Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 275

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 5
Chunk 275
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 component of recurring growth capital expenditures; and

• we look to fund new investment opportunities and large-scale growth capital expenditure projects with proceeds from capital recycling and capital market issuances

Over the last 5 years, we have deployed over $12 billion in acquisitions and organic growth initiatives, which has been funded through our capital recycling program, capital market issuances and retained cash flows

DISTRIBUTION POLICY

Our distributions are underpinned by stable, highly regulated and contracted cash flows generated from operations. Our partnership’s objective is to pay a distribution that is sustainable on a long-term basis. Our partnership has set its target payout ratio at 60-70% of FFO. In sizing what we believe to be a conservative payout ratio, we typically retain approximately 15-20% of AFFO that we utilize to fund some or all of our internally funded growth capital expenditures.

Brookfield Infrastructure 153

The following table presents our partnership’s payout ratios over the past three years:

                                                      For the year ended December 31,                                                       
  US$ MILLIONS                                                                   2024                 2023                 2022             
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net income attributable to the partnership (1)                                    $        391         $        432         $        407  
  Funds from Operations (FFO)                                                              2,468                2,288                2,087  
  Adjusted Funds from Operations (AFFO)                                                    1,862                1,838                1,701  
  Distributions (2)                                                                        1,644                1,516                1,418  
  FFO payout ratio (3)                                                             67                   66                   68             
  AFFO payout ratio (4)                                                            88                   82                   83             

(1) Includes net income attributable to limited partners, the general partner, non-controlling interests - Redeemable Partnership Units held by Brookfield, non-controlling interests - Exchange LP Units, non-controlling interests - BIPC Exchangeable LP Units, and non-controlling interests - BIPC exchangeable shares and class A.2 exchangeable shares.

(2) Includes partnership distributions and partnership preferred distributions.

(3) FFO payout ratio is defined as distributions (inclusive of GP incentive and preferred unit distributions) divided by FFO.

(4) AFFO payout ratio is defined as distributions (inclusive of GP incentive and preferred unit distributions