BIP - Why Brookfield Infrastructure Partners Stock Jumped 31% This Week
2023-11-03 15:42:13 ET
Brookfield Infrastructure Partners (NYSE: BIP) stock skyrocketed this week and was trading 26% higher through 2 p.m. ET Friday, according to data provided by S&P Global Market Intelligence . Shares of the infrastructure giant hit a high of 31.4% in trading during the week after it reported strong quarterly numbers and announced a deal to acquire a portfolio of data centers.
Brookfield Infrastructure's funds from operations (FFO) grew 7% year over year to $560 million in the third quarter. The company, which owns assets across utilities, transportation, midstream energy, and data centers, not only benefited from higher tariffs indexed to inflation, but also from the $1 billion it invested in capital projects in the past 12 months. Utilities -- also its largest contributor to FFO -- was the strongest segment in Q3, with its FFO rising 17% year over year.
Brookfield Infrastructure also updated investors about its investment plans. Contradictory to the market's fears amid a high interest rate environment, Brookfield Infrastructure said the current environment is strong for capital deployment, and that its investments in 2023 are expected to generate "some of the best risk-adjusted returns" the company has seen "in the last decade."
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Why Brookfield Infrastructure Partners Stock Jumped 31% This Week