Company: BIP-PB
Filing Date: 2025-03-24
Form Type: 20-F
Source: 0001628280-25-014380
Chunk: 226

Company: Brookfield Infrastructure Partners L.P.
Filing Date: 2025-03-24
Form: 20-F
Item: Item 5
Chunk 226
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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 target 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.

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 our 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 - Exchangeable units and non-controlling interests - BIPC exchangeable shares and class A.2 exchangeable shares.

Brookfield Infrastructure 109

(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) divided by AFFO

Current year FFO and AFFO payout ratios have been impacted by the following factors:

• Organic growth was 7% capturing annual rate increases, volume growth across the majority of our critical infrastructure networks, and earnings associated with capital commissioned over the last 12 months

• A net positive contribution from our asset rotation program, which was partially offset by the timing of asset sales

Our 2024 FFO and AFF