What happened
Shares of Brookfield Infrastructure (BIP 1.51%) (BIPC 2.01%) jumped 16.1% in November, according to data provided by S&P Global Market Intelligence. Powering the global infrastructure company was its solid third-quarter results.
So what
Brookfield reported that it generated $365 million, or $0.79 per share, of funds from operations (FFO) during the third quarter, up 8% year over year. That growth came despite some headwinds facing its utilities and transportation businesses due to foreign exchange fluctuations and volume reductions resulting from economic shutdowns related to COVID-19. The company more than offset those issues thanks to several recent acquisitions, which helped power a 40% surge in FFO from its data infrastructure platform.
Image source: Getty Images.
The company also secured two more needle-moving deals during the quarter. It invested $600 million into a portfolio of telecom towers in India and roughly $425 million into a U.S. liquefied natural gas (LNG) export facility. Because of those deals and the expectation that the current headwinds will fade, Brookfield CEO Sam Pollock said, "2021 is shaping up to be a strong year for our business." The company will enter the upcoming year with ample liquidity to make additional deals thanks to recent and future asset sales. The company anticipates that it could invest up to $2 billion per year on new investments, which would add an incremental 1% to 5% to its FFO after adjusting for the impact of asset sales.
Now what
Brookfield Infrastructure proved the durability of its operations this year. While its FFO was under some pressure during the tumultuous second quarter, it bounced back quickly during the third. Because of that, its 3.9%-yielding dividend remains on rock-solid ground. That makes it a great income option for beginning investors.
