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Brookfield Letter to Unitholders Q3 2021 Overview Brookfield Infrastructure reported another strong quarter . Funds from operations ( FFO ) totaled $ 422 million , an increase of 16 % compared with the third quarter of 2020. On a per - unit basis , results were 13 % ahead of the prior year even after considering the impact of the BIPC share issuance in connection with the privatization of Inter Pipeline Ltd. ( IPL ) . Strong organic growth continued in the third quarter as results benefited from global economic expansion , improving commodity prices and the impact of inflation on our revenue streams . The most significant milestone for the quarter was the acquisition of IPL . In early September , we successfully completed the first stage of the privatization , acquiring shares through the tender offer process that brought our total ownership to 76 % , alongside our institutional partners . On October 28 , we acquired the remaining 24 % not already owned , and subsequently delisted the company . In total we have deployed approximately $ 2.5 billion , funded with cash and $ 1.9 billion of newly issued BIPC equity . We are excited about the long - term value we believe we can create through our operating initiatives . Looking at today's operating environment , the combination of constructive capital markets , healthy economic activity and low interest rates is driving three important macro - economic themes that are all very favorable for our business : 1. Elevated inflation : Whether through regulated frameworks or contractual entitlement , approximately 70 % of our revenues are indexed to local inflation . This feature , combined with strong free cash flow conversion levels , is driving significant FFO growth within our base business . 2. Higher commodity prices : Although 80 % of our midstream sector revenues are insulated from commodity prices , the remaining 20 % are market sensitive revenues that should outperform in the current environment . Additionally , higher commodity prices result in more free cash generation for our counterparties , which not only strengthens their financial positions , but also can lead to increased volumes and customer - initiated growth projects . 3. Supply chain bottlenecks : Logistics infrastructure worldwide is under stress given the recent disruption to traditional supply chains . This puts a spotlight on the essential nature of our networks and facilities : When demand for our infrastructure is high , we tend to realize higher tariffs as customers compete for whatever remaining capacity is available . We also tend to generate more revenues from storage services . In the near term , as these complementary market forces continue , our business is well - positioned to benefit from higher volumes , increased tariffs and new capital expansion projects . Results From Operations FFO of $ 422 million for the quarter reflects a 16 % increase compared with the same period last year . Results were supported by strong growth from our base business and the initial contribution from IPL . Excluding the recovery of shutdown - related effects experienced in 2020 , organic growth was robust at 9 % . This includes inflationary tariff increases and the commissioning of over $ 800 million in new capital projects in the last twelve months . Current quarter results exclude the impact related to the sale of various assets , which raised almost $ 2 billion of net proceeds for Brookfield Infrastructure this year . Q3 2021 Letter to Unitholders Brookfield Infrastructure Partners L.P. 1