FIRST QUARTER 2022 RESULTS AND THREE-FOR-TWO STOCK SPLIT
The board of directors of Brookfield Infrastructure Corp. has declared a quarterly dividend in the amount of 54 cents per Class A exchangeable subordinate voting share of BIPC, payable on June 30, 2022, to shareholders of record as at the close of business on May 31, 2022. This dividend is identical in amount per share and has identical record and payment dates to the quarterly distribution announced today by Brookfield Infrastructure Partners L.P. ("BIP" or the "Partnership") on its units.
To ensure our shares remain accessible to individual shareholders and further enhance liquidity of our shares, our Board of Directors has approved a three-for-two share split of our shares payable on June 10, 2022 to shareholders of record at the close of business on June 6, 2022. The quarterly dividend will be payable on the pre-split shares outstanding as at the close of business on May 31, 2022 and no quarterly dividend will be payable on any shares issued on June 10, 2022 as a result of the share split. As the share split takes effect after the record date for the quarterly share dividend, it will not affect the announced dividend for the quarter which remains at $0.54 per share outstanding. Subject to Board approval, BIPC expects to commence paying a quarterly dividend of $0.36 per share beginning on September 30, 2022 to reflect the additional number of shares that will be outstanding after the effective date of the share split. The Board of Directors of BIP has approved a concurrent three-for-two unit split of BIP's units. Please refer to the "Brookfield Infrastructure Reports First Quarter 2022 Results and Three-for-Two Stock Split - Stock Split" section of this press release, above, for complete details related to the share and unit splits.
The shares of BIPC are structured with the intention of being economically equivalent to the non-voting limited partnership units of BIP (NYSE: BIP; TSX: BIP.UN). We believe economic equivalence is achieved through identical dividends and distributions on the shares and BIP's units and each share being exchangeable at the option of the holder for one BIP unit at any time. Given the economic equivalence, we expect that the market price of the shares will be significantly impacted by the market price of BIP's units and the combined business performance of our company and BIP as a whole. In addition to carefully considering the disclosure made in this news release in its entirety, shareholders are strongly encouraged to thoroughly review BIP's letter to unitholders, supplemental information and its other continuous disclosure filings. BIP's letter to unitholders and supplemental information are available at www.brookfield.com/infrastructure. Copies of the Partnership's continuous disclosure filings are available electronically on EDGAR on the SEC's website at www.sec.gov or on SEDAR at www.sedar.com.
Results
The net income and Funds from Operations1 (FFO) of BIPC are captured in the Partnership's financial statements and results.
BIPC reported a net loss attributable to the partnership of $373 million for the three-month period ended March 31, 2022 compared to $178 million in the prior year. After adjusting for revaluation and dividends paid on our shares that are classified as liabilities under IFRS, net income attributable to the partnership increased by approximately $50 million compared to the prior year. FFO of $102 million for the quarter was in-line with $104 million in the prior year.
Both earnings and FFO benefited from capital commissioned into rate base and increased connections activity at our U.K. regulated distribution business, as well as inflationary tariff increases and an increased ownership interest at our Brazilian regulated gas transmission business. In addition, results benefited from the partial contribution of our Australian regulated utility that was acquired in February 2022, whereas the prior year included earnings associated with our U.K. smart meter portfolio which was sold in May 2021.