Brookfield Infrastructure Partners (BIP) reported 4Q2018 Results.
FFO was $3.11. Stock is trading at $38.5 which is 12.4 times FFO multiple. FFO was flat in 2018 compared to FFO of $3.11 in 2017. BIP did a lot of asset rotation this year and was impacted by currency depreciation in Brazil, Australia which was more severe than expected.
In 2 years time we can expect FFO to be above $4 as they close on announced transactions and make new investments and raise rates. If stock trades at same multiple we can expect to see $50 stock while we also receive 5.25% dividend in mean while. Dividend was raised from $1.88 per year to $2.01 which is a 7% raise. We can expect dividend increases to be stronger over next 2 years as FFO grows and if USD strength against BRL, AUD, CAD, GBP reverses there is more upside.
Brookfield Infrastructure (BIP) Reports 2018 Year-End Results
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