Capstone Infrastructure Corporation Provides 2015 Outlook - Seite 4

Adjusted Funds from Operations (AFFO)

Capstone's definition of AFFO measures cash generated by activities of infrastructure business investments which is available for dividends and general corporate purposes. For wholly owned businesses, AFFO is equal to Adjusted EBITDA less interest paid, repayment of principal on debt income, taxes paid, scheduled repayment of debt principal, preferred share dividends and maintenance capital expenditures. For businesses that are not wholly owned, the cash generated by the business is only available to Capstone through periodic dividends. For these businesses, AFFO is equal to dividends received. Also deducted are corporate expenses, taxes paid and dividends on preferred shares.

AFFO is calculated from Adjusted EBITDA by:

Deducting: -Adjusted EBITDA generated from businesses with significant non-controlling interests

Adding: -Distributions received from businesses with significant non-controlling interests

-Scheduled repayments of principal on loans receivable from equity accounted investments

Deducting items, for corporate and businesses without significant non-controlling interests: interest paid, income taxes paid, dividends paid on the preferred shares included in shareholders' equity, maintenance capital expenditure payments and scheduled repayments of principal on debt.

³ - Reflects Capstone's economic interest in its various power facilities.

Notice to Readers

Certain of the statements contained within this document are forward-looking and reflect management's expectations regarding the future growth, results of operations, performance and business of the Capstone Infrastructure Corporation (the "Corporation") based on information currently available to the Corporation. Forward-looking statements and financial outlook are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements and financial outlook use forward-looking words, such as "anticipate", "continue", "could", "expect", "may", "will", "intend", "estimate", "plan", "believe" or other similar words. These statements and financial outlook are subject to known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and financial outlook and, accordingly, should not be read as guarantees of future performance or results. The forward-looking statements and financial outlook within this document are based on information currently available and what the Corporation currently believes are reasonable assumptions, including the material assumptions set out in the management's discussion and analysis of the results of operations and the financial condition of the Corporation ("MD&A") for the year ended December 31, 2013 under the heading "Results of Operations", as updated in subsequently filed MD&A of the Corporation (such documents are available under the Corporation's SEDAR profile at www.sedar.com).