BIPC - Why Brookfield Infrastructure Is Soaring Today
2023-11-01 11:30:54 ET
Units of Brookfield Infrastructure Partners (NYSE: BIP) had surged nearly 10% by 10:30 a.m. ET on Wednesday. Meanwhile, shares of its economically equivalent corporate twin, Brookfield Infrastructure Corporation (NYSE: BIPC) , were up around 7%. The global infrastructure giant reported solid third-quarter results and agreed to a transformative deal to buy Cyxtera's data centers out of bankruptcy.
Brookfield Infrastructure grew its funds from operations ( FFO ) by 7% to $556 million in the third quarter. The main driver was organic growth. Brookfield was able to raise rates with inflation while also getting a boost from finishing $1 billion of capital projects in the quarter. These catalysts helped offset the impact of $2 billion of asset sales that closed during the second quarter.
Those sales were part of the company's active capital recycling strategy to sell mature assets and redeploy the proceeds into higher-return opportunities. Brookfield recently closed three deals and has another in the pipeline. The company noted that these deals will provide it "with some of the best risk-adjusted returns we have seen in the last decade."
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Why Brookfield Infrastructure Is Soaring Today