RE:Payout ratio of 116% You are missing the payout ratio.
From their last quarterly earnings release: Brookfield Infrastructure reported net income for the quarter of $11 million (a loss of $0.04 per unit) compared to net income of $78 million ($0.16 per unit) in the prior year. While net income was higher across all of our operating segments compared to 2016, these results were offset by the impact of non-cash movements relating to foreign currency hedges. The prior period also included a non-recurring gain of $92 million recorded in our ports business.
FFO of $301 million increased by 28% compared to the prior year driven by contribution from the recent acquisition of our regulated gas transmission business in Brazil and strong organic growth. Our payout ratio for the period was 65%, which remains within our target range of 60-70%.
“FFO per unit continues to grow as we progress through the second half of the year, up 19% since last year,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “A strong global economy is fueling the need for ongoing infrastructure capital, and we are well-positioned to participate through our capital backlog and new investment opportunities.”