Record $150 billion of Deployable Capital Today
Distributable Earnings of $4.9 billion and Net Income of $5.2 billion for the Last Twelve Months
BROOKFIELD, NEWS, May 09, 2024 (GLOBE NEWSWIRE) --
Nick Goodman, President of
He continued, “In addition, in May we advanced two strategic initiatives with the closing of the acquisition of
Operating Results
Distributable earnings (“DE”) before realizations increased by 10% per share over the last twelve months (“LTM”), after adjusting for the special distribution of 25% of our asset management business in December 2022.
Unaudited | Three Months Ended | Last Twelve Months Ended | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Net income1 | $ | 519 | $ | 424 | $ | 5,200 | $ | 2,659 | |||
Distributable earnings before realizations2,3 | 1,001 | 945 | 4,279 | 4,312 | |||||||
- Adjusted for the special distribution2,3,4 | 1,001 | 945 | 4,279 | 3,946 | |||||||
- Per Brookfield share2,3,4 | 0.63 | 0.59 | 2.70 | 2.46 | |||||||
Distributable earnings2,3 | 1,216 | 1,157 | 4,865 | 5,204 | |||||||
- Per Brookfield share2,3 | 0.77 | 0.72 | 3.07 | 3.25 | |||||||
See endnotes on page 8.
Net income was $519 million in the first quarter and $5.2 billion for the last twelve months. Distributable earnings before realizations were $1.0 billion for the quarter and $4.3 billion for the last twelve months.
Asset management benefited from positive fundraising momentum and successful capital deployment across our latest flagship funds and complementary strategies.
Wealth solutions delivered a significant increase in earnings from strong investment performance and continued growth in the business.
Operating businesses generated stable cash flows, supported by the resilient earnings across our renewable power and transition, infrastructure and private equity businesses, as well as 5% growth in same-store net operating income (“NOI”) from our core real estate portfolio.
During the quarter and over the LTM, earnings from realizations were $215 million and $586 million, respectively, with total DE for the quarter and the LTM of $1.2 billion and $4.9 billion, respectively.
Regular Dividend Declaration
The Board declared a quarterly dividend for
Operating Highlights
Distributable earnings before realizations were $1.0 billion ($0.63/share) for the quarter and $4.3 billion ($2.70/share) over the last twelve months, representing an increase of 10% per share over the prior year.5 Total distributable earnings were $1.2 billion ($0.77/share) for the quarter and $4.9 billion ($3.07/share) for the last twelve months.
Asset Management:
- DE was $621 million ($0.39/share) in the quarter and $2.5 billion ($1.58/share) over the LTM.
- We continue to see high demand for our private fund strategies. To date, we raised $10 billion for our second global transition fund strategy, over $8 billion for our fifth opportunistic real estate fund strategy, and $9 billion for opportunistic credit. Fee-bearing capital was $459 billion as of March 31, 2024, an increase of $27 billion or 6% over the LTM, with fee-related earnings in line with the prior year quarter.
- We announced the acquisition of a majority stake in
Castlelake , a premier asset-backed lender focused on aviation, specialty and real asset finance, broadening our presence in asset-backed lending.
Wealth Solutions:
- Distributable operating earnings were $273 million ($0.17/share) in the quarter and $868 million ($0.55/share) over the LTM.
- We originated $1.6 billion of annuity sales in the quarter, and our average investment portfolio yield on our insurance assets was 5.7%, approximately 2% higher than the average cost of capital.
- With the close of
American Equity Life (“AEL”) in May, our assets are now over $100 billion and annualized earnings are approximately $1.4 billion, and as we rotate the investment portfolio, we expect annualized earnings to grow to approximately $2 billion in the next 18 to 24 months. - Through our combined wealth solutions platforms, we remain on track to reach over $1.5 billion of monthly retail capital inflows in the near-to-medium term.
Operating Businesses:
- DE was $337 million ($0.21/share) in the quarter and $1.5 billion ($0.95/share) over the LTM.
- Cash distributions are supported by the resilient and high-quality earnings across our renewable power and transition, infrastructure and private equity businesses. Our core real estate portfolio delivered same-store NOI growth of 5% over the LTM.
- In our real estate business, we signed over 7 million square feet of office and retail leases during the quarter, with positive leasing spreads of 14% in office and 15% in retail.
- Following the quarter, our renewable power and transition business signed a landmark agreement with Microsoft to deliver over 10.5 gigawatts of new renewable energy capacity through the development of projects in the
U.S. andEurope to support Microsoft’s data center growth.
Earnings from the monetization of mature assets were $215 million ($0.14/share) for the quarter and $586 million ($0.37/share) for the LTM.
- We are advancing several monetizations across the business, including the recently announced sale of a 49% stake in a premier office asset in
Dubai and a significant pipeline of renewable asset sales. We are also progressing the sales of a hotel at our premier mixed-use complex inSeoul, Korea , a fiber platform inFrance , and a road fuels operation inEurope . Substantially all sales were completed or are expected to be agreed at prices in line with IFRS carrying values. - We recognized $547 million of net realized carried interest into income over the LTM. Total accumulated unrealized carried interest now stands at $10.1 billion, representing an increase of 8% over the LTM, net of carried interest realized into income.
We now have a record $150 billion of capital available to deploy into new investments.
- During the quarter, we returned $626 million to shareholders through regular dividends and share repurchases. To date this year, we repurchased over $700 million of shares.
- Today, we have a record $150 billion of deployable capital, which includes approximately $65 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and managed investments.
- Our balance sheet remains conservatively capitalized, with a weighted-average term of 13 years and modest maturities through to the end of 2025.
- We continue to have strong access to the capital markets and executed on approximately $40 billion of financings across the business over the last few months, including issuing $750 million of 30-year bonds at the Corporation to enhance our liquidity.
CONSOLIDATED BALANCE SHEETS
Unaudited | March 31 | December 31 | ||||||
2024 | 2023 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 11,742 | $ | 11,222 | ||||
Other financial assets | 27,572 | 28,324 | ||||||
Accounts receivable and other | 33,267 | 31,001 | ||||||
Inventory | 11,287 | 11,412 | ||||||
Equity accounted investments | 58,603 | 59,124 | ||||||
Investment properties | 124,760 | 124,152 | ||||||
Property, plant and equipment | 148,432 | 147,617 | ||||||
Intangible assets | 38,339 | 38,994 | ||||||
34,475 | 34,911 | |||||||
Deferred income tax assets | 3,378 | 3,338 | ||||||
Total Assets | $ | 491,855 | $ | 490,095 | ||||
Liabilities and Equity | ||||||||
Corporate borrowings | $ | 13,784 | $ | 12,160 | ||||
Accounts payable and other | 57,640 | 59,011 | ||||||
Non-recourse borrowings | 221,847 | 221,550 | ||||||
Subsidiary equity obligations | 4,882 | 4,145 | ||||||
Deferred income tax liabilities | 24,672 | 24,987 | ||||||
Equity | ||||||||
Non-controlling interests in net assets | $ | 124,450 | $ | 122,465 | ||||
Preferred equity | 4,103 | 4,103 | ||||||
Common equity | 40,477 | 169,030 | 41,674 | 168,242 | ||||
Total Equity | 169,030 | 168,242 | ||||||
Total Liabilities and Equity | $ | 491,855 | $ | 490,095 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited | Three Months Ended | ||||||
2024 | 2023 | ||||||
Revenues | $ | 22,907 | $ | 23,297 | |||
Direct costs1 | (16,571 | ) | (17,632 | ) | |||
Other income and gains | 240 | 381 | |||||
Equity accounted income | 686 | 429 | |||||
Interest expense | |||||||
– Corporate borrowings | (173 | ) | (136 | ) | |||
– Non-recourse borrowings | |||||||
Same-store | (3,793 | ) | (3,477 | ) | |||
Acquisitions, net of dispositions2 | (68 | ) | — | ||||
Upfinancings2 | (94 | ) | — | ||||
Corporate costs | (17 | ) | (14 | ) | |||
Fair value changes | 158 | 38 | |||||
Depreciation and amortization | (2,475 | ) | (2,188 | ) | |||
Income tax | (281 | ) | (274 | ) | |||
Net income | $ | 519 | $ | 424 | |||
Net income attributable to: | |||||||
Brookfield shareholders | $ | 102 | $ | 120 | |||
Non-controlling interests | 417 | 304 | |||||
$ | 519 | $ | 424 | ||||
Net income per share | |||||||
Diluted | $ | 0.04 | $ | 0.05 | |||
Basic | 0.04 | 0.05 | |||||
- Direct costs disclosed above exclude depreciation and amortization expense.
- Interest expense from acquisitions, net of dispositions, and upfinancings completed over the twelve months ended March 31, 2024.
SUMMARIZED FINANCIAL RESULTS
DISTRIBUTABLE EARNINGS
Unaudited | Three Months Ended | Last Twelve Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Asset management | $ | 621 | $ | 667 | $ | 2,508 | $ | 2,885 | |||||||
Wealth solutions | 273 | 145 | 868 | 520 | |||||||||||
BEP | 107 | 105 | 419 | 405 | |||||||||||
BIP | 84 | 80 | 323 | 305 | |||||||||||
BBU | 9 | 9 | 36 | 36 | |||||||||||
BPG | 166 | 140 | 759 | 800 | |||||||||||
Other | (29 | ) | (35 | ) | (37 | ) | (52 | ) | |||||||
Operating businesses | 337 | 299 | 1,500 | 1,494 | |||||||||||
Corporate costs and other | (230 | ) | (166 | ) | (597 | ) | (587 | ) | |||||||
Distributable earnings before realizations1 | 1,001 | 945 | 4,279 | 4,312 | |||||||||||
Realized carried interest, net | 183 | 206 | 547 | 633 | |||||||||||
Disposition gains from principal investments | 32 | 6 | 39 | 259 | |||||||||||
Distributable earnings1 | $ | 1,216 | $ | 1,157 | $ | 4,865 | $ | 5,204 | |||||||
1. Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.
RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS
Unaudited | Three Months Ended | Last Twelve Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income | $ | 519 | $ | 424 | $ | 5,200 | $ | 2,659 | |||||||
Financial statement components not included in DE: | |||||||||||||||
Equity accounted fair value changes and other items | 629 | 804 | 2,727 | 2,418 | |||||||||||
Fair value changes and other | (9 | ) | (38 | ) | 1,981 | 2,719 | |||||||||
Depreciation and amortization | 2,475 | 2,188 | 9,362 | 8,060 | |||||||||||
Disposition gains in net income | (35 | ) | (44 | ) | (6,071 | ) | (2,061 | ) | |||||||
Deferred income taxes | (44 | ) | (92 | ) | (849 | ) | (326 | ) | |||||||
Non-controlling interests in the above items1 | (2,525 | ) | (2,274 | ) | (8,192 | ) | (8,569 | ) | |||||||
Less: realized carried interest, net | (183 | ) | (206 | ) | (547 | ) | (633 | ) | |||||||
Working capital, net | 174 | 183 | 668 | 45 | |||||||||||
Distributable earnings before realizations2 | 1,001 | 945 | 4,279 | 4,312 | |||||||||||
Realized carried interest, net3 | 183 | 206 | 547 | 633 | |||||||||||
Disposition gains from principal investments | 32 | 6 | 39 | 259 | |||||||||||
Distributable earnings2 | $ | 1,216 | $ | 1,157 | $ | 4,865 | $ | 5,204 | |||||||
- Amounts attributable to non-controlling interests are calculated based on the economic ownership interests held by non-controlling interests in consolidated subsidiaries. By adjusting DE attributable to non-controlling interests, we are able to remove the portion of DE earned at non-wholly owned subsidiaries that is not attributable to Brookfield.
- Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.
- Includes our share of Oaktree’s distributable earnings attributable to realized carried interest.
EARNINGS PER SHARE
Unaudited | Three Months Ended | Last Twelve Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income | $ | 519 | $ | 424 | $ | 5,200 | $ | 2,659 | |||||||
Non-controlling interests | (417 | ) | (304 | ) | (4,088 | ) | (1,842 | ) | |||||||
Net income attributable to shareholders | 102 | 120 | 1,112 | 817 | |||||||||||
Preferred share dividends1 | (42 | ) | (41 | ) | (167 | ) | (154 | ) | |||||||
Net income available to common shareholders | 60 | 79 | 945 | 663 | |||||||||||
Dilutive impact of exchangeable shares of affiliate | — | — | 7 | — | |||||||||||
Net income available to common shareholders including dilutive impact of exchangeable shares | $ | 60 | $ | 79 | $ | 952 | $ | 663 | |||||||
Weighted average shares | 1,518.8 | 1,571.4 | 1,545.4 | 1,568.7 | |||||||||||
Dilutive effect of conversion of options and escrowed shares using treasury stock method2 and exchangeable shares of affiliate | 24.8 | 15.8 | 39.5 | 23.5 | |||||||||||
Shares and share equivalents | 1,543.6 | 1,587.2 | 1,584.9 | 1,592.2 | |||||||||||
Diluted earnings per share3 | $ | 0.04 | $ | 0.05 | $ | 0.60 | $ | 0.42 | |||||||
- Excludes dividends paid on perpetual subordinated notes of $3 million (2023 – $3 million) and $10 million (2023 – $10 million) for the three and twelve months ended March 31, 2024, which are recognized within net income.
- Includes management share option plan and escrowed stock plan.
- Per share amounts are inclusive of dilutive effect of mandatorily redeemable preferred shares held in a consolidated subsidiary.
Additional Information
The Letter to Shareholders and the company’s Supplemental Information for the three and twelve months ended March 31, 2024, contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website.
The statements contained herein are based primarily on information that has been extracted from our financial statements for the periods ended March 31, 2024, which have been prepared using IFRS, as issued by the IASB. The amounts have not been audited by Brookfield Corporation’s external auditor.
Brookfield Corporation’s Board of Directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release.
Information on our dividends can be found on our website under Stock & Distributions/Distribution History.
Quarterly Earnings Call Details
Investors, analysts and other interested parties can access Brookfield Corporation’s 2024 First Quarter Results as well as the Shareholders’ Letter and Supplemental Information on Brookfield Corporation’s website under the Reports & Filings section at www.bn.brookfield.com.
To participate in the Conference Call today at 10:00 a.m. ET, please pre-register at https://register.vevent.com/register/BI004b533cfc974dc2b6b521b32900f76d. Upon registering, you will be emailed a dial-in number, and unique PIN. The Conference Call will also be webcast live at https://edge.media-server.com/mmc/p/m49bqp6n. For those unable to participate in the Conference Call, the telephone replay will be archived and available until May 9, 2025. To access this rebroadcast, please visit: https://edge.media-server.com/mmc/p/m49bqp6n.
About
We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization.
Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please visit our website at www.bn.brookfield.com or contact:
Media: | Investor Relations: |
Non-IFRS and Performance Measures
This news release and accompanying financial information are based on International Financial Reporting Standards (“IFRS”), as issued by the
We make reference to Distributable Earnings (“DE”). We define DE as the sum of distributable earnings from our asset management business, distributable operating earnings from our wealth solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of earnings from our Corporate Activities, preferred share dividends and equity-based compensation costs. We also make reference to DE before realizations, which refers to DE before realized carried interest and realized disposition gains from principal investments. We believe these measures provide insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business.
Realized carried interest and realized disposition gains are further described below:
- Realized Carried Interest represents our contractual share of investment gains generated within a private fund after considering our clients’ minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance.
- Realized Disposition Gains from principal investments are included in DE because we consider the purchase and sale of assets from our directly held investments to be a normal part of the company’s business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period DE.
We use DE to assess our operating results and the value of Brookfield Corporation’s business and believe that many shareholders and analysts also find these measures of value to them.
We make reference to Net Operating Income (“NOI”), which refers to the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. We present this measure as we believe it is a key indicator of our ability to impact the operating performance of our properties. As NOI excludes non-recurring items and depreciation and amortization of real estate assets, it provides a performance measure that, when compared to prior periods, reflects the impact of operations from trends in occupancy rates and rental rates.
We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.
We provide additional information on key terms and non-IFRS measures in our filings available at www.bn.brookfield.com.
End Notes |
1. Consolidated basis – includes amounts attributable to non-controlling interests.
2. Excludes amounts attributable to non-controlling interests.
3. See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8.
4. Distributable earnings before realizations, including per share amounts, for the twelve months ended March 31, 2023 were adjusted for the special distribution of 25% of our asset management business on December 9, 2022.
5. The increase per share over the prior year is calculated after adjusting for the special distribution of 25% of our asset management business in December 2022.
Notice to Readers
This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the
Although
We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law,
Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).
Target returns and growth objectives set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by
Source:
| Title | Document |
|---|---|
English |