If you've been waiting for a better price on Brookfield Infrastructure Partners LP (NYSE:BIP),
you really haven't missed much. Between some lackluster reported
results in the second quarter and more general concerns that BIP is
facing a much more competitive bidding environment for assets, the
shares haven't really gone anywhere this year - up about 2% on a
year-to-date basis (excluding distributions) and up a similar amount from my last piece.
I
still like Brookfield Infrastructure as a well-run long-term play on
global infrastructure assets that range from coal terminals to railroads
to electrical transmission to ports and toll roads. I can understand
why the Street may worry that management's commitment to 8%-11% annual
FFO growth will push them to overpay for assets, but I think that
underrates their capabilities when it comes to recycling capital as well
as the inherent advantages of being able to look at (and acquire) a
wide range of asset types.
Follow this link to the full article:
Amidst Some Market Concerns, Brookfield Infrastructure Keeps On Keeping On
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