Monopoly provider of an essential service with no substitute. Teranet Holdings L.P., through its subsidiaries, is the exclusive provider of electronic property search and registration services in Ontario, and the exclusive provider of land and personal property registration and search services in Manitoba Long-term concessions (with more than 50 years remaining in Ontario and 28 years in Manitoba) that provide inflation-adjusted contractually set fees Good operating efficiency. The company has a low-cost structure that enables it to generate EBITDA margins above 60% Significant concentration in the Ontario real estate market; however, a modest level of diversification from the Manitoba registry system partially offsets this Strong track record of meeting performance standards that are required under the concession agreements Very high
