Cherilyn Radbourne: I see. Okay. So you’ve invested $250 million to date at BIP share. And over the next 3 years, it’s $500 million, which is where I was sort of getting the 1/3 figure, but that’s kind of the near- to medium-term outlook for it.
David Krant: Yes. And just for the one the $500 million is the equity component. Of the $3.5 billion. So there will be additional capital, obviously.
Operator: One moment, please. And our next question comes from the line of Robert Qwan with RBC Capital Markets.
Robert Kwan: Just wondering, as you think about funding, and so you’ve got the self-funded kind of strategy around the organic plan. But in terms of highlighting the $2 billion of potential asset sales for this year, how does that size up versus what you’re seeing on the acquisition front? And I guess the other avenue of financing, when you look at the deals in front of you, is there a reasonable opportunity to use a share exchange as a viable financing product…
Samuel Pollock: Robert, it’s Samuel. I’ll take that one. So we get this question a lot about how we size the amount of capital that we look to recycle during the year. And I would say a lot of it has to do with just the natural maturity of our investments, we typically look to buy businesses, grow and derisk them over a 7- to 10-year time frame. And then at that point in time, look to monetize them and start the process all over again. We’re at a stage in our evolution now that we’ve been growing the business for 15 years, where we have a steady stream of businesses. And on average, we have businesses that would generate every year for us, probably forever now, $2 billion to $3 billion annually of proceeds from sale. And so it’s a rough guesstimate, $2 billion is probably at the bottom end of that number.
It could be higher. And so we just bring to market the ones we think are the most derisked would generate the proper value and obviously take into account what the market is looking for the most. So we do do a bit of a high grading for whatever we think is appropriate. So there’s a lot of thought that goes into that. But we feel really good about the assets we bring that we’ll get good value. As far as your question about other levers that we have available, that is something that we take a lot of pride in. I think what makes us unique is the fact that we are able to invest alongside lots of institutional investors, which gives us a lot more firepower. We do have the ability to use shares in transactions like we did with IPL, and we’ve proven that those are well received and people, particularly in the Canadian market who know us well, in fact, seek them out.
And then we have other levers that we can pull on just being part of the Brookfield complex. So long story short, depending on the amount of transactions in front of us and depending on if there’s a really large transaction that we want to execute. We will look at all these different components and draw on them as needed to get a transaction done. So there’s no one right answer, but we have the whole collection of alternatives in front of us and using shares definitely is something that if we think the shareholders want to stay invested, we have the currency to do that with them.
Robert Kwan: Got it. Appreciate that color. If I can just finish just on some color from you on the rationale for where you decided to increase the distribution, 6% there. Organic growth in ’22, as you know, it was 10% and then FFO was even higher. And then you had the Investor Day with the forecast for 12% to 15% asset growth and unit growth into 2023. So just what was some of the reasons for selecting that 6% kind of below the growth rate of those 2 other numbers…
