Q1 2025 Brookfield Infrastructure Corp Earnings Call

Operator: 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.

Okay.

Operator: Hello, and welcome to the Brookfield Infrastructure Partners Q1 2025 results conference call and webcast. It is now my pleasure to introduce Chief Financial Officer David Krant.

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.

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

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

David Krant: Thank you, Andrew. Good morning, everyone. Welcome to Brookfield Infrastructure Partners' Q1 earnings conference call. As introduced, my name is David Crant. I'm the Chief Financial Officer of Brookfield Infrastructure. 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 Transport. I'll begin the call today with a discussion of our Q1 2025 financial and operating results, followed by an update on our strategic initiatives. I'll turn the call over to Dave, who'll discuss the impact of the US tariff policy on the global economy and the strong positioning of our business. Finally, Sam will provide an outlook and our priorities for the year ahead. Now, at this time, I would like to remind you that in our remarks today, we may make forward-looking statements.

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

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

David Kratz: I'm joined today by our Chief Executive Officer, Sam Pollock, and David joined our 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. 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.

Speaker Change: 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 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 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 Kratz: Hey.

David Kratz: 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: 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. Brookfield Infrastructure had a solid start to the year, delivering consistent financial performance and significantly progressing its capital deployment and recycling initiatives. First on results. We generated funds from operations, or FFO, of $646 million, or $0.82 per unit in Q1, 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. In total, results were up 5% over the prior year.

David Krant: For further information on known risk factors, I would encourage you to review our latest annual report on Forum 20th, 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 Kratz: Brookfield infrastructure had a solid start to the year delivering consistent financial performance and significantly progressing it's capital deployment and recycling initiatives.

David Kratz: 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 Kratz: 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 rate base in the last 12 months.

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 tech and acquisitions completed last year. Results also benefited from the increased utilization at our midstream investments and strong contracting within our data center businesses. 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 impacts 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 rate base in the last 12 months. Moving on to our transport segment, FFO was $288 million compared to $302 million in the prior year period.

David Kratz: 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 Kratz: <unk> also benefited from increased utilization at our midstream investments and strong contracting within their data center businesses.

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

David Kratz: <unk> 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 rate base in the last 12 months.

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 FFO of $169 million, which was up 8% over the prior year when adjusting for the impact of capital recycling and FX.

David Kratz: Moving onto our transport segment, <unk> 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.

David Krant: 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 FFO of $169 million, which was up 8% over the prior year when adjusting for the impact of capital recycling and FX. The growth reflects strong volumes and higher pricing across our midstream assets, particularly for marketed products at our Canadian diversified midstream operation. 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.

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

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

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

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

David Krant: The increase is attributable to strong organic growth in our data center platforms and the contribution from the tuck-in acquisition of a tower portfolio in India that closed in Q3 2024. 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 to $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 BIP. 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 Kratz: The increase is attributable to strong organic growth in our data center platforms and the contribution from the tuck in acquisition of a tower portfolio in India that closed in the third quarter of 2024.

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

David Kratz: 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 billion to $6 billion asset sale program.

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

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

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

David Kratz: The Australian market.

David Krant: Reflecting on the quality of the business, our exit multiple is approximately 18x EBITDA, and we generated a strong IRR of 17% and nearly a 4x multiple of capital. We expect the transaction will close in the H2 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 US gas pipeline that will generate proceeds of $400 million net to BIP, as well as the sale of an initial 30% interest in a 244 MW portfolio of operating sites at our European hyperscale data center platform.

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.

David Kratz: 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 Krant: 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 bid. 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-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.

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

David Kratz: 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 $120 million net to bip.

David Kratz: 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 that Tibet.

David Kratz: 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 Krant: 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. 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.

David Krant: 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 H2 of the year. 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 US economy. Second, we acquire for value, generally well below replacement cost. Colonial was purchased at a transaction multiple of approximately 9x EBITDA.

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

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

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

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

David Kratz: 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 Krant: economy. Second, we acquire 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 yield that is expected to increase over time, which results in a seven-year payback period expected for an investor. 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 Kratz: Second we acquired for value generally well below replacement cost.

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

David Krant: Third, the asset is highly cash generative to provide a quick return of capital. Colonial is a mid-teen going in cash yield that is expected to increase over time, which results in a 7-year payback period expected for an investment. 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 linkage. Now with that concludes my remarks for this morning. I'll turn the call over to Dave Joynt, who will discuss the US tariff policy and the impacts on our business.

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

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

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

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

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

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

Dave 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. And while it is impossible to predict what will happen with any precision, we did want to share our perspectives and 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.

Speaker Change: The U S tariff policy and the impacts on our business.

Dave Joynt: Thanks, David, 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. 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.

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

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

Speaker Change: 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.

Speaker Change: What opportunities this period of turbulence could create for us.

Dave 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: 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.

Speaker Change: 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.

Dave Joynt: 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 pressures. Should this transpire, we fully expect to be able to pass through any increased costs to end users throughout our contractual frameworks or the underlying pricing power of our businesses. This is something we have demonstrated in the recent past. 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 sub-segment make up about half of our transport segment's FFO and have little to no immediate correlation with GDP.

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.

Dave 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.

Dave 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: This is something we have demonstrated in the recent past.

Speaker Change: Second there was 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.

Dave Joynt: Our US LNG and Australian export terminals derive the majority of their revenues from long-term take-or-pay contracts. 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 rightsize its fleet by selling end-of-life containers into the secondary market, something which it does every year. This means the business could 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. The acquisition represents approximately 6% growth to the business' existing fleet and is entirely self-funded. Finally, there is a question about input costs for our major capital projects.

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

Dave 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. The acquisition represents approximately 6% growth to the business's existing fleet and is entirely self-funded.

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.

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.

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

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

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

Dave Joynt: We view this risk as manageable, as we have proactively built diversified supply chains for our critical inputs. For our development plans in the US, including new data center projects, we have either locked in construction costs or 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. 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 carve-outs. 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.

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.

Dave 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.

Speaker Change: <unk> 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, which reduces the competition for new acquisitions, those with long term conviction and strong access to capital such as Brookfield.

Dave Joynt: Those with long-term conviction and strong access to capital, such as Brookfield Infrastructure, stand to benefit from these moments. I'll now pass the call over to Sam.

Speaker Change: <unk> standard benefit from these numbers.

Sam Pollock: I'll now pass the call over to Sam. Thank you, David. Good morning, everyone.

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

Sam Pollock: Thank you, Dave. Good morning, everyone. I'm going to make just a few brief comments about our outlook and objectives for the year, then we'll open the line for questions. As Dave just mentioned, the developing situation around US 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. While the market and economic landscape may be turbulent due to these ongoing policy shifts and global trade dynamics, our base business will remain resilient.

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

Sam Pollock: 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. While the market and economic landscape may be turbulent due to these ongoing policy shifts and global trade dynamics, our base business will remain resilient. We have a strong balance sheet and stable cash flow that is highly contracted and inflation indexed.

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

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

Sam Pollock: Our base business will remain resilient.

Sam 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. Our 3 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'll 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. The second objective is to advance our large pipeline of new investment opportunities, ensuring 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 3 mega trends driving new investments are strengthening.

Sam Pollock: We have a strong balance sheet a stable cash flow that is highly contracted an inflation index. This gives us confidence in our ability to navigate these challenges.

Sam Pollock: This gives us confidence in our ability to navigate these challenges while thinking strategically about the years ahead.

Sam Pollock: Thinking strategically about the years ahead.

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

Sam Pollock: 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 chain to minimize our exposure to cost overruns through turnkey construction contracts as structuring revenue contracts with a known cost profile.

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

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

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

Sam Pollock: Digitalization and decarbonization have been central to our recent deployment, and the current environment of US onshoring of manufacturing is expected to surface significant investment opportunities around de-globalization. A long-term investment horizon spanning multiple years, if not decades, will be required for each of the mega trends, fueling the infrastructure super cycle and improving visibility to a backlog of new M&A opportunities. Our third objective is deliver on our stated objective to monetize $5 to 6 billion of de-risked and core assets over the next 2 years to entirely self-fund our new investments. 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.

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

Sam Pollock: And the current environment of U S. Onshoring of manufacturing is expecting the surface significant investment opportunities around decarbonization.

Sam Pollock: 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 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 Pod, 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...

Sam Pollock: 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.

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

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

Sam Pollock: Despite the uncertainty that exists in the market that may cause some buyers to pause 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 successful. We are confident in our ability to successfully achieve our objectives. Our consistent approach to capital allocation since our inception, along with an experienced management team, provide us with the confidence to emerge from this period even stronger. This concludes my remarks, and so I'll pass it back to our operator, Andrew, to open the line for Q&A.

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

Sam Pollock: 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 Pollock: We are confident in our ability to successfully achieve our objective. Our consistent approach to capital allocation since our inception, along with an experienced management team, provide us with the confidence to emerge from this period even stronger.

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

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

Operator: This concludes my remarks, and so I'll pass it back to our operator, Andrew, to open the line for Q&A. Thank you. 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 one one again.

Sam Pollock: This concludes my remarks and so.

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

Operator: Thank you. 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 one one again. Our first question comes from the line of Cherilyn Radbourne with TD Cowen.

Sam Pollock: Thank you.

Sam Pollock: As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced towards draw. Your question. Please press star one again.

Sherilyn Radburn: And our first question comes from the line of Sherilyn Radburn with TD Cowan. Thanks very much. And good morning.

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

Cherilyn Radbourne: Thanks very much, and good morning.

Sam Pollock: Yes.

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

Sam 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.

Sam Pollock: Morning.

Cherilyn Radbourne: 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? I guess, also how you instruct your teams on the ground to react as far as outreach in regard of developing situations and that sort of thing.

Sharon Radburn: Understanding that it may take some time in terms of trade show emerged.

Sharon Radburn: 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.

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

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

Sam Pollock: Hi, Sharon. 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 teams 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. We probably still have a disproportionate amount of opportunities in the U.S. which we're fine with. We think that's a, from a long-term perspective, the deepest and most liquid investment market in the world, and we take a long-term view.

Sam 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 teams operating all the way around the world. 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 returns. Today, we probably still have the disproportionate amount of opportunities in the US, which we're fine with. We think that's, from a long-term perspective, the deepest and most liquid investment market in the world, and we take a long-term view. As opportunities change and capital moves to different markets or away from markets, we'll take advantage of those money flows and move our capital to where capital is scarce and get the best returns.

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

Sharon Radburn: <unk>.

Speaker Change: Look I think one of the.

Speaker Change: Strengths of our business is the fact that we have investment teams operating out all the way around the world and so.

Speaker Change: It's always been a constant exercise to.

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

Speaker Change: Yes today.

Speaker Change: 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.

Speaker Change: The deepest and most liquid investment market in the world and we take a long term view.

Speaker Change: And.

Sam Pollock: But, you know, as opportunities change and capital moves to different markets or away from markets, 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. change his look to do that.

Speaker Change: But as.

Speaker Change: Yeah.

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

Speaker Change: We will take advantage of those.

Speaker Change: 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.

Sam Pollock: I think we've always done that over the years, and we'll continue to look to do that.

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

Cherilyn Radbourne: 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 markets?

Speaker Change: In terms of.

Speaker Change: Potential for public private opportunities to emerge in an environment like this.

Speaker Change: Your view that.

Speaker Change: You have some of that has occurred already.

Speaker Change: Or are you sort of being patient.

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

Sam Pollock: Look, the opportunities on public to private probably more often than not arise because of micro issues. What I mean by that is company specific issues, not necessarily just general market conditions. 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. Usually people get themselves into trouble when they have poor liquidity or haven't managed their balance sheet. The capital markets become tight, and then they can't finance themselves. We look for that type of dynamic. I think today we saw, I guess, some pullback in the credit markets more recently.

Speaker Change: But the <unk>.

Speaker Change: <unk> opportunities on public to privates.

Speaker Change: Probably more often than not.

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

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

Speaker Change: General downdraft in that.

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

Sam Pollock: We have a big screen that, you know, 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 their balance sheet and then the capital markets become tight and then they can't finance themselves. 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.

Speaker Change: Of all the companies in our sector said that we monitor.

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

Speaker Change: <unk> managed our balance sheet and then.

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

Speaker Change: I think today.

Speaker Change: Yes, we saw some pullback in the credit markets more recently.

Sam Pollock: For the most part, though, for the last period of time, the credit markets have been very robust and open and we'll see how things unfold over the next little while. I think the conditions for public to privates are maybe slightly better than they were last year, but I wouldn't say materially different than other points in time.

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

Speaker Change:

Speaker Change: We will see how things unfold over the next little while but.

Sam Pollock: 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 points.

Speaker Change: I think the conditions for public to privates.

Speaker Change: Our.

Speaker Change: Maybe slightly better than they were.

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

Sherilyn Radburn: And that's great color. That's all for me. Thank you.

Cherilyn Radbourne: That's great color. That's all for me. Thank you.

Speaker Change: And Thats great color that's all for me. Thank you.

Sam Pollock: Yeah, thank you.

Speaker Change: Thank you.

Operator: Thank you. Our next question comes from the line of Devin Dodge with BMO Capital Markets.

Devon Dodge: And our next question comes from the line of Devon Dodge with BMO Capital Markets. Thanks, good morning. I want to start with a question on data centers. You know, we've recently seen one of the large tech companies pull back on data center related investments. You know, 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, you know, the operating business or in the development pipeline?

Speaker Change: Thank you.

Speaker Change: Question comes from the line of Devin Dodge with BMO capital markets.

Devin Dodge: Thanks. Good morning. I wanted 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?

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

Speaker Change: 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 perspective have you seen any meaningful changes in the demand environment in 2025, just across four data center platforms, either in the operating business or in the developed pipeline zone.

David Krant: David Krant, Unknown Attendee, David Krant, Anne Schaumburg, Brookfield Infrastructure Hi there. Again, I'll tackle this one. David Krant, Anne Schaumburg, Brookfield Infrastructure 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.

Sam Pollock: Hi there. Again, I'll tackle this one. You're right. There's been kind of a highly publicized pullback from one particular hyperscaler. For the most part, leasing demand has remained relatively consistent. On the retail colo side, in fact, we've had record bookings for multiple quarters in a row. We still have a significant backlog of contracted projects in our hyperscale development business. The visibility on the growth in that business is still very high. What has happened, I think is probably positive to a certain extent. With just the noise around that particular hyperscaler, because I think there has been a risk that new entrants may come into the market who are undisciplined and build spec space. This helps reduce some of that potential, help keeps the market more disciplined.

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

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

Speaker Change: Leasing demand.

Speaker Change: Has remained relatively consistent.

Speaker Change: On 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 of contracted.

David Krant: Unknown Speaker, David Krant, Anne Schaumburg, Brookfield Infrastructure Projects in our hyperscale development. So, uh... 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, a risk that new entrants may come into the market who are undisciplined and build spec space. 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 hyperscale or step up and continue to grow their businesses.

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

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

Speaker Change: I think what.

Speaker Change: Yes. It 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 dress that new entrants may come into the market, who run disciplined and build spec space I think this helps reduce some of that.

Speaker Change: Potential.

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

Sam Pollock: I think on the whole, it's probably a positive dynamic and we've seen other hyperscalers step up and continue to grow their businesses. I guess in summary, in the medium to long term, our view is that the trend towards significant new capacity hasn't changed, and we remain optimistic for the business.

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.

David Krant: 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. Okay, excellent. Thanks for that.

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.

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

Devon 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, you know, 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.

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

David Krant: Hey, Devin, it's David here. Look, obviously, I think we can't comment on their announcements, but we haven't seen any impact to our JV, everything continues to progress, as you'd have seen in our letter, accordance to our plans. No, we haven't seen an impact.

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

Devin Dodge: 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. According to our plans. So no we haven't seen an impact.

Devin Dodge: Okay. The second one on the Intel JV, just there was mention in the letter of a bond issue. It effectively completes the refinancing of the entire project. I think it was noted at 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?

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

Speaker Change: Bond issue effectively completes the refinancing.

Speaker Change: The entire project I think it.

Speaker Change: It was not a better better than expected spreads just wondering.

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

David Krant: Yeah, look, I think, you know, the remaining risks for the I think we highlighted at the beginning that the initiative, the main risk for investment was going to be around the takeout of our acquisition financing. So we're we're thrilled to have completed our program this quarter with the over, you know, $5 billion financing that we did, 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 to our returns as we look ahead as well. So no, I think we're just thrilled with with where we are today.

David Krant: Yeah, look, I think the remaining risks. 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. We're thrilled to have completed our program this quarter with the over $5 billion financing that we did. In terms of the credit spreads, as you said, it was within our underwriting and well below with what we'd expected. That should be accretive to our returns as we look ahead as well. No, I think we're just thrilled with where we are to date. As I said, the project continues to go as planned.

Speaker Change: Yes look I think.

Speaker Change: The remaining risks I think we highlighted at the beginning at the end and that should be the.

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 would be <unk> 5 billion dollar financing that we did in terms of the credit spreads.

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 I think we're just thrilled with where we are today and as I said the project continues to go as planned.

David Krant: And as I said, the project continues to go. Okay, excellent.

Devin Dodge: Okay. Excellent. I'll turn it over. Thank you.

David Krant: I'll turn it over. Thank you.

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

Operator: Thank you. Our next question comes from the line of Robert Hope with Scotiabank.

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: Thank you. Our next question comes from the line of Robert Hope with Scotiabank.

Robert Hope: 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? Maybe just walk us through how you thought about that investment.

Robert Hope: Good morning, everyone.

Robert Hope: Maybe on the transport business can you walk us through the rationale on the roughly $1 billion tuck in Triton.

Robert Hope: And when you think about kind of the uncertainty out there were you happy with the price and the underwriting assumptions.

Robert Hope: Or.

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

Sam Pollock: Yeah. Hey, Robert, it's Dave here. I'll take that one. Maybe just a little bit of color, 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 onto long-term leases, or it can acquire portfolios of containers that are already contracted up. With respect to the one that we have just secured

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

Speaker Change: Maybe just.

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

Speaker Change: The acquisition.

Speaker Change: Triton is a business that is always making decisions on who wants to deploy capital. It has the option to.

Speaker Change: Build new containers at attractive prices and put them onto long term leases or it can acquire portfolios.

Speaker Change: <unk>, they're already contracted up.

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

Dave Joynt: 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. What we would say is that we've been able to acquire that business at a more accretive level than we would have if we had just built containers and put them out into the market. That was sort of the rationale for the acquisition, and I think we feel very comfortable with where we've priced it and how it will perform.

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

Speaker Change: 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.

Dave Joynt: So what we would say is that we've been able to acquire that business at a more accretive level than we would have if we had just built containers and put them out into the market. And so that was sort of the rationale for the acquisition. And I think we feel very comfortable with, you know, where we've priced it and and how we'll proceed.

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

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

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

Dave Joynt: All right, appreciate that. 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 close to 99% utilization, has a seven-year weighted average contract duration.

Robert Hope: All right. Appreciate that. Maybe sticking with the containers, just given the slowdown in movement between China and the US. Are you seeing continued demand for the containers as shipping lanes are being rerouted? Or are you seeing some slowdown in kind of the contracting discussions?

Speaker Change: Alright, I appreciate that.

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

Speaker Change: 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.

Speaker Change: <unk>.

Speaker Change: Contracting discussions.

Dave Joynt: Yeah. 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, Triton has close to 99% utilization, has a 7-year weighted average contract duration. The color I would give you is even with the noise going on at the moment, we are completing recontracting with our customers at very attractive rates. Despite what's going on, customers are hanging on to the boxes that they have in anticipation of goods moving in the future. No, at this point in time, I wouldn't say we're seeing any deleterious impacts on our business.

Speaker Change: And maybe one okay.

Speaker Change: Potential misconception that people might have about it is that.

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

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

Dave Joynt: But the color I would give you is, even with the noise going on at the moment, we are completing recontracting with our customers at very attractive rates. And so despite what's going on, customers are hanging on to the boxes that they have 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.

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

Speaker Change: The noise going on at the moment.

Speaker Change: We are completing.

Speaker Change: <unk> contracting with our customers at very attractive rates and so despite whats going on customers are hanging on to the boxes that they have.

Speaker Change: Dissipation of of goods moving in the future. So no at this point in time I wouldn't say, we're seeing any.

Speaker Change: Any deterioration impacts on our business.

Robert Hope: I appreciate the call. Thank you.

Robert Hope: Okay, appreciate the color. Thank you.

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

Operator: Thank you. Our next question comes from the line of Maurice Choy with RBC Capital Markets.

Speaker Change: Thank you.

Maurice Choi: And our next question comes from the line of Maurice Choi 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?

Maurice Choy: Question comes from the line of Maurice Choy with RBC capital markets.

Maurice Choy: Thank you, and good morning. Wanted to discuss the potential that you may have if we do see some onshoring of manufacturing to the US. 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 & Wyoming in the letter, but could you share other opportunities as well that you are thinking of?

Speaker Change: Thank you and good morning.

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

Speaker Change: The letter you mentioned that this may create new investment opportunities in transportation utilities and energy in front.

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.

Speaker Change: Okay.

Sam Pollock: Hi, Maurice. Maybe I'll start with that one and... Dave, if you want to jump in as well. University of Michigan. 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.

Sam Pollock: Hi, Maurice. Maybe I'll start with that one and, Dave, if you want to jump in as well from inside of their various businesses. 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 US, 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 more critical industries such as semiconductors, as well as batteries, solar panels, those sorts of things. Things that are in the interest of Western nations to bring back.

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

Speaker Change: Dave if you want to jump in as well.

Inside of their various businesses.

Speaker Change: Obviously the opportunities.

Speaker Change: Are both organic and inorganic.

Speaker Change: I think the the.

Speaker Change: The focus for us from an.

Speaker Change: Inorganic perspective.

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

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 which are 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.

Sam Pollock: solar panels, those sorts of things. So things that are in the interest of Western nations to bring back. In addition to that, obviously, we think that there could be additional investments, you know, at various ports, you know, where they. you know, renewed activity because of some of the changing flows and so we're monitoring some of those opportunities.

Speaker Change: Solar panels, those sorts of things so things that are in the interest of.

Speaker Change: Western nations to bring back.

Sam Pollock: In addition to that, obviously, we think that there could be additional investments at various ports where they could see renewed activity because of some of the changing flows. We're monitoring some of those opportunities. I think the other big opportunity we've seen around de-globalization has been energy infrastructure. This is where countries are looking to diversify their sources of energy and we've seen multiple opportunities to invest in LNG and other related type of assets. That's the focus right now. I don't know, Dave, you want to talk about within our businesses where we see things?

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

Sam Pollock: And then I think the other big opportunity we've seen around deglobalization has been energy infrastructure. where, you know, countries are looking. diversify their sources of energy. multiple opportunities. to invest in LNG and other related type of assets.

Speaker Change: The opportunity we see around <unk>.

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

Speaker Change: Of energy and.

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

Dave Joynt: So that's the focus right now and then, I don't know, Dave, if you want to talk about within our... 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, Canadian businesses, you know, any change in the flow of where molecules and commodities are going to be moving is going to require, you know, additional capacity.

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

Dave Joynt: Yeah. I would only add to provide a little bit of color for it is our North American rail business is present in almost every US state. To the extent that there is an increase in domestic industrial activity, we stand to benefit that by virtue of being able to serve the movement of that traffic and those supply chains in and around North America. Just to expand a bit on Sam’s point with respect to energy infrastructure, in particular with our Canadian businesses. Any change in the flow of where molecules and commodities are going to be moving is going to require additional capacity. We’re in a great position with great assets to be able to help with that.

Dave Joined: Probably a little bit of color for it is.

Sam Pollock: 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 see on 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 a bit on Sam's point with respect to energy.

Dave Joined: <unk>.

Dave Joined: In particular with our cane businesses any.

Dave Joined: Change in the flow of where molecules and advisor to me moving is going to require additional capacity.

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

Dave Joined: And we're in a great position with great assets to be able to help with that.

Dave Joynt: Thanks, and just finishing up with that same theme of Canadian energy infrastructure. It 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 pipeline?

Maurice Choy: Thanks. Just finishing up with that same theme 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 NorthRiver, for its pipeline?

Dave Joined: Thanks, Ed.

Dave Joined: But that's been PMO Canadian energy infrastructure.

Dave Joined: It looks like the <unk> connector construction may begin.

Dave Joined: This year.

Dave Joined: Given the commodity price environment can you speak to the profile of the profile of the contracts for the project and how this project ties into your broader.

Dave Joined: I guess the investment thesis for South River pipeline.

Dave 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 execution capability and within our existing networks. We feel very comfortable about our ability to execute against those.

Dave Joynt: Hey, this is Dave again. Overall what I'd say is that we are not undertaking our projects in any sort of speculative basis. 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. They're all very manageable within our existing execution capability and within our existing networks. We feel very comfortable about our ability to execute against those. In terms of your question about the current environment, I would say, in particular with respect to gas, I would say the medium-term outlook here continues to be very strong, driven by a couple of forces.

Dave Joined: Yeah, Hey, this is Dave again.

Dave Joined: Overall, what I would say that we are not.

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

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

Dave Joined: Mega projects they are all.

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

Dave Joynt: 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 just 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, you know, the requirement for more gas to go into the 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 it's also bullish for, you know, domestic Thank you very much.

Dave Joined: And then in terms of your question about.

Dave Joined: The current environment I would say in particular with respect to gas I would say the medium term outlook here continues to be very strong driven by a couple of forces number one is.

Dave Joynt: Number one is just 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. Number two is the addition of LNG export products means that more product needs to move to those export facilities, but is also bullish for domestic prices.

Dave Joined: 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 are just putting the requirement for more gas to go into the grid.

Dave Joined: And then number two is.

Dave Joined: The addition of LNG export products.

Dave Joined: Means that more product needs to move to those export facilities, but it's also a bullish for domestic presence.

Maurice Choy: Got it. Thank you very much.

Dave Joined: Got it thank you very much.

Operator: Thank you.

Operator: Thank you. Once again, ladies and gentlemen, to ask a question, please press *11 on your telephone. Our next question comes from the line of Frederic Bastien with Raymond James.

Dave Joined: Thank you.

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

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

Frederick Bastien: And our next question comes from the line of Frederick Bastien with Raymond James. Good morning. I'd like to build on one of Sherilyn'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.

Dave Joined: Yeah.

Frederic Bastien: Good morning. I'd like to build on one of Sherlyn's questions. During the market panic that followed the COVID pandemic announcement, you were quite active taking toehold positions in publicly traded stocks. That ultimately paved the way for the IPO 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: Hi, good morning, I'd like to to build on one of Sharon's question.

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 VIP privatization I was wondering.

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

Speaker Change: That the various day traded some supplier sales out there in the market.

Sam Pollock: Hey, Fred.

Sam Pollock: Hey, Fred. Look, I think we generally don't comment on our market activities. I think the only thing I would say is we haven't made significant investments in the market in the last little while. In general, I think I'll leave it at that.

Brad: Hey, Brad.

Sam Pollock: 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, you know, We haven't made significant investments in the market in the last little while, but in general, I think I'll leave it at that. Okay, in terms of on a go forward basis, when you're looking at your pipeline of opportunities, is still is it still well spread out across segments? Or is there a particular platform and where you believe you're going to see better growth? I know, I mean, obviously, data is a big focus of yours, but wondering if there are other opportunities beyond that particular platform.

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

Brad: Our market.

Speaker Change: Market activities.

Brad: Yes, I think the.

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

Brad: Yes, we havent made.

Brad: Significant.

Brad: Estimates in the market in the last little while but in general I think I'll leave it at that.

Frederic Bastien: 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, obviously, data is a big focus of yours, but wondering if there are other opportunities beyond that particular platform. Thank you.

Speaker Change: Okay in terms of on a go forward basis, when you're looking at.

Speaker Change: Pipeline of opportunities is still is it still well spread out across segments or is there a particular platform where you believe you can see.

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

Speaker Change: There are other opportunities beyond.

Sam 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. Group, and the Global Market, and I think we've got 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.

Speaker Change: That particular platform. Thank you.

Sam Pollock: Yeah. Hi, Fred. I would say similar to what we said last quarter, our pipeline is as strong as it's been in a number of years. It is very deep, and 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. As I mentioned earlier, I think there's probably still a slight disproportionate weighting towards the US, but we are seeing a number of opportunities surface in Europe as well as Asia. As far as sectors, I think that was the other part of your question. Digitalization is still the larger theme of all of them.

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 and we have.

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

Speaker Change: Initiatives that were pursuing.

Speaker Change: Obviously, 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 the normal because others are maybe taken a bit of a pause.

Sam Pollock: Thank you. And as I mentioned earlier, I think. probably still a slight disproportionate weighting towards the U.S., but we are seeing a number of opportunities. 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: And as.

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.

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

Speaker Change: And.

Speaker Change: And.

Speaker Change: 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.

Dave Joynt: 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. There's a few in the transport sector that we currently have in the pipeline that we hope to complete soon. I'd say it's relatively balanced, but maybe slightly skewed to data.

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

Speaker Change: Large average infrastructure assets that we looked at there is 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.

Sam Pollock: Okay, no surprises there.

Frederic Bastien: Okay. No surprises there. Thanks, Sam. Appreciate your comments.

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

Sam Pollock: Thanks.

Sam Pollock: Thanks, Sam.

Sam Pollock: Appreciate your comments.

Sam Pollock: Okay. Thank you.

Sam Pollock: Thank you.

Operator: Thank you. I'm showing no further questions at this time. With that, I'll hand the call back over to Chief Executive Officer, Sam Pollock, for any closing remarks.

Operator: I'm showing no further questions at this time.

Speaker Change: Thank you.

Speaker Change: And I'm 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.

Sam Pollock: So with that, I'll hand the call back over to Chief Executive Officer Sam Pollack 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 going to enjoy the warmer weather.

Sam Pollock: Okay. Well, thank you, Andrew. I'd like to thank everyone who joined our call this morning. We hope everyone is going to enjoy the warmer weather if you're in our part of the world here. Although today it's kind of cold in Toronto. We look forward to provide you further updates next quarter, and hope everyone has a good start to the summer. Thank you.

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

Speaker Change: Now I'd like to thank everyone, who joined our call. This morning.

Sam Pollock: We hope everyone is.

Speaker Change: Enjoy the warmer weather if you are in our part of the world here.

Sam Pollock: If you're in our part of the world here, and although today it's kind of cold in Toronto, but we look forward to provide you further updates next quarter and hope everyone has a good start. Ladies and gentlemen, thank you for participating.

Sam Pollock: And although today is kind of equivalent in Toronto.

Sam Pollock: But we.

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

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

Operator: Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect.

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

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

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Thank you.

Speaker Change: [music].

Speaker Change: Sure.