 1,600,000 in North America. They may pare that down a little bit more, but that big move has kind of been made, and we and other lessors have been the beneficiary of that.

And we think whether it’s customers or the class one railroads, they’ll continue to look at leasing as a real flexible option for them and one that ties up less capital. We can manage the maintenance for them, and so there are very clear benefits to leasing versus owning. They’ll always likely own some share, and that’s the same for shippers too. Our customers, a lot of our big customers own some portion of their own fleet and then will lease in the bulk of their equipment. We see that continuing.

And in Europe, the bigger driver in Europe is really not so much lease versus buy, but truck versus rail, and the government’s push across Europe to move more product from truck to rail. And the green initiatives in Europe we see as a real nice tailwind for driving increased demand for wagons in Europe.

Unidentified speaker: And those will be on the lease side, you’d imagine, where they

Robert Lyons, President and CEO, GATX: The benefits are the same there. We do maintenance in Europe. And we can bring those same benefits to our customers. In India, the growth prospect is quite different and very strong because you have a country of 1,200,000,000 people that’s continuing to industrialize, grow infrastructure needs, whether you pick your period ten, twenty, thirty years.

They’re going to need a lot of steel, a lot of cement, a lot of coal gets moved, automotives, and a lot of that will be moving by rail.

Unidentified speaker: Okay, okay. I guess, how do you think about tariffs and how they impact the business? I think we’ve talked a little bit about the market leasing market being supply So maybe how do you think about tariffs and how that impacts the market?

Robert Lyons, President and CEO, GATX: Yes. So the supply led recovery we’ve seen in our market over the course of the last few years continues, whether it’s Trinity, Greenbrier, Union Tank, FreightCar America, the big national steel, the big builders in North America have been very disciplined about, in some cases, paring back their manufacturing capacity and bringing it much more in line with replacement demand. So that’s a benefit to everybody in the marketplace. Tariffs right now, the biggest impact we see is the uncertainty it causes among our customer base. So for our customers, whether it’s food and ag, chemical, fertilizer sectors, what have you, auto, they like visibility.

And right now, predictability and visibility are tough to come by. And so their decisions regarding new railcar adds are slow in coming. So when I look at the market, when we look at the market right now, it still remains very bifurcated. For the installed base, the 1,600,000 railcars that are already in service in North America are 110,000. Demand for that is very high.

Customers are very eager to hold on to what they have. Adding is a different discussion. And that’s why new car placements are more challenging today than an existing car renewal. And we see very attractive lease rates on existing car renewals. It’s more challenging on the new car side.

And that’s the biggest place we’ve seen it.

Unidentified speaker: And it’s more just companies sitting on their hands to some extent trying to wait out the uncertainty that we’re in to get some degree of trade certainty?

Robert Lyons, President and CEO, GATX: Exactly. We renew 20,000 cars a year, so we have a lot of customer interaction. And we do it in very small lots, 200, 300 cars at a time or less. So we’re constantly getting feedback from our customer base, and that’s what we hear the most, is hard to predict, can’t plan, not of the mindset of, okay, let’s go add 500, let’s add 1,000 cars. It’s definitely keep what we have.

The growth side of the equation is much tougher.

Unidentified speaker: So how does the pipeline develop in a situation like that? So is it an extend where they say, well, we think we want these cars, but maybe let’s see if we can get a later date where we take them or anything different there? And any maybe sort of specific color by car type as well?

Robert Lyons, President and CEO, GATX: Sure. And I think this kind of cuts across almost all car types. They will commit to term leases on that existing fleet for sure. We’re doing on average four or five year renewals, somewhere in that zip code. So they’re committing for a pretty attractive period of time.

But again, it manifests itself more on, I’m going to add to my fleet. I’m going to scale up a little bit. We’re not seeing that.

Unidentified speaker: Okay. And then I guess maybe drilling down a couple, you mentioned auto. I’m just curious how that’s played given what we have heard We had the rails here earlier today and I guess there’s maybe some mix dynamics. I think UP has talked about auto being down, CP on the cross border side, so it’s kind of running pretty close to what they would expect.

So I don’t know if you have thoughts there.

Robert Lyons, President and CEO, GATX: Utilization of our fleet has remained quite high. Again, I wouldn’t say there’s a tremendous amount of active dialogue about adding to those fleets, but existing rolling stock remains in very good demand.

Unidentified speaker: So let’s talk about remarketing income from rail cards in North America. I think that’s been good over the last couple of years. Anything unique about the current environment, the secondary environment that makes you feel good about this?

Robert Lyons, President and CEO, GATX: Yeah, I would say I’m very encouraged by the activity in the secondary market, especially in, if you look over the course of the last few years, as interest rates started to march up. And I don’t know when exactly, but I’m sure at some point in an earnings conference call, we fired a bit of a warning shot saying, we don’t know as interest rates start to move up whether that’s going to negatively impact activity in the secondary market. So that rate move has largely happened, and we’ve seen really no impact in the secondary market. Demand remains high. Both the breadth and depth of buyers is robust.

And the assets we put into the market are attractive. They’re generally with very good customers, good assets, long term leases, and we find quite a few ready homes for those assets. So that’s been encouraging. Even the first quarter of this year, despite kind of macro volatility, uncertainty, tariffs on, tariffs off, etcetera, very good level of activity in the secondary market in the first quarter. And we’re a participant as well.

So we’re not only a seller, but we’re always looking to buy, and it’s competitive. We certainly don’t win everything we bid on.

Unidentified speaker: So yes, so talk a little bit about that. What’s attractive to you guys for participating in that market?

Robert Lyons, President and CEO, GATX: It’s the opportunity to really be selective. So most sellers like ourselves, if you put a package in the marketplace for 700 or 800 cars, it’s usually sliced up into a number of smaller different riders by car type, by customer, or what have you. And we like that flexibility to be able to look at an entire package and say, okay, out of the 700 or 800 cars in this package, we’ll bid on 200 that we really like for various reasons. And the rest will kind of leave for somebody else in the marketplace to look at. And again, even the 200 or so we’ll bid on, it’s competitive.

There are others out there looking to add to their portfolios, but really that optionality that’s been quite nice. We’ve added a lot in the secondary market over the course of the last few years. We’ve seen really good opportunities. Do you think that continues? I think it will.

I think it will. That secondary market is really, it has been quite healthy, resilient, and as I said, despite kind of week to week or month to month headlines and volatility in the equity markets or debt markets, the buyers have been there.

Unidentified speaker: Any car types in particular in the secondary market that jump out? End markets?

Robert Lyons, President and CEO, GATX: Nothing in particular. One of the benefits GATX has is this 160 different types of cars in the portfolio spread across 800 plus customers. We can offer cars in lots of different lots, and that’s what we do. And every quarter, every six months, we put a package in the secondary market. In all likelihood, we’re not going to sell them all.

There’s going be some pockets there where we just think the market didn’t value it the way we would as a whole. We’ll keep it, and we’ll move on. But demand has been pretty good. Interest has been pretty good. As I said, we see it on both the buy and sell side across asset types.

Unidentified speaker: And you mentioned competition in that space, anybody unique jump out at you or is it sort of the usual suspects?

Robert Lyons, President and CEO, GATX: I would say the usual suspects. We haven’t seen any new sizable financial investors come into the market. Any new names, we’ve definitely seen some portfolio acquisitions, more sizable ones, over the course of the last couple years. But in the kind of as you go secondary market activity, not a lot of new players, which is fine. Typical package will go out.

You’re going to have a buyer list of 25 or 30 different institutions. And what I’m encouraged about is when we go into that market to sell, we’ll see most of those 25 or 30 active. They’re obviously not all going to win their bids, but they’re all in there.

Unidentified speaker: Yeah, you’re getting bids from everybody.

Robert Lyons, President and CEO, GATX: Yeah.

Unidentified speaker: Okay. When you think about secondary as an avenue for growth for you, what do you think that looks like over the next two or three or four years compared to going with new cars?

Robert Lyons, President and CEO, GATX: Well, we’re always going to have a new car need because we scrap even today, GATX’s fleet standalone, not to mention with the addition of the Wells Fargo portfolio. But we scrap about 2,500 to 3,000 cars in a given year. We’re going to need to refresh that and replace those for our customers. So we’re always going to be in the new car market at some level. And the secondary market is a real nice supplement to that, and has been.

We’ve invested several 100,000,000 in the last few years in the secondary market, and would like to continue to do that. Now on the sell side, obviously, as I mentioned before, with the addition of the Wells Fargo portfolio, it just adds a whole another pool of assets from which we can be very selective and potentially go into the market from time to time and see what the market’s appetite is for those. Okay. So let’s talk about

Unidentified speaker: the international business. I know you touched on this a little bit earlier, Europe, India, and specifically, what’s sort of the outlook for 2025? Maybe we can even sneak a peek into a little bit longer than that, but what do you think about sort of Europe and India in the next year?

Robert Lyons, President and CEO, GATX: Well, we’ll take Europe I think I would like to start by peaking into 2026 because 2025, the economic environment is pretty challenging in Europe right now, particularly in Germany, which is the big driver for chemical petroleum, the tank car moves in Europe. So it’s a bit definitely more challenging in Europe these days. They’re going to continue to add to their fleet. Just last week, I think, we were at the Munich Transportation Fair and celebrated GATX Rail Europe’s 30,000 wagon put into service. And so I think across sectors, also on the freight car side, which has been underweight for GATX Rail Europe, we’re seeing more opportunities.

That will be a good avenue for growth for us. And India is its own unique country with its own dynamics and almost regardless of economic activity in India, the need for increased moves by rail transportation, infrastructure development, it will continue. I’ve had the benefit of going to India. I go probably once a year to see our team there and each trip you can literally see development under everywhere you go, whether it’s in Delhi or Mumbai or Calcutta. It’s impressive.

Unidentified speaker: How do you see the balance of those three core businesses, North America, Europe and India, kind of as you look out over the next couple of years, just given that sort of very robust growth?

Robert Lyons, President and CEO, GATX: Well, from a unit growth standpoint, India has the biggest upside. They have the benefit of starting off a smaller base, so they’ll be able to continue, I believe, to continue to grow that fleet without any significant issues. Europe and North America, it will be a bit more opportunistic. But our focus over the course, particularly here in North America, really over the course of the next year plus will be integrating once we clear the regulatory hurdles or requirements. We’ll be integrating that portfolio.

Unidentified speaker: Yeah. And I guess just proportionally, what do you think India can be of the business in a few years from now?

Robert Lyons, President and CEO, GATX: Well, don’t want to put too much pressure on them, but I mean, there are 10,500 wagons today. Over a five year period, you could easily add probably another close to 800, 1,000 wagons a year.

Unidentified speaker: Yeah.

Robert Lyons, President and CEO, GATX: They are primed for growth. Very good team. We will continue to look for opportunities to kind of expand the service offering we have in India. It’s the one market right now where we do not do maintenance. All the maintenance in India is done by the Indian railway.

And it’s certainly an area we think we can bring a lot of expertise if we could do that at some point in the future.

Unidentified speaker: What needs to happen to unlock that opportunity for you?

Robert Lyons, President and CEO, GATX: Well, right now everything’s done by the Indian Railway, so they would have to get comfortable that parties can do service, do maintenance service in India, and hopefully see the benefit of relieving themselves of some of that burden and requirement. And we have a very good dialogue with the IR. But things take time longer in India than they do elsewhere.

Unidentified speaker: Okay. And then I guess we talked a little bit about tariffs and thinking about it from a US angle. When you think about your international businesses, is there any impact that we need to consider?

Robert Lyons, President and CEO, GATX: No, I mean, the only thing internationally, as I mentioned already from a kind of on the radar standpoint is the economic environment in Europe, which is fairly unpredictable at this point and pretty tepid growth. It’s hard to slice that up between what’s tariff driven, what’s economic, kind of core economic concerns, but that’s the one market where this year’s growth will be a little bit probably light of where it’s been the last couple.

Unidentified speaker: Okay. I wanted to touch base on the engine leasing business and the JV with Rolls Royce, kind of want to get a sense of what the outlook like that is for this year. How do you think about performance has been good. So I guess how do you think about the opportunity for 2025?

Robert Lyons, President and CEO, GATX: Yeah, the performance has been very strong. I mean, if there’s any business that’s been tested, it’s that one. Nobody had in their models, us or anybody else, that a pandemic would occur and travel would basically go to zero for some extended period of time. And that was a challenging environment for Rolls Royce and definitely for our partnership, our RPF, But they came through very strong. And customer collections remained quite high.

Utilization of the engines remained quite high. And if you look out over the course of the next ten years, just from a replacement standpoint, the number of aircraft that need to be delivered is substantial, and all of those will need, they all need engines, they all need spares, and we’re in the spares business. Mathematically, it’s fairly predictable in terms of the number of engines that need to back up those that are on wing. And so we think the growth prospects in engine leasing are quite strong. Now from our standpoint, we invest there two ways.

We invest directly through GATX engine leasing, and we also have the joint venture that’s investing. This year, they’ll probably be north of a billion that they’ll invest directly within the joint venture. The last few years, GATX has done roughly two fifty million of engines directly. We’ve indicated we expect to be somewhere in that range, depending on Rolls’ production schedule. It may be a little light of that, but we’re expecting a good number this year.

Beyond that, the direct engines are a little harder to predict because it’s more Rolls is in a much stronger financial position today than it was four or five years ago, and they have a lot of alternatives for how they sell and finance those engines. We’re one of them and a good one, but it could be more challenging further down the road to see some of those direct investments, but our portfolio is in great shape. And through the JV, roughly 800 to a billion a year of investment volume is a lot, and that’s a really, really good opportunity for GATX.

Unidentified speaker: In terms of the wholly owned side of the engine leasing, so I guess, how do you think about that developing? I think you have 40 or close to 40 wholly owned engines in the portfolio today. So where does that go to?

Robert Lyons, President and CEO, GATX: I think we’ll see after this year kind of comes what’s in the pipeline from roles. It’ll primarily be back half of the year loaded. And that’s a bit more of a year by year situation, so it’s a little bit more difficult to predict what the numbers will be twenty twenty six or beyond. I do know that within the joint venture, 800 to 1,000,000,000 a year is very achievable. We dip down in the pandemic or post pandemic area to 152, two fifty of investment volume there, kept the team very focused on the existing asset base.

But we’ve come through that extremely. They did an outstanding job running the business and come through very strong and are back in more of a proactive investment mode.

Unidentified speaker: And if there’s any questions from the audience, we’re almost out of time, but I do have one more and you guys can think about that for a So this has been a good market for you guys to deploy capital into. As you think about the next year or two or three years, sort of what’s the capital allocation strategy? Which parts of the business gets the most dollars?

Robert Lyons, President and CEO, GATX: The one that generates the highest return.

Unidentified speaker: That’s a good answer.

Robert Lyons, President and CEO, GATX: It doesn’t matter whether it’s India, Europe, North America, our tank container leasing business or engines. It’s our goal our job is to deploy capital in the highest risk adjusted return opportunities we can for the shareholders. Our framework won’t change. We believe our shareholders want us to reinvest in the business. So we’re going to use our cash flow to do just that as we’ve done for many years now.

Redeploy capital into the business to the extent the opportunities are there and the returns are there. Keep the balance sheet in great shape. That’s our priority. Our investment grade credit rating is very important to us. We want to keep the balance sheet pristine and in a position where we can be really opportunistic, like we have been with the Wells portfolio.

And then the priority is to the extent there’s excess capital, will return it to shareholders. And we’ve done that through dividends, which I think now we’ve paid uninterrupted since 1919, and periodic share repurchase. So those are the three pillars.

Unidentified speaker: So crystal ball, which is the asset type or opportunity that’s got the best return?

Robert Lyons, President and CEO, GATX: Well, we just Obviously, very big deal It’s a $500,000,000 deployment here in North America, which we think will generate a very attractive return. But as my message to our other business unit leaders in Europe and India, Tri Fleet, Rolls Royce has been we’ve spent a lot of time working on that joint venture structure and that option structure to give us maximum flexibility to invest in every market. So we expect to invest in every market.

Unidentified speaker: Good answer. Well, Robert, thanks so much for joining Really appreciate you.

Robert Lyons, President and CEO, GATX: Thank you.

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