The expansion of our infrastructure portfolio was funded in  part by recycling capital from mature assets, newly issued  shares in Brookfield Infrastructure, and institutional clients.  We sold Canadian and U.S. timber investments for $3 billion  and a minority ownership in a New Zealand utility for proceeds  of $410 million.  on renewable energy. If successful, we will integrate these  operations and look to utilizing this business to expand in  the future. We also added to our existing hydroelectric and wind operations in New England, California and British Columbia  by acquiring approximately 700 megawatts of generating facilities. In addition, we completed construction of three  hydroelectric projects with nearly 100 megawatts of capacity.  We often spend many years improving investee businesses  and investing capital before reaping the rewards of our efforts.  Last year, we harvested the results of many years of hard work  on a number of companies involved in the U.S. homebuilding  business. This resulted in FFO increasing by 152%, year over  year, to $658 million.  Subsequent to the end of the year, we announced plans  to acquire one third of a 417 megawatt hydroelectric plant  in Pennsylvania, one of the largest hydro facilities in the  northeastern U.S. Looking ahead, our pipeline of organic  developments should add 1,700 megawatts of generating  capacity to our portfolio.  Organic growth initiatives and acquisitions over the past  three years are now contributing to excellent performance  from our infrastructure group, with FFO rising 111% in 2013  to $472 million. We increased the scale of this business over  the last year and are well positioned for future growth with a  widely-held public entity and our follow-on flagship $7 billion  private fund. Realizations over last year included the sale of a U.S. paper  and packaging business to a strategic buyer for $1 billion.  We also agreed to sell our stake in a major oriented strand  board producer to a competitor in a cash and stock deal  that generated $250 million in cash and gives us continued  exposure to improving housing markets though a meaningful  equity position in North America’s largest OSB producer. We  sold an additional $265 million of shares in forest product  companies and continue to hold a significant position in  these businesses. Our North American residential property  development operations also achieved excellent results with  land values increasing across virtually every market and home  sales velocity increasing. Brookfield Infrastructure Group Our infrastructure group announced plans to acquire a  number of assets in the fourth quarter, including a 27%  stake in a rail and ports business in Brazil for approximately  $850 million. This partnership with Vale should lead to other  investment opportunities in the future. We also recently  committed to acquire ports in Los Angeles and Oakland,  partnering with a major shipping company that wanted to  raise capital. Earlier in the year, we increased our stake in  a network of South American toll roads with a $700 million  investment and added to our district energy businesses with  acquisitions in Houston and New Orleans.  We made a number of promising investments in the energy  business in 2013, where we believe relatively low natural  gas prices had led to attractive valuations. This has resulted  in us building one of North America’s largest coal bed  methane businesses, adding significant scale in 2013 with a  $215 million acquisition. We also privatized two junior oil and  gas companies and merged their operating platforms.  Organic growth initiatives during the year included commissioning our Texas electrical transmission network. The  merger of our UK utility business with its largest competitor  was also completed early in the year, and after refinancing this  asset, we increased FFO by more than 70%. We invested in a cold storage business with facilities in  Toronto and Calgary that we believe can be developed into  a significant national company. And as part of our strategy  to assist commodity companies which have lost access to  public market financing, we made a $170 million loan to a  palladium mining company that needed capital to complete  an expansion project.  2013 ANNUAL REPORT 9 Brookfield Private Equity Group