Brookfield Infrastructure Corp - Ordinary Shares - Class A (Subordinate Share) Stock

Please welcome Chief Executive Officer of Brookfield Infrastructure Partners, Sam Pollock.

Okay. Well, good afternoon, everyone. It's great to see so many familiar faces and good friends. As a son of a Sam, was I the only one feeling uncomfortable with Howard's story there? Bruce was looking over at me. So last year, we said that Brookfield Infrastructure was approaching an inflection point in its growth trajectory. And today, I want to pick up where we left off and show you why we believe that it's underway. To do that, I'm going to briefly revisit the strategy that we have, walk through what we've accomplished this year, and then I'll finish with what we think the opportunity ahead is and why we think the strong has ever been.

So to start off with, we've got a slide here that I think most of you have seen this before, and that's pretty intentional. Our strategy hasn't changed. And there are 3 parts to it. We maintain a strong financial position, deploy capital at attractive risk-adjusted returns, and we crystallize value through capital recycling. And when we execute those 3 things well, the result should be 10% or better FFO growth per unit over time. The full cycle approach has been the foundation of the business for almost 2 decades now, and it remains the framework for how we allocate capital today.

And as I just mentioned a second ago, a year ago, we told you we believe the growth rate was at that inflection point. And we had conviction because several things were coming together at once. Our organic backlog had grown. Recent investments were beginning to contribute to our business. Capital recycling has scaled and some of the headwinds that were affecting our per unit growth were starting to minimize.

Now this year, rather than repeat that statement, I want to show you some of the evidence. And I think this chart tells the story pretty clearly. From 2023 through 2025, average annual FFO per unit growth was about 7%, which is below our long-term experience. This year, we expect that to be approximately 10%. The important point is the direction of travel. The base business is performing well, capital from our backlog is coming into earnings and recent investments are contributing more meaningfully.

Since inception, we've compounded FFO per unit at roughly 14%. Now we're not suggesting that 1 year will make a trend or get us right back up there, but we believe the business is now moving back toward the growth profile that the investors in this room have come to expect from us.

So let me now walk you through the 3 elements of our strategy and where we stand against each of them. The key point is that the improvement in growth is not coming at the expense of financial discipline. We're maintaining a strong balance sheet, investing at attractive returns and continue to monetize mature businesses.

So let's start with our financial position. We generated 10% FFO per unit growth year-to-date while maintaining approximately $2.6 billion of corporate liquidity, BBB+ investment-grade credit ratings and a 65% payout ratio. Those numbers matter in combination. We're growing while retaining financial flexibility. That means that we can be patient when markets are expensive and move quickly when volatility creates opportunity, and that's been a hallmark of our success in the past.

The second part of our strategy is deployment. We've secured approximately $1.4 billion of growth investments and expect to deploy more than $2 billion for the full year. Importantly, this isn't dependent on one large acquisition. The deployment is diversified across the investments we made into our semiconductor facility, the growth backlog that we have within our other businesses and new investments made through various industrial partnerships. The mix is increasingly representative of our opportunity set, involves more organic investments, more strategic partnerships and more opportunities sourced through the Brookfield ecosystem rather than just competing in broad auctions.

And the more important point about this year's deployment is the return profile. We expect average returns of 15% or higher on the capital that we're currently deploying, which is above our historic target range of about 12% to 15%. And there are a couple of reasons for that. First is the infrastructure supercycle is creating a very large opportunity set for us to invest in. Second, AI infrastructure is adding another capital-intensive growth avenue for us to pursue. And finally, our scale and competitive moat is helping us source opportunities where we can achieve better economics. What I'd emphasize is that we're not targeting higher returns by taking greater risk. We remain focused on high-quality counterparties, strong contractual protections and disciplined underwriting.

The other side of the equation, obviously, is capital recycling. So far this year, we've secured approximately $1.4 billion of asset sale proceeds, and that excludes the approximately $1.2 billion of proceeds that we were able to obtain from the Csquare IPO, which was used to repay debt. We remain well on track to exceed our $2 billion target for capital recycling for the year. The return shown here from the mid-teens to over 40% demonstrates the value that we've created across various businesses and geographies throughout the year. This is how the full cycle strategy funds itself. We take capital out of mature investments where we've executed the value creation plan and redeploy it into new opportunities at attractive returns. That spread is an important source of long-term per unit growth.

So I want to take a second to discuss the simplification that we announced in July. You may recall that we listed BIP in 2008 as a partnership and created BIPC in 2020. We are now proposing to combine these 2 into a single publicly traded corporation called BIP Inc. Nothing changes about the underlying business or the investment strategy. What changes is just the wrapper. We expect one corporate security to be easier to own. It will broaden the potential investor base to those who currently can't own a partnership and it will materially improve consolidated trading liquidity. The security holder vote is scheduled for October 14. And subject to approvals, we expect to close the transaction in the fourth quarter. The result should be a roughly $30 billion company and more than twice the trade and liquidity.

So this brings us back to the inflection. Our confidence doesn't come from any single transaction or results in a quarter. It comes from a combination of having a strong base business, a larger organic backlog and more capital going to work at attractive returns.

And I'm going to finish up on this slide because it demonstrates or at least shows why we're optimistic on the deployment front, and it sets out the focus for the remainder of the presentation. We have 3 substantial avenues for capital deployment that we're going to talk about: M&A and corporate partnerships, AI infrastructure and organic growth within our businesses. The point we hope you take away at the end of the presentation is that our strategic advantage is the optionality that we have in the business to allocate capital to whatever opportunities offers the best risk-adjusted returns at that time.

So with that, I'm going to turn it over to Scott, and he's going to come up and talk about M&A and corporate partnerships.

Please welcome President, Brookfield Infrastructure Partners, Scott Peak.

Thank you. I don't know if anyone else was keeping track of the number of times scale was mentioned today. Every session has referenced it, either directly or indirectly. And in fact, Bruce's start at the beginning when he was asked what gets him most excited about coming to work, he referred to the assets, the relationships, the dollars, the people that we have here, which is very different from where he started his career. That's all scale. So with that, that introduced me well. I want to spend the next 10 minutes sharing why scale has become BIP's primary competitive advantage, and it's something that's been built patiently and deliberately business by business over the decades.

I'll start with 3 main messages. First is that scale is no longer a nice to have. It's not even simply just important. It is a prerequisite for market relevance for accessing the best opportunities and the best returns. Second, we have differentiated access to the world's largest companies who originate most of the coveted and high-quality market transactions we pursue. And third, the infrastructure landscape is vast, and it continues to expand. So we're able to remain highly selective in where we deploy our capital.

I'd estimate about 1/3 to 1/2 of the infrastructure we invest in today was nascent or didn't even exist as an investable asset class a decade ago. With that context, it may make more sense that the current forecast for global infrastructure requirements has doubled over the last 10 years to more than $100 trillion today. Now while traditional infrastructure needs have grown, there have been 3 developments over this period that I'd like to mention. The first is that there's been advancements in technology. You heard the OpenAI panel -- OpenAI panel, that's not going to be a surprise to you. Think fiberization, think automation, think AI factories. These weren't prevalent 10 years ago, but each is highly relevant today and will be in the future.

The second is previously less understood subsectors are maturing with large capital needs. Think residential infrastructure. And last, asset classes previously outside the perimeter of infrastructure, one that didn't meet the rigorous definitions that we hold them to have been adapting their revenue models, have been adapting their contracts to fit within the perimeter of infrastructure. For example, semiconductor foundries like what we did with Intel. So all this means we have a much broader opportunity set to choose from. However, to capitalize on these opportunities, a few interconnected elements are required. Together, these create a very strong moat for BIP's long-term deployment visibility, and it's very valuable and difficult to replicate.

The first is the most quantifiable. You need a big business, big dollars, lots of people and assets and a long track record. The second element is more subjective. You need operating expertise. This can be demonstrated through key performance indicators, a large and experienced team and results over a long measurement period. And third, which can only be earned if you have the first 2 right, are trusted corporate relationships with the leading market participants.

Let's remember, the leading corporations originate the majority of the large and attractive infrastructure opportunities in the market. Origination from government is infrequent. And because infrastructure assets are critical by definition, the same corporates rely on them both before and after a transaction. And that is why as we move to the middle column on this slide, corporate JVs, corporate partnerships, corporate carve-outs, they're all the most common. These corporate sellers require a counterparty that can operate the businesses critical to them safely and reliably. And while price is important to them, it's rarely their primary consideration. And the more complex a transaction is an area where you've seen us excel, the greater the need for every prerequisite to be satisfied and this ticks all these boxes.

So consequently, a selection from our partnership resume includes some of the leading companies around the world. The structures were varied, carve-out, sale leasebacks, JVs, strategic frameworks, but each required a partner they knew well that brought a big business to bear with relative -- with relevant operating expertise. And most of these were bilateral, beginning years earlier with a relationship.

This snapshot captures the breadth of BIP's infrastructure franchise today, specifically the resources and capabilities that we bring. $200 billion of assets under management, 50 portfolio companies in 15 countries, a track record of over 100 closed transactions, representing over $75 billion of equity deployed with an incremental $20 billion of equity projects currently underway. These credentials more than satisfy the request of corporate boards, of regulators and other key stakeholders. But it's important to flag that the corporate leaders of these companies are the ones who ultimately drive counterparty selection. And what they really care about lies beneath the surface of this slide.

Corporate leaders regularly engage with our 50 portfolio companies across the globe. They've seen firsthand that BIP is an experienced operator and deeply understands their business. In each sector where we operate, our industry scale rivals the largest strategics. We're not financial buyers standing outside these industries. We're one of the larger operators inside of them. We operate critical and high-profile assets, transmission lines, pipelines, towers, fiber, data centers, rail lines and logistics assets. This translates to deep credibility with corporate leadership.

So let's connect what we've talked about. Let's connect our scale, our operating expertise and our relationships and connect how that ties to what Sam talked about in terms of our FFO per unit growth plan. It starts with our ability to access and selectively pursue larger acquisitions and do more with these businesses once we own them. And as the size of our acquisitions has increased over time, our average returns on invested capital have too. We're deploying more capital while generating more FFO per unit of capital. Two reasons why this is occurring. The first is that larger businesses often have fewer credible buyers, which can translate to a better entry value point for us. But they typically also accompanied by more levers and more avenues for growth for us to create value very quickly during our ownership. Put simply, we're able to buy better, and we're able to create more value with what we buy.

Another perspective to share is that bigger deals are not simply a larger version of a small deal. We're not buying a single big thing at the end of the day. These are dynamic businesses with different segments and different regions and different assets included at different stages of maturity. Ultimately, a large business is typically a collection of smaller businesses that have been assembled and accumulated over time. And their integration over this time period is rarely perfect. Accordingly, these big businesses are often rife with duplicate systems burdened by legacy cost structures and constrained by bureaucracy, all serving as ideal opportunities for us to quickly add value.

Our toolkit is working. We start by identifying and supporting the right leadership team, then we improve margins and contracting. We impose capital allocation discipline. We optimize the capital structure. We support the business through incremental CapEx at accretive returns, and we ultimately ensure long-term optionality for our exit of the business.

We're seeing our toolkit translate to enhanced returns. We don't simply acquire businesses, we actively manage them. Triton, Hotwire, Colonial, all very different, show the playbook in action. During the first 12 to 24 months, we've now owned them, we've completed bolt-on acquisitions, materially improved margins, monetize stabilized assets. None of this we paid for at acquisition. We underwrite these businesses to a mid-teen return, but through active management, we're already adding roughly 200 to 400 basis points, lifting returns into the high teens. And as larger transactions become more common for us, this same value creation playbook can be repeated with greater frequency and greater materiality.

The leading businesses within the infrastructure market have grown. So it's natural that the enterprise value of the transactions BIP has done over the years has grown as well. From 2015 to 2020, many of our market-leading transactions had enterprise values in the low single-digit billions. Since 2021, the size has shifted upward with our focus on larger businesses and larger partnerships. Now a conclusion here should not be that we're only doing big deals. An excellent mid-scale transaction won't get past us, I assure you, but we compete and perform best at the upper end of the scale where we tend to achieve the best returns.

This trend can also be seen by the average amount of equity we deploy per deal and the average returns on that deployment. From 2015 to 2020, we deployed an average of $300 million per deal and achieved returns between 12% and 15%. Since 2021, however, this number doubled to $600 million, while average target returns now exceed 15%.

Four key takeaways. Our opportunity set is vast and growing, allowing us to remain highly selective. BIP is a trusted partner and counterparty to the best companies with access to the most attractive transactions. Our established operating toolkit creates significant value beyond what we underwrite at entry, particularly evident in our larger business acquisitions. These advantages, which all ultimately stem from scale, facilitate more capital deployed at higher target returns, supporting higher FFO per unit growth.

Next up for you, we have a panel. It's titled Building the Backbone of AI, a clear example of BIP scale in action. I'll now hand the stage back to Sam, who will serve as moderator. Thank you.

Welcome our panel moderated by Sam Pollock with panelists Lief Williams and Sikander Rashid.

All right. Well, it's my pleasure to be on stage here with 2 of my colleagues who are the leaders of our AI strategy. Sikander Rashid is the Global Head. Lief Williams is one of our Senior Managing Directors here in Toronto, who's been leading a lot of the AI factory initiatives that we're going to talk a bit about and that he spoke about last year.

The whole AI sector is something, I guess, we've been talking about, I think, for about 2 years now at these sessions. And I recall that when we first threw up the $7 trillion addressable market for AI infrastructure, we all were a little unsure of whether or not that was a little high. What we've clearly seen in the last couple of years, but especially this year is that, that number, if anything, is understated. The amount of capital, the opportunity set for us continues to grow at an exponential rate. But what I thought we'd do to start off with is maybe direct a question to both of you about your experience this past year with what you see changing, what you sort of see things going to the next year or so. So maybe, Sikander, I'll start with you. Maybe give your thoughts on what you've seen in the past year.

Yes. Well, thank you, Sam. Thanks for having us, both Lief and I, and it's great to be here and see so many familiar faces. Look, 12 months in AI is a long time. A lot has happened. I would say 12 months ago, investors had 3 big questions. Will the AI models continue to get better? It's a topic Dave touched on earlier. Number two, do we need all of this infrastructure? Do we need all of these GPUs, the power and the compute? And third, will AI actually generate revenue? Fast forward to today, I would say what's really exciting is the market's addressed all 3 of those questions.

Number one, last year, U.S. saw 20 gigawatts of capacity. This year, we will beat that. NVIDIA, who's at the forefront of this, is recording $90 billion per quarter in revenues, up 120% since last year. So yes, we need this infrastructure. The demand is there. AI models continue to get better. We've gone from chatbots to agents, hopefully soon to physical AI. So the models continue to get better, which is great for the technology and the adoption of it. And lastly, yes, AI is generating revenue. The 2 frontier labs, OpenAI and Anthropic, 12 months ago had $5 billion to $7 billion in annualized revenues. Today, the number is $110 billion. So clearly, AI has got revenue attached to it. And that's all really exciting for AI infrastructure.

So it's starting to prove out. Lief, what about you?

Yes. One other thing I would add, Sam, is -- and it has become more prevalent every month of the last year has just been community engagement and just prevailing local sentiments on data centers. So I would say 18 months ago, there was a perception in the race that the most important thing was just to get massive amounts of power at a site at any cost. Now it's probably no surprise that that's resulted in some backlash. We've now seen 4 states and over 300 counties and counting who have implemented data center moratoriums or otherwise delayed permits to get these shovels in the ground and get these sites operational.

I think in practice, again, these AI factories, if you do them correctly, they do bring massive benefits, significant investments, large amount of taxable basis, employment, both during the construction period and when operational. But you need to articulate these benefits and you need to effectively ensure that you're doing it the right way. And so this really means bringing your own power, protecting the ratepayer and articulating the benefits that come from these projects.

Okay. So I want to come back to a bunch of points there. But first, I want to address one of the comments that Sikander was talking about, just the amount of dollars that we're seeing and just the rush into the sector. We're obviously not alone in having capital, and we need to differentiate ourselves. Obviously, we have a lot of capital and we can bring that to bear. But what are the things we're doing today to differentiate ourselves in the businesses that we're establishing and buying?

Yes. Look, Sam, I think there's a couple of things. Scale obviously matters. Coming back to -- maybe I'll start with the AI factory initiative, which Lief touched on. So the way I describe it is, whilst the technology firms are building the brain, we're building the body. And the components of this body are power, data center, real estate and compute. And 5 years ago, these big technology firms or the sovereign governments could have worked with multiple vendors and pulled it all together for their cloud computing services. Today, it's a race not just between the countries, whether it's U.S. and China, but also among all the technology firms. And their preference now is to work with vendors who have the ability to package it all together.

And the other element of this is, 1 gigawatt or 1 megawatt of power cost or data center cost $10 million with the CPUs 5 years ago, today, it's $50 million. So the complexity and the size both have increased. And therefore, our competitive advantage as a firm is we're one of the largest energy investors. We are one of the largest data center investors. And thanks to our partnership with NVIDIA, we've also got compute capabilities. So we have the ability to offer this integrated computing services to some of the largest clients in the world.

Okay. So we've made an investment in Radiant. How did we do it? And why are we going to be able to make money in that lower grade?

Yes. So this is the question you asked us 18 months ago. And I'll give you the same answer. I think there's 3 things. Why are we so excited about this? Why we did this? First, AI infrastructure will be a $10 trillion. I know stands at $7 trillion. We've already increased the number to $10 trillion. It will be a $10 trillion CapEx spend. Now half of that spend will be on compute or the kit that goes inside of a data center, so big dollars. Secondly, every company and every country is going to have its own AI. And that AI will be bespoke, customized, sovereign, secure, catering to the needs of that country or the company. And thirdly, the chip industrialization cycle is 5 years long. So it takes time to manufacture new chips, design them and build them.

For all those reasons, we identified this as a sector where we could invest a lot of capital in partnership with NVIDIA, and that's why we formulated Radiant. It's effectively a compute platform that provides GPU as a service which includes data centers and the compute to some of the largest technology firms and sovereign governments in the world. And the focus is take-or-pay contracts, IG customers and focusing on a return on and off of capital in the contracts to minimize technology risk, and we're really excited. The momentum is great and it's really exciting.

Okay. So Lief, you were here last year talking about AI factories. And so just kind of described what the constituents of both the building as well as the compute. Maybe describe for us how the cost in each of those facilities differs a little bit in various markets. And maybe we can touch on the 2 deals that we are currently working on that we've announced, one in the U.S. and one here in Canada.

Yes, yes. So the -- look, to recap an AI factory, this is a large-scale campus. It's purpose-built for AI workloads, and it's integrated. And so that means that you're finding the solutions to bring power to the site, whether it's grid connected or whether it's behind the meter. You're building the data center and all of the infrastructure that goes inside that, so generators, batteries, mechanical plants. And then the compute -- in some cases, you would also be bringing the compute and offering that as a service to your end customers. So we think that this is an important infrastructure asset for a couple of reasons. Number one, it produces attractive risk-adjusted returns. So I would say to bring a gigawatt of load, just as an example unit, that is a very difficult thing, and there's massive scarcity value in that asset. And so as a result, you can earn attractive risk-adjusted returns of over 10% unlevered on a yield on cost basis. Secondly, as Sika described, these are very capital intensive. And so $50 billion, $60 billion per AI factory. And thirdly, these have all the infrastructure characteristics that we look for. So investment-grade counterparties, long-term contracts, inflation protections.

Maybe to talk a little bit about 2 of the AI factories that we've announced. If you thought about where should an AI factory be built and yet you were working from a blank sheet of paper, these 2 projects are exactly what you would come up with. So we've got one site in Paducah, Kentucky and one site in Keephills in Alberta. And in both cases, like I said, they're exactly what you would look for. So massive campuses, really well interconnected to the grid, both the electric grid and the gas grid. We've got great partners who are working with us on this. And then they're just opportunities that bring scale or can be expanded over the long term, and we think are kind of examples of doing this in the right way.

And so just a couple of anecdotes about each of them. The Paducah campus, this is a former Department of Energy campus. It serves 3 gigawatts of load at its peak. I've not seen any other site anywhere in North America that had that much load in the past. It's just really well connected from that perspective. The Keephills site, this is located really at the heart of Alberta's electric transmission system. The whole grid was built around the power plants in this area. Typically for an AI factory, you look for 1 or 2 large high-voltage transmission lines. Our site at Keephills has 7 high-voltage transmission lines connecting into our interconnection points. So really well situated to protect ratepayers and really well situated for our customers.

The only comment I'd add to that is to what Lief described really well is both of these opportunities, unlike traditional data center investment, we've leveraged relationships with NextEra or the Department of Energy or TransAlta, one of our companies, to create opportunities where we've minimized speculative capital outlay, which would be another differentiator of how we're doing things compared to everyone else.

Okay. Well, maybe just tying on 2 things you both mentioned. One is the importance of power. And not every site is as well endowed as Keephills is was interconnections. And so for that, we've identified Bloom Energy as a great partner and some we've built a great relationship with to provide behind-the-meter power solutions for many of these facilities. Sika, maybe just talk about that relationship and how it works and why has it been so powerful?

Yes, absolutely. So big picture, the U.S. alone will need 100 gigawatts of power in the next 10 years for AI infrastructure alone. That's obviously a big number. The utility throughout -- the utilities throughout the country can only support 30 gigawatt of that. So we identified a 70 gigawatt gap in power availability in the U.S. and looked at a host of solutions. We picked Bloom and approached them with this idea of becoming their capital partner because time to market in this market environment is everything, time-to-token is revenue, as you will hear from some of the frontier labs. And Bloom has the fuel cells, by definition, don't burn gas, they consume gas. And by virtue of that process, the permitting time lines for this technology are relatively short. And it's been a phenomenal partnership. We're the capital partner. We invest in investment-grade customers, price the contracts such that we get a return on and off of our capital over the contract term, which is normally 10 to 15 years. And we started with $5 billion. We've upsized the partnership to $25 billion, and that's fantastic.

That's great. Okay. So we have a little time left. And in true Brookfield fashion, we always talk about the downside. And so what I wanted us to cover to end off was just -- and you both have worked with us in our traditional infrastructure business for many years. What's different about these assets versus what you've historically been involved with? And how are we mitigating risk? So maybe we'll start with Lief and then Sika, you can finish off.

Yes. So what I would say, I feel in a lot of ways, it's returning to infrastructure's roots as concession assets. We're underwriting a DCF that effectively has a stream of cash flows, and we're assuming very little or 0 terminal value in a lot of cases. And so again, I think it's really the underwriting approach where we're taking a very infrastructure-centric focus.

Look, as much as I would love to tell you, we've used AI to come up with a new underwriting formula. We haven't, unfortunately. It's still the same formula. We learned from you over the years, Sam, and it's basically focusing on take-or-pay contracts, investment-grade counterparties. And more importantly, I think this is very important for AI infrastructure, pricing the contracts, whether it's power, data centers or compute or silicon, pricing them such that we target to get a return on and off of capital over the initial contract term and ensuring the term is commensurate with the useful life of the asset is very, very critical, and that's our focus.

Yes. And the only thing I would add is counterparties and documentation are critical. So our attention to detail has to be razor sharp to ensure that we're not entering any agreements that people can somehow get out of because these are long-term agreements that we're entering into.

So that concludes what we want to talk about AI infrastructure. Next up, we have David Krant, who's going to talk about organic growth and tie together all the different deployment opportunities that we've been talking about.

Please welcome Chief Financial Officer, Brookfield Infrastructure Partners, David Krant.

All right. Thank you, Sam, and good afternoon, everyone. I'm going to spend the next few minutes on one straightforward idea, and that is that BIP has more ways to grow today, and that gives us more ability to choose where we put our capital. The result is a broader opportunity set, which will allow us to invest capital at better risk-adjusted returns and further drive FFO per unit growth.

Let me start by laying out the 3 channels available to us. As you saw earlier, the first is traditional M&A. This is buying businesses that we've done for the last 17 years, utilities, transportation, midstream, digital infrastructure. It's driven our growth for many years, and it will for years to come. The second you just heard of is AI infrastructure. And the third is organic growth capital. This is investing inside the 50 portfolio companies we already own today.

Now each of these channels differ in terms of their timing, the risks and the return profiles. And that's exactly the point. We do not need all channels to be open at the same time in order for us to grow. Rather, we can choose where we invest that capital to earn the best risk-adjusted returns. Let's go through each of these, starting with the one that's done the majority of our growth to date, and that's traditional M&A.

Across the period shown, we have averaged about $2.2 billion of investment into growth initiatives. If we focus in on where that's come from, well, almost 80% of it has come from this traditional M&A. And because of our scale today, the size of these investments have trended larger and as a result, have provided us with very strong risk-adjusted returns. Traditional M&A will remain a very important part of what we do. But as you heard, the opportunity set is now more broad, and that's most notable in AI infrastructure.

As you've heard, AI infrastructure is not just one single asset class, rather a set of connected opportunities across 3 channels so far. Today, it's been power and transmission, AI factories and compute infrastructure. Each of these opportunities are similar in that they are large scale and have highly contracted revenue profiles, which is something we love. But what may differ is the deployment cycle or the time it converts to earnings. And so as we look out over the next 5 years, which is the time it may take to contribute -- to fully contribute, we expect to invest upwards of $2.5 billion at our share over that 5-year period. So that simple math, that's about $500 million per year that we expect to deploy into this new growth channel. And because these opportunities are large, we will invest alongside partners, allowing BIP to concentrate its investment into those highest returning projects.

And finally, the third channel, which I'll spend a little bit more time on today is our organic growth. Looking at our deployment this year, as Sam highlighted earlier, you can see we've deployed nearly $1.5 billion into growth. The majority of that has come from internally sourced organic growth projects. If you add on top of that, the funding of our Intel joint venture in Arizona, well, we've deployed nearly $1 billion into assets we own today, building high-quality new businesses. And said differently, the majority of this year's growth has been organic. That doesn't mean traditional M&A won't be coming, but it does mean that we have focused on internally sourced projects, and that is a good thing.

There's a few reasons we like organic growth projects. The first is that it's lower risk. We know the business, the team, the customer, and we've got a 15-year track record of building these types of projects on scope, schedule and budget. And the second is less competition. As the incumbent owner and operator of these businesses, we are uniquely positioned to win on these mandates. And so when you combine lower risk with less competition, that gives you excellent risk-adjusted returns. And when we -- what we don't underwrite in these projects is the fact that we're building them at several turns discount to what they would go for in the prevailing market. That value will be captured through capital recycling, something we talked about last year.

And because these projects are now at scale, we've built our backlog into a record level. In fact, 5 years ago at this event, we had set a pretty ambitious target for ourselves to grow our backlog to $3 billion. Well, by 2024, we'd achieved that and more. We did $4 billion, 1/3 above our target. Fast forward to today, our backlog stands at $6 billion, and that excludes any capital for the Intel joint venture.

And so the important part here is not just the numbers, but it's the trajectory. As our portfolio of companies have grown, as the businesses we've acquired have grown, so has our ability to source extremely attractive projects from within them. And if we dive a bit more into the backlog, we'd like to think of it as a funnel. At the bottom of the funnel is the $6 billion of approved projects that we have underway today. This provides highly visible earnings over the next 2 to 3 years as we've already secured the customer, the financing, and we're well underway. If we work our way up, say, the layer at the planning and commercialization phase, well, we have another $3 billion of projects at our share that we're in active discussions and final negotiations with customers on. This is really where the relative ranking and prioritization of projects get done to find the best opportunities within our portfolio.

And taking one step further back, there's $6 billion or more of projects that are in the early stage of opportunities. And this is where we may be looking at sites, having initial discussions with our customers to help unlock the growth within their business. And the point here is really around the depth of the funnel gives us good visibility, not just into the earnings in the next 2 to 3 years, but it gives us the confidence that we will replenish this backlog with a significant amount of capital as well as grow it over time.

And so if we combine our scale with the fact that we have a broadening opportunity set in front of us, it gives us the conviction to believe that we can deploy a significant amount of capital at really attractive risk-adjusted returns and therefore, drive further FFO per unit growth. And so if we pull it all together, starting with the deployment channel, you can see we've invested -- or as you recall, we invested about $2.2 billion annually over the last 3 years. Well, going forward, we expect that number to be anywhere between $2 billion and $3 billion per year. Based on our historical deployment, which was traditionally M&A, you can see that ranges between $1 billion and $2 billion per year. Again, will vary because, again, we are value-based investors, and so we will choose where we put that capital.

On top of that, you have the AI infrastructure opportunity set of about $500 million per year and funding our backlog between $500 million and $1 billion in a given year. And so looking at that in totality, it's important to note these aren't quotas. The mix will inevitably be different. But what's important here is that we have the choice to invest capital where we see the best returns. And the choice won't just come through in the deployment figures. It will really come through in the returns that we generate. Across each of these 3 channels, whether it be traditional M&A, AI infrastructure or our organic growth backlog, we're targeting a minimum of 15% equity returns.

And so to help frame what does that mean for per unit growth in the years to come? Well, we thought we'd show a few scenarios. On the conservative end, let's assume we invest a low amount, $2 billion per year, and we deploy it only at 15%. Well, that will drive 5% per unit growth that year. Now if we are able to flex our investment amount up to $3 billion or generate returns above the 15%, well, that's going to translate into higher per unit growth. And at the higher end of the range, you'll see upwards of 8% per year growth from the business.

And the point here is that the broader opportunity set improves both the amount we can deploy, but also the returns we can generate. And that combination gives us good visibility into -- today into 2026 earnings being at 10% per unit or higher or into the next 2 to 3 years. And so as we look out, the numbers are quite attractive. As a reminder, the base business grows from inflation indexation and volume surplus. That's 4% to 6% per year without investing a single dollar into growth. Now if you use the low end of our target range of $2 billion of 15%, well, that's roughly 5% per unit growth, making a very visible path to our 10% long-term target. But as I said, there is upside here. If we're able to deploy more capital, which we hope we do, and we're able to do so at better returns, while we have a business plan that can get us to 12% per year growth or higher. That will allow us to continue to inflect in our growth rates and support long-term distribution growth as well.

As a reminder, since 2009, we've grown our distribution for 17 consecutive years at a 9% average rate. As we look ahead, as our growth rate continues to accelerate, we hope that our distribution track record will as well.

And so I'll wrap up today with 4 key takeaways as every Brookfield presentation has seemed to do. First, organic growth is at record levels, and that is a good thing for our business. Second, our scale has made us a partner of choice, leading to bigger investment opportunities at higher attractive returns. Third, AI infrastructure is an evolving asset class that's allowing us to deploy more capital at really good risk-adjusted returns. And finally, all this results in our growth rate being at the early stages of an inflection point. And so with that, I'll now invite Sam back up for closing remarks and Q&A. Thank you, everyone.

All right. Well, thank you for your time today. And before we take questions, I thought I would just close with a few thoughts on why we think this is an attractive entry point for investors to come into the BIP units. Now first, our BIP units offer a dividend yield of more than 5% today, providing investors with a meaningful current return while participating in the growth of the business. Then second, as Dave just highlighted, the growth rate in our FFO has begun to accelerate, and that should support an attractive dividend growth rate in the future. And hopefully, we can get back up to that 9%. And lastly, we're hoping that the simplification of our corporate structure, which should take place by end of the year, will help re-rate the stock a bit by making it easier to own, increase liquidity and broaden the potential for new investors to come into the stock.

So with that, I'll conclude and take any questions that there are. Cherilyn, up front here.

Cherilyn Radbourne from TD Cowen. So one of the themes in your presentation was that scale brings you into better opportunities. The corollary of that is that you end up with a bigger business. Do you need more sort of optionality on the exit side to fully monetize that? Can you sort of close the loop for us there?

Sure. No, it's a great question, and it's one that we get a lot because the natural reaction to when you say you buy something that's bigger is that as you add value and look to sell 10 years from now, it's even bigger. And if you got in because there are very few people who can get in, well, then how do you expect to sell it? And what I'd say, and I think this is what Scott said in his remarks a bit is that these businesses typically aren't just one business. Often what happens when we buy a large enterprise is it's a conglomeration of many different businesses. And one of the things that we tend to do is examine opportunities where we can split the business either by geography or different business lines and make that available to a more mid-market type buyer. And a good example of that would be a business we bought a number of years ago in the U.S. railroad, the short line railroad, which was a business that had been rolled up over many years. What we saw is an opportunity to split that business into 3 different sections by region. And our plan will be in a couple of years' time once we finish optimizing the business to sell that company in those 3 different pieces. But if someone saw that as a public company, initially, they weren't thinking of it as 3 different businesses. They just thought it as one company. I hope that answers your question.

There's 2 over here.

Frederic Bastien at Raymond James. Sam, I'd like to touch on the Canada Investment Summit that was held a couple of weeks ago. Of the federal initiatives announced, including the new investment tax write-off, proposed airport privatization and the national secure digital network, which do you expect will have -- will create the strongest opportunities for Brookfield Infrastructure?

Well, look, I think there's opportunities in all of the above. I think for us, we've been advocating for change to the tax code for a while, and I think that's going to spur a lot of new investment into the country. So I think that's very positive. Obviously, one of the things Canada hasn't been doing as well as some other countries has been monetizing mature assets to generate proceeds that they can then invest in new infrastructure. We've seen that done in Australia. We've seen it done in the U.K. We've seen it done in many other places. And we're seeing right now taking place in the Middle East. Canada should be taking advantage of all the capital that's available and that's interested in mature assets. And so I think the airports, should they proceed with that, we will find a lot of interested buyers, including ourselves.

And I think, obviously, the other important factor is just streamlining the consultation and approval processes will make a big, big difference in encouraging developers to take risk with new projects. I think that's something that hasn't taken place over the last decade, and I think that will have a big impact on the future of Canada.

One over here.

Maurice Choy from RBC Capital Markets. Just one question for me. I wanted to unpack a comment earlier made in the Bruce and Howard session that inflation today is caused by 2 ongoing wars and inflation and the rest of the system is "not that much." You stated earlier that the AI opportunity has now increased to $10 trillion. And because of the war, likely global energy infrastructure CapEx is also likely to increase. All this suggests that there is likely a persistent supply chain-driven inflation in the years ahead, even if the war ends. So I wonder if you have any thoughts on that. And as a quick follow-up, on one of the slides that David presented on Slide 48, I think the first bucket for your FFO growth was inflation indexation of 3% or 4%. I wonder if you could possibly see that increasing higher if inflation does persist.

Well, the first thing I would say it's never wise to disagree with your boss. And so if he says inflation is not going up, then I agree with him. I think the -- look, his point was that there are obviously inflationary pressures from the war and from CapEx going into various industries. And so obviously, what you said is correct. At the same time, there are other factors that are deflationary. There's overcapacity in certain sectors. There's demographic factors taking place. And so how all those weigh in over a longer period of time, it's hard to say. But I do think that, generally speaking, once some of these near-term factors dissipate, and look, the war should end at some point relatively soon. And I think the investment boom will moderate as it always does. So I think longer term, you will see inflation taper down.

The benefit, though, is that if it doesn't, there's no better asset class, no better stock to own than BIP because almost all our revenues are indexed to inflation, and we'll be big beneficiaries of that.

So thank you for that [ lob ]. So I think that's all we have time-wise. So thank you very much. Appreciate your time and be happy to speak to anyone outside.

Please welcome Chief Executive Officer, Brookfield Renewable Partners, Connor Teskey.

Good afternoon. My name is Connor Teskey. I'm the CEO of Brookfield Renewable. Thank you for being here. Thank you for your interest and support in our company. As you'll hear throughout the presentation, we're very excited about the position of our business and the future for our shareholders. So we'll jump right into it.

We'll start today by explaining the key trends shaping energy markets and how Brookfield Renewable has positioned itself at the forefront of not some, but all of those major themes. Then Amanda Laszutko, a member of our investment team, will explain how we've built a business model that can deliver increasing amounts of highly accretive growth on a continuous basis over the long term. And lastly, Patrick Taylor, our CFO, will highlight both our track record and our funding model as well as outline several catalysts that we think will drive significant upside in our share price.

The current energy environment is very simply defined by the fact that demand significantly outweighs supply. It's not by a little bit, and this dynamic is enduring. This means that growth is no longer determined by who can source demand, but rather who has the capabilities and the capital to service that demand and capture that large opportunity. For Brookfield Renewable, who has those capabilities and has that access to capital, this means that we can be increasingly selective, focused on only the most attractive opportunities while still delivering more growth and better returns than at any point in our history. And this is already showing up in our results.

Similar to last year and continuing a trend of several years now, we've delivered yet another year of record performance, record financial performance, record levels of development, record levels of capital raising.

And this is not a one-off. This is the result of very difficult to replicate market-leading positions in the fastest and most attractive segments of the energy landscape. This is what gives us confidence that we can continue to grow and invest in the most attractive opportunities, driving sustainable long-term cash flow growth, both in the short term as well as the long term. Switching a little bit now to the market backdrop. We are undoubtedly in an era of energy addition. The market needs more energy than ever before. The market needs more energy than anyone expected only 2 or 3 years ago. The market certainly needs more energy than what is being supplied. And these are enduring trends.

They are largely anchored in 2 multi-decade megatrends: one, the electrification of huge subsegments of the economy, think transportation and industrials; and two, the reindustrialization of advanced economies. Those long-term enduring trends created a supply-demand imbalance that got significantly exaggerated in recent years by the rapid growth of energy-intensive AI and data centers. And every time this forecast gets updated, the numbers go even higher. And as a result, in just a few short years, energy has gone from being something that everyone took for granted to the single biggest bottleneck for the most important companies and economies around the world.

And therefore, leading businesses and leading countries are looking to secure as much energy as they can, and they are becoming increasingly deliberate of the specific attributes of the energy that they are adding. This means power producers not only need to scale up their businesses, but they need to evolve to meet the changing needs of the new energy era. And while the demand is so large, it will support everything, and it will require an any and all or all of the above type energy solution. We feel that 3 technologies, in particular, are going to capture the majority of go-forward energy demand because they have a right to win on one of the key attributes that the market is seeking.

Renewables win because they're quick to install and they're the lowest cost form of generation in a world that needs as much energy as it can get. Batteries provide a cost-effective solution to balancing an increasingly volatile energy grid and allowing for increased penetration of low-cost renewables. And nuclear wins because it provides that scale baseload power and energy security that's increasingly valuable in today's environment.

And let's go through each of these individually, starting with renewables. Don't get lost in the headlines. The market has spoken. 80%, 8-0 percent of power generation capacity additions in 2025 came from renewables. And that is because they are the cheapest source of bulk electricity production, a competitive advantage that continues to improve as supply chain scale up as technology improves and as cost curves continue to come down. As long as there is a supply-demand imbalance, the majority of new energy additions are going to come from renewables.

But on a relative scale, batteries are actually growing even faster. And this is driven by technology and economics. Battery costs have declined by over 90%, making them a highly attractive and commercially viable way to balance increasingly volatile electricity grids and address the intermittency of renewables. This is why battery installments have gone up 10x in just the last 4 years. And not only is the sector scaling up, increasingly, we've seen energy storage contracted under long-term capacity and tolling arrangements very similar to how mature wind and solar is. So you have 2 reinforcing factors, increasingly attractive economics and growing contractual demand that will continue the growth of the energy storage sector. And this brings us to nuclear.

Today, as more scale and baseload power is required, we believe we are in the early innings of a multi-decade era of nuclear new build. Today, there are approximately 500 operating nuclear power plants around the world. To put it in perspective, there are 200 nuclear reactors either under construction or currently being planned. In the United States alone, they are looking to add 300 gigawatts of new nuclear power capacity by 2050. As energy security and energy resilience become increasingly important, new build nuclear has reinserted itself back at the top of the global energy agenda.

And at Brookfield Renewable, we have consciously positioned ourselves at the forefront of each of these major technologies. Not only do we have leading operating platforms, but we have large advanced pipelines and unmatched development capabilities to capture the growth opportunity going forward. As we've been saying for years, we have the leading global renewable platform focused on hydro, wind and solar. And in a market that will absorb as much cheap low-cost wind and solar as it can, we have leading platforms in 35 countries around the world, and we are nearing a run rate of 10 gigawatts of new projects commissioned each and every year. And we keep adding to those market-leading capabilities by adding new businesses like Boralex that we've acquired in 2026.

And within this platform, we keep finding underappreciated upsides that are driving returns. Within our large and advanced development pipeline, our interconnection and our grid positions are increasingly more valuable. Projects that we started several years ago for wind and solar or batteries are now increasingly perfect projects for powered land opportunities for data centers. While others are working hard to identify these scarce opportunities, we have a large proprietary pipeline within our own business, and we're finding more and more of them every day.

We also own one of the largest operating hydro fleets around the world and the largest hydro fleet in North America. And yes, there are not many additions to hydro, but hydro does carry some of those key attributes of scale baseload power that nuclear has. And as a result, we are continuously contracting our existing hydro fleets at higher prices, driving sustained cash flow growth.

In energy storage, over just the last several years, we have built a leading global platform through both organic and M&A growth. This was largely driven by our acquisition of Neoen in 2024 that focuses on Europe and Australia and our acquisition of Aypa in this past year 2026 that focuses on North America. Today, we have over 5 gigawatts of operating assets in an advanced pipeline of more than 30 gigawatts. And through these businesses and others, we have unmatched capabilities to catch the go-forward growth in energy storage.

Make no mistake about it, batteries and energy storage are the fastest-growing segment of Brookfield Renewable, and they are being deployed across every business that we own. And by adding our access to capital, our commercial relationships with the growing need for flexible dispatchable power, we see the opportunity to continue to accelerate this growth going forward. And lastly, that brings us to nuclear.

Today, around the world, energy grids need more scale baseload power. But at the same time, those energy grids are looking to reduce their reliance on volatile or imported fuel inputs. This is even more important as targets around winning the AI race, energy dominance and energy security are now increasingly national security objectives. To put it very simply, there is no way to deliver those things without nuclear, and there is no way to grow the nuclear sector without Westinghouse.

Westinghouse services over 60% of the operating nuclear reactors around the world and has the leading nuclear technology for new build additions. Westinghouse is both the critical supplier and the enabler of today's nuclear renaissance. And we believe we are in the early innings of what will be a multi-decade build-out of new build nuclear. We are seeing this in countries around the world that are looking to develop nuclear projects, and we are actively working on new builds in Europe, the Middle East and Asia.

But Westinghouse's largest market is undoubtedly the United States, where the company has signed multiple agreements with the U.S. government that will provide over $100 billion of capital to support nuclear new build. This will scale up the supply chain and act as the catalyst for what we think will be multiple tens of new construction starts in the years to come. And this is all in addition to the ongoing life extensions and upgrades that were already happening because Westinghouse provides the design to new build, it benefits from improving existing plants, and it is the critical service provider to the majority of operating plants around the world through its operating plant services and fuel fabrication capabilities.

Westinghouse is undoubtedly at the center of the nuclear industry, both today and as it grows going forward. And for Brookfield Renewable, this means that we have an unparalleled opportunity to identify, invest in and capitalize on new opportunities in nuclear power. We can leverage our unmatched perspective through ownership of Westinghouse with our access to capital, our commercial relationships and our development capabilities.

Said another way, Brookfield Renewable will benefit from the growth in nuclear, not solely through its ownership of Westinghouse, but also through a number of other opportunities that this generational build-out will deliver. And while those market-leading positions will secure our growth both today and going forward, it's important to recognize that our long-standing consistent competitive advantages are what ensure that we can stay on the forefront of energy themes as they evolve in the future.

Today, scale is more important than ever before. As Amanda will explain, not only does growth beget more growth, but it allows us to be incredibly selective, focusing on not only focusing on only the largest and most attractive opportunities. As you have seen from our performance over the last few years, we buy the largest, best energy companies that have the greatest growth pipelines. And by plugging them into our global platform, we can further accelerate the growth and the value creation within those businesses.

Further, as more and more of energy is the result of multi-jurisdictional or multi-asset class solutions, we are increasingly originating or generating bespoke bilateral investment opportunities where we, Brookfield Renewable don't need to compete on cost of capital.

But more important than the upside is the downside protection that the scale of our platform brings. Things are always going to change. They've changed in the past. They will continue to change in the future. But we have built a leading platform that can navigate those changes regardless of whether it's to changes in tax regimes, government policies or disruptions to supply chain. Our scale, our in-house capabilities, our relationships across the energy value chain ensure that we have multiple options and redundancy in all critical functions such that we can continuously deliver our projects on time and on budget.

And around the world, we are seeing the largest and most attractive opportunities flow to those who not only can provide scale capital, but compare that capital with scale operating capabilities. We are doing more and more business with the largest consumers of power around the world. This means we are doing large transactions backed by the greatest corporate credit counterparties, and we are increasingly doing them in unique ways that others cannot, and therefore, we do not need to compete on cost of capital.

And further, as our counterparties continue to grow and Brookfield Renewable grows as well, our differentiated service to our clients becomes increasingly more valuable, providing an embedded upside to our business that will ensure growth and return benefits going forward. And not only does our platform derisk our business today, it helps us derisk our growth initiatives of the future. Because we see so many opportunities at all times, we never need to stretch if the risk is too high or the returns are not appropriate.

This is obviously true in M&A, but it applies to development as well, where we do not put dollars in the ground unless we can lock in the critical inputs to ensure that we will get the appropriate return of and on our capital regardless of how markets move in the future. Our scale allows us to focus on the fundamentals and target the most attractive opportunities, the way that we've continued to scale our renewables business through the acquisition of Boralex and the increased investment in Isagen, while at the same time, consciously avoiding the areas of the market that are seeing the greatest headwinds today and focusing our investment in new strategies like nuclear and battery storage that today are the fastest-growing parts of our portfolio.

Very few, if any, today can offer not only a clean portfolio, but leading exposure to the largest and fastest-growing segments of the energy market and a continuous process and platform to ensure that we stay on the forefront of energy themes going forward. So putting that all together, -- we are in a new era of energy demand, one where the winners will be determined by scale, capabilities, access to capital and leadership in the largest and fastest-growing segments of the energy market. At Brookfield Renewable, we feel no one is better positioned than us to capture this incredible opportunity. And as a result, we feel we can deliver more growth and better returns than on almost any point in our history. With that, I'll hand it over to Amanda.

Please welcome Managing Director Investments, Brookfield Renewable Partners, Amanda Laszutko.

Thank you, Connor, and good afternoon, everyone. My name is Amanda Laszutko, and I'm a Managing Director on the Energy Investments team here at Brookfield. Energy demand is accelerating at a pace that we haven't seen in decades. And that demand is translating into a significant opportunity to invest in the grids of the future.

Today, we'll walk through how we're positioned to capture that growth and convert it into sustained value creation. The strength that we've built across our business over the past decade are creating real momentum. But perhaps what's a little bit more interesting is that those strengths are increasingly reinforcing one another. We've grown through a combination of opportunistic M&A and disciplined development, building scale, operating expertise and global presence along the way.

And it's precisely those capabilities that have allowed us to offer customers more sophisticated solutions over time, win more business, and that's ultimately translated to more growth and the ability to capture more investment opportunities as that cycle repeats itself. With that virtuous cycle in mind, when we evaluate investments today, we're not just looking at their ability to deliver strong financial returns. We're also increasingly considering how those investments enhance our existing platform and allow us to provide even more differentiated solutions to those customers. And sometimes that might mean continuing to build scale in technologies or markets where we already have a very strong position. And in other times, that might mean expanding into a new area or technology that we view as being increasingly important to our customers going forward.

In all cases, though, we'll apply the same disciplined lens that we always have, investing in proven technologies that serve a critical need on the grid today, but that still enable us to be a stronger partner and solutions provider to those customers.

A great example of this is battery storage. Three years ago, we had virtually no battery storage capacity across our platform. Today, we've grown to 5 gigawatts of operating capacity, and we have a development pipeline of over 80 gigawatts. As Connor spoke about earlier, we saw batteries becoming an increasingly important component to stabilize grids, but we also saw the cost of batteries coming down dramatically, falling roughly 60% in the last 24 months alone. And we also saw their contractual structures evolve, providing us with more visibility and stability around revenues in the long term. This made batteries a very natural area for us to expand our business.

And today, we have 2 proprietary pools of capital that we believe are unmatched in scale and that continue to grow. The first is hybridizing our existing assets that we own and operate. We have one of the world's largest operating fleets of wind and solar at 50 gigawatts. That presents a tremendous opportunity to pair batteries with those sites and optimize the existing grid interconnections. The second is our stand-alone battery storage development pipeline, which we've built and acquired over the last several years, and it now stands at one of the industry's largest.

Together, these give us a scale of opportunity that few, if any, can match. Now just to give you an example of some of the momentum that we're seeing across batteries, we recently signed a 15-year hybrid solar plus storage PPA with a large hyperscale customer in Australia for 140 megawatts. This was a bespoke solution that we developed with the customer, and it's one of the first combined solar plus storage PPAs that they signed in the country. Now batteries are just one example, but they help to illustrate the value of thoughtfully edging out our platform over time and staying at the forefront of technologies that are shaping energy grids. This allows us to be better positioned to win business and partner with the largest buyers of power globally.

Now these buyers, which include corporates and sovereigns alike, are balancing an increasingly complex set of needs. With every power purchase decision they make, they have to balance across cost, speed, flexibility, reliability and of course, the need for baseload power. It's virtually impossible to find any one technology that can achieve all 5 of these things, but we have built our business around technologies that we believe can win on at least 2 of these attributes. And that's allowed us to provide more sophisticated solutions over time, again, enhancing those customer relationships.

Now as we look to broaden our capabilities further, one of the greatest advantages of our platform is the flexibility we have in how and where we deploy capital. We have 2 different ways to grow, and they both represent very large opportunity sets. First, we can grow our existing platforms through development. We have a very large-scale pipeline of advanced projects that total 90 gigawatts across solar and storage and wind.

And second, we can grow by acquiring new platforms through our scaled M&A engine. Because we can do both consistently and at scale, we're never overly reliant on any one way to grow our business, and we don't depend on any single project or acquisition to drive returns. It's ultimately this balance and flexibility that helps us win. Both M&A and development continue to grow across our business, but they're doing so in different ways. M&A tends to be more transaction dependent, so it can vary from year-to-year depending on market conditions and where we're seeing the best opportunities.

Development has become a much more continuous and consistent source of growth for us, particularly as we've expanded our development pipeline. Just to put this in context, in 2021, we were developing less than 1 gigawatt of capacity annually. Fast forward to today, and that number was 8 gigawatts over the last 24 months. An underappreciated part of our business is that the dollars we invested several years ago are now showing up in our development returns as that pipeline gets converted into revenues and ultimately operating cash flows. And that continues to provide a stable backdrop for our growth going forward.

Now we'll spend a little bit more time going into each of these growth levers in a little bit more detail, starting with development. Development is becoming a larger part of our growth story because we can earn attractive returns. But I think more importantly, not everyone can do it. We're uniquely positioned to execute, and it's that execution capability that gets rewarded. And that's ultimately a function of 3 things. First, we can bring global strength while delivering local impact. We have boots on the ground in 35 power markets globally that are experts in their respective geographies. They have a deep understanding of the regulatory environments, and they understand the commercial and the supply chain considerations. But most importantly, they've seen firsthand what works and what doesn't.

And then overlaid on top of that are our global development teams that can leverage best practices from across the platform to really enhance what we're doing at the local level. In India, for example, we've built 2 new platforms from the ground up, Evren and Lumara, who have a combined pipeline of 15 gigawatts. Rather than acquiring a pre-existing business, our team in India used their deep understanding of the regional power markets and the local relationships that they've cultivated over several years to build these platforms on a fully proprietary basis.

And by doing that, by taking that proprietary approach, we end up with a pipeline that's highly curated, that's high quality and that we have high conviction that we can execute against. And that would not be possible without the local expertise of our teams. The second is our commercial and supplier relationships, and this is where scale really matters. We can be an efficient counterparty for the largest buyers of power, and we can secure favorable supplier agreements because of the breadth of our technologies and because of the global reach of our business.

As an example, when we acquired OnPath, which is a leading renewables business based in the U.K., we connected their team with Microsoft. That has since turned into a very large and prosperous relationship, and they've signed several contracts and it's helping to derisk OnPath's pipeline going forward.

And last but not least is our access to scale capital. We can build out attractive projects where and when we see them because of our global institutional investor and lender relationships. We're not limited by capital intensity. Now these strengths in development, when combined with accelerating demand, paint a very clear path to continued growth. We now expect to deliver approximately 11 gigawatts annually starting in 2028. That's a nearly 40% increase from what we delivered over the last 12 months. And this expansion in development activity helps to create value in 3 ways.

It grows our operating fleet and operating cash flows. It expands what we can offer our partners in terms of solutions, and it increases the pool of assets that we have available for our capital recycling programs, which ultimately enables us to more efficiently fund development going forward.

Our second growth lever is M&A, and this remains one of our most significant competitive advantages as a business. With more than 150 investment professionals globally, we see virtually every relevant investment opportunity that comes to market. And actually, in many cases, we're on the ground sourcing those deals and transacting bilaterally before they even make it to a process. Our access to capital and flexibility in terms of how we structure deals allows us to move quickly and pursue transactions in a way that not only creates value for our partners, but of course, for our business.

Now when it comes to M&A, it's the scale and consistency of what we've done that really sets us apart. Over the past 2 years alone, we've closed 4 investments that each individually are valued at more than $6 billion on an enterprise value basis. To put that into perspective, these 4 investments when taken together would form a leading renewable power business with 15 gigawatts of operating capacity, a 50 gigawatt pipeline and diversified across all major forms of renewable technologies in 16 different countries. Opportunities of this scale and quality are simply not accessible to a lot of the market. But for us, they've become normal course.

A big part of that is because of something that I mentioned earlier, and I think we've heard about it a lot this afternoon, it's our access to scale capital. A key differentiator for us is that we have the ability to invest alongside Brookfield Funds and partner with some of the world's leading institutional investors, ultimately enabling us to pursue opportunities like the 4 that you see on this slide here. Neoen is a great example to double-click on. We executed the transaction bilaterally alongside a consortium of 3 of our largest institutional investors, and we raised the scale co-investment vehicle to help fund the equity. Since the acquisition, we've been working closely with the Neoen management team to execute on its large high-quality development pipeline, which is what attracted us to the business to begin with.

It's this combination of how we source the deal, how we funded it and then ultimately, how we're now executing on development that really helps to illustrate how we're able to pursue opportunities of this scale.

So what does all of this mean for our growth going forward? The opportunity set has never been larger and our ability to capture it through both development and M&A has never been more advanced. Because of this, we're increasing our deployment target from $10 billion to over $11 billion over the next 5 years. And this is not an aspirational target. This is something that our business is set up to deliver against today. And where do we see that deployment coming from? It's new baseload power, it's new nuclear, it's solar and wind. And of course, similar to batteries, it's new technologies that are reaching an inflection point in their life cycle.

To wrap up, the message we'd leave you with is that we've built a platform that is uniquely positioned to deliver sustained growth. It's our scale, our flexibility to grow through both development and M&A and the breadth of the solutions that we can ultimately offer our customers that creates this virtuous cycle that ultimately positions us to deliver. The opportunity in front of us is substantial, and our platform gives us multiple ways to capture it and create value. With that, I'll pass it to Patrick Taylor, our Chief Financial Officer.

Please welcome Chief Financial Officer, Brookfield Renewable Partners, Patrick Taylor.

Good afternoon, everybody. I'm Patrick Taylor, and I'm the Chief Financial Officer for Brookfield Renewable Partners. I wanted to spend the next 10 minutes or so walking you through 3 very important things for our business. The first is how we've had a record past 12 months, and that's built upon a foundation of a 1.5 decades of strong cash flow growth. The second is how alongside that cash flow growth, we continue to scale our significant and diversified funding model. In particular, we continue to grow our ability to raise scale capital through capital recycling. And then third, I wanted to talk about 3 important catalysts that we think position our business for a stronger valuation in the near term.

So let's first start with the past 12 months. They have been exceptional for Brookfield Renewable. We've had record financial results from an FFO per unit perspective. We've also grown our distribution in line with our target returns for the 15th consecutive year in a row. Secondarily, and you've heard us talk about this a couple of times today, we continue to differentiate our leadership position in the space in terms of access to capital.

In 2025, we raised $37 billion of financing. In 2026, we expect that number to be in excess of $40 billion. All of this supports a very strong liquidity position, which in the environment that we see today is going to be incredibly helpful as we look to deploy more capital.

Third, the strong financial results alongside this significant access to capital has been supportive of increasing -- increasing the quality and the diversification of the cash flows that we generate and our capabilities, including adding Aypa, the leading North American storage business in North America.

But more important than the past 12 months is our long-term track record, and it is something that we're incredibly proud of at Brookfield Renewable. As you can see on the slide here, we have the last 10 years of financial performance on the page. And what you can see is that we've been able to deliver cash flow growth in excess of our long-term total expectations, while at the same time, continuing to have a highly contracted cash flow base and improve the quality of our balance sheet, increasing our liquidity to in excess of $5 billion while increasing our credit rating at the same time.

What you can see here is we are a business that continues to deliver from a cash flow growth perspective without increasing the risk profile of our business, all while strengthening our balance sheet. And it is this foundation that allows us to have the high level of conviction that the next 10 years are going to be even better than the 10 years that you see here. And some of that conviction comes from the highly contracted nature of our cash flow base, the cash flows that our operating assets generate. 90% of our cash flows today and our generation is contracted for over a 12-year term. 70% of our cash flows are inflation linked and over 90% of our cash generation is coming from mature technologies.

All of this underpinned by conservative financing that is 95% fixed rate in nature over a term of 14 years. Again, a very solid base of cash flow generation from which to grow. And as we look ahead at how we're going to go about growing the cash flows of our business, we feel very encouraged by the macro trends that will drive that growth.

First, we continue to see sticky inflation in the 35 markets in which we operate in today, and that will be incredibly additive to our FFO per unit growth. And we believe over the next 5 years, that will add 2% to 3% to our FFO per unit growth. Secondarily, and you've heard Connor and Amanda talk about it today, but we continue to see a significant and growing imbalance in energy supply and demand. All of this is incredibly helpful to our cash flow growth because as our operating assets look to be recontracted, we are pricing those new contracts in an incredibly robust pricing environment. This should lead again to significant growth as we look ahead on an annual basis. Third, execution in our sector is at a premium.

And when we look at all of our operating plans across the 50-plus portfolio companies that we have today, we have plans that should see another 1% to 2% increase upon execution in FFO per unit. And then lastly, as Amanda would have discussed, we continue to scale our development capabilities and expect to get to 11 gigawatts by the end of 2028. All of this in summation leads to a business today that without M&A, we feel very confident can grow its cash flows by 10-plus percent. And then lastly, from an M&A perspective, on top of that 10-plus percent growth, we continue to be able to demonstrate that we're the natural consolidator in the energy space for large-scale, high-quality renewable businesses in the public space like Boralex, but now also in the private space as well for businesses like Aypa.

On top of that significant cash generation base as well as the growth levers that we feel very encouraged by, we're also supported by what we think is a very differentiated funding model.

Today, given our access to capital, we are continuing to look to grow that funding model because we see it as the key differentiator for our business in the energy space, whether it's asset up financing or corporate financings, all to investment grade, these levers all provide significant amounts of capital for us that will be able to deploy with conviction and at scale. And one of the things that I think is very important to touch on is that as our cash flow growth is growing and the opportunity set in front of us continues to look better and better, we are very focused at Brookfield Renewable in terms of scaling our funding model alongside that growth in cash flow.

And there is no area that we spend more time on and is growing any faster than our capital recycling. In the past 12 months alone, we've generated $1 billion net to BEP of capital recycling proceeds. In the past 5 years, we've generated $4 billion net to BEP at very strong returns, 18% in excess of our 15% target returns.

As we look ahead, this is the new run rate for our business. We feel very comfortable that we can generate at least $1 billion net to BEP every year, if not more, from capital recycling alone. And almost more importantly than the volume and the level of proceeds that we'll be able to achieve, it's the return expectations as we look ahead. As we look at that portfolio that we expect to be able to sell in the next 5 years, we think we can do even better from a return perspective as well. And this growth is not by an accident. We have been methodically adding capabilities over the last 5-plus years from a development perspective. And this is really a natural evolution of that strategy.

As you can see on the slide here, since 2022, we've doubled the amount of capacity that we've commissioned on an annual basis for our business. 8 gigawatts in the last 12 months. We expect 10 gigawatts in 2027, 11 in 2028. The scale of that gives us an inventory of high-quality assets that we can consider selling at our option. And on top of scaling it the old-fashioned way through all the other processes that we've run in the past to sell assets and businesses, we continue to increase our sophistication as to how we achieve these capital recycling outcomes. In the past year alone, we have created 2 private renewable vehicles.

These vehicles, Northview with focus in North America and a European renewable vehicle that we've raised in partnership with Mitsubishi are vehicles that are the next buyers of assets that we develop. The seed portfolios for these private renewable vehicles are almost $2 billion of equity alone with frameworks to sell an additional $3.5 billion of equity over the next several years. This is very important because it makes our ability to be able to recycle a lot more predictable. All of this at strong next buyer IRR returns, ranging anywhere from 8% to 10%, depending on the jurisdiction and the asset class.

In addition to executing across many of our strategic initiatives, we do think there are several near-term catalysts that should provide for a stronger valuation in our shares in the near term. There's 3 I wanted to highlight today. The upcoming corporate simplification, our exposure to nuclear, not only through Westinghouse, but our confidence in the ability to participate in the broader growing ecosystem in that sector. And then third, the continuous scaling of our funding model.

Starting first with the simplification. It's been covered a couple of times today. But suffice to say, we are incredibly excited about the opportunity to have one consolidated security and the benefits that we feel very strongly will come from that. On top of the benefits of increased liquidity, increased index inclusion as well as passive investor demand, we are also excited by the fact that we should have a currency in our shares that we can go and do further M&A with on the back of. All of this at no cost to the business, which is why we're incredibly excited about getting this done.

Second, and Connor touched on this very briefly, but we continue to see a significant opportunity, not only in nuclear through our ownership of Westinghouse and all of the natural growth that we see in that business, but also being able to participate in the ecosystem around nuclear in a derisked manner. We've talked for several years about why we like hydro, scale, baseload, dispatchable, clean power. All of those characteristics exist with nuclear, but there's also an opportunity to participate in a super cycle of new build.

Lastly, we continue to focus on scaling our access to capital and increasing our funding model as we look ahead. And the business that we have built today can routinely access $2 billion per year across asset up financings, corporate financings as well as asset sales. And the ability to be able to raise $2 billion at a cost of, call it, 8% and redeploy that back at 15-plus percent returns is very accretive to the value of our franchise. All of this scaling is occurring because the opportunity set that we see now are making 15% really the floor in terms of the expectations for our returns going forward as we continue to deploy in this very strong environment.

So David kind of stole my thunder. He was right. I have 4 takeaways as well. I can't believe it. First, we've had an incredible past year from a financials perspective. But more importantly, the past 1.5 decades have continued to show a business that can deliver from a cash flow growth perspective and support a stable dividend growth, all in line with our targets. We feel much better about what we can do in the next 10 years given the foundation that we've built. Third, you're going to continue to see us focusing on scaling our funding model because we see the opportunity set ahead of us to be so attractive.

And lastly, we are very, very focused on executing certain near-term catalysts that we think should drive stronger valuation in our shares as we look ahead. And so with that, I'll hand it back to Connor for concluding remarks and some Q&A. Thank you.

Okay. Great. Before we get to Q&A, 4 key messages we'd like to leave you with. One, Brookfield Renewable has a leadership position in the largest, fastest-growing and most attractive segments of the energy market. Two, when you take those leadership positions and pair them with a consistent growth model and the current market backdrop, we think we can grow more than we've done in the past while delivering higher -- equal or higher returns than we have previously. Three, as Patrick just outlined, due to the growth in our capital recycling activities, we now have more access to low-cost capital than ever before that we can reinvest back into new growth in a highly accretive way.

And lastly, we see several catalysts in the near term to drive significant upside in our stock. So with that, thank you very much for listening, and we'd be happy to take any questions.

Connor, you guys defy gravity. The question I have, and I've had it before, is why is your stock so cheap? Why have the markets not recognized your strength? I was an insider with a lot of companies for many years, including Hydro-Quebec. Hydro-Quebec is probably one of the best electricals in North America in the world. I think you guys are better than Hydro-Quebec. But you don't trade there.

Well, first of all, thank you for the very generous...

Let me go through 4 things here. First of all, you've got one of the best portfolios around. You're half hydro. You've got an amazing hydro portfolio. You've done exceptionally well with wind and solar. So -- and you're renewable. The price of energy is rising. You see what's happening with oil. How come the renewables, which have got almost a 0 cost to reproduction. There's no thermal part, there's no oil. How come they don't track oil prices, but they don't. You don't. The area does not track it. Secondly, the one thing you've got is scale. You've got one of the best portfolios in North America in the world and not showing up in the price.

The third advantage you've got scale, you're one of the most efficient operators around. Fourth of all, you've got the benefit of Brookfield, one of the best capital allocators. Brookfield has got more access to capital than almost any other companies. I was an insider with about 120 banks in my career for about 25 years as owning running DBRS. And the banks would have bad loans, they'd write them off. Private equity has bad loans, they write it off.

Brookfield is one of the few companies around that can bring people around and turn bad loans into ultimately profitable things. So you've got that advantage. Next, you got a 5.5% yield. You're better than any bond. And sixth of all, nobody is better than turning capital, recycling. You take the weaker assets, sell them and put it into new assets. So why in the world does the market not recognize you? And could that reason be very much because of your Canadianism? Index funds right now are the going thing. I've known companies like Ovintiv, Encana, they got out of Canada because they couldn't get into the U.S. indexes.

You're Canadian, you're not in the indexes to a greater degree. Now I hope you can get in them, but it's U.S. indexes you've got to get into, but with Canadian ownership, you can't get in.

Well, if I may, first and foremost, thank you for the very generous comments. And in no uncertain terms, the thing we are most single-handedly focused on is continuing to deliver consistent financial and strong financial performance, but ensuring that is reflected in the stock. And if that means we need to buy back shares, we will buy back shares. If that means we need to take on new initiatives like the corporate simplification, which will increase index inclusion, we will take whatever steps are necessary.

It does seem right now that the market is punishing us because interest rates are a little bit higher, which is not a proper connection to make as sticky inflation actually enhances our returns. And given the low-cost position of renewables, higher financing costs, we just pass that straight on through to the end user, the corporate offtake while preserving our returns. So it does feel like we're in an unnatural position right now with an incorrect market read on the impact of interest rates. But with the steps we're taking and some of the catalysts that Patrick outlined, we see the stock rallying pretty significantly going forward. But thank you. I think there was another one on the aisle here.

It's Nelson Ng from RBC Capital Markets. So 4 seems to be a common theme, so I'll make sure I have a 4-part question. So just on inflation -- higher inflation and interest rates. Can you just talk about from a capital deployment perspective, is your targeted return kind of increasing in line with long-term rates? And then on the capital recycling side, how sticky are the buyers' required returns? And is there a risk in the near term that there would be like a slowdown in capital recycling? And then the last part is more about -- so you're going to develop around 10 gigawatts and 11 gigawatts per year. Do you have a rule of thumb in terms of how much of those assets will eventually be sold? Like what proportion should we assume that you keep?

Great. So maybe to break that into parts. we absolutely do look at appropriate risk-adjusted returns relative to underlying interest rates and things like that. So that would have an impact on our targets.

I would say in the current market, that is quite significantly overwhelmed by the supply-demand imbalance we're seeing. Yes, if rates are a little bit higher, our target returns will, of course, be a little bit higher. But the far bigger driver in the market today is there is simply a dearth of energy and people who can appropriately build, operate and buy new energy capacity to meet the needs of the growing market. That is what's driving us targeting higher returns more than anything else.

The second thing I would say is we, for the past, I'm going to say, 2.5 to 3 years now have seen an incredibly robust demand for long-term contracted stabilized cash-generative operating assets. We don't see that slowing down because these are 25-year contracted inflation-linked assets that do offer a very significant premium to underlying interest rates for that lower cost next buyer. So whether rates are 4.5% or 5%, we don't see a direct flow-through because there is very strong demand.

Your last question on -- we are doing more development, that's creating more assets that are available for capital recycling. To be very blunt, we're emotionless about it. If we can sell something that has a lower go-forward return and turn around and recycle that capital into something that has a higher go-forward return, we'll sell as much as we can.

And therefore, we are consistently balancing right now selling stabilized assets at returns that are far below our long-term targets and turning that capital back into opportunities that right now we can see that are above our long-term targets. In the current environment, we're going to sell as much as we can because that is a very accretive cycle for our FFO, which is why we're quite confident that we can continue to deliver at or above our long-term targets in this environment. We maybe -- on the last thing standing between drinks.

So maybe we'll take one more question if there is one. Otherwise, we will wrap it there. Thank you very much. And on behalf of everyone at Brookfield, thank you for your support throughout the day.

Good morning, and welcome to the Brookfield Infrastructure Corporation 2026 Annual Meeting of Shareholders. I will now turn the meeting over to Michael Ryan, Corporate Secretary of the company. Michael, please go ahead.

Thank you, operator. Madam Chair, we are ready to commence the meeting.

Good morning, ladies and gentlemen. It is now 9:00 a.m. and time to begin the Annual Meeting of Shareholders of Brookfield Infrastructure Corporation. My name is Anne Schaumburg, and as Chair of the Board, it is my pleasure to chair today's meeting. On behalf of the Board and its management team, I would like to extend a warm welcome to everyone joining us today. Voting during the meeting will take place on our virtual meeting platform. I will now explain this process. For each matter being voted upon, every holder of Class A exchangeable subordinate voting shares, which we will refer to at this meeting as the Class A shares is entitled to 1 vote in respect of each share held as at the close of business on April 27, 2026.

The Class A shares as a class collectively hold 25% of the outstanding votes and the Class B multiple voting shares, which we will refer to at this meeting as the Class B shares, all of which are held by a subsidiary of Brookfield Infrastructure Partners LP, hold 75% of the outstanding votes. Adoption of a proposed motion requires a majority of the votes cast at the meeting by the holders of the Class A shares and Class B shares voting together as a single class. Voting will be open for all resolutions at the same time and throughout the formal portion of the meeting. This will allow you to choose to vote on each resolution immediately or wait until conclusion of discussion on each resolution prior to casting your vote.

If you voted in advance of the meeting and do not wish to revoke your previously submitted proxies, then no action is needed. If you vote on any matter during the meeting, all of your previously submitted votes in respect of all matters to be voted upon at this meeting will be automatically revoked. Accordingly, if you do vote on any matter during this virtual meeting, please ensure you vote on all matters for which you are entitled to vote.

We welcome questions from our shareholders, which may be submitted by typing the question into the virtual meeting platform using the messaging icon on the left side of your screen for desktop users or at the bottom of the page for mobile users. Please indicate whether your question is of a general nature or if it relates to a motion being considered as part of the meeting's formal business. Please click the submit button once you have finished typing your question.

Michael Ryan, our Corporate Secretary, who is serving as moderator of this virtual meeting, will read out the question and ask a member of management to respond to it. If we receive many questions that are similar, we will read one of the questions and indicate that we have received many similar questions. If you connected to this meeting as a guest, you will not be able to submit a question at this meeting. We will endeavor to answer all questions submitted during the allotted time. We recommend that you submit your questions related to the motions being tabled as soon as possible as it may take time for the virtual meeting platform to process them.

I will now call the meeting to order and ask Computershare Trust Company of Canada by its representative, Shirley Tom, to act as scrutineer. I will also ask our General Counsel and Corporate Secretary, Michael Ryan, to act as secretary of today's meeting. In the unlikely event of a technological failure that disconnects my audio from this meeting, I have designated Michael to step in as Chair of the meeting. In the unlikely event of a serious technological failure that prevents the meeting from continuing, the meeting will be rescheduled.

In addition to Michael, it is now my pleasure to introduce the other member of management with us today; David Krant, our Chief Financial Officer. Following the conclusion of the formal part of the meeting, there will be a presentation from management.

I will now take us through the agenda for the meeting. As outlined in our management information circular, there are 3 items of business to be considered today. First, to receive the consolidated financial statements of the corporation for the fiscal year ended December 31, 2025, including the external auditor's report; second, to elect directors who will serve until the next Annual Meeting of Shareholders; and third, to appoint the external auditor and authorize the directors to set its remuneration.

As mentioned, in connection with the business to be dealt with today, all voting will be conducted by online ballot through the virtual meeting platform. Voting is now open on all resolutions.

In order to expedite the formal part of today's meeting, I have asked a certain shareholder to move various resolutions. Although this procedure will assist in the handling of the formal matters, it is not intended to discourage anyone from submitting questions in reference to any resolution after it has been proposed.

I am advised that the notice calling this meeting and the management information circular were disseminated to voting shareholders in accordance with all applicable laws. I have asked the Corporate Secretary to keep a copy of the notice and proof of mailing with the minutes of this meeting. Based upon the scrutineers' preliminary report on attendance, the Corporate Secretary has confirmed that there is a quorum. I therefore declare the meeting properly constituted for the transaction of the business for which it has been called.

Turning to the first item of formal business. I will now table the corporation's consolidated financial statements for the fiscal year ended December 31, 2025, together with the external auditor's report. Our annual financial statements have been mailed to shareholders who have requested them and are also available on our website.

Madam Chair, we've not received any questions or comments submitted in connection with the financial statements.

The second item of business at our meeting today is to elect directors who will serve until our next Annual Meeting of Shareholders. The 9 proposed nominees for election by holders of the corporation's Class A shares and Class B shares are: myself, Jeffrey Blidner, Malcolm Cockwell, William Cox, Roslyn Kelly, John Mullen, Daniel Muñiz Quintanilla, Suzanne Nimocks, and Rajeev Vasudeva.

Each of the 9 nominees were elected at our last annual meeting in June 2025, and are standing for reelection today. Information on all 9 director nominees is set out in our management information circular, which was posted on our website and is available from the company upon request.

Madam Chair, we've not received any questions or comments with respect to the nomination of directors.

We invite shareholders and proxy holders to submit their vote online if they have not already done so. As a reminder, if you have already voted or sent in your proxy, there is no need to do anything unless you wish to change your vote.

Madam Chair, I nominate for election the 9 nominees named in the management information circular dated May 8, 2026, to serve as directors of the corporation until the next Annual Meeting of Shareholders or until their successors are elected or appointed.

Thank you, Viren. I declare the nominations closed. Management has received proxies representing a majority of the corporation's Class A shares and 100% of the Class B shares. These proxies direct management to vote a majority of the Class A shares and all of the Class B shares in favor of the resolution. As there are 9 directors to be elected and the same number of nominees, I now declare that those nominated have been duly elected as directors of the corporation.

The third item of business today is the appointment of the corporation's external auditor and authorizing the directors to set its remuneration. As stated in the management information circular, the Audit Committee of our Board of Directors has recommended that Deloitte LLP be reappointed as the corporation's external auditor.

Madam Chair, I move that Deloitte LLP be reappointed as the external auditor of the corporation to serve until the next Annual Meeting of Shareholders and that the directors be authorized to set its remuneration.

Thank you, Viren. The resolution has been moved and the motion is now before the meeting for discussion.

Madam Chair, we've not received any questions or comments submitted in connection with the appointment of auditors.

Management has received proxies representing a majority of the corporation's Class A shares and 100% of the Class B shares. These proxies direct management to vote a majority of the Class A shares and all of the Class B shares in favor of the resolution. Voting is now closed on all resolutions. I am advised that we have the results of voting on the resolutions based on the tabulation of votes cast in advance of the meeting.

Thank you, Madam Chair. I'm pleased to report that as there are 9 directors to be elected and the same number of nominees, I now declare that those nominated have been duly elected as directors of the corporation.

On the appointment of the corporation's external auditor and authorization of directors to set their remuneration, I declare the motion carried. The final voting results will be available after the meeting and posted to SEDAR at www.sedarplus.ca.

Ladies and gentlemen, that completes the formal business of today's meeting. There being no other business, I declare the meeting concluded.

Now that the meeting has concluded, David Krant will make presentation on behalf of the management team.

Thank you, Madam Chair, and good morning, everyone. As introduced, my name is David Krant, and I'm the Chief Financial Officer of Brookfield Infrastructure Corporation, or BIPC. On behalf of the management team, we would like to thank all of our shareholders for their ongoing support.

The content of today's presentation will focus on our recent accomplishments and financial performance as well as the growth outlook for our business. We intend to provide a more comprehensive business update at our upcoming Investor Day to be held on Tuesday, September 29, and I encourage all shareholders to listen in. After my prepared remarks, we will hold a question-and-answer period.

Please note that in responding to questions and talking about our new initiatives and our financial and operating performance, 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 the Risk Factors section of our annual report on Form 20-F for the year ended December 31, 2025. Finally, we would like to ensure that all shareholders who are interested in asking a question have the opportunity to do so. We'll make every effort to address these at the allocated question-and-answer period.

Now starting with the presentation, I'll begin with a review of our performance for the last year. 2025 was another solid year for Brookfield Infrastructure as we delivered many of our strategic priorities. Most notably, we reported strong financial results with overall FFO increasing 10% year-over-year, normalized for the impact of asset sales and foreign exchange. This performance led to a dividend increase of 6% to $1.82 per share annually. Secondly, we added approximately $1.4 billion of new projects to BIPC's capital backlog at attractive expected returns. We also achieved our capital recycling target, achieving over $3 billion of proceeds during the year. And lastly, we were active in deploying capital as well, investing approximately $2.2 billion of equity into growth initiatives.

While 2025 was another strong year of demonstrated success, we are proud to deliver excellent risk-adjusted returns for our shareholders over the long term. This can be seen on Slide 8, where BIPC has provided shareholders with a total return of approximately 114% since inception. We are committed to delivering strong cash flow and income growth to shareholders that we believe will be reflected in our share price over time.

Turning to Slide 9. Our ability to provide cash flow growth is centered around Brookfield Infrastructure's core investment highlights. These highlights include our highly contracted inflation-protected cash flows, combined with a well-capitalized balance sheet that should perform well through all market cycles. Key highlights of our downside protection include approximately 85% of our FFO being contracted or regulated, roughly 70% of our FFO indexed to inflation and a further 15% protected from inflation through pass-through mechanisms. And finally, approximately 90% of our debt is locked in for an average term of 7 years and fixed rate. These features are paired with strong upside growth potential as we are squarely positioned at the center of 3 powerful structural themes, digitalization, decarbonization, and deglobalization.

Together, these forces have resulted in strong capital deployment over the past several years and continue to provide ample investment opportunities in both new investments and within our capital backlog. To elaborate on the 3Ds briefly, this being digitalization, decarbonization, and deglobalization. These are thematic trends creating significant investment opportunities for our business.

Starting with digitalization. This refers to investment opportunities that arise from the significant growth in data usage. Substantial financial resources are required for building or upgrading existing digital infrastructure. For Brookfield Infrastructure, these investments are focused on the fiber, telecom tower, and data center sectors.

Secondly, decarbonization. Our investment opportunities that relate to investments in utility or residential energy infrastructure that help meet growing power demand or increase efficiencies. And finally, deglobalization, which supports the reshoring of essential and strategic manufacturing processes as well as the redefinition of supply chains, which have been underinvested in for many decades.

Now before we conclude our remarks this morning, we wanted to comment on the structure of our company. As our business and the broader capital markets continue to evolve, we continuously evaluate opportunities to enhance shareholder value. To that end, we announced with our Q1 2026 results that we are undertaking a formal evaluation of the potential simplification of our corporate structure. This could be done through the combination of BIP and BIPC into a single publicly traded corporate entity. Potential benefits could include improved trading liquidity, increased index demand and a simplified reporting framework.

Now I want to conclude my remarks today with Brookfield Infrastructure's outlook. We expect 2026 will be another strong year for our business. In addition to a resilient base business that continues to provide stable cash flows, we anticipate solid growth going forward driven by the 3Ds and our proven ability to grow the business through accretive new investments. So far this year, we have secured approximately $500 million of new investments and continue to advance a robust pipeline of opportunities as well as deliver on our record backlog of organic growth.

Lastly, we have secured nearly $1 billion of sale proceeds to date, making meaningful progress on our 2026 target. As I mentioned in my introductory remarks, if you're interested in further updates on the broader business, we encourage you to participate in Brookfield Infrastructure's Investor Day, which will take place on Tuesday, September 29, 2026. More information on this event will be made available through our website during the summer.

And finally, that concludes our prepared remarks, and we would now like to answer any questions that have been received. Michael, would you please advise if there are any questions at this time?

Madam Chair and David, there are no further questions to be addressed.

Ladies and gentlemen, as there are no further questions or comments, I would like to thank you for taking the time to join us today.