Tuesday, 22 August 2017

Growth, Growth, And More Growth!

Brookfield Infrastructure is well positioned to continue its impressive growth rate for years, and even decades to come, thanks to a globe spanning growth runway.

Brookfield Infrastructure Partners owns a large collection of 33 wide moat utilities around the world including:

11,200 km of electrical transmission lines in North and South America

2.8 million electrical and gas connections around the world

600,000 smart electric meters in the UK

2,000 km of natural gas pipelines in Brazil

10,300 km of railroads in Australia, and South America

3,600 km of toll roads in South America and India

36 global ports

15,000 km of natural gas pipelines and 600 billion cubic feet of natural gas storage capacity in North America

7,000 wireless towers, and 5,000 km of fiber optic lines in France

This creates a highly diversified stream of recurring cash flow with which to fund the fast growing payout. In fact, 93% of its cash flow is underpinned by long-term contracts and or is in regulated industries, ensuring highly consistent revenue and minimal volume risk.

Metric Q2 2016 Q2 2017 YoY Change
Revenue $462 million $934 million 102.2%
Funds From Operations $230 million $295 million 28.3%
Adjusted Funds From Operations $189 million $240 million 27.0%
Units Outstanding 345.1 million 369.6 million 7.1%
AFFO/Unit $.55 $0.65 18.6%
Distribution $0.38 $0.435 14.5%
AFFO Payout Ratio 69.4% 67.0% -3.5%

And as you can see, the pace of Brookfield Infrastructure’s growth is not just blisteringly fast, but is actually accelerating.

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