Sunday, July 8, 2018

Brookfield Infrastructure Gets Moving On New Investments

It was only a couple of weeks ago that I wrote about Brookfield Infrastructure (BIP) looking to deploy significant amounts of capital into new cash-generating assets, and the company has moved quickly to do just that. In just that short span of time, Brookfield has participated in two deals with a combined headline value of $4.5 billion, with both deals looking pretty typically “Brookfield-esque” in terms of structure and long-term opportunity.

As is typically the case, Brookfield Infrastructure management provided minimal financial information, and that certainly complicates the modelling process. Even so, I believe these deals add about 1% to the company’s long-term AFFO growth rate and about $2.50/share to the long-term discounted fair value. While Brookfield is usually careful not to bite off more than it can chew, I’d note that the company’s ongoing use of equity and debt to acquire minority stakes leaves open the possibility of more acquisitions in the not-too-distant future.

Read more here:
Brookfield Infrastructure Gets Moving On New Investments

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