Brookfield Infrastructure Partners L P : Q4 2024 Supplemental
BIP
FOURTH QUARTER AND FULL YEAR, DECEMBER 31, 2024
2024 Highlights
Key Performance Metrics
(See "Reconciliation of Non-IFRS Financial Measures")
US$ Millions, Except Per Unit Information, unaudited
Funds from operations (FFO)
Per unit FFO1
Distributions per unit
Payout ratio2
Growth of per unit FFO
Adjusted funds from operations (AFFO)
Return on Invested Capital (ROIC)3
Net income attributable to the partnership4
Net income per limited partner unit5
Adjusted Earnings
Adjusted Earnings per unit1
Key Balance Sheet Metrics
Twelve Months Ended December 31
2024 2023
$
2,468 $ 2,288
3.12 2.95 increase of 8% over the prior year
1.62 1.53 - Organic growth was 7% capturing annual
67% 66%
6% 9%
1,862 1,838
13% 14%
391 432
0.04 0.14
943 835
1.19 1.07 - Results were partially offset by higher borrowing costs and foreign exchange, most notably the depreciation of the Brazilian real
As of
US$ Millions, unaudited
December 31, 2024 December 31, 2023
Total assets
Corporate borrowings
Invested capital
$
104,590 $ 100,784
4,542 4,911
12,971 13,032
1. Average units on a time weighted average basis for the twelve-month period ended December 31, 2024 was
792.1 million (2023: 776.9 million)
2. Payout ratio defined as distributions paid (inclusive of GP incentive and preferred unit) divided by FFO
3. ROIC is calculated as AFFO, adjusted for estimated return of capital, divided by average invested capital
4. Includes net income attributable to limited partners, the general partner, and non-controlling interests ‒ Redeemable Partnership Units held by Brookfield, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares
5. Average limited partnership units outstanding on a time weighted average basis for the twelve-month period ended December 31, 2024 was 461.6 million (2023: 459.4 million)
$2.5
$1.62
67%
billion of FFO
distributions per unit
payout ratio
Performance Highlights
• FFO of $2.5 billion for the year represents an inflationary rate increases, volume growth across our critical infrastructure networks, higher utilization in our midstream segment and earnings from capital commissioned over the last 12 months
- A net positive contribution from our asset rotation program (most notably from the acquisition of Triton, a global intermodal logistics operation), which was partially offset by capital recycling initiatives
• Total distributions paid in 2024 of $1.62 per unit represent an increase of 6% over the prior year
• Payout ratio of 67% for the year falls within our long-term 60-70% target range
• Current year income benefited from strong
operational performance, gains on revaluation of our investment properties and mark-to-market gains on hedging activities while prior year results included gains from our capital recycling program
• Total assets increased compared to December 31, 2023 primarily due to the acquisition of a North American retail colocation data center business and a follow-on acquisition at our Indian telecom tower operation
2024 Highlights (cont'd)
Operations
• Deployed ~$2.2 billion of growth capital expenditures to increase rate base at our utility operations, and expand capacity at our transport, midstream and data businesses
• Across our global residential infrastructure businesses:
- Signed over 20 tuck-in acquisitions at our European residential decarbonization infrastructure business, to help support the build out of our HVAC installation and rental business
- At our U.K. regulated distribution business, secured two inaugural Ground Sourced Heat Pump (GSHP) sales totaling over 1,500 connections, contributing to the diversification of our utility mix
• Operationalized 1,200 kilometers at our Brazilian electricity transmission operation and exercised our option to acquire our construction partners 50% stake in a concession of transmission lines spanning 842 kilometers for R$440 million, which was entirely debt financed
• Transport operations performed well with increased volumes and realized average rate increases of 7% across our rail networks and 6% across our toll road portfolio
• Within our midstream operations, progressed the following commercial agreements during the year:
- Entered into nine new firm processing agreements at our Western Canadian midstream operation, expected to contribute ~C$160 million of annual revenue
- At our North American gas storage operation, signed multiple new contracts at record high rates, expected to contribute ~$190 million of annual EBITDA
• Commissioned ~255 megawatts of contracted hyperscale capacity during the last twelve months, with total critical load capacity of ~1 gigawatt across our global portfolio
Strategic Initiatives
• Deployed over $1.1 billion of equity into growth across our backlog of organic growth projects, as well as three tuck-in acquisitions
- Acquired a portfolio of data centers out of bankruptcy from Cyxtera in Q1 2024, with no new equity required
- Acquired an additional 10% interest in our Brazilian rail network in Q2 2024, for total equity consideration of ~$365 million
- Completed a tuck-in acquisition of 76,000 telecom tower sites in India in Q3 2024, for total equity consideration of ~$150 million
Financing and Liquidity
• Current liquidity of $5.5 billion; including ~$2.3 billion of corporate liquidity and over $1.5 billion of cash across our businesses
• Achieved our target of $2 billion of capital recycling proceeds for the year
-
Most recently, closed the sale of our fiber platform within our French telecom infrastructure business for net proceeds of ~$100 million
• Secured an additional ~$200 million in capital recycling proceeds
- Agreed to sell a 33% interest in a portfolio of contracted and stabilized containers at our global intermodal logistics operation, for net proceeds of ~$440 million (BIP's share - over $120 million)
- Agreed to sell a non-core site at our North American hyperscale data center platform, for net proceeds of ~$400 million (BIP's share - over $60 million)
• Well-laddered debt profile with an average term to maturity of ~8 years with ~90%1 of debt fixed rate and no significant maturities over the next 12 months
1.
Excludes (i) most revolving and capital expenditure facilities and (ii) BRL denominated financing given limited availability of fixed rate debt
Our Business
Our Mission
• To own and operate a globally diversified portfolio of high quality infrastructure assets that will generate sustainable and growing distributions over the long-term for our unitholders
Performance Targets and Measures
• Target a 12% to 15% total annual return on invested capital measured over the long term
• Expect to generate returns from in-place cash flows plus growth through investments in upgrades and expansions of our asset base
• Growth in FFO per unit is one of the key performance metrics that we use to assess our ability to sustainably increase distributions in future periods
Basis of Presentation
• Our consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)
• For each operating segment, this Supplemental Information outlines Brookfield Infrastructure's proportionate share of results in order to demonstrate the impact of key value drivers of each operating segment on the partnership's overall performance
Distribution Profile
BIP has a conservative payout ratio underpinned by stable, highly regulated or contracted cash flows generated from operations
• We believe that a payout off 60-70% of FFO is appropriate
• Targeting 5% to 9% annual distribution growth, in light of expected per unit FFO growth
• Distribution payout is reviewed with the Board of Directors in the first quarter of each year
• The Board of Directors declared a quarterly distribution in the amount of $0.43 per unit, payable on March 31, 2025 to unitholders of record as at the close of business on February 28, 2025. This quarterly distribution represents a 6% increase compared to the prior year
• Distributions have grown at a compound annual growth rate of 7% over the last 10 years
• Below is a summary of our distribution history over the last 10 years1
$1.72
7%
$0.85
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025F
1.
Annual distribution amounts have been adjusted for the 3-for-2 stock split effective September 14, 2016, the special distribution of BIPC shares effective March 31, 2020, and the 3-for-2 stock split effective June 10, 2022
Distribution Payout Ratio
Over the last 10 years, BIP has been able to achieve its target payout ratio of 60-70% of funds from operations while increasing its distribution by an average of 7%
• Objective is to pay a distribution that is sustainable on a long-term basis while retaining sufficient liquidity within our operations to fund recurring growth capital expenditures and general corporate requirements
• We fund all of our growth initiatives through a combination of issuances of common equity, preferred equity, corporate debt, proceeds from asset sales and retained internally generated cash flow
- Available funding and assessment of corporate liquidity is undertaken prior to committing to all new investments and capital projects
• Based on our distribution track record, the Partnership's average distribution payout ratio for the last 10 years is 70% of FFO, as shown below
Total
US$ Millions, unaudited
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2015-2024
FFO
AFFO
$808 672
$944 771
$1,170
$1,231
941
982
$1,384 1,096
$1,454 1,173
$1,733 1,412
$2,087 1,701
$2,288 $2,468 1,838 1,862
Distributions
Limited Partner units
Incentive distribution
Preferred units1
479 64 3
535 80 13
651 113 30
742 136 41
820 158 49
900 183 51
984 206 67
1,112 240 66
1,187 1,281 266 295 63 68
$
15,567 12,448
8,691 1,741
451
Total distributions
FFO payout ratio2
AFFO payout ratio2
546 68 % 81 %
628 67 % 81 %
794 68 % 84 %
919 75 % 94 %
1,027 74 % 94 %
1,134 78 % 97 %
1,257 73 % 89 %
1,418 68 % 83 %
1,516 66 % 82 %
1,644 67 % 88 %
10,883
70 % 87 %
1. Preferred unit distributions in 2022, 2023 and 2024 include perpetual subordinated notes
2. FFO payout ratio is calculated by dividing total distributions paid to all shareholders by FFO, while the AFFO payout ratio is similar but deducts maintenance capital from FFO 6
Organic Growth within our Business
Organic growth demonstrates our ability to deliver sustainable cash flow growth
• Our business is well-positioned to deliver per unit FFO organic growth of 6 - 9%, the three principle drivers of recurring annual cash flow growth embedded in our businesses are:
Target
3 - 4%
1 - 2%
2 - 3%
6 - 9% Current Environment
2024 inflation was ~3%1 (top line growth) Transport operations performing well Capital to be commissioned of ~$7.8B
~7%
• In order to showcase the sustainability of our cash flow growth year-over-year, we calculate organic growth prior to fees and corporate expenses and remove the following impacts: i) contributions from acquisitions and dispositions completed in the last 12 months; ii) impacts of foreign exchange since the previous period; and iii) movements in results at our midstream operations that are impacted by volatility caused by commodity prices
1. Represents weighted average inflation during 2024 in the main countries we operate in
Our Operations
• Own and operate a diversified portfolio of high-quality, long-life utilities, transport, midstream and data assets
• Generate stable cash flows with ~90% of FFO supported by regulated or long-term contracted revenues
Europe
Regulated Transmission
Commercial & Residential Distribution
Rail
Toll Roads
Diversified Terminals
Midstream
Data Transmission &
Distribution
Data Storage
Asia Pacific
Selected Income Statement and Balance Sheet Information
The following tables present selected income statement and balance sheet information by operating segment on a proportionate basis:
Statements of Operations
Statements of Financial Position
Twelve Months Ended December 31
US$ Millions, unaudited
2024 2023
Net income (loss) by segment
Utilities
Transport Midstream Data Corporate
$
247
400
87
248
(591)
$
330
445
209
191
(743)
Net income
$
391
$
432
US$ Millions, unaudited
December 31, 2024 December 31, 2023
As of
Net assets by segment
Utilities
Transport Midstream Data Corporate
$
8,911
11,720
9,658
9,358
(2,731)
$
9,035
11,840
9,918
7,511
(2,480)
Total assets
$
36,916
$
35,824
Adjusted EBITDA by segment
Utilities
$
1,252 $ 1,327
Transport Midstream Data Corporate Adjusted EBITDA
$
1,646 1,235 Transport
974 995 Midstream
597 447 Data
(405) (413) Corporate
4,064 $ 3,591
Net debt by segment Utilities
$
5,693 $ 5,297
7,123 7,206
5,954 5,993
5,806 4,085
4,266 4,099
Net debt
$
28,842 $ 26,680
FFO by segment
Utilities Transport Midstream Data Corporate FFO
$
760 $ 879
1,224 888
625 684
333 275
(474) (438)
$
2,468 $ 2,288
Partnership capital by segment
Utilities Transport Midstream Data Corporate
$
3,218
4,597
3,704
3,552
(6,997)
$
3,738
4,634
3,925
3,426
(6,579)
Partnership capital
$
8,074
$
9,144
Disclaimer
Brookfield Infrastructure Partners LP published this content on April 07, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 07, 2025 at 08:03 UTC.