You should be looking at FFO or AFFO for BIP and not at earnings. Read the 1Q shareholder letter.Many projects for which they have been investing money in the past will start providing FFO in 2012 which will increase the FFO and AFFO.One example is Australian Railroad.
In valuing MLPs, one cannot simply rely upon traditional net income-based measures such as Price to Earnings. These ratios are nearly meaningless for MLPs since they have very low annual net income due to their unique operating structures that force GPs to pay out the majority of operating income to the LP units. Look at “Distributable Cash Flows”, or “DCFs”, which measure the cash profits that MLPs are actually able to give unit holders. Finding MLPs with large, sustainable, and growing DCFs is the key to building a high quality, resilient portfolio of MLPs.
Today with the news of planned acquisitions - including the remainder of the chilean toll road BIPP has forecast quarterly FFO with another 8.5% decrease.
They are also planning a new issuance of 13-15 million units.
While these new acquisitions may pay off in the future - the initial investment in Chile's toll roads is not having the type of impact that the Prime acquisition had. More of same does not seem like the way to go.
Only time will tell about the UK investment - but I think it might be early to be investing heavily in europe.