Brookfield Infrastructure Partners says it could see best risk-adjusted returns in a decade
Published: 11:44 01 Nov 2023 EDT
Brookfield Infrastructure Partners told investors that the market backdrop has created a “strong environment for capital deployment” in a statement accompanying its latest earnings report.
The company said returns on new investments is expected to be “well in excess” of its 12-15% target.
“Our 2023 deployment is expected to provide us with some of the best risk-adjusted returns we have seen in the last decade,” the company wrote in a statement.
Brookfield Infrastructure Partners, which operates utility, transportation, and energy assets, reported net income of $23 million, or $0.03 per share during the three-month period to September 30, 2023.
However, the company's funds from operations per unit fell short of the estimated $0.74, coming in at $0.73.
Brookfield’s recent acquisition of Triton, their intermodal logistics operation, closed successfully, with Brookfield Infrastructure investing $1.2 billion for a 28% interest. The business's strong position and cash-generating capability allow flexibility in fleet investments and growth.
Additionally, Brookfield said it is enthusiastic about the growth prospects in their data center platform, which expanded through acquisitions of Data4 and Compass. They have also reached an agreement to acquire data centers from Cyxtera, enhancing their position as a leading retail colocation data center provider with 330+ megawatts of capacity.
The total purchase price for the data centers and associated real estate is around $1.3 billion, with funding secured and collateralized by the combined portfolio.
The deal is set to close in the first quarter of 2024.
Shares of Brookfield Infrastructure were up around 7.8% on Wednesday morning in New York, at about US$24.40.
