Company: BIPC
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014377
Chunk: 86

Company: Brookfield Infrastructure Corp
Filing Date: 2025-03-24
Form: 20-F
Item: Item 5
Chunk 86
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 as equity. Following the Arrangement and upon consolidation of BIHC into our company, the class C shares are presented as financial liabilities at fair value. As a result, the share capital pertaining to the class C shares was removed, and the difference between the fair value and carrying value of the class C shares was reflected as “ Arrangement/reorganization” as shown in the consolidated statements of changes in equity.

Basis of Presentation

For the periods prior to December 24, 2024, the financial statements represent those of BIHC, formerly Brookfield Infrastructure Corporation. During this period, all of the assets and liabilities presented were controlled by the partnership. Effective December 24, 2024, our company acquired an interest in BIHC and consolidated BIHC in its financial statements. The acquisition of interest in BIHC is a common control transaction where all transacting parties are subsidiaries of the partnership. As a result, the assets and liabilities of our company will be recorded at BIHC’s historical carrying values in our company’s consolidated financial statements. All intercompany balances, transactions, revenues and expenses within our company have been eliminated.

Our company incurs general corporate expenses according to the amended and restated master services agreement dated as of February 29, 2024, as amended from time to time, among the Service Recipients (as defined therein), BN, the Service Providers and others (the “ Master Services Agreement”). The base management fee related to the services received under the Master Services Agreement has been recorded as part of general and administrative expenses in the consolidated financial statements.

Financial data provided has been prepared using accounting policies in accordance with IFRS Accounting Standards. All dollar references, unless otherwise stated, are in millions of United States dollars (“ USD”).

Brookfield Infrastructure Corporation 77

Dividend Policy

The partnership’s distributions are underpinned by stable, highly regulated and contracted cash flows generated from operations. The partnership’s objective is to pay a distribution that is sustainable on a long-term basis and has set its target payout ratio at 60-70% of the partnership’s FFO.

The board of directors of the general partner of the partnership approved a 6% increase in the partnership’s quarterly distribution to$0.430 per unit (or $1.72 per unit annualized), starting with the distribution paid in March 2025. This increase reflects the forecasted contribution from the partnership’s recently commissioned capital projects, as well as, the expected cash yield on recent acquisitions. The partnership targets 5% to 9%