Q1 2025 Brookfield Infrastructure Partners LP Earnings Call

Hello, and welcome to the Brookfield infrastructure Partners Q1, 2025 results conference call and webcast. At this time all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session.

Unknown Executive: Hello, and welcome to the Brookfield Infrastructure Partners Q1 2025 results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star 1 1 again. be advised that today's conference is being recorded.

Ask a question during the session you will need to press star one one on your telephone you all didn't hear an automated message advising your hand has been raised to withdraw your question. Please press star one again please.

Please be advised that today's conference is being recorded.

David Krant: It is now my pleasure to introduce Chief Financial Officer David Krant. Thank you, Andrew. And good morning, everyone.

Speaker Change: It is now my pleasure to introduce Chief Financial Officer, David Crane.

David Crane: Thank you Andrew and good morning, everyone.

David Crane: Welcome to Brookfield infrastructure partners first quarter earnings Conference call as introduced my name is David <unk> and I'm, the Chief financial Officer of Brookfield infrastructure.

David Krant: Welcome to Brookfield Infrastructure Partners first quarter earnings conference call. As introduced, my name is David Krant and I'm the Chief Financial Officer of Brookfield Infrastructure.

David Krant: I'm joined today by our Chief Executive Officer, Sam Pollock, and Dave Joynt, Managing Partner on our Investment Team, Focus, and Head of Global Transformation.

David Crane: And today by our Chief Executive Officer, Sam Pollock, and David joined managing partner on our investment team focused and head of global transport.

David Krant: I'll begin the call today with a discussion of our first quarter 2025 financial and operating results, followed by an update on our strategic initiative.

David Crane: I'll begin the call today with a discussion of our first quarter 2025 financial and operating results followed by an update on our strategic initiatives. I will then turn the call over to Dave who will discuss the impact of the U S tariff policy on the global economy, and our strong positioning of our business and finally, Sam will provide an outlook and our priorities for the year.

David Joynt: I'll then turn the call over to Dave who will discuss the impact of the U.S. tariff policy on the global economy and the strong positioning of our business.

David Krant: And finally, SAM will provide an outlook and our priorities for the year ahead. At this time, I'd like to remind you that in our remarks today, we may make forward-looking statements. These statements are subject to known and unknown risks, and future results may differ materially.

David Crane: Ed.

David Crane: At this time I would like to remind you that our remarks today, we may make forward looking statements. These statements are subject to known and unknown risks and future results may differ materially for further information on known risk factors I would encourage you to review our latest annual report on form 20-F, which is available on our website.

David Krant: For further information on known risk factors, I would encourage you to review our latest annual report on Form 20-F, which is available on our website. Brookfield Infrastructure had a solid start to the year, delivering consistent financial performance and significantly progressing its capital deployment and recycling initiative. First on results, we generated funds from operations, or SFO, of $646 million, or $0.82 per unit, in the first quarter, which normalized for the impacts of the foreign exchange was up 12 percent, ahead of our target and reflective of the strong underlying performance of our In total, results were up 5% over the prior year.

David Crane: Brookfield infrastructure had a solid start to the year delivering consistent financial performance and significantly progressing it's capital deployment and recycling initiatives.

David Crane: First on results, we generated funds from operations or <unk> of $646 million or <unk> 82 per unit in the first quarter, which normalized for the impacts of foreign exchange was up 12% ahead of our target and reflective of the strong underlying performance of our business.

David Crane: In total results were up 5% over the prior year.

David Krant: This increase was driven by strong inflation indexation, higher revenues across our critical infrastructure networks, the commissioning of over $1 billion from our capital backlog, and the contribution from Tuck & Acquisitions completed last year. Results also benefited from the increased utilization at our midstream investments and strong contracting within our data centers. Taking a closer look at our results by segment, our utilities operations generated FFO of $192 million, slightly ahead of the prior year. FFO would have increased 13% year-over-year when adjusting for currency impact and the impact of capital recycling. This reflects the inflationary benefits embedded within our portfolio and the contribution of $450 million of capital that we've commissioned into Rayface in the last 12 months.

David Crane: This increase was driven by strong inflation indexation higher revenues across our critical infrastructure networks, the commissioning over $1 billion from our capital backlog and the contribution from tuck in acquisitions completed last year.

David Crane: Results also benefited from increased utilization at our midstream investments and strong contracting within their data center businesses.

David Crane: Taking a closer look at our results by segment, our utilities operations generated <unk> of $192 million slightly ahead of the prior year.

David Crane: <unk> would have increased 13% year over year, when adjusting for currency impact and the impact of capital recycling.

David Crane: This reflects the inflationary benefits embedded within our portfolio and the contribution of $450 million of capital that we've commissioned into rate base in the last 12 months.

David Crane: Moving onto our transport segment, <unk> was $288 million compared to $302 million in the prior year period.

David Krant: Moving on to our transport segment, FFO was $288 million compared to $302 million in the prior year period. After normalizing for the impact of foreign exchange, results for the segment were in line with the prior year. Despite experiencing some volume contraction across our rail and port businesses, the impact was largely offset by record utilization levels at our global intermodal logistics operation as well as higher volumes and rates across our toll road portfolio. Our midstream segment generated an FFO of $169 million, which was up 8% over the prior year when adjusting for the impact of capital recycling and FX.

David Crane: After normalizing for the impact of foreign exchange results for the segment were in line with the prior year despite experiencing.

David Crane: <unk> saw some volume contraction across our rail and port businesses. The impact was largely offset by record utilization levels at our global intermodal logistics operation as well as higher volumes and rates across our toll road portfolio.

David Crane: Our midstream segment generated <unk> of $169 million, which was up 8% over the prior year when adjusting for the impact of capital recycling and FX.

David Krant: The growth reflects strong volumes and higher pricing across our midstream assets, particularly for marketed products at our Canadian diversified midstream operators. We continue to see elevated activity levels across our networks more generally, which is driving strong asset utilization and new commercial opportunities. Lastly, FFO from our data segment was $102 million, representing a step change increase of 50% compared to last year. The increase is attributable to strong organic growth in our data center platforms and the contribution from the second acquisition of a tower portfolio in India that closed in the third quarter of 2020.

David Crane: The growth reflects strong volumes and higher pricing across our midstream assets, particularly for marketed products at our Canadian diversified midstream operation.

David Crane: We continue to see elevated activity levels across our networks more generally which is driving strong asset utilization and new commercial opportunities.

David Crane: Lastly, <unk> from our data segment was $102 million.

David Crane: Representing a step change increase of 50% compared to last year.

David Crane: The increase is attributable to strong organic growth in our data center platforms and the contribution from a tuck in acquisition of a tower portfolio in India that closed in the third quarter of 2024.

David Crane: In addition to the strong financial operating results. We've also made excellent progress on our strategic initiatives to start the year.

David Krant: In addition to the strong financial operating results, we've also made excellent progress on our strategic initiatives to start the year. Starting with capital recycling, we've now secured $1.4 billion of sale proceeds to start the year, which has helped us maintain our conviction around delivering on our $5-$6 billion asset sale program. This month we signed an agreement to exit our Australian container terminal operation. which will result in proceeds of $1.2 billion or approximately $500 million net to bid. During our 9-year ownership period, the business more than doubled its EBITDA and is now the largest and lowest container terminal operator in the Australian market.

David Crane: Starting with capital recycling, we've now secured $1 $4 billion of sale proceeds to start the year, which has helped us maintain our conviction around delivering on our five to six 1 billion asset sale program.

David Crane: This month, we signed an agreement to exit our Australian container terminal operation, which.

David Crane: Which will result in proceeds of $1 2 billion or approximately $500 million net to bip.

David Crane: During our nine year ownership periods of business more than doubled its EBITDA and is now the largest and lowest container terminal operator.

David Crane: The Australian market.

David Krant: Reflecting on the quality of the business, our exit multiple is approximately 18 times EBITDA and we generated a strong IRR of 17% and nearly a 4 times multiple of capital. We expect the transaction will close in the second half of the year, subject to customary closing conditions. Also during the quarter, we completed the previously announced sale of a minority stake in a portfolio of fully contracted containers held in our global intermodal logistics operation, which generated over $120 million net-to-bip. We remain on track to close the remaining assets sales that we've announced this year, which include a 25% interest in our U.S.

David Crane: On the quality of the business or exit multiple is approximately 18 times EBITDA and we generated a strong IRR of 17% and nearly a four times multiple of capital.

David Crane: We expect the transaction will close in the second half of the year subject to customary closing conditions.

David Crane: Also during the quarter, we completed the previously announced sale of a minority stake in a portfolio of fully contracted containers held in our global intermodal logistics operation, which generate over a $120 million net to bip.

David Crane: We remain on track to close the remaining assets sales that we've announced this year, which include a 25% interest in our U S gas pipeline that will generate proceeds of $400 million net to bip.

David Krant: gas pipeline that will generate proceeds of $400 million net-to-bid. as well as the sale of an initial 30% interest in a 244 megawatt portfolio of operating sites at our European Hyperscale Data Center platform. Now, at the same time, our new investment pipeline remains robust, and we expect it will continue to grow. We recently secured the $9 billion acquisition of Colonial Enterprises, which operates the largest refined products pipeline system in the United States and spans 5,500 miles between Texas and New York. This equity investment is expected to be approximately $500 million and the transaction closing is expected in the second half of the year.

David Crane: As well as the sale of an initial 30% interest in a 244 megawatt portfolio of operating sites at our European Hyperscale data Center platform.

David Crane: Now at the same time, our new investment pipeline remains robust and we expect it will continue to grow we recently secured the $9 billion acquisition of colonial enterprises, which operates the largest refined products pipeline system in the United States and spans 5500 miles between Texas and New York.

David Crane: This equity investment is expected to be approximately $500 million and.

David Crane: And the transaction closing is expected in the second half of the year.

David Crane: This acquisition checks all the boxes with respect to our established energy investment criteria.

David Krant: This acquisition checks all of the boxes with respect to our established energy investment criteria. First, Colonial has strong utilization with a competitive market position. The acquisition represents a rare opportunity to invest in a high-quality energy infrastructure asset that forms part of the backbone of the U.S. economy. Second, we require for value, generally well below replacement costs. Colonial was purchased at a transaction multiple of approximately nine times EBITDA. Third, the asset is highly cash-generative to provide a quick return of capital. Colonial is a mid-team going-in cash field that is expected to increase over time, which results in a seven-year payback period expected for an investor.

David Crane: First colonial has strong utilization with our competitive market position.

David Crane: The acquisition represents a rare opportunity to invest in our high quality energy infrastructure assets that forms part of the backbone of the U S economy.

David Crane: Second we acquired for value generally well below replacement cost.

David Crane: O'neal was purchased at a transaction multiple of approximately nine times EBITDA.

David Crane: Third the asset is highly cash generative to provide a quick return of capital colonial the mid teen going in cash yield that is expected to increase over time, which results in a seven year payback period expected for our investment.

David Krant: And lastly, there was minimal value paid for the growth or opportunity to transition the asset. The value we paid is largely for the in-place assets with conservative assumptions around terminal value and utilization profile over time. The cash flow profile for this business is highly stable and resilient, supported by a transparent regulatory framework and direct inflation.

David Crane: And lastly, there was minimal value paid for the growth or opportunity to transition the asset.

David Crane: The value we paid is largely for the in place assets with conservative assumptions around terminal value and utilization profile over time.

David Crane: The cash flow profile for this business is highly stable and resilient supported by a transparent regulatory framework and direct inflation linkage.

Speaker Change: Now with that that concludes my remarks for this morning, I'll turn the call over to Dave joined who will discuss.

David Krant: Now with that, that concludes my remarks for this morning.

David Joynt: I'll turn the call over to Dave Joynt, who will discuss the U.S. tariff policy and the impacts on our business. Thanks, David, and good morning, everyone. The evolving tariff and trade situation has created economic uncertainty that is manifesting itself in many parts of the market. While it is impossible to predict what will happen with any precision, we did want to share our perspectives on what we're seeing, what impacts, if any, this could have on our operating businesses, and what opportunities this period of turbulence could create for us.

David Crane: The U S tariff policy and the impacts on our business.

Speaker Change: Thanks, David and good morning, everyone.

The evolving tariff and trade situation has created economic uncertainty that is manifesting itself in many parts of the market.

Speaker Change: And while it is impossible to predict what will happen with any precision we did want to share our perspectives on what we're seeing what impact if any could have on our operating businesses and what opportunities. This period of turbulence could create for us.

Speaker Change: In short summary, as owners of large scale irreplaceable and highly contracted infrastructure businesses. We are more insulated than most of our assets are comprised of regional networks and systems that facilitate the flow of goods commodities energy data and people for which we charge a usage fee.

David Joynt: In short summary, as owners of large-scale, irreplaceable, and highly contracted infrastructure businesses, we are more insulated than most. Our assets are comprised of regional networks and systems that facilitate the flow of goods, commodities, energy, data, and people for which we charge a usage fee. We do not, for the most part, produce or sell goods that are subject to tariffs, and thus will not experience any direct or immediate material impact. However, tariffs and trade tensions could have second or third order impacts which are worth considering. First, there is a question whether this could all create inflationary pressure.

Speaker Change: Not for the most part produce or sell goods that are subject to tariffs and thus will not experience any direct or immediate material impact.

Speaker Change: However, tariffs and trade tensions could have second or third order impacts which are worth considering.

Speaker Change: First there was a question whether this could all create inflationary pressures.

David Joynt: Should this transpire, we fully expect to be able to pass through any increased costs to end-users through our contractual frameworks or the underlying pricing power of our business.

Speaker Change: Should this transpire, we fully expect to be able to pass through any increased costs to end users through our contractual frameworks or the underlying pricing power of our businesses.

David Joynt: This is something we have demonstrated in the recent... Second, there's a question about our exposure to global trade. This is most prevalent in our transport networks, which represent roughly 40% of our FFO. However, when you examine our operations, our focus on long-term contracted cash flows means that we have very little exposure here. For example, the three largest businesses in our diversified terminal subsegment make up about half of our transport segment's FFO and have little to no immediate correlation with GDP. Our US LNG and Australian export terminals derive the majority of their revenues from long-term take or pay contracts.

Speaker Change: And this is something we have demonstrated in the recent past.

Speaker Change: Second there is a question about our exposure to global trade.

Speaker Change: This is most prevalent in our transport networks, which represent roughly 40% of our SFO. However.

Speaker Change: However, when you examine our operations our focus on long term contracted cash flows means that we have very little exposure here. For example, the three largest businesses in our diversified terminal subsegment make up about half of our transport segment, SFO and have little to no immediate correlation with GDP.

Speaker Change: Our U S LNG and Australian export terminals derived the majority of their revenues from long term take or pay contracts are.

David Joynt: Our global intermodal logistics operation has a seven-year weighted average contract term, is operating close to 99% utilization, and has strong operational flexibility. If global trade slows, the business will organically right-size its fleet by selling end-of-life containers into the secondary market, something which it does every year. This means the business can harvest cash and maintain high utilization rates. Further, the business has de-risked its growth profile for the year, having secured the acquisition of a high-quality portfolio of fully contracted containers at higher rates than would otherwise be available in the market today.

Speaker Change: Our global intermodal logistics operation has a seven year weighted average contract term is operating close to 99% utilization and a strong operational flexibility if global trade slows the business organically right size its fleet by selling end of life containers into the secondary market something which it does every year.

Speaker Change: This means the business could harvest cash and maintain high utilization rates further.

Speaker Change: Further the business Derisked its growth profile for the year, having secured the acquisition of a high quality portfolio of fully contracted containers at higher rates than would otherwise be available in the market today.

David Joynt: The acquisition represents approximately 6% growth to the business's existing fleet and is entirely self-financed. Finally, there is a question about input costs for our major capital projects. We view this risk as manageable as we have proactively built diversified supply chains for our critical industries. For our development plans in the U.S., including new data center projects, we have either locked in construction costs or have components that are locally sourced.

Speaker Change: The acquisition represents approximately 6% growth to the business as existing fleet and is entirely self funded.

Speaker Change: Finally, there was a question about input costs for our major capital projects.

Speaker Change: We view this risk is manageable as we have proactively built diversified supply chains for our critical inputs.

Speaker Change: For our development plans in the U S, including New data center projects, we have either locked in construction costs. We have components that are locally sourced our international businesses. Likewise have the ability to source locally or are in jurisdictions not imposing tariffs on imports.

David Joynt: Our international businesses likewise have the ability to source locally or are in jurisdictions not imposing tariffs on imports.

David Joynt: In closing, I would only add that some of our best investments historically have been made during periods of dislocation. Market Uncertainty and Volatility often create ripe conditions for acquiring assets below their intrinsic value. Take private transactions can be done at attractive entry points, or public companies can become open to asset sales or carbon. At the same time, many buyers of assets stay on the sidelines, grappling with the uncertainty of the moment, which reduces the competition for new acquisitions. Those with long-term conviction and strong access to capital, such as Brookfield Infrastructure, stand to benefit from these moments.

Speaker Change: In closing I would only add that some of our best investments historically have been made during periods of dislocation.

Speaker Change: Market uncertainty and volatility often create right conditions requiring assets below their intrinsic value take private transactions can be done at attractive entry points are public companies can become open to asset sales or carve outs at the same time, many buyers of assets stay on the sidelines grappling with the uncertainty of the moment.

Speaker Change: Which reduces the competition for new acquisitions, those with long term conviction and strong access to capital such as Brookfield infrastructure standard benefit from these moments.

Samuel Pollock: I'll now pass the call over to Sam. Thank you Dave and good morning everyone. I'm going to make just a few brief comments about our outlook and objectives for the year and then we'll open the line for questions. As Dave just mentioned, the developing situation around U.S. tariff policy is creating some market uncertainty. However, a hallmark of our business has always been the ability to cut through the headlines and market noise, focusing on strategy and execution. Well, the market and economic landscape may be turbulent due to these ongoing policy shifts and global trade dynamics. Our faith business will remain resilient.

Sam: I'll now pass the call over to Sam.

Sam: Thank you, Dave and good morning, everyone.

Sam: I'm going to make just a few brief comments about our outlook and objectives for the year and then we will open the line for questions.

Sam: As Dave just mentioned the developing situation around U S tariff policy is creating some market uncertainty.

Sam: However, a hallmark of our business has always been the ability to cut through the headlines and market noise focusing on strategy and execution.

Sam: While the market and economic landscape, maybe turbulent due to these ongoing policy shifts in global trade dynamics.

Sam: Our base business will remain resilient.

Samuel Pollock: We have a strong balance sheet and stable cash flow that is highly contracted and inflation indexed. This gives us confidence in our ability to navigate these challenges while thinking strategically about the years ahead.

Sam: We have a strong balance sheet and stable cash flow that is highly contracted an inflation index. This gives us confidence in our ability to navigate these challenges while thinking strategically about the years ahead.

Sam: Our three primary business objectives for the year are clear.

Samuel Pollock: Our three primary business objectives for the year are clear. The first is to deliver organic growth within our businesses by executing new capital projects on time and on budget, while replenishing them with high returning and lower risk opportunities. We will continue to diversify our supply chains and minimize our exposure to cost overruns through turnkey construction contracts and structuring revenue contracts with a known cost profile.

Sam: The first is to deliver organic growth within our businesses by executing new capital projects on time and on budget, while replenishing them with high returning and lower risk opportunities.

Sam: We will continue to diversify our supply chain to minimize our exposure to cost overruns through turnkey construction contracts as structuring revenue contracts with a known cost profile.

Sam: The second objective is to advance our large pipeline of new investment opportunities.

Samuel Pollock: The second objective is to advance our large pipeline of new investment opportunities. to ensure that we maintain a long-term view while being bold when the right opportunity presents itself. We are at a moment in time where all three megatrends driving new investments are strengthened. Digitalization and decarbonization have been central to our recent deployment, and the current environment of U.S. onshoring of manufacturing is expecting to surface significant investment opportunities around deglobalization. A long-term investment horizon spanning multiple years, if not decades, will be required for each of the megatrends. Fueling the Infrastructure Supercycle and Improving Visibility to a Backlog of New M&A Opportunities.

Sam: Ensure that we maintain a long term view, while being ball when the right opportunity presents itself.

Sam: We're at a moment in time, where all three mega trends driving new investments are strengthening.

Sam: Digitalization of de Carbonization have been central to our recent deployment.

Sam: In the current environment of U S. Onshoring of manufacturing is expecting the surface significant investment opportunities around the globalization.

Sam: Our long term investment horizon spanning multiple years, if not decades will be required for each of the mega trends fueling infrastructure super cycle, and improving visibility to a backlog of new M&A opportunities.

Sam: And our third objective is to deliver on our stated objective to monetize $5 billion to $6 billion of Derisked and core assets over the next two years to entirely self fund our new investments.

Samuel Pollock: And our third objective is to deliver on our stated objective to monetize five to six billion dollars of de-risked and core assets over the next two years. to entirely self-fund our new investment. As David mentioned in his remarks, we've had great success so far this year with $1.4 billion already secured, and we have several advanced processes underway that will get us closer to our goal. Despite the uncertainty that exists in the market that may cause some buyers Paz, new M&A. We benefit from diversity both in terms of sector and geography, as well as an extensive asset monetization toolkit that has a proven track record of being We are confident in our ability to successfully achieve our objectives.

Sam: As David mentioned in his remarks, we've had great success. So far this year with $1 4 billion already secured and.

Sam: And we have several advanced processes underway that will get us closer to our goal.

Sam: Despite the uncertainty that exists in the market that may cause some buyers to pause new M&A.

Sam: We benefit from diversity, both in terms of sector and geography as well as extensive asset monetization toolkit that has a proven track record of being successful.

Sam: We are confident in our ability to successfully achieve our objectives are.

Samuel Pollock: Our consistent approach to capital allocation since our inception, along with an experienced management team, provides us with the confidence to emerge from this period even stronger.

Sam: Our consistent approach to capital allocation since our inception, along with an experienced management team provides with the confidence to emerge from this period even stronger.

Sam: This concludes my remarks and so.

Unknown Executive: This concludes my remarks and so I'll pass it back to our operator Andrew to open the line for Q&A. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.

Andrew: Pass it back to our operator, Andrew to open the line for Q&A.

Sam: Thank you.

Andrew: As a reminder to ask a question. Please press star one on your telephone and weak for you need to be announced soon.

Andrew: Draw. Your question. Please press star one again.

Speaker Change: And our first question comes from the line of Sharon Radburn with BD Cowen.

Cherilyn Radbourne: And our first question comes from the line of Cherilyn Radbourne with P.D. Cowan. Thanks very much and good morning.

Andrew: Yes.

Sharon Radburn: Thanks, very much and good morning, good morning.

Samuel Pollock: Understanding that it may take some time for the new terms of trade to emerge, can you elaborate a little more on the flexibility that you have to reprioritize the M&A pipeline and also the asset recycling pipeline as appropriate? And I guess also how you instruct your teams on the ground to react as far as, you know, outreach in regard of developing situations and that sort of thing.

Andrew: Understanding that it may take some time to the terms of trade to emerge.

Andrew: Can you elaborate a little more on the flexibility that you have to re prioritize the M&A pipeline and also the asset recycling pipeline as appropriate.

Andrew: And also how you instruct your teams on the ground to react as far as.

Andrew: In regard to developing situations and that sort of thing.

Andrew: Hi, Cherilyn. This is Sam I'll take that question.

Samuel Pollock: Hi Cherilyn, this is Sam, I'll take that question. Look, I think one of the strengths of our business is the fact that we have investment operating all the way around the world and so it's always been a constant exercise to filter opportunities on a regular basis and move capital to where we can get the best risk-adjusted return. You know, today, uh... We probably still have a disproportionate amount of opportunities in the U.S. which we're fine with. We think that's, from a long-term perspective, the deepest and most liquid investment market in the world. that we take a long-term view.

Andrew: Look I think one of the.

Andrew: The strengths of our business is the fact that we have investment teams operating all all the way around the world and so.

Andrew: It's always been a constant exercise to.

Andrew: Filter opportunities on a regular basis and move capital to where we can get the best risk adjusted returns.

Andrew: Today.

Andrew: We probably still have a disproportionate amount of opportunities in the U S, which we're fine with we think thats a from a long term perspective.

Andrew: The deepest and most liquid investment market in the world.

Andrew: We take a long term view.

Andrew: And.

Andrew: But as.

Samuel Pollock: But, you know, as opportunities change and capital moves to different markets or away from markets, you know, we'll take advantage of those money flows and move our capital to where capital is scarce and get the best results. and I think we've always done that over the years.

Andrew: As opportunities changing capital moves to different markets or away from market.

Andrew: We will take advantage of those.

Andrew: Money flows and move to cap move our cap to where capital is scarce and get the best Best returns and I think we've always done that over the years and will continue to look to do that.

Unknown Executive: University of Michigan Extension. Thank you.

Andrew: In terms of.

Unknown Executive: In terms of the potential for public to private opportunities to emerge in an environment like this, is your view that some of that has occurred already? Or are you sort of being patient to see how much further repricing may be necessary in the public market?

Andrew: Potential for public and private opportunities to emerge in an environment like this.

Andrew: Your view that.

Andrew: Some of that has occurred already.

Andrew: Or are you sort of being patient.

Andrew: Let's see how much further repricing maybe necessary in the public markets.

Andrew: But the.

Samuel Pollock: Look, the opportunities on public to private. You know, probably more often than not, you know, arise because of micro-issues, and what I mean by that is company-specific issues. Not necessarily just general market conditions. I mean, sometimes you can get a general downdraft and that could open up opportunities. But more often than not, it's individual situations that arise. We have a big screen of all the companies in our sectors that we monitor. And usually people get themselves into trouble when they have poor liquidity or haven't managed to balance. and then at the capital markets. tight and then they can't finance themselves.

Andrew: Opportunities on public to privates.

Andrew: Probably more often than not.

Andrew: Arise because of micro issues and what I mean by that is company specific issues.

Andrew: Not necessarily just general market conditions, I mean, sometimes you can get.

Andrew: General downdraft in that.

Andrew: That could open up opportunities, but more often than not it's individual situations that arise and so we have a big screen that.

Andrew: Of all the companies in our sectors that we monitor.

Andrew: And usually people get themselves into trouble when they have poor liquidity.

Andrew: <unk> managed our balance sheet and then.

Andrew: At the capital markets become tight and then the cabinet themselves. So we look for that type of dynamic.

Samuel Pollock: So we look for that type of dynamic. You know, I think, you know, today. You know, we saw, you know... Some pullback in the credit markets more recently. For the most part, though, for the last period of time, the credit markets have been very robust and open. I'll see how things unfold over the next little while. I think the conditions for public-to-private are maybe slightly better than they were last year, but I wouldn't say materially different than other...

Andrew: I think today.

Andrew: We saw some pullback in the credit markets more recently.

Andrew: It's for the most part though for the last period of time in the credit markets have been very robust and open.

Andrew: We'll see how things unfold over the next little while but.

Andrew: I think the conditions for public to privates.

Andrew: Sure.

Andrew: Maybe slightly better than they were.

Andrew: Last year, but I wouldn't say materially different than other points in time.

Andrew: That's great color that's all for me. Thank you.

Unknown Executive: And that's Great Color.

Unknown Executive: That's all for me.

Unknown Executive: Thank you.

Andrew: Thank you.

Speaker Change: Thank you and our next question comes from the line of Devin Dodge with BMO capital markets.

Devin Dodge: And our next question comes from the line of Devin Dodge with BMO Capital Markets. Thanks. Good morning.

Hi, Thanks, Good morning, I wanted to start with a question on data centers.

Devin Dodge: I want to start with a question on data centers. We've recently seen one of the large tech companies pull back on data center-related investments. Obviously, there's a lot more that are still moving ahead. But from Brookfield's perspective, have you seen any meaningful changes in that demand environment in 2025, just across your data center platforms, either in the operating business or in the development pipelines?

Speaker Change: We've recently seen one of the large tech companies pull back on data center related investments.

Speaker Change: Actually there's a lot more that are still moving ahead, but from Brookfield perspective have you seen any meaningful changes in the demand environment. In 2025, just a cross for data center platforms, either in the operating business or in the pipeline.

Samuel Pollock: Hi there. Again, I'll tackle this. You're right. I think, look, there's been, you know, kind of a highly publicized pullback from one particular hyperscaler. But for the most part, you know, leasing demand has remained relatively consistent. On the retail colo side, in fact, we've had record for multiple quarters in a row. and we still have a significant backlog of contractors. Projects, and our Hyperscale Development... So... The visibility on the growth in that business is still very, very high. you know, has happened, I think is probably positive to a certain extent, you know, with just the noise around that particular hyperscaler, because I think there has been, you know, You know, a risk that, you know, new entrants may come into the market who are undisciplined and build spec space.

Speaker Change: Hi, there I'll tackle this one.

Speaker Change: Youre right I think look theres been kind of a highly publicised pullback from one particular hyperscale are but for the most part.

Speaker Change: Leasing demand has remained relatively consistent.

Speaker Change: The retail Colo side in fact, we've had record bookings for multiple quarters in a row.

Speaker Change: And we still have a significant backlog.

Speaker Change: Contracted.

Speaker Change: Projects in our Hyperscale development business and so.

Speaker Change: The visibility on the growth in that business is still very very high.

Speaker Change: I think what.

Speaker Change: Has happened I think is probably positive to a certain extent.

Speaker Change: With just the.

Speaker Change: The noise around that particular hyperscale are because I think there has been.

Speaker Change: Our risk that new entrants may come into the market, who run disciplined and build spec space I think this helps.

Samuel Pollock: I think this helps reduce some of that potential and help keep the market more disciplined. So I think on the whole, it's probably a positive dynamic and we've seen other... Hyperscaler step up and continue to grow their businesses.

Speaker Change: Reduce some of that.

Speaker Change: Potential.

Speaker Change: And help keep the market more disciplined so I think on the whole.

Speaker Change: It's probably a positive dynamic and we've seen other.

Speaker Change: Hyperscale or step up and continue to grow their businesses. So.

Samuel Pollock: I guess in summary, in the medium and long term, our view is that... The trend towards significant new capacity hasn't changed and we remain optimistic.

Speaker Change: I guess the summary.

Speaker Change: In the medium to long term our view is that the.

Speaker Change: The trend towards significant new capacity Hasnt changed and we remain optimistic for the business.

Speaker Change: Yeah.

Speaker Change: Okay excellent. Thanks for that and then maybe just to finish up with a couple of quick ones on the Intel JV.

Unknown Executive: Okay, excellent. Thanks for that.

Devin Dodge: But then maybe just to finish up with a couple of quick ones on the Intel JV. I think last week Intel lowered their CapEx for their in-progress construction projects. Just wondering, first, is there any read-through to the JV with Brookfield?

Speaker Change: But I think last week I think until lowered their capex further in progress construction projects. Just wondering first is there any read through to the JV with Brookfield.

Speaker Change: Hey, Devin it's David here.

David Krant: Hey, Devin, it's David here. Um, look, obviously, I think we can't comment on their, you know, announcements, but we haven't seen any impact to our JV. And everything continues to progress, as you've seen in our letter, according to our plans. So no, we haven't. Okay, okay.

Speaker Change: Look obviously I think we can't comment on their announcements, but we haven't seen any impact to our JV and everything continues to progress as you would have seen that letter accordance to our plans. So no we haven't seen an impact.

Speaker Change: Okay, Okay, and the second one on the Intel JV just mentioned in the letter.

David Krant: And the second one on the Intel JV, just there was mention in the letter about a bond issue, it effectively completes the refinancing of the entire project. I think it was noted better than expected spreads. Just wondering, can you speak to where those spreads are versus the underwriting assumptions? And what are the remaining risks for that investment? Yeah, look, I think, you know, the remaining risks for the, I think we highlighted at the beginning that the main risk for our investment was going to be around the takeout of our acquisition financing. So we're thrilled to have completed our program this quarter with the over, you know, $5 billion financing that we did.

Speaker Change: Bond issue effectively completes the refinancing.

Speaker Change: The entire project I think it.

Speaker Change: As noted a better better than expected spreads I'm just wondering.

Speaker Change: Can you speak to where those spreads are versus the underwriting assumptions and what are the remaining risk for that investment.

Speaker Change: Yes look I think.

Speaker Change: The remaining risks I think we highlighted at the beginning that being.

Speaker Change: The main risk for our investment was going to be around to take out of our acquisition financing. So we're thrilled to have completed our program. This quarter with the builder 5 billion dollar financing that we did in terms of the credit spreads.

David Krant: In terms of the credit spreads, you know, as you said, it was within our underwriting and well below what we'd expected. So that should be accretive to our returns as we look ahead as well. So no, I think we're just thrilled with where we are today. And as I said, the project continues to go. Okay, excellent.

Speaker Change: You said it was within our underwriting and well below what we had expected so that should be accretive to our returns as we look ahead as well. So no I think we're just thrilled with where we are today and as I said the project continues to go as planned.

Speaker Change: Okay excellent I will turn it over thank you.

Unknown Executive: I'll turn it over. Thank you.

Speaker Change: Thank you and our next question comes from the line of Robert <unk> with.

Robert Hope: Our next question comes from the line of Robert Hope with Scotiabank. Good morning everyone. Maybe on the transport business, can you walk us through the rationale on the roughly billion dollar tuck-in at Triton? When you think about kind of the uncertainty out there, were you happy with the price and the underwriting assumptions? Or maybe just walk us through how you thought about that investment?

Speaker Change: Scotiabank.

Robert: Good morning, everyone.

Speaker Change: Maybe on the transport business can you walk us through the rationale on the roughly $1 billion tuck in traits and when you think about kind of the uncertainty out there were you happy with the price and the underwriting assumptions.

Robert: Or.

Maybe just walk us through how you thought about that investment.

Robert: Hey, Robert it's Dave here I'll take that one.

David Joynt: Hey, Robert, it's Dave here. I'll take that one. Maybe just A little bit of color and then I'll talk specifically about the acquisition. Triton is a business that is always making decisions on how it wants to deploy capital. It has the option to build new containers at attractive prices and put them on to long-term leases or it can acquire portfolios of containers that are already contracted. So, with respect to the one that we have just secured. What attracted us to this was this was a business that had 99% plus utilization on over six years of weighted average duration at market prices or the prices on the underlying contracts that are higher than are available in the market today.

Robert: Just.

Speaker Change: A little bit of color, then I'll talk specifically about the.

Robert: The acquisition.

Robert: Triton is a business that is always making decisions on how it wants to deploy capital it has the option to.

Robert: Build new containers.

Robert: Market prices and put them onto long term leases or it can acquire portfolios.

Robert: Containers that are already contracted up.

Robert: So with respect to the one that we have just secured.

Robert: What attracted us to this was this was a business that had.

Robert: 99% plus utilization on over six years of weighted average duration at market prices or the price on the underlying contracts that are higher than are available in the market today.

David Joynt: So what we would say is that we've been able to acquire that business at a more creative level than we would have if we had just built containers and put them out into the market. So that was sort of the rationale for the acquisition.

Robert: So what we would say that we've been able to acquire that business.

Robert: At a more accretive level than we would if we had just built containers and put them out into the market.

Robert: So that was sort of the rationale for the acquisition and I think we feel very comfortable where we price it and how it will perform.

Unknown Executive: And I think we feel very comfortable with where we've priced it and how we'll All right, appreciate that.

Robert: Alright, I appreciate that.

David Joynt: And then maybe sticking with the containers. So just given the slowdown and movement between China and the US, you know, are you seeing, you know, continued demand for the containers as shipping lanes are being rerouted? Or, you know, are you seeing some slowdown in in kind of the the contracting discussion? Yeah, and maybe one potential misconception that people might have about it is that we are not exposed to near-term changes in trade flows or movements. This is a contracted business, so Triton has, you know, close to 99% utilization, has a seven-year weighted average contract duration.

Robert: And then maybe sticking with the containers just given the slowdown in movement between China and the U S.

Robert: Are you seeing continued demand for the containers as shipping lanes are being rerouted or are you seeing some slowdown in and kind of the.

Robert: <unk>.

Robert: Contracting discussions.

Robert: And maybe 1%.

Robert: Potential misconception that people might have about it is that.

Robert: We are not exposed to near term changes in trade flows are movement. This is contracted business. So.

Robert: Close to 99% utilization has a seven year weighted average contract duration.

David Joynt: But the color I would give you is, even with the noise going on at the moment, we are completing, you know, re-contracting with our customers at very, you know, attractive rates. And so, despite what's going on, customers are hanging on to the boxes that they have, you know, in anticipation of goods moving in the future. So, no, at this point in time, I wouldn't say we're seeing any, you know, any deteriorous impacts on our business.

Robert: But the color I would give you is even with the.

Robert: The noise going on at the moment.

Robert: We are completing.

Robert: Re contracting with our customers at very attractive rates and so despite whats going on customers are hanging on to the boxes that they have in anticipation of of goods moving in the future. So no at this point in time I wouldn't say, we're seeing any.

Robert: Any deterioration impacts on our business.

Speaker Change: Okay. Appreciate the color. Thank you.

Unknown Executive: I appreciate the call. Thank you.

Robert: Thank you.

Maurice Choy: And our next question comes from the line of Maurice Choy with RBC Capital Markets. Thank you and good morning. I wanted to discuss the potential that you may have if we do see some onshoring of manufacturing to the U.S. In the letter, you mentioned that this may create new investment opportunities in transportation, utilities, and energy infra. I know you profiled the opportunity for Genesee and Wyoming in the letter, but could you share other opportunities as well that you are thinking of?

Speaker Change: Our next question comes from the line of Maurice Choy with RBC capital markets.

Maurice Choy: Thank you and good morning.

Maurice Choy: Wanted to discuss the potential that you may have if we do see some onshoring of manufacturing to the U S.

Maurice Choy: In the letter you mentioned that this may create new investment opportunities in transportation utilities energy input.

Maurice Choy: I know you profile the opportunity for Genesee in Wyoming in the letter, but could you share other opportunities as well as that you are thinking about.

Maurice Choy: Okay.

Samuel Pollock: Hi, Maurice. Maybe I'll start with that one and... Dave, if you want to jump in as well. So obviously the opportunities are both organic and inorganic. I think the focus for us from an inorganic perspective, meaning M&A opportunities. is really to look at situations where companies are looking to bring new manufacturing back to the U.S. and we can provide capital not dissimilar to what we did with Intel, these are large-scale transactions. Our view on that is that this is typically going to be for, you know, more critical industries, you know, such as, you know, semiconductors, as well as batteries.

Speaker Change: Hi, Marie maybe I'll start with that one and.

Dave Joined: Dave if you want to jump in as well.

Come inside that their various businesses.

Speaker Change: Obviously the opportunities.

Speaker Change: Are both organic and inorganic.

Speaker Change: I think the.

The focus for us from them.

Speaker Change: Inorganic perspective.

Speaker Change: Meaning M&A opportunities is really too low.

Speaker Change: Look at situations, where.

Speaker Change: Yes.

Speaker Change: Companies are looking to.

Speaker Change: Bring new manufacturing back to the U S and we can provide.

Speaker Change: Capital not dissimilar to what we did with Intel has future large scale transactions and.

Speaker Change: Our view on that is that this is typically going to be for.

Speaker Change: Yes.

Speaker Change: More critical industries such as.

Speaker Change: Semiconductors as well as batteries.

Speaker Change: Solar panels.

Speaker Change: Are things so things that are in the interest of.

Speaker Change: Western nations to bring back.

David Joynt: www.fisheries.noa.gc.ca on 23-30 February and others Owner Normal Owner Microsoft Office Word broken σéroφt Microsoft Office Word On Box Title Microsoft Office Word Document MSWordDoc Word.Document.8 And then I think the other big opportunity we've seen around deglobalization has been energy infrastructure. diversify their sources of energy. multiple opportunities. to invest in LNG and other related type of assets. That's the focus right now, and then, I don't know, Dave, do you want to talk about what was in our...

Speaker Change: In addition to that obviously that we think that there could be additional investments.

Speaker Change: Various.

Speaker Change: Ports, where they could see.

Speaker Change: Renewed.

Speaker Change: Activity because of some of the changing flows and so we're monitoring some of those opportunities and then I think the other big opt.

Speaker Change: The opportunity we see around.

Speaker Change: D. Globalization has been energy infrastructure. So this is where countries are looking to diversify their sources of.

Speaker Change: Of energy and we've seen multiple opportunities to to invest in LNG and other related type of.

Speaker Change: Assets. So thats the focus right now and then Dave do you want to talk about within our businesses, where we see things yeah, I would only add.

David Joynt: Yeah, I would only add to you know, to provide a little bit of color for it is, you know, our North American rail business is present in almost every US state. So to the extent that there is an increase in domestic industrial activity, you know, we stand to benefit that by virtue of being able to serve the movement of that traffic and those supply chains, you know, in and around North America. And then to just to expand a bit on Sam's point with respect to, you know, energy infrastructure, you know, in particular with our, you know, canyon businesses, you know, any Change in the flow of where molecules and commodities are going to be moving is going to require additional capacity.

Dave Joined: Probably a little bit of color for it is our north American rail business is present in almost every U S. State so to the extent that there is an increase in domestic industrial activity, we stand the benefit that by virtue of being able to serve the movement of that traffic and the supply chains in and around in North America, and then to just to expand.

Dave Joined: And a bit on Sam's point with respect to energy infrastructure.

Dave Joined: In particular with our <unk> businesses.

Dave Joined: Any.

Dave Joined: Change in the flow of where molecules and commodities are going to be moving is going to require additional capacity and we're in a great position with great assets to be able to help with that.

David Joynt: and we're in a great position with great assets to be able to help.

Speaker Change: Thanks, and just finishing up with Thats been PMO Canadian energy infrastructure.

David Joynt: Thanks, and just finishing up with that same field of Canadian energy infrastructure. Looks like the NEBC Connector construction may begin in the middle of this year. Given the commodity price environment, can you speak to the profile of the contracts for the project and how this project ties into your broader, I guess, investment thesis for North River, for its pipeline?

Dave Joined: It looks like the <unk>.

Speaker Change: Connect to construction may begin in the middle of this year.

Speaker Change: Given the commodity price environment can you speak to the profile of it.

Speaker Change: The contracts for the project and how this project ties into your broader.

Speaker Change: I guess the investment thesis for river pipeline.

David Joynt: Hey, this is Dave again. You know, overall, what I'd say is that we are not, you know, undertaking our projects in any sort of speculative basis. You know, these are underwritten contractual obligations that we're underwriting to put these projects in the ground. The project you describe is one of a large pipeline of opportunities that we're seeing at the moment. None of these projects are mega projects, you know, they're all very manageable within our existing, you know, execution capability and within our existing networks. We feel very comfortable about our ability to execute against those.

Dave Joined: Hey, this is Dave again.

Speaker Change: Overall, what I would say that we are not.

Speaker Change: Undertaking our projects and any sort of speculative basis. These are underwritten contractual obligations that we're underwriting to put these projects in the ground in the.

Speaker Change: The project you describe is one of a large pipeline of opportunities that we're seeing at the moment none of these projects are.

Speaker Change: Mega projects they are all.

Speaker Change: Very manageable within our existing execution capability and within our existing networks. So we feel very comfortable about our ability to execute against those.

Unknown Executive: And then in terms of your question about You know, the current environment, I would say in particular with respect to gas, I would say, you know, the medium-term outlook here continues to be very strong, driven by a couple of forces. Number one is... is being driven by data centers, that's driven by electrification, and a number of things that are just putting, you know, the requirement for more gas to go into the grid. And then number two is, you know, the addition of LNG export products means that more product needs to move to those export facilities but is also bullish for, you know, Thank you very much.

Speaker Change: And then in terms of your question about.

Speaker Change: The current environment I would say in particular with respect to gas I would say the <unk>.

Medium term outlook here continues to be very strong driven by a couple of forces number one is.

Speaker Change: As an increase in energy demand overall, and that's being driven by data centers, that's being driven by electrification and a number of things that is just putting the requirement for more gas to go into the grid.

Speaker Change: And then number two is the.

Speaker Change: The addition of LNG export products.

Speaker Change: Means that more product needs to move to those export facilities.

Speaker Change: But it's also a bullish for domestic prices.

Speaker Change: Got it thank you very much.

Speaker Change: Thank you.

Unknown Executive: Thank you.

Unknown Executive: And once again, ladies and gentlemen, to ask a question, please press star one one on your telephone.

Speaker Change: Once again, ladies and gentlemen to ask a question. Please press star one on your telephone.

Frederic Bastien: And our next question comes from the line of Frederic Bastien with Raymond James. Good morning. I'd like to build on one of Cherilyn's questions. During the market panic that followed the COVID pandemic announcement, you were quite active taking toehold positions in publicly traded stocks and that ultimately paved the way for the IPL privatization. I was wondering if you were able to be as opportunistic earlier this month when that Liberation Day created some fire sales out there in the market.

Speaker Change: And our next question comes from the line of Frederic Bastien with Raymond James.

Speaker Change: Okay.

Speaker Change: Hi, good morning, I'd like to to build on one of Sharon's questions.

Speaker Change: During the market panic that followed the Covid pandemic announcement, you were quite active taking toehold positions in publicly traded stocks and that ultimately pave the way for the IPL privatization I was wondering.

Speaker Change: If you were able to be as opportunistic earlier this month.

Speaker Change: That liberation day traded some suppliers sales out there in the market.

Brad: Hey, Brad.

Samuel Pollock: Hey Fred, um... Look, I think we generally don't comment on our market activities. You know, I think... I think the only thing I would say is... Yeah, we haven't made significant investments in the market in the last But in general, I think I'll.

Speaker Change: Look I think we generally don't comment on.

Brad: Our.

Brad: Market activities.

Brad: I think the.

Brad: I think the only thing I would say is.

Speaker Change: Yes, we havent made.

Significant.

Speaker Change: <unk> in the market in the last little while but in general I think I'll leave it at that.

Speaker Change: Okay in terms of.

Unknown Executive: Okay. In terms of on a go-forward basis, when you're looking at your pipeline of opportunities, is it still well spread out across segments or is there a particular platform where you believe you're going to see better growth? I know, I mean, obviously data is a big focus of yours, but I'm wondering if there are other opportunities beyond that particular platform.

Speaker Change: Ill go forward basis, when you're looking at.

Speaker Change: Pipeline of opportunities is still is it still is well spread out across segments are.

Speaker Change: Is there a particular platform.

Speaker Change: Or you believe.

Speaker Change: Better growth I know I mean, obviously data is a big focus of yours, but wondering if.

Speaker Change: If there are other opportunities beyond that particular point. Thank you.

Samuel Pollock: Thank you. I would say, similar to what we said last quarter, our pipeline is as strong as it's been in a number of years, so it is very... and we have... We have a couple of smaller as well as a couple of larger initiatives that we're pursuing. Obviously it's hard to say if we'll be successful on them, but we feel that in this market environment we probably have a better chance than normal, because others are maybe taking a bit of a pause. and as I mentioned earlier, I think... probably still a slight disproportionate weighting towards the U.S., but we are seeing a number of operations.

Speaker Change: Yeah hybrid so.

Speaker Change: I would say similar to what we said last quarter. Our pipeline is as strong as it's been in a number of years. So it is very deep.

Speaker Change: And we have.

Speaker Change: Uh huh.

Speaker Change: A couple of smaller as well as a couple of larger.

Speaker Change: Initiatives that were pursuing.

Speaker Change: It's hard to say, if we'll be successful on them, but we feel.

Speaker Change: That in this market environment, we probably have a better chance than normal because others are maybe taken a bit of a pause.

Speaker Change: And.

Speaker Change: As I mentioned earlier I think.

Speaker Change: Ed.

Speaker Change: There's probably still a slight disproportionate weighting towards the U S.

Speaker Change: But we are seeing a number of opportunities.

Samuel Pollock: Service in Europe as well as the United States. and as far as sectors, I think that was the other part of your question. Digitalization. Still the larger theme of all of them, but we do have obviously Colonial being a good example of a large infrastructure asset that we looked at. There's still some others that we are looking at. and there's a few in the transport sector that we currently have in the pipeline that we hope. complete soon. So I'd say it's relatively balanced, but maybe slightly skewed.

Speaker Change: Surface in Europe, as well as Asia.

Speaker Change: And and.

Speaker Change: And as far as sectors I think that was the other part of your question.

Speaker Change:

Speaker Change: Digitalization.

Speaker Change: It's still the.

Speaker Change: The larger theme of all of them, but we do have.

Speaker Change: Obviously colonial being a good example of it.

Speaker Change: Large air France infrastructure assets that we looked at Theres still some others that we are looking at.

Speaker Change: And there's a few in the transport sector that we currently have in the pipeline that we hope to.

Speaker Change: Complete soon so I'd say, it's relatively balanced, but maybe its slightly skewed to data.

Unknown Executive: Okay, no surprises there.

Speaker Change: Okay no surprises there. Thanks, Thanks, Jeff I appreciate your comments okay. Thank you.

Unknown Executive: Thanks.

Unknown Executive: Thanks, Sam. Appreciate your comments.

Unknown Executive: Thank you.

Speaker Change: Thank you.

Unknown Executive: Now I'm showing no further questions at this time.

Speaker Change: I am showing no further questions at this time, so with that I'll hand, the call back over to Chief Executive Officer, Sam Pollock for any closing remarks.

Samuel Pollock: So with that, I'll hand the call back over to Chief Executive Officer Sam Pollock for any closing remarks. Okay, well, thank you, Andrew, and I'd like to thank everyone who joined our call this morning. We hope everyone... I hope everyone has a good start to the new year.

Sam Pollock: Okay, well, thank you Andrew and.

Sam Pollock: I'd like to thank everyone, who joined our call. This morning.

Sam Pollock: We hope everyone.

Sam Pollock: Going to enjoy the warmer weather if you are in our part of the world here.

Sam Pollock: And although today, it's kind of a cold in Toronto.

Sam Pollock: But we are.

Sam Pollock: I look forward to provide you further updates next quarter end.

Sam Pollock: Hope everyone has a good start to the summer. Thank you.

Speaker Change: Ladies and gentlemen, thank you for participating this does conclude today's program and you may now disconnect.

Unknown Executive: Ladies and gentlemen, thank you for participating.

Unknown Executive: This does conclude today's program, and you may now disconnect.

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