Naji Baydoun: Just wanted to set off on the guidance for 2023. I think in the past, you’ve talked about a bit of a lag getting inflation adjustments in your tariffs and in your existing businesses to flow through results. Can you maybe give us a bit more detail about what is built into the guidance for this year in terms of the inflationary impacts?
David Krant: Hey Naji , I can start with that one. This is David. Look, I think as we mentioned, inflation still continues to run above targeted levels in pretty much all the regions we operate. So it will still continue to be a tailwind for our business into 2023. I don’t think we’re in a position to predict where that number will land for the year, obviously. But that being said, I think to your point, our businesses, most notably our — some of our U.K. and Australian regulated utilities they do lag into the local inflation levels. So RPI would be the one in the U.K., and that’s usually on a 12-month lag. So we’re getting inflation in the 4% range in 2022. That should continue to elevate as it looks back over the trailing 12-month period because I think inflation in the region today is above 10%.
So those will be some of the businesses where you’ll continue to see that tailwind, whereas others more predominantly in our transport and in our data businesses are usually as at a point in time throughout the year and don’t have much of a lag to them. So I’d say that’s pretty much the outlook for inflation that we have as of today.
Naji Baydoun: Okay. That’s helpful. I wanted to maybe get your thoughts on capital recycling. I think in the past, you’ve targeted a 2% to 4% investment spread from asset sales to new acquisitions. There have also been periods where you’ve been able to take advantage of market dislocations and beat that spread or realize a higher spread. Do you see the potential to do that again today? Do you think we’re in that market environment again today?
Samuel Pollock: Hey Naji it’s Sam here look, that’s a very difficult question to answer we’re always trying to hunt out and focus on the highest return opportunities that meet our risk tolerance. And it’s hard to predict what might come along. I’d say that in today’s environment, we feel that we have a good opportunity to invest for better value than another point in the cycle just because there are fewer market participants and particularly with some of the institutional investors on the sideline for the time being, which may not last long, but for the short while, it just means that people with large pools of capital like ourselves are rare, and we — there’s a few transactions at that higher level that we can maybe negotiate on a bilateral basis. So yes, we’re trying. I can’t make any promises, though.
Naji Baydoun: No problem. Maybe just a quick final question for Ben. You’ve been able to achieve a lot of positive things we see a lot of developments with the residential infrastructure business. I’m just wondering if you can give us a bit of color on sort of the key initiatives and the integration plan for HomeServe for this year.
Benjamin Vaughan: Yes, sure. So on the demand side, the carbonization businesses of the residential infrastructure businesses, we’re now focusing them regionally. So we basically have a great platform in Europe. We have one focused in the United States and 1 now in Canada. And we have established and focused management teams dedicated to each of those regions. There are a number of businesses, some that gather effectively leads and some that service those leads. So the key strategic priorities when you really look through it is just to find the opportunities to make sure that all the leads that we’re gathering to the greatest extent are being serviced by us — and to the extent they’re not making sure we have very effective dealer networks in place where we can service our clients.
