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Core Viewpoint - Brookfield Infrastructure has demonstrated consistent dividend growth, achieving a 9% compound annual growth rate over 16 years, with a current yield of 4.9% [1] Group 1: Dividend Growth and Strategy - The company has successfully increased its dividend for 16 consecutive years, supported by organic investments and strategic acquisitions [1][2] - A smart capital recycling strategy allows Brookfield to cash in on mature businesses, providing funds for new, higher-return investments [2][3] Group 2: Investment Strategy and Performance - Brookfield's strategy involves acquiring high-quality infrastructure assets, enhancing them, and recycling capital to fund new opportunities, targeting an internal rate of return (IRR) of 12% to 15% [3] - The successful exit from the Natural Gas Pipeline Company (NGPL) exemplifies this strategy, generating over $1.7 billion in total proceeds and an 18% IRR since the 2015 recapitalization [4][7] Group 3: Recent Transactions and Future Outlook - The company is monetizing its global data center portfolio, recently selling a 30% interest for approximately $90 million, with plans for further sales [8][9] - Brookfield has secured $700 million in proceeds from asset sales this year, aiming for $5 billion to $6 billion in total asset monetization over the next two years [9] - The company has a backlog of about $8 billion in organic capital projects and an additional $4 billion under development, positioning it for continued growth [10] Group 4: Growth Projections - Brookfield expects to achieve 6% to 9% annual growth in funds from operations (FFO) per share, with potential to exceed 10% by recycling capital into higher-return opportunities [11] - The company aims to maintain dividend growth within a target range of 5% to 9%, with total returns projected in the mid-teens [11]

Financial Performance - For the year ended December 31, 2024, Brookfield Infrastructure reported net income attributable to the partnership of $391 million, a decrease from $432 million in 2023[2]. - Net income for 2024 was $1,683 million, up from $1,448 million in 2023, representing a 16.2% increase[30]. - Basic earnings per limited partnership unit decreased to $0.04 in 2024 from $0.14 in 2023[35]. - Net income for 2024 was $72 million, a decrease of 88.1% from $606 million in 2023[50]. Funds from Operations (FFO) - Funds from operations (FFO) for 2024 was $2.5 billion, representing an increase of approximately 8% compared to 2023, with organic growth driven by 7% inflation and stronger volumes[3]. - Funds from operations (FFO) for 2024 amounted to $2,468 million, compared to $2,288 million in 2023, reflecting a 7.9% increase[32]. - The utilities segment generated FFO of $760 million, down from $879 million in the prior year, primarily due to the sale of an Australian utility business[4]. - The transport segment's FFO was $1,224 million, a nearly 40% increase over the prior year, attributed to acquisitions and tariff increases of 7% across rail networks[5]. - The midstream segment generated FFO of $625 million, reflecting an 11% year-over-year growth, despite a decrease from $684 million due to capital recycling activities[6]. - The data segment's FFO was $333 million, representing a 21% increase over the prior year, driven by strong organic growth and new investments[7]. Revenue and Assets - Total revenues for 2024 reached $21,039 million, a 17.8% increase from $17,931 million in 2023[26]. - Total revenues for 2024 reached $3,666 million, a significant increase of 46.2% compared to $2,503 million in 2023[50]. - Total assets grew to $104,590 million in 2024, up from $100,784 million in 2023, marking a 3.6% increase[24]. - Total assets decreased slightly to $23,587 million in 2024 from $23,909 million in 2023[46]. Cash Flow and Dividends - Cash from operating activities increased to $4,653 million in 2024, compared to $4,078 million in 2023[30]. - Cash from operating activities increased to $1,743 million, compared to $1,059 million in the previous year, marking a 64.5% rise[53]. - The company declared a quarterly distribution of $0.43 per unit, a 6% increase compared to the prior year[11]. - The company declared a quarterly dividend of $0.43 per share, a 6% increase compared to the previous year[39]. Liabilities and Borrowings - Total liabilities increased to $21,365 million in 2024, up from $19,841 million in 2023, indicating a rise of 7.6%[48]. - Corporate borrowings decreased to $4,542 million in 2024 from $4,911 million in 2023, a reduction of 7.5%[24]. Capital Recycling and Asset Sales - Brookfield Infrastructure achieved $2 billion in capital recycling proceeds in 2024 and secured approximately $850 million in proceeds from asset sales in early 2025[8]. - The company expects to deliver $5-6 billion in asset sale proceeds over the next two years, supported by increased investor interest in high-quality infrastructure assets[10]. Other Financial Metrics - The average number of limited partnership units outstanding for the twelve-month period ended December 31, 2024, was 461.6 million, compared to 459.4 million in 2023[23]. - The average number of limited partnership units outstanding increased to 461.6 million in 2024 from 459.4 million in 2023[44]. - Underlying earnings for BIPC were 20% above the prior year, driven by the acquisition of a global intermodal logistics operation[42]. - Direct operating costs rose to $1,378 million, up from $778 million, reflecting a 77.1% increase[50]. - Cash and cash equivalents at the end of the period were $674 million, up from $539 million, reflecting a 24.9% increase[52]. - The company reported a significant increase in depreciation and amortization expense to $775 million from $365 million, a rise of 112.7%[52]. - Non-controlling interest decreased to $3,475 million in 2024 from $4,467 million in 2023, a decline of 22.3%[48]. - The company experienced a cash used by investing activities of $1,110 million, a decrease from $3,174 million in 2023, indicating a reduction of 65.0%[53].

Market Risks - The company faces risks related to demand for commodities, including natural gas and minerals, which could impact financial performance[52]. - The company is exposed to risks related to economic regulation and adverse regulatory decisions in the countries it operates[52]. - The company may experience challenges in maintaining or improving revenue due to competition and the ability to renew contracts[68]. - Economic conditions and political uncertainties can significantly impact demand for services and overall profitability, with potential adverse effects from inflation and rising interest rates[230]. - The ongoing geopolitical conflicts, such as the war between Russia and Ukraine, have contributed to volatility in fuel prices and supply chain challenges[233]. - Changes in U.S. laws, including potential tariffs on Canadian exports, could materially affect the company's financial condition and operations[236]. - The company is exposed to risks associated with pandemics and public health emergencies, which could adversely affect operations[239]. - The ongoing prevalence of contagious diseases could materially and adversely affect the company's results of operations and financial condition due to disruptions to commerce and reduced economic activity[240]. Operational Risks - The company has a significant amount of committed backlog for capital projects, but there is no assurance these will be completed on time or within budget[72]. - Future capital expenditures are required for utilities, transport, data, and midstream operations, which are capital intensive[73]. - There are risks associated with the construction and expansion of projects, including potential delays and cost overruns[70]. - Supply chain disruptions could inhibit the ability to maintain existing facilities and complete development projects on time and within budget[97]. - The company’s operations may be affected by supply chain disruptions and cyber-security incidents[52]. - Cybersecurity threats pose risks to the company's information systems, potentially leading to data breaches and operational failures[103]. - The company faces significant risks related to cyber security, including potential material consequences from breaches or failures of computerized business systems[107]. - The company may face challenges in obtaining necessary permits and licenses, which could materially affect business operations and financial condition[84]. Environmental and Regulatory Risks - Brookfield Infrastructure's operations are exposed to risks related to environmental damage, including potential fines and penalties from regulatory authorities[75]. - The company faces increasing environmental legislation and climate change impacts, which may reduce consumer demand for certain energy sources[77]. - Future carbon emissions regulations could lead to increased operational costs that may not be passed on to customers, adversely affecting financial performance[78]. - Compliance with environmental laws may result in increased costs and liabilities, impacting the financial performance of infrastructure operations[79]. - Climate change may lead to more severe weather conditions, affecting business operations and customer demand for services[80]. - Regulatory commitments expose Brookfield Infrastructure to higher levels of control, increasing the risk of adverse financial outcomes due to changes in laws or regulations[81]. Financial and Investment Risks - The partnership's ability to pay distributions is subject to the discretion of its General Partner, with no guarantee of maintaining or increasing distribution levels[158]. - The partnership relies on distributions from the Holding LP and its operating entities to meet financial obligations, with no independent revenue generation[156]. - The partnership's effective economic interest is approximately 26.6% on a fully-exchanged basis, which may lead to conflicts of interest due to Brookfield's controlling influence[166]. - The partnership may acquire distressed companies, which involves substantial financial and business risks, including potential total losses[154]. - Credit facilities contain covenants that restrict financial activities, and failure to meet these covenants can lead to immediate repayment requirements[151]. - The use of leverage increases sensitivity to revenue declines and adverse economic conditions, heightening the risk of loss[150]. - The partnership's credit facilities may or may not be rated, and a credit downgrade could adversely affect the cost of debt[152]. - The company may face material adverse effects on its business and unit prices due to ineffective internal controls over financial reporting, which could lead to significant deficiencies and errors in financial statements[167]. Taxation Risks - Changes in tax laws may adversely affect the company's operations and the net amount of distributions payable to unitholders[179]. - The partnership's cash available for distribution is indirectly reduced by local taxes, impacting the post-tax return to unitholders[180]. - Unitholders may face tax obligations in jurisdictions where they do not reside, potentially leading to additional compliance burdens[183]. - The company may be exposed to transfer pricing risks, which could result in increased tax liabilities and reduced returns for investors[184]. - The partnership may face tax adjustments under transfer pricing rules, potentially affecting income allocations to unitholders[186]. - The partnership's gross income must consist of 90% or more qualifying income to maintain partnership status for U.S. federal income tax purposes[190]. - U.S. backup withholding tax may apply if unitholders fail to comply with tax reporting rules, impacting cash available for distribution[191]. - Non-U.S. persons may face adverse U.S. tax consequences if the partnership is deemed engaged in a U.S. trade or business[195]. Governance and Management Risks - The General Partner has sole authority to determine distributions and their timing, which may incentivize actions that benefit Brookfield over unitholders[134]. - The base management fee is set at 0.3125% quarterly (1.25% annually) of the market value of the group, potentially creating conflicts of interest[133]. - The Limited Partnership Agreement modifies fiduciary duties, allowing conflicts of interest to be resolved in ways that may not favor unitholders[130]. - The partnership's arrangements with Brookfield may contain less favorable terms than those negotiated with unrelated parties[145]. - The General Partner's discretion in resolving conflicts may prioritize Brookfield's interests over those of the partnership and its unitholders[132]. - The departure of key professionals from Brookfield could adversely impact the company's ability to achieve its objectives[120]. - Changes in Brookfield's ownership or control could result in significant shifts in the company's management and growth strategy[121]. Currency and Market Risks - A significant portion of the company's operations are in countries where the U.S. dollar is not the functional currency, exposing it to foreign currency risk[244]. - Fluctuations in currency exchange rates could reduce cash flows generated by operating entities, potentially decreasing demand for services[244]. - Non-U.S. unitholders are subject to foreign currency risk, as distributions are denominated in U.S. dollars and may be adversely affected by exchange rate fluctuations[173]. - The market price of the company's units and preferred units may experience high volatility due to various factors, including economic conditions and changes in market interest rates[170]. - The company may need additional funds in the future, potentially issuing more units or preferred units, which could dilute existing holders[172].

Core Viewpoint - Brookfield Infrastructure Partners L.P. has successfully exited its remaining 25% interest in its U.S. gas pipeline, generating over $1.7 billion in proceeds and achieving an 18% internal rate of return (IRR) and a 3x multiple on capital since recapitalization in 2015 [1]. Group 1: Transaction Details - The sale of the gas pipeline interest, combined with prior financing, has generated over $900 million in total proceeds over the last 18 months [2]. - The net proceeds from the sale represent a 1.8x multiple of the current carrying value [2]. - The company initially acquired a 27% stake in the pipeline and increased ownership to 50% in 2015 through a recapitalization strategy [3]. Group 2: Asset Sale Updates - Brookfield Infrastructure has signed an agreement to sell a 30% interest in a 244-megawatt portfolio of data centers in Europe for approximately $460 million, with about $90 million net to Brookfield Infrastructure Partners [4]. - The company has secured over $700 million in proceeds from asset sales since the beginning of the year, with expectations to reach nearly $900 million following the additional stake sale in the European data center portfolio [5]. - The asset monetization goal is set at $5 to $6 billion over the next two years, with strong buyer interest in ongoing capital recycling initiatives [5]. Group 3: Company Overview - Brookfield Infrastructure is a leading global infrastructure company focused on high-quality, long-life assets in utilities, transport, midstream, and data sectors across the Americas, Asia Pacific, and Europe [6]. - The company emphasizes assets with contracted and regulated revenues that generate predictable and stable cash flows [6]. - Brookfield Infrastructure is part of Brookfield Asset Management, which manages over $1 trillion in assets [7].

Group 1 - The S&P 500 has experienced approximately 23% returns for two consecutive years, indicating a potential correction phase [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [2] - Berzins has contributed to the institutionalization of the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

Group 1: Market Overview - Stock market sell-offs present opportunities for dividend investors as falling stock prices lead to rising dividend yields [1] - Realty Income and Brookfield Infrastructure have both experienced significant declines, with Realty Income down over 12% and Brookfield Infrastructure down more than 21% from their 52-week highs [2][8] Group 2: Realty Income - Realty Income's stock price decline has increased its dividend yield to an attractive 5.7% [3] - The REIT generated $4.19 per share of adjusted funds from operations (FFO) last year, trading at approximately 13.5 times its FFO, which is considered low compared to peers [4] - Realty Income has a strong dividend history, having increased its payment 130 times over three decades, with a compound annual growth rate of 4.3% [5] - The company has a robust financial profile, evidenced by its high credit ratings, allowing access to low-cost capital for investments [6] - Realty Income has a significant growth opportunity with a total addressable market of $5.4 trillion in the U.S. and $8.5 trillion in Europe [7] Group 3: Brookfield Infrastructure - Brookfield Infrastructure's stock price drop has raised its dividend yield to 4.9% [8] - The company has consistently increased its dividend for 16 years, with a compound annual growth rate of 9% [8] - Brookfield anticipates a need for $100 trillion in global infrastructure investment over the next 15 years, providing ample growth opportunities [9] - The company has $8 billion in expansion projects underway and an additional $4 billion in development [9] - Growth drivers include inflation-driven rate increases, volume growth, and accretive acquisitions, with expectations of over 10% annual growth in FFO per share [10] - Brookfield trades at a valuation of just over 11 times FFO, which is low compared to the S&P 500's more than 20 times earnings [11][12] Group 4: Investment Outlook - The sell-offs in Realty Income and Brookfield Infrastructure have created attractive investment opportunities due to lower valuations and higher dividend yields [13] - Both companies are well-positioned for continued dividend growth, which could lead to strong total returns over the long term [13]

Group 1 - The S&P 500 has entered correction territory, with a recent drop leading to a slight increase in dividend yield from 1.2% to 1.3% [2] - The focus of iREIT+HOYA Capital is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The article emphasizes the importance of performing due diligence and drawing independent conclusions before making investment decisions [4][5]

Market Overview - The stock market has experienced volatility at the start of the year, with the Nasdaq Composite down 8% year to date [1] Company Resilience - Companies like Enterprise Products Partners, Enbridge, and Brookfield Infrastructure are highlighted for their ability to maintain safe and secure dividends during market uncertainty [2] Enterprise Products Partners - Enterprise Products Partners operates in the midstream energy sector, focusing on pipelines and energy infrastructure, which allows it to charge fees independent of energy prices [3][4] - The company has a 26-year history of increasing annual distributions, showcasing its stability despite market volatility [5] - Enterprise has an investment-grade balance sheet, with a distribution coverage ratio of 1.7x from its distributable cash flow, indicating conservative financial management [6][7] Enbridge - Enbridge has paid dividends for over 70 years, increasing its payout for the last 30 years, demonstrating resilience in the energy sector [8] - Approximately 98% of Enbridge's income comes from stable, contracted assets, providing predictability in earnings [9] - The company maintains a conservative dividend payout ratio of 60% to 70%, allowing for significant cash retention for expansion projects [10] - Enbridge has a multibillion-dollar backlog of secured capital projects expected to grow cash flow per share by around 3% annually through next year and 5% post-2026 [11] Brookfield Infrastructure - Brookfield Infrastructure operates resilient, contract-based businesses, including utilities and energy pipelines, distinguishing it from typical infrastructure stocks [12] - The company has paid dividends every year since its formation in 2008, with a compound annual growth rate (CAGR) of 9% in dividend per share from 2009 to 2025 [13][14] - Brookfield Infrastructure targets 5% to 9% annual dividend growth over the long term, supported by predictable cash flows and a strategy of reinvesting proceeds from asset sales [15]

Core Viewpoint - Brookfield Infrastructure is positioned to capitalize on three significant global megatrends: decarbonization, deglobalization, and digitalization, which are expected to drive substantial infrastructure investment needs of $100 trillion over the next 15 years [2] Group 1: Growth Drivers - The company anticipates a 6% to 9% annual growth in funds from operations (FFO) per share, driven by organic growth initiatives [3] - Brookfield has a backlog of $8 billion in capital projects, including data centers, semiconductor facilities, and transportation expansions, along with an additional $4 billion in projects under development [3][4] - The CEO indicated a robust pipeline of early-stage capital deployment opportunities, suggesting potential for over 10% annual FFO per share growth in the coming years [4] Group 2: Income Stream - Brookfield Infrastructure offers a high-yielding dividend currently exceeding 4%, significantly above the S&P 500 average of around 1.2% [5] - The company has a strong track record of increasing its dividend for 16 consecutive years, with a compound annual growth rate of 9%, and aims for a future increase of 5% to 9% annually [6] Group 3: Valuation - Brookfield's FFO per share was $3.12 last year, with its stock trading at approximately 13.5 times FFO, which is low compared to the S&P 500's nearly 26 times and Nasdaq-100's over 34 times earnings [7][8] - The low valuation contributes to the high dividend yield, indicating potential for valuation expansion [8] Group 4: Additional Growth Factors - The company's infrastructure businesses benefit from stable cash flows linked to long-term contracts and inflation-indexed rate structures, expected to boost FFO per share by 3% to 4% annually [9] - An expanding global economy is projected to contribute an additional 1% to 2% annual growth in FFO per share [9] - Retained cash flow, which funds high-return organic expansion projects, is expected to drive another 2% to 3% annual growth in FFO per share [9] Group 5: Total Return Potential - Brookfield Infrastructure's combination of megatrend-driven growth, a robust dividend, and potential valuation expansion positions it for total returns of around 15% per year, making it a compelling investment opportunity for the next decade [10]