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Brookfield Letter to Unitholders Q2 2021 Overview Brookfield Infrastructure reported another strong quarter and advanced several strategic priorities . Funds from Operations ( FFO ) totalled $ 394 million , or $ 0.85 per unit , an increase of 18 % compared to the second quarter of 2020. Results were fuelled by the ongoing economic recovery which is driving growth within our base business . Conditions supporting capital markets activity and our global operations remained favorable , allowing us to complete almost $ 7 billion of refinancing activity across our assets . In combination with over $ 1.3 billion of net proceeds from two recently completed asset sales , our balance sheet is in excellent shape to fund an extensive investment pipeline . With respect to growth initiatives , our patience paid off in our bid to privatize Inter Pipeline Ltd. ( IPL ) . With the endorsement of IPL's Board of Directors and guidance on the merits of our bid from two prominent proxy advisors , Brookfield Infrastructure now has a clear path to acquire IPL . If successful , Brookfield Infrastructure will deploy approximately $ 2 billion of equity in a high - quality Canadian midstream operation . The completion of this acquisition is expected in the third quarter and will mark the start of the next expansionary period for our business , which should drive strong FFO per unit accretion . The current global economic backdrop supports a promising outlook for Brookfield Infrastructure . Organic growth has historically provided sustainable cash flow growth and is picking up momentum . Inflation in the markets in which we operate is at higher - than - normal levels and GDP growth rates are nearing highs not experienced since the period following the global financial crisis . This economic rebound should benefit our volume sensitive businesses , which primarily consist of our transport assets and certain utility and midstream operations . We are also seeing elevated levels of customer - led capital expansion projects which have added to our growing backlog of contracted , commercialized projects . This leads to increased visibility into organic growth for the next year at the high - end of our 6-9 % target range . Results of Operations FFO of $ 394 million for the quarter reflects an 18 % increase compared to the same period last year . Results were supported by strong growth from our base business , contributions from new investments and higher volumes attributable to the continued economic rebound . Excluding the recovery of shutdown - related volume declines in the prior year , organic growth was 9 % . This solid level of growth includes inflationary tariff increases and the commissioning of approximately $ 900 million in new capital projects during the last 12 months . Inclusive of the recovery of both connections income at our U.K. regulated distribution business and toll road traffic , our base business grew by 16 % relative to the prior year . These positive factors were partially offset by the impact of asset sales completed in the last year , which have resulted in nearly $ 2 billion of proceeds . As we deploy that capital at higher returns , it should accelerate our earnings base . Utilities The utilities segment generated FFO of $ 190 million , an improvement of 21 % over the prior year . All businesses within the segment continue to perform well in the current environment , with results reflecting 10 % organic growth due to inflation indexation and the commissioning of almost $ 400 million into rate base during the past year . Results also benefited from the acquisition of the remaining interest in our Brazilian regulated gas transmission operation . These contributions were partially offset by the impact of asset sales as part of our capital recycling program . Q2 2021 Letter to Unitholders Brookfield Infrastructure Partners L.P. 1