Brookfield Infrastructure Partners (BIP 4.48%) (BIPC 4.40%) has its hands in several global sectors. After reporting strong year-end results today, Brookfield Infrastructure jumped as much as 5%.
The limited partnership publicly trades in units, similar to how corporations issue stocks. As of 3:18 p.m. ET, the partnership’s units were still higher by 4.4% as investors digested positive growth results from each of its segments. The strong underlying business performance has helped Brookfield return more than 5% over the last year, not including its quarterly distribution.
Participating in data center growth
Brookfield’s operating segments include utilities, transport, midstream energy, and data. For 2024, funds from operations (FFO) — the cash-flow metric useful for investors in this format — in its data segment jumped 21%. That was helped by new investments including three data center platforms and an Indian cell tower portfolio.
The data segment is its smallest, but even its larger segments showed positive increases in FFO. The utilities segment generated 7% more FFO year over year on a comparable basis while midstream recorded 11% year-over-year growth. But its transport group showed a massive 40% jump over 2023. That was due to the acquisition of a global intermodal logistics company as well as a stake in a Brazilian rail and logistics operation.
Being a unitholder or shareholder in Brookfield Infrastructure offers several advantages for investors. The company navigates various economic environments by allocating capital and managing asset sales with subsequent new investments. It holds up well in inflationary environments as many assets are indexed to inflation.
That helped lead to its announcement of a 6% increase in its quarterly dividend and distribution. Brookfield CEO Sam Pollock stated, “2025 is off to a great start as we continue to capture elevated inflation in our results, secure meaningful proceeds from asset sales and add to our robust growth initiatives led by digitalization tailwinds.”
Income investors should feel a level of comfort allowing these expert asset allocators manage a growing, diversified portfolio. The 2024 results announced today help show why.
Howard Smith has positions in Brookfield Infrastructure and Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
