Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 238

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 5
Chunk 238
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 of our partnership’s presentation, the limitations associated with such information and a reconciliation of segment results to our partnership’s statement of operating results in accordance with IFRS.

Results of Operations

The following table presents our partnership’s share of the key metrics and measures of our utilities segment:

                                             For the year ended December 31,                                                       
  US$ MILLIONS                               2024                                            2023                 2022             
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Funds from Operations (FFO)                $                                      760      $           879      $           739  
  Maintenance capital expenditures           (84)                                            (88)                 (54)             
  Adjusted Funds from Operations (AFFO)      $                                      676      $           791      $           685  
  Adjusted EBITDA (1)                        $                                    1,252      $         1,327      $         1,101  
  Rate Base (2)                                                                   6,699                7,117                6,804  
  Return on rate base (3),(4)                12%                                             12%                  13%              

(1) Non-IFRS measure. Refer to the “ Reconciliation of Segment Adjusted EBITDA” section of this MD& A for a reconciliation from net income.

(2) Rate base excludes our North American and European residential warranty businesses.

(3) Return on rate base is Adjusted EBITDA divided by time weighted average rate base.

(4) Return on rate base excludes impact of EBITDA earned from home services policies, connections revenue, return of capital and IFRS 16 adjustments.

Our partnership earns a return on a regulated or notionally stipulated asset base, a metric which we refer to as rate base. Our rate base reflects the current amount, either as defined by the regulator or as implied by our contracted cash flows, on which we earn our return. Our rate base increases with capital that we invest to expand our systems and is indexed to local inflation. The return that we earn is typically determined by a regulator for prescribed periods of time or is derived based on the contracted cash flows we have secured. We believe that the rate base is useful for investors as it provides them with an understanding of the unlevered returns that our asset base can currently generate and enhances comparability across other utility investments as it assists in assessing the operating performance of our businesses by eliminating the effect