Measuring Performance
At Brookfield Infrastructure Partners our objective is to maximize
long-term value for unitholders. To achieve this goal,
we target annualized total returns
of 11% to 15% on our infrastructure
assets – from our current
operations and the infrastructure
assets we acquire – over
the long term. We define total
return as cash distributions
together with increases in unit
values. We expect to generate
this return from the initial
adjusted net operating
income* (ANOI)
plus growth in ANOI and asset values.
To achieve this, we endeavour to manage our operations to generate
increasing ANOI per unit over
a very long period of time. If
we are successful, growth
in ANOI should enable us to increase
distributions to unitholders. Furthermore,
the increase in our ANOI should result
in capital appreciation of our
operations. Accordingly,
growth of ANOI per unit is our
key performance measure.
*Adjusted net operating income is equal to net income plus depreciation,
depletion and amortization, deferred
taxes and certain other items.
