BIP – Letter to Unitholders

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BIP – Letter to Unitholders

Letter to Unitholders


Brookfield Infrastructure reported another strong quarter with Funds from Operations (‘FFO’) of $337 million, or $0.85 per unit, for the three months ended June 30, 2019, representing increases of 15% and 13%, respectively, over the same quarter of the prior year. These second quarter results are the first to reflect the full benefit of the most recent phase of our asset rotation strategy.

Last year, we generated combined proceeds of $1.5 billion from selling an interest in a mature, de-risked electricity transmission business in Chile and completing a financing at our Brazilian regulated gas transmission business. These monetizations occurred at values that represented a 7% average FFO yield and the proceeds were subsequently redeployed into seven higher growth businesses across our utilities, energy and data infrastructure segments that generate an average FFO yield of 12%.

The value created through this phase of capital recycling is meaningful: in this quarter alone, it contributed incremental FFO per unit of almost $0.05, and on an annualized basis, should benefit our FFO by approximately $75 million.