BROOKFIELD, NEWS, May 01, 2024 (GLOBE NEWSWIRE) -- Brookfield Infrastructure Partners L.P. (Brookfield Infrastructure, BIP, or the Partnership) (NYSE:BIP, TSX:BIP) today announced its results for the first quarter ended March 31, 2024. "The benefits of inflation indexation, better than expected economic activity and strong contributions from new investments have favorably impacted our financial results," said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure Partners. "With the base business performing well and successful capital recycling, we are positioned for success over the balance of 2024."   For the three months ended March 31 US$ millions (except per unit amounts), unaudited1   2024       2023   Net income (loss)2 $ 170     $ 23   – per unit3 $ 0.10     $ (0.07 ) FFO4 $ 615     $ 554   – per unit5 $ 0.78     $ 0.72   Brookfield Infrastructure reported net income of $170 million for the three month period ended March 31, 2024 compared to $23 million in the prior year. Current quarter results benefited from strong operational performance and the contribution from recent acquisitions. The current period also reflects higher mark-to-market gains relative to losses incurred in the prior period. These positive impacts were partially offset by higher borrowing costs associated with our recent capital recycling initiatives. Funds from operations (FFO) of $615 million increased by 11% compared with the same period last year. This increase reflects organic growth of 7%, as well as strong contributions associated with over $2 billion of new investments, partially offset by the impact of our capital recycling program and higher interest costs. Organic growth during the period was supported by inflation indexation, strong transportation volumes and the commissioning of over $1 billion of new capital from our capital backlog. Segment Performance The following table presents FFO by segment:   For the three months ended March 31 US$ millions, unaudited1   2024       2023   FFO by segment       Utilities $ 190     $ 208   Transport   302       192   Midstream   170       198   Data   68       70   Corporate   (115 )     (114 ) FFO4 $ 615     $ 554   The utilities segment generated FFO of $190 million, compared to $208 million in the same period last year. The decline is primarily attributable to the sale of our interest in an Australian regulated utility business. After adjusting for asset sales and financings completed, organic growth for the segment was approximately 8%. This growth is primarily from inflation indexation and the commissioning of over $450 million of capital into the rate base during the last twelve months. FFO for the transport segment was $302 million, representing a 57% increase over the same period last year. The step-change is attributable to strong underlying performance and the acquisition of Triton which is performing well above our plan. The balance of our transport operations grew by 10%, driven by inflationary tariff increases and higher volumes. Our rail networks and toll roads realized average rate increases of 9% and 7%, respectively, over the same period last year, highlighting the benefits of inflation indexation. Traffic levels on our roads increased by 4% and our diversified terminals recorded 7% higher volumes. Our midstream segment generated FFO of $170 million, which is comparable to the prior year after excluding the impact of capital recycling initiatives. Although our direct commodity price exposure is limited, the prevailing environment has been very favorable for customer activity levels and demand for our critical midstream assets. This demand has been most robust across our North American Gas Storage operations where we have extended contract duration and achieved rates higher than last year. FFO from our data segment was $68 million, which is comparable to the same period last year. Results for the quarter benefited from a full quarter contribution from our German telecom tower operation, two hyperscale data center platform acquisitions and the purchase of 40 retail colocation data center sites out of bankruptcy. These acquisitions were largely offset by the sale of our interest in a New Zealand integrated data distribution business, which closed in June 2023. Update on Strategic Initiatives Market conditions have continued to improve during 2024. Activity levels for M&A processes have increased, and as a result, the environment for transacting should be more balanced this year as compared to the prior year. We have made significant progress on our capital recycling plans, securing $1.2 billion in proceeds of which $1.1 billion has been closed to date. This success sets us up well to achieve our $2 billion annual capital recycling target. In April, we signed binding documentation to sell the fiber platform within our French Telecom Infrastructure business to a financial buyer. The transaction has an enterprise value of over €1 billion (approximately €175 million net to BIP) and is expected to result in an IRR of 17% and a multiple of capital of approximately 1.9x. We expect to generate up to $100 million in net-to-BIP proceeds when the transaction closes later this year.  During the quarter we also completed several opportunistic asset level financings to right-size capital structures and pull forward future sale proceeds. At our Brazilian regulated gas transmission business, we completed a $1.6 billion financing that resulted in approximately $500 million of proceeds net to BIP. When combined with two refinancings completed at two pipeline operations in North America, we have generated over $1 billion for the partnership, while making these businesses more attractive to a wider buyer universe. The investment pipeline remains quite full, but we are being very selective in pursuing only those opportunities with high risk adjusted returns. There are a significant number of organic and tuck-in opportunities that are our primary focus at the moment, since these are typically our highest returning investments. Our largest investment in the quarter was a low-risk follow-on investment. We acquired an incremental 10% stake in our Brazilian integrated rail and logistics provider from an existing shareholder for approximately $365 million. The purchase increased our ownership to 21% (37% total Brookfield ownership) in a high performing business with strong fundamentals at an over 20% discount to our view of fair value. Additionally, the acquisition improves Brookfield's governance as we are now the business's largest shareholder. We are also continuing to advance the follow-on acquisition of a portfolio of telecom towers in India, which is expected to close in Q4 2024, subject to regulatory approvals. The total equity consideration is expected to be approximately $1 billion, with BIP's share expected to be approximately $150 million. All together our total capital deployment so far this year is over $500 million. Distribution and Dividend Declaration The Board of Directors of BIP declared a quarterly distribution in the amount of $0.405 per unit, payable on June 28, 2024 to unitholders of record as at the close of business on May 31, 2024. This distribution represents a 6% increase compared to the prior year. The regular quarterly dividends on the Cumulative Class A Preferred Limited Partnership Units, Series 1, Series 3, Series 9, Series 11, Series 13 and Series 14 have also been declared, as well as the capital gains dividend for BIP Investment Corporation Senior Preferred Shares, Series 1. In conjunction with the Partnership's distribution declaration, the Board of Directors of BIPC has declared an equivalent quarterly dividend of $0.405 per share, also payable on June 28, 2024 to shareholders of record as at the close of business on May 31, 2024. Conference Call and Quarterly Earnings Details Investors, analysts and other interested parties can access Brookfield Infrastructure's First Quarter 2024 Results, as well as Letter to Unitholders and Supplemental Information, under the Investor Relations section at https://bip.brookfield.com. To participate in the Conference Call today at 9:00am EDT, please pre-register at https://register.vevent.com/register/BI187b9b7282444d828d03ad38790c03e9. Upon registering, you will be emailed a dial-in number, direct passcode and unique PIN. The Conference Call will also be Webcast live at https://edge.media-server.com/mmc/p/s3dzba8n. Additional Information The Board has reviewed and approved this news release, including the summarized unaudited financial information contained herein. About Brookfield Infrastructure Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across the Americas, Asia Pacific and Europe. We are focused on assets that have contracted and regulated revenues that generate predictable and stable cash flows. Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE:BIP, TSX:BIP), a Bermuda-based limited partnership, or Brookfield Infrastructure Corporation ((NYSE, TSX:BIPC), a Canadian corporation. Further information is available at https://bip.brookfield.com. Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a global alternative asset manager with over $900 billion of assets under management. For more information, go to https://brookfield.com. Contact Information Media: Investors: Simon Maine Stephen Fukuda Managing Director Senior Vice President Corporate Communications Corporate Development & Investor Relations Tel: +44 739 890 9278 Tel: +1 416 956 5129 Email: Email: Cautionary Statement Regarding Forward-looking Statements This news release may contain forward-looking information within the meaning of Canadian provincial securities laws and "forward-looking statements" within the meaning of applicable securities laws. The words "will", "target", "future", "growth", "expect", "believe", "may", derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release may include statements regarding expansion of Brookfield Infrastructure's business, the likelihood and timing of successfully completing the transactions referred to in this news release, statements with respect to our assets tending to appreciate in value over time, the future performance of acquired businesses and growth initiatives, the commissioning of our capital backlog, the pursuit of projects in our pipeline, the level of distribution growth over the next several years and our expectations regarding returns to our unitholders as a result of such growth. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release include general economic conditions in the jurisdictions in which we operate and elsewhere which may impact the markets for our products and services, the ability to achieve growth within Brookfield Infrastructure's businesses and in particular completion on time and on budget of various large capital projects, which themselves depend on access to capital and continuing favorable commodity prices, and our ability to achieve the milestones necessary to deliver the targeted returns to our unitholders, the impact of market conditions on our businesses, the fact that success of Brookfield Infrastructure is dependent on market demand for an infrastructure company, which is unknown, the availability of equity and debt financing for Brookfield Infrastructure, the impact of health pandemics on our business and operations, the ability to effectively complete transactions in the competitive infrastructure space (including the ability to complete announced and potential transactions that may be subject to conditions precedent, and the inability to reach final agreement with counterparties to transactions referred to in this press release as being currently pursued, given that there can be no assurance that any such transaction will be agreed to or completed) and to integrate acquisitions into existing operations, the future performance of these acquisitions, changes in technology which have the potential to disrupt the business and industries in which we invest, the market conditions of key commodities, the price, supply or demand for which can have a significant impact upon the financial and operating performance of our business and other risks and factors described in the documents filed by Brookfield Infrastructure with the securities regulators in Canada and the United States including under "Risk Factors" in Brookfield Infrastructure's most recent Annual Report on Form 20-F and other risks and factors that are described therein. Except as required by law, Brookfield Infrastructure undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructure's results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares. Any statements contained herein with respect to tax consequences are of a general nature only and are not intended to be, nor should they be construed to be, legal or tax advice to any person, and no representation with respect to tax consequences is made. Unitholders and shareholders are urged to consult their tax advisors with respect to their particular circumstances. References to Brookfield Infrastructure are to the Partnership together with its subsidiaries and operating entities. Brookfield Infrastructure's results include limited partnership units held by public unitholders, redeemable partnership units, general partnership units, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares. References to the Partnership are to Brookfield Infrastructure Partners L.P. Please refer to page 10 for results of Brookfield Infrastructure Corporation. Includes net income attributable to limited partners, the general partner, and non-controlling interests ‒ Redeemable Partnership Units held by Brookfield, Exchange LP units, BIPC exchangeable LP units and BIPC exchangeable shares. Average number of limited partnership units outstanding on a time weighted average basis for the three-month period ended March 31, 2024 was 461.4 million (2023: 458.4 million). We define FFO as net income excluding the impact of depreciation and amortization, deferred income taxes, mark-to-market gains (losses) and other income (expenses) that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. FFO includes balances attributable to the Partnership generated by investments in associates and joint ventures accounted for using the equity method and excludes amounts attributable to non-controlling interests based on the economic interests held by non-controlling interests in consolidated subsidiaries. We believe that FFO, when viewed in conjunction with our IFRS results, provides a more complete understanding of factors and trends affecting our underlying operations. FFO is a measure of operating performance that is not calculated in accordance with, and does not have any standardized meaning prescribed by IFRS as issued by the International Accounting Standards Board. FFO is therefore unlikely to be comparable to similar measures presented by other issuers. A reconciliation of net income to FFO is available on page 8 of this release. Readers are encouraged to consider both measures in assessing our company's results. Average number of partnership units outstanding on a fully diluted time weighted average basis for the three-month period ended March 31, 2024 was 792.0 million (2023: 771.4 million). Brookfield Infrastructure Partners L.P.Consolidated Statements of Financial Position   As of US$ millions, unaudited March 31, 2024     Dec. 31, 2023           Assets       Cash and cash equivalents $ 1,580     $ 1,857   Financial assets   647       787   Property, plant and equipment and investment properties   55,014       52,879   Intangible assets and goodwill   30,068       30,333   Investments in associates and joint ventures   5,378       5,402   Deferred income taxes and other   10,573       9,526   Total assets $ 103,260     $ 100,784           Liabilities and partnership capital       Corporate borrowings $ 4,937     $ 4,911   Non-recourse borrowings   44,136       40,904   Financial liabilities   2,702       2,875   Deferred income taxes and other   18,862       18,078           Partnership capital       Limited partners   5,162       5,321   General partner   28       28   Non-controlling interest attributable to:       Redeemable partnership units held by Brookfield   2,122       2,190   Exchangeable units/shares1   1,557       1,605   Perpetual subordinated notes   293       293   Interest of others in operating subsidiaries   22,543       23,661   Preferred unitholders   918       918   Total partnership capital   32,623       34,016   Total liabilities and partnership capital $ 103,260     $ 100,784   Includes non-controlling interest attributable to BIPC exchangeable shares, BIPC exchangeable LP units and Exchange LP units. Brookfield Infrastructure Partners L.P.Consolidated Statements of Operating Results   For the three months ended March 31 US$ millions, except per unit information, unaudited   2024       2023           Revenues $ 5,187     $ 4,218   Direct operating costs   (3,913 )     (3,229 ) General and administrative expense   (97 )     (103 )