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Brookfield Infrastructure Targets 10% FFO Growth in 2026 as Capital Recycling Supports Expansion, RBC Says

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Brookfield Infrastructure (BIP) remains on track to deliver more than 10% FFO per unit growth in the near term, RBC Capital Markets said in a Tuesday note.

Management reiterated its target for about 10% FFO per unit growth in 2026, supporting its long-term goal of 5% to 9% annual distribution growth.

The company said organic initiatives are expected to contribute about 6% to 9% FFO per unit growth, supported by inflation-linked pricing, volume growth, and newly commissioned projects.

Brookfield also expects its capital recycling strategy to remain a key growth driver, with capital deployment targeted at returns of about 12% to 15%.

Brookfield Infrastructure secured nearly $1.0 billion of asset sale proceeds by the end of April and identified about $0.4 billion of new investment opportunities, including a $375 million equipment leasing investment and about $60 million through its Bloom Energy partnership, RBC said.

Brookfield said current geopolitical and macroeconomic uncertainty has not affected its ability to execute transactions or attract investor interest in its assets.

The company noted that inflation remains a tailwind, with about 85% of FFO either protected from or indexed to inflation, which could provide additional support to cash flow growth in 2027.

Management continues to evaluate its proposed corporate simplification initiative, which could improve trading liquidity, increase opportunities for index inclusion, and reduce perceived complexity for investors.

Brookfield said no final decision has been made on the initiative, though an update could come as early as its Q2 2026 results.

RBC maintained its Outperform rating and $41 price target on Brookfield Infrastructure.

Price: $38.77, Change: $-0.04, Percent Change: -0.10%

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