Brookfield Corporation Reports Record Third Quarter Results
Brookfield (NYSE: BN) reported strong Q3 2024 financial results with record distributable earnings before realizations of $1.3 billion ($0.80 per share), up 19% year-over-year. The company's asset management business saw 14% growth in fee-related earnings, with fee-bearing capital increasing 23% to $539 billion. Wealth solutions earnings doubled, benefiting from American Equity Life acquisition and increased annuity sales. The company executed $17 billion in monetizations and $20 billion in new investments. Core real estate portfolio showed 4% growth in same-store NOI. Brookfield maintains over $150 billion in deployable capital and repurchased approximately $1 billion of shares over the last twelve months.
Brookfield (NYSE: BN) ha riportato forti risultati finanziari per il terzo trimestre 2024, con guadagni distributabili record prima delle realizzazioni di 1,3 miliardi di dollari (0,80 dollari per azione), in aumento del 19% rispetto all'anno precedente. L'attività di gestione patrimoniale dell'azienda ha visto una crescita del 14% nei guadagni correlati alle commissioni, con il capitale suscettibile di commissioni che è aumentato del 23% a 539 miliardi di dollari. I guadagni delle soluzioni patrimoniali sono raddoppiati, beneficiando dell'acquisizione di American Equity Life e dell'aumento delle vendite di rendite. L'azienda ha completato 17 miliardi di dollari in monetizzazioni e 20 miliardi di dollari in nuovi investimenti. Il portafoglio immobiliare principale ha registrato una crescita del 4% nel NOI a negozio comparabile. Brookfield mantiene oltre 150 miliardi di dollari in capitale disponibile e ha riacquistato circa 1 miliardo di dollari di azioni negli ultimi dodici mesi.
Brookfield (NYSE: BN) reportó resultados financieros sólidos para el tercer trimestre de 2024, con ganancias distributables récord antes de realizaciones de 1.3 mil millones de dólares (0.80 dólares por acción), un aumento del 19% interanual. El negocio de gestión de activos de la compañía vio un crecimiento del 14% en las ganancias relacionadas con tarifas, con el capital sujeto a tarifas aumentando un 23% a 539 mil millones de dólares. Las ganancias de soluciones patrimoniales se duplicaron, beneficiándose de la adquisición de American Equity Life y del aumento en las ventas de anualidades. La compañía ejecutó 17 mil millones de dólares en monetizaciones y 20 mil millones de dólares en nuevas inversiones. El portafolio principal de bienes raíces mostró un crecimiento del 4% en el NOI de tiendas comparables. Brookfield mantiene más de 150 mil millones de dólares en capital disponible y recompró aproximadamente 1 mil millones de dólares en acciones durante los últimos doce meses.
브룩필드 (NYSE: BN)는 2024년 3분기 강력한 재무 결과를 보고하며, 실현 전 분배 가능한 수익이 13억 달러 (주당 0.80 달러)로 연간 19% 증가한 기록을 수립했습니다. 회사의 자산 관리 사업은 수수료 관련 수익이 14% 증가하였고, 수수료 기반 자본은 5,390억 달러로 23% 증가했습니다. 재산 솔루션 수익은 American Equity Life 인수 및 연금 판매 증가로 두 배로 증가했습니다. 회사는 170억 달러의 자산 매각과 200억 달러의 새로운 투자를 집행했습니다. 핵심 부동산 포트폴리오는 동종 점포 NOI에서 4% 성장했습니다. 브룩필드는 1,500억 달러 이상의 가용 자본을 보유하고 있으며, 지난 12개월 동안 약 10억 달러의 주식을 재매입했습니다.
Brookfield (NYSE: BN) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des bénéfices distribuables avant réalisations atteignant un record de 1,3 milliard de dollars (0,80 dollar par action), en hausse de 19% par rapport à l'année précédente. L'activité de gestion d'actifs de l'entreprise a connu une croissance de 14% des revenus liés aux frais, avec un capital soumis à des frais passant à 539 milliards de dollars, soit une augmentation de 23%. Les revenus des solutions de patrimoine ont doublé, bénéficiant de l'acquisition d'American Equity Life et d'une augmentation des ventes d'annuités. L'entreprise a exécuté 17 milliards de dollars en monétisations et 20 milliards de dollars en nouveaux investissements. Le portefeuille immobilier principal a montré une croissance de 4% du NOI des magasins comparables. Brookfield maintient plus de 150 milliards de dollars de capital déployable et a racheté environ 1 milliard de dollars d'actions au cours des douze derniers mois.
Brookfield (NYSE: BN) meldete starke Finanzdaten für das dritte Quartal 2024 mit rekordverdächtigen distributierbaren Gewinnen vor Realisierungen von 1,3 Milliarden Dollar (0,80 Dollar pro Aktie), was einem Anstieg von 19% im Vergleich zum Vorjahr entspricht. Das Asset Management-Geschäft des Unternehmens verzeichnete ein Wachstum der gebührenbezogenen Einnahmen um 14%, wobei das gebührenpflichtige Kapital um 23% auf 539 Milliarden Dollar anstieg. Die Einnahmen aus Vermögenslösungen verdoppelten sich, begünstigt durch die Übernahme von American Equity Life und steigende Rentenverkäufe. Das Unternehmen führte 17 Milliarden Dollar an Monetisierungen und 20 Milliarden Dollar an Neuinvestitionen durch. Das Kernimmobilienportfolio zeigte ein Wachstum von 4% im NOI vergleichbarer Geschäfte. Brookfield hält über 150 Milliarden Dollar an einsetzbarem Kapital und hat in den letzten zwölf Monaten etwa 1 Milliarde Dollar an Aktien zurückgekauft.
- Record distributable earnings before realizations of $1.3 billion, up 19% YoY
- Fee-bearing capital increased 23% to $539 billion
- Wealth solutions earnings doubled compared to prior year
- Core real estate portfolio showed 4% growth in same-store NOI
- $150 billion of deployable capital available
- Executed $17 billion in monetizations and $20 billion in new investments
- Corporate debt increased to $14.9 billion from $12.2 billion in December 2023
- Net income attributable to shareholders decreased to $64 million from $230 million in Q3 2023
- Corporate costs increased to $155 million from $126 million in prior year quarter
Insights
Record-breaking Q3 performance shows robust growth with
Notable achievements include
Share repurchases of
The insurance segment shows remarkable momentum with assets exceeding
The projected earnings growth from
Distributable Earnings Before Realizations Increased
Record
Advanced Monetizations of
as Transaction Activity Continues to Increase
BROOKFIELD, NEWS, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Brookfield Corporation (NYSE: BN, TSX: BN) announced record financial results for the quarter ended September 30, 2024.
Nick Goodman, President of Brookfield Corporation, said, “Our financial performance in the third quarter was strong, delivering record cash earnings from our base businesses, and we expect this momentum to continue into 2025. We repurchased approximately
He added, “With capital markets continuing to improve and transaction activity picking up, we recently executed on several financings and signed or closed a number of monetizations across our business. As the macro tailwinds turn in our favor, we are better positioned than ever to drive strong earnings growth and deliver
Operating Results
Distributable earnings (“DE”) before realizations increased by
Unaudited For the periods ended September 30 (US$ millions, except per share amounts) | Three Months Ended | Last Twelve Months Ended | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Net income of consolidated business1 | $ | 1,518 | $ | 35 | $ | 4,886 | $ | 2,015 | |||
Net income attributable to Brookfield shareholders2 | 64 | 230 | 908 | 115 | |||||||
Distributable earnings before realizations2,3,4 | 1,259 | 1,056 | 4,582 | 4,049 | |||||||
– Per Brookfield share2,3,4 | 0.80 | 0.67 | 2.90 | 2.54 | |||||||
Distributable earnings2,3 | 1,325 | 1,150 | 5,980 | 4,992 | |||||||
– Per Brookfield share2,3 | 0.84 | 0.73 | 3.78 | 3.13 |
See endnotes on page 8.
Total consolidated net income was
Our asset management business delivered
Wealth solutions earnings doubled compared to the prior year quarter, benefiting from the acquisition of American Equity Life, increased annuity sales and strong investment performance.
Our operating businesses continue to deliver growing cash flows, backed by the resilient earnings of our renewable power and transition, infrastructure and private equity businesses and
During the quarter and over the LTM, earnings from realizations were
Regular Dividend Declaration
The Board declared a quarterly dividend for Brookfield Corporation of
Operating Highlights
Distributable earnings before realizations were a record
Asset Management:
- DE was
$694 million ($0.44 /share) in the quarter and$2.6 billion ($1.64 /share) over the LTM.
- Fee-related earnings increased by
14% compared to the prior year quarter, driven by a23% increase in fee-bearing capital over the LTM to$539 billion as at September 30, 2024. Inflows were$21 billion in the quarter and$135 billion for the LTM.
- During the quarter, we closed on the previously announced strategic partnership with Castlelake, a global alternative investment manager specializing in asset-based private credit including aviation and specialty finance. We also completed the acquisition of SVB Capital through Pinegrove Capital Partners, our venture investment platform formed with Sequoia Heritage.
Wealth Solutions:
- Distributable operating earnings were
$364 million ($0.23 /share) in the quarter and$1.2 billion ($0.75 /share) over the LTM.
- Our insurance assets increased to over
$115 billion , as we generated approximately$4.5 billion of organic inflows in the quarter, primarily driven by retail and institutional annuity sales.
- The average investment portfolio yield on our insurance assets was
5.4% ,1.8% higher than our average cost of capital. As we continue to reposition the investment portfolio, annualized earnings for the business are poised to grow from approximately$1.5 billion today to$2 billion in the near term.
- Today, a subsidiary of Brookfield Wealth Solutions announced an agreement to reinsure
$1.4 billion of U.K. pension liabilities. This is our first transaction outside of North America, as we continue to look to diversify and expand our wealth solutions business.
- Through our combined wealth solutions platforms, we are raising close to
$2 billion of retail capital per month.
Operating Businesses:
- DE was
$356 million ($0.23 /share) in the quarter and$1.5 billion ($0.93 /share) over the LTM.
- Cash distributions from our operating businesses are supported by their resilient earnings and strong underlying performance. Our core real estate portfolio continues to deliver growth, with same-store NOI increasing by
4% over the prior year quarter.
- In our real estate business, we signed close to 6 million square feet of office and retail leases during the quarter. Rents on the newly signed leases were approximately
10% higher compared to those leases expiring.
Earnings from the monetization of mature assets were
- In the past few months, we have seen increased levels of transaction activity. We closed or advanced over
$17 billion of asset sales across the business, which include retail parks in the U.K., a luxury resort in the U.S., multiple renewable power assets globally, and an office asset in Australia. All of these are expected to generate attractive returns.
- Total accumulated unrealized carried interest was
$11.5 billion at quarter end, representing an increase of17% over the LTM, net of carried interest realized into income. We recognized$295 million of net realized carried interest into income so far this year.
We ended the quarter with over
- During the quarter, we returned
$203 million to shareholders through regular dividends and share repurchases. Over the last twelve months, we repurchased approximately$1 billion of shares, and we plan to keep allocating capital to share repurchases.
- We have over
$150 billion of deployable capital, which includes$66 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business.
- Our balance sheet remains conservatively capitalized. Our corporate debt at the Corporation has a weighted-average term of 13 years and modest maturities through to the end of 2025.
- Our strong access to capital throughout our franchise enabled us to execute on over
$30 billion of financings in the past few months. This includes an$850 million loan on a high-quality mall in Las Vegas and an approximately$600 million financing for the acquisition of an industrial portfolio, demonstrating the very active CMBS market.
CONSOLIDATED BALANCE SHEETS
Unaudited (US$ millions) | September 30 2024 | December 31 2023 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 11,824 | $ | 11,222 | |||||||
Other financial assets | 30,096 | 28,324 | |||||||||
Accounts receivable and other | 35,956 | 31,001 | |||||||||
Inventory | 11,031 | 11,412 | |||||||||
Equity accounted investments | 65,101 | 59,124 | |||||||||
Investment properties | 129,586 | 124,152 | |||||||||
Property, plant and equipment | 148,305 | 147,617 | |||||||||
Intangible assets | 37,420 | 38,994 | |||||||||
Goodwill | 34,812 | 34,911 | |||||||||
Deferred income tax assets | 4,013 | 3,338 | |||||||||
Total Assets | $ | 508,144 | $ | 490,095 | |||||||
Liabilities and Equity | |||||||||||
Corporate borrowings | $ | 14,898 | $ | 12,160 | |||||||
Accounts payable and other | 61,074 | 59,011 | |||||||||
Non-recourse borrowings | 232,195 | 221,550 | |||||||||
Subsidiary equity obligations | 5,212 | 4,145 | |||||||||
Deferred income tax liabilities | 24,866 | 24,987 | |||||||||
Equity | |||||||||||
Non-controlling interests in net assets | $ | 123,428 | $ | 122,465 | |||||||
Preferred equity | 4,103 | 4,103 | |||||||||
Common equity | 42,368 | 169,899 | 41,674 | 168,242 | |||||||
Total Equity | 169,899 | 168,242 | |||||||||
Total Liabilities and Equity | $ | 508,144 | $ | 490,095 |
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited For the periods ended September 30 (US$ millions, except per share amounts) | Three Months Ended | Nine Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenues | $ | 20,623 | $ | 24,441 | $ | 66,580 | $ | 71,406 | |||||||
Direct costs1 | (12,934 | ) | (18,842 | ) | (46,222 | ) | (54,166 | ) | |||||||
Other income and gains | 711 | 381 | 1,195 | 2,245 | |||||||||||
Equity accounted income | 184 | 809 | 1,695 | 1,639 | |||||||||||
Interest expense | |||||||||||||||
– Corporate borrowings | (190 | ) | (164 | ) | (544 | ) | (454 | ) | |||||||
– Non-recourse borrowings | |||||||||||||||
Same-store | (3,712 | ) | (3,917 | ) | (11,390 | ) | (11,004 | ) | |||||||
Acquisitions, net of dispositions2 | (113 | ) | — | (160 | ) | — | |||||||||
Upfinancings2 | (317 | ) | — | (542 | ) | — | |||||||||
Corporate costs | (20 | ) | (16 | ) | (56 | ) | (53 | ) | |||||||
Fair value changes | (166 | ) | (170 | ) | (761 | ) | (70 | ) | |||||||
Depreciation and amortization | (2,410 | ) | (2,246 | ) | (7,320 | ) | (6,648 | ) | |||||||
Income tax | (138 | ) | (241 | ) | (723 | ) | (924 | ) | |||||||
Net income | 1,518 | 35 | 1,752 | 1,971 | |||||||||||
Less: Amounts attributable to non-controlling interests | (1,454 | ) | 195 | (1,543 | ) | (1,540 | ) | ||||||||
Net income attributable to Brookfield shareholders | $ | 64 | $ | 230 | $ | 209 | $ | 431 | |||||||
Net income per share | |||||||||||||||
Diluted | $ | 0.01 | $ | 0.12 | $ | 0.05 | $ | 0.20 | |||||||
Basic | 0.01 | 0.12 | 0.05 | 0.20 |
- Direct costs disclosed above exclude depreciation and amortization expense.
- Interest expense from acquisitions, net of dispositions, and upfinancings completed over the twelve months ended September 30, 2024.
SUMMARIZED FINANCIAL RESULTS
DISTRIBUTABLE EARNINGS
Unaudited For the periods ended September 30 (US$ millions) | Three Months Ended | Last Twelve Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Asset management | $ | 694 | $ | 634 | $ | 2,600 | $ | 2,607 | |||||||
Wealth solutions | 364 | 182 | 1,182 | 657 | |||||||||||
BEP | 107 | 105 | 423 | 415 | |||||||||||
BIP | 84 | 80 | 331 | 315 | |||||||||||
BBU | 9 | 9 | 36 | 36 | |||||||||||
BPG | 166 | 179 | 722 | 766 | |||||||||||
Other | (10 | ) | (7 | ) | (48 | ) | (24 | ) | |||||||
Operating businesses | 356 | 366 | 1,464 | 1,508 | |||||||||||
Corporate costs and other | (155 | ) | (126 | ) | (664 | ) | (616 | ) | |||||||
Distributable earnings before realizations1 | 1,259 | 1,056 | 4,582 | 4,156 | |||||||||||
Realized carried interest, net | 61 | 94 | 395 | 750 | |||||||||||
Disposition gains from principal investments | 5 | — | 1,003 | 86 | |||||||||||
Distributable earnings1 | $ | 1,325 | $ | 1,150 | $ | 5,980 | $ | 4,992 |
- Non-IFRS measure – see Non-IFRS and Performance Measures section on page 8.
RECONCILIATION OF NET INCOME TO DISTRIBUTABLE EARNINGS
Unaudited For the periods ended September 30 (US$ millions) | Three Months Ended | Last Twelve Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income | $ | 1,518 | $ | 35 | $ | 4,886 | $ | 2,015 | |||||||
Financial statement components not included in DE: | |||||||||||||||
Equity accounted fair value changes and other items | 1,158 | 298 | 3,328 | 2,743 | |||||||||||
Fair value changes and other | 179 | 503 | 2,516 | 2,214 | |||||||||||
Depreciation and amortization | 2,410 | 2,246 | 9,747 | 8,637 | |||||||||||
Disposition gains in net income | (430 | ) | (167 | ) | (4,999 | ) | (2,936 | ) | |||||||
Deferred income taxes | (324 | ) | (238 | ) | (839 | ) | (766 | ) | |||||||
Non-controlling interests in the above items1 | (3,252 | ) | (1,788 | ) | (10,074 | ) | (7,679 | ) | |||||||
Less: realized carried interest, net | (61 | ) | (94 | ) | (395 | ) | (750 | ) | |||||||
Working capital, net | 61 | 261 | 412 | 678 | |||||||||||
Distributable earnings before realizations2 | 1,259 | 1,056 | 4,582 | 4,156 | |||||||||||
Realized carried interest, net3 | 61 | 94 | 395 | 750 | |||||||||||
Disposition gains from principal investments | 5 | — | 1,003 | 86 | |||||||||||
Distributable earnings2 | $ | 1,325 | $ | 1,150 | $ | 5,980 | $ | 4,992 |
- 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 For the periods ended September 30 (millions, except per share amounts) | Three Months Ended | Last Twelve Months Ended | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income | $ | 1,518 | $ | 35 | $ | 4,886 | $ | 2,015 | |||||||
Non-controlling interests | (1,454 | ) | 195 | (3,978 | ) | (1,900 | ) | ||||||||
Net income attributable to shareholders | 64 | 230 | 908 | 115 | |||||||||||
Preferred share dividends1 | (43 | ) | (41 | ) | (170 | ) | (162 | ) | |||||||
Dilutive impact of exchangeable shares of affiliate | — | 1 | 11 | — | |||||||||||
Net income available to common shareholders including dilutive impact of exchangeable shares | $ | 21 | $ | 190 | $ | 749 | $ | (47 | ) | ||||||
Weighted average shares | 1,508.5 | 1,561.2 | 1,520.2 | 1,568.0 | |||||||||||
Dilutive effect of conversion of options and escrowed shares using treasury stock method2 and exchangeable shares of affiliate | 32.4 | 24.5 | 61.6 | — | |||||||||||
Shares and share equivalents | 1,540.9 | 1,585.7 | 1,581.8 | 1,568.0 | |||||||||||
Diluted earnings per share3 | $ | 0.01 | $ | 0.12 | $ | 0.47 | $ | (0.03 | ) |
- 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 September 30, 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 September 30, 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 September 30, 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 Third 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/BI282631cfcbcf4d998c75a2d664946eaf. 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/aqqbbvas. For those unable to participate in the Conference Call, the telephone replay will be archived and available until November 14, 2025. To access this rebroadcast, please visit: https://edge.media-server.com/mmc/p/aqqbbvas.
About Brookfield Corporation
Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.
We have a track record of delivering
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: Kerrie McHugh Tel: (212) 618-3469 Email: kerrie.mchugh@brookfield.com | Investor Relations: Linda Northwood Tel: (416) 359-8647 Email: linda.northwood@brookfield.com |
Non-IFRS and Performance Measures
This news release and accompanying financial information are based on International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), unless otherwise noted.
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 Operating Funds from Operations (“Operating FFO”). We define Operating FFO as the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis.
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 | |
- Consolidated basis – includes amounts attributable to non-controlling interests.
- Excludes amounts attributable to non-controlling interests.
- See Reconciliation of Net Income to Distributable Earnings on page 5 and Non-IFRS and Performance Measures section on page 8.
- Distributable earnings before realizations, including per share amounts, for the twelve months ended September 30, 2023 were adjusted for the special distribution of
25% of our asset management business on December 9, 2022. Prior to the adjustment, DE before realizations were$4.2 billion for the twelve months ended September 30, 2023.
Notice to Readers
Brookfield Corporation is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.
This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward- looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “believe,” “foresee,” “could,” “estimate,” “goal,” “intend,” “plan,” “seek,” “strive,” “will,” “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our fundraising targets, and our target growth objectives.
Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including asset management, wealth solutions, renewable power and transition, infrastructure, private equity, real estate and corporate activities; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.
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, Brookfield Corporation undertakes no obligation to publicly update or revise any forward- looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.
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 Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield Corporation’s control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them.
When we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield’s investments in this business that supported the acquisitions of its underlying operating subsidiaries.
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