Brookfield Infrastructure's Q1 net income more than doubles from year ago to US$98M, largely on merger with Prime Infrastructure in Q4; solid performance in utility, timber businesses offset some weakness in transport, energy

HAMILTON, Bermuda , May 6, 2011 (press release) – Investors, analysts and other interested parties can access Brookfield Infrastructure's 2011 first quarter results as well as the Letter to Unitholders and Supplemental Information on the web site under the Investor Relations section at www.brookfieldinfrastructure.com.

The 2011 first quarter results conference call can be accessed via webcast on May 6, 2011 at 9:00 a.m. ET at www.brookfieldinfrastructure.com or via teleconference at 1-800-319-4610 toll free in North America. For overseas calls please dial 1-412-858-4600, at approximately 8:50 a.m. ET. The teleconference taped rebroadcast can be accessed at 1-800-319-6413 (password: 9245#).

Brookfield Infrastructure (NYSE:BIP - News)(TSX:BIP.UN - News) today announced its results for the first quarter ended March 31, 2011.


                Brookfield Infrastructure Partners L.P.
                  Statements of Funds from Operations


                                                 For the three-month period
                                                             ended March 31
(US$ millions, except per unit information,     ---------------------------
 unaudited)                                              2011          2010
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Operating platforms - revenues less direct costs
  Utilities                                       $        97   $        48
  Transport and Energy                                     84            46
  Timber                                                   17             8
  Corporate and other                                     (13)           (8)
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Total operating platforms - revenues less direct
 costs                                                    185            94
Interest and other income                                   1             1

Expenses
  Financing costs                                          89            47
  Cash taxes                                               (1)            3
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Total funds from operations                       $        98   $        45
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  Depreciation and amortization                           (48)          (31)
  Deferred income taxes and other items                    (5)          (15)
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Net income (loss) attributable to partnership     $        45   $        (1)
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Fund from operations per unit                     $      0.62   $      0.42
Net income (loss) per unit                        $      0.29   $     (0.01)
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Notes:
Funds from operations in this statement is on a segmented basis and
represents the operations of Brookfield Infrastructure net of charges
associated with related liabilities and non-controlling interests. Readers
are encouraged to refer to Brookfield Infrastructure's Financial Review and
Supplemental Information which is available at
www.brookfieldinfrastructure.com.


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US$ millions (except per unit amounts)(1)        Three months ended March 31
                                                          2011          2010
----------------------------------------------------------------------------
FFO(2)                                             $        98  $        45
  - per unit(3)                                    $      0.62  $      0.42
Net income (loss)                                  $        45  $        (1)
  - per unit(3)                                    $      0.29  $     (0.01)
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Brookfield Infrastructure posted strong results for the first quarter of 2011, with funds from operations ("FFO")(2) totalling $98 million ($0.62 per unit) compared to FFO of $45 million ($0.42 per unit) in the first quarter 2010. The increase in FFO was largely attributable to the merger with Prime Infrastructure during the fourth quarter of 2010. However, results also reflect a solid performance from its utility business and a significant increase in FFO from its timber business, which offset some weakness in its transport and energy business. Overall, after deducting maintenance capital expenditures, Brookfield Infrastructure generated an adjusted funds from operations ("AFFO") yield(4) of 10% for the quarter.

"Brookfield Infrastructure's strong performance during the quarter highlighted the benefits of our broadly diversified portfolio of assets," said Sam Pollock, Chief Executive Officer of Brookfield's Infrastructure Group. "We continue to expect our global mix of businesses to generate sustainable and growing cash flows, benefitting from economic growth and rising commodity prices."

Segment Performance

Brookfield Infrastructure's utilities segment generated FFO of $61 million in the first quarter 2011, with an AFFO yield of 13%(5). Performance was driven by strong performances from its Australian coal terminal, its Chilean electricity transmission and its UK distribution businesses. The transport and energy segment generated FFO of $45 million, with an AFFO yield of 8%. This quarter's results reflect the rate settlement and weak conditions in the U.S. natural gas market, which negatively impacted Brookfield Infrastructure's natural gas transmission business, as well as the drought in Western Australia, which reduced the volume of grain transported on its railroad.

Timber operations reported FFO of $10 million in the first quarter 2011, compared to $2 million in the first quarter of last year, driven by continued strength in the export market and a sharp increase in pricing in the U.S. domestic market. On average, export prices increased by 22% and domestic prices rose by 18%, versus the first quarter of 2010. In response, Brookfield Infrastructure increased its harvest levels by 29%, versus the comparable period last year.

The following table presents net income and FFO by segment:

 

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                                              Three months ended March 31
US$ millions, unaudited                        2011                  2010
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Net income (loss) by segment
      Utilities                        $         30           $        11
      Transport and energy                       30                    10
      Timber                                      6                     3
      Corporate                                 (21)                  (25)
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Net income (loss)                      $         45           $        (1)
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FFO by segment
      Utilities                        $         61           $        27
      Transport and energy                       45                    27
      Timber                                     10                     2
      Corporate                                 (18)                  (11)
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FFO                                    $         98           $        45
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Distribution Declaration

The Board of Directors has declared the Partnership's quarterly distribution in the amount of US$0.31 per unit, payable on June 30, 2011 to unitholders of record as at the close of business on May 31, 2011. During the first quarter, Brookfield Infrastructure's distribution implied a payout ratio(6) of 50% of FFO, on a recurring basis, which is below its targeted range of 60% to 70%.

Distributions are eligible for reinvestment under the Partnership's Distribution Reinvestment Plan. Information on this Plan and on declared distributions can be found on Brookfield Infrastructure's website under Investor Relations/Distributions.

Additional Information

The Letter to Unitholders and the Supplemental Information for the three months ended March 31, 2011 contain further information on Brookfield Infrastructure's strategy, operations and financial results. Unitholders are encouraged to read these documents, which are available at www.brookfieldinfrastructure.com.

Brookfield Infrastructure operates high quality, long-life assets that generate stable cash flows, require relatively minimal maintenance capital expenditures and, by virtue of barriers to entry and other characteristics, tend to appreciate in value over time. Its current business consists of the ownership and operation of premier utilities, transport and energy, and timber assets in North and South America, Australasia, and Europe. It also seeks acquisition opportunities in other infrastructure sectors with similar attributes. The payout policy targets 3% to 7% annual growth in distributions. Units trade on the New York and Toronto Stock Exchanges under the symbols BIP and BIP.UN, respectively. For more information, please visit Brookfield Infrastructure's website at www.brookfieldinfrastructure.com.

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