Investors, analysts and other interested parties can access Brookfield Asset
Management's 2014 First Quarter Results as well as the Shareholders' Letter and
Supplemental Information on Brookfield's website under the Investors/Financial
Reports section at www.brookfield.com.
The conference call can be accessed via webcast on May 7, 2014 at 1:30 p.m.
Eastern Time at www.brookfield.com or via teleconference at 1-800-319-4610 toll
free in North America. For overseas calls please dial 1-604-638-5340, at
approximately 1:20 p.m. Eastern Time. The teleconference taped rebroadcast can
be accessed at 1-800-319-6413 or 1-604-638-9010 (Password 2811#).
Brookfield Asset Management Inc. (NYSE:BAM)(TSX:BAM.A)(EURONEXT:BAMA) today
announced its financial results for the quarter ended March 31, 2014.
"Our global portfolio of real assets turned in a strong performance, including a
significant increase in fee revenues and the contribution from our renewable
energy investments. We are well positioned to deliver future growth through our
funds and fee revenues," commented Bruce Flatt, CEO of Brookfield. "We continue
to see attractive investment opportunities globally for all of our funds,
benefitting from both our strong access to capital and operating platforms."
-- Funds from operations ("FFO") for Brookfield shareholders were $492
million in total for the quarter. Excluding realized disposition gains,
FFO increased by 6% to $387 million over the 2013 quarter, reflecting
increases in asset management fees and the impact of higher electricity
prices on our renewable energy portfolios.
-- Consolidated net income in the quarter was $843 million, or $0.80 per
common share, an increase of 57% over the $0.51 recorded in the first
quarter last year.
-- Total assets under management increased to $190 billion and fee bearing
capital increased 5% to $84 billion.
-- A number of investments were committed to across our operations. During
the quarter we invested or committed to invest $6 billion of capital on
behalf of clients and shareholders.
Financial Results
Three months ended March 31
US$ millions (except per share amounts) 2014 2013
----------------------------------------------------------------------------
Funds from operations(1,2) $ 492 $ 689
Per Brookfield share(1,2) 0.72 1.03
Consolidated net income(3) $ 843 $ 697
Per Brookfield share(1) 0.80 0.51
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Excludes amounts attributable to non-controlling interests
2. See Basis of Presentation on page 3
3. Consolidated basis - includes amounts attributable to non-controlling
interests
We generated FFO of $492 million for the first quarter of 2014, which consisted
of $387 million of FFO from operations and $105 million of realized disposition
gains. FFO excluding realized disposition gains increased 6% over the prior year
due to strong pricing within our renewable energy operations and increased fee
related earnings from higher levels of fee bearing capital. These positive
variances were partially offset by a reduction in prices within several more
cyclical private equity investments. FFO in the prior year was $689 million
which consisted of $364 million from operations and $325 million of realized
disposition gains, including a $172 million gain on the sale of a partial
interest in our renewable energy portfolio.
Net income for the quarter, which includes amounts attributable to
non-controlling interests, increased by 21%. The increase was due to the growth
in FFO noted above, as well as a higher level of fair value gains on office and
retail properties and private equity investments, offset in part by an increase
in deferred taxes due to a change in tax rates.
Operating Highlights
We expanded our asset management franchise and our flagship public entities.
Fee bearing capital increased during the quarter by $4 billion to $84 billion at
March 31, 2014. We acquired the majority of outstanding shares in our office
property portfolio pursuant to a share exchange, which increased the equity base
of our flagship listed property entity by $2.8 billion. We continued to invest
capital from our listed entities and our property, infrastructure and private
equity funds. We are marketing four new funds with a total fundraising target of
over $2 billion of third party capital, and currently we have approximately $8
billion of uncalled client commitments that can be invested across our
strategies.
We announced or completed acquisitions and capital expansions that will deploy
$6 billion of capital on behalf of clients and Brookfield shareholders.
Our property group made nine acquisitions, deploying close to $400 million of
capital into assets in North America, Europe and China, in addition to a $3.5
billion equity investment to increase our investment in our $12 billion office
portfolio. We also invested $1 billion in a Spanish property company
restructuring which was recently repaid at par for a gain of +/-$150 million. We
continued to acquire renewable energy assets in North America, commissioned a
new $200 million hydro facility in British Columbia and are moving forward to
acquire $680 million of wind facilities in Ireland. Our infrastructure group has
agreed to acquire a port in New York/New Jersey and district energy systems in
Chicago, Las Vegas and Seattle. We also closed an acquisition of a port in Los
Angeles, and moved forward with an acquisition of a port and rail business in
Brazil.
We increased cash flow and created value with growth initiatives and operational
improvements in all of our major businesses.
The increased scale of our operations contributed to strong results from our
major operations. Our property group generated FFO of $199 million, up 21% from
the same quarter last year, as a result of an increased ownership of our retail
portfolio and increases in net rents compared with expiring leases. Our
renewable power assets generated FFO of $164 million, and benefitted from higher
prices for uncontracted power and the integration of U.S. hydroelectric
facilities acquired in the last year. Our infrastructure group recorded $59
million of FFO, primarily reflecting increased ownership of our Brazilian toll
roads, and additional traffic on our recently expanded Australian rail road. Our
private equity group generated $63 million of FFO, lower than last year, as
there were fewer asset monetizations compared to the same period a year ago. Our
residential development business' FFO increased by $35 million reflecting sales
of land and homes.
Dividend Declaration
The Board of Directors declared a quarterly dividend of US$0.16 per share
(representing US$0.64 per annum, a 7% increase), payable on June 30, 2014 to
shareholders of record as at the close of business on May 31, 2014. The Board
also declared all of the regular monthly and quarterly dividends on its
preferred shares.
The previous dividend paid on February 28, 2014 of $0.20 per share represented a
four month period and therefore $0.60 per share on an annualized basis.
Information on our dividends can be found on our website under Investors/Stock
and Dividend Information.
Basis of Presentation
This news release and accompanying financial statements are based on
International Financial Reporting Standards ("IFRS") unless otherwise noted and
make reference to funds from operations.
Funds from Operations (FFO) is defined as net income attributable to
shareholders prior to valuation items, depreciation and amortization, and
deferred income taxes, and includes disposition gains that are not recorded in
net income as determined under IFRS. FFO also includes the company's share of
equity accounted investments' funds from operations. FFO consists of the
following two components:
-- FFO from Operating Activities represents the company's share of revenues
less direct costs and interest expenses; excludes disposition gains,
valuation items and deferred income taxes; and includes our
proportionate share of FFO from operating activities recorded by equity
accounted investments. We present this measure as we believe it assists
in describing our results and variances within FFO.
-- Realized Disposition Gains are included in FFO as the purchase and sale
of assets is 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 FFO.
Brookfield uses FFO to assess its operating results and the value of its
business and believes that many of its shareholders and analysts also find this
measure of value to them.
FFO and its per share equivalent are non-IFRS measures which do not have any
standard meaning prescribed by IFRS and therefore may not be comparable to
similar measures presented by other companies.
The company provides additional information on the determination of funds from
operations and a reconciliation between funds from operations and net income
attributable to Brookfield shareholders, in the Supplemental Information
available at www.brookfield.com.
Additional Information
The Letter to Shareholders and the company's Supplemental Information for the
three months ended March 31, 2014 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 attached statements are based primarily on information that has been
extracted from our financial statements for the three months ended March 31,
2014, which have been prepared using IFRS. The amounts have not been audited and
are not subject to review by Brookfield's external auditor.
Brookfield Asset Management Inc. is a global alternative asset manager with over
$175 billion in assets under management. The company has over a 100-year history
of owning and operating assets with a focus on property, renewable energy,
infrastructure and private equity. Brookfield offers a range of public and
private investment products and services, and is co-listed on the New York and
Toronto Stock Exchanges under the symbol BAM and BAM.A, respectively. For more
information, please visit our website at www.brookfield.com.
Please note that Brookfield'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.brookfield.com.
Forward-Looking Statements
Note: This news release contains "forward-looking information" within the
meaning of Canadian provincial securities laws and "forward-looking statements"
within the meaning of Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended,
"safe harbor" provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities regulations.
Forward-looking statements include statements that are predictive in nature,
depend upon or refer to future events or conditions, include statements
regarding the operations, business, financial condition, expected financial
results, performance, prospects, opportunities, priorities, targets, goals,
ongoing objectives, strategies and outlook of the company and its subsidiaries,
as well as the outlook for North American and international economies for the
current fiscal year and subsequent periods, and include words such as "expects",
"anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets",
"projects", "forecasts" or negative versions thereof and other similar
expressions, or future or conditional verbs such as "may", "will", "should",
"would" and "could".
Although we believe that our anticipated future results, performance or
achievements expressed or implied by the forward-looking statements and
information are based upon reasonable assumptions and expectations, the reader
should not place undue reliance on forward-looking statements and information
because they involve known and unknown risks, uncertainties and other factors,
many of which are beyond our control, which may cause the actual results,
performance or achievements of the company to differ materially from anticipated
future results, performance or achievement expressed or implied by such
forward-looking statements and information.
Factors that could cause actual results to differ materially from those
contemplated or implied by forward-looking statements include, but are not
limited to: the impact or unanticipated impact of general economic, political
and market factors in the countries in which we do business; the behavior of
financial markets, including fluctuations in interest and foreign exchange
rates; global equity and capital markets and the availability of equity and debt
financing and refinancing within these markets; strategic actions including
dispositions; the ability to complete and effectively integrate acquisitions
into existing operations and the ability to attain expected benefits; changes in
accounting policies and methods used to report financial condition (including
uncertainties associated with critical accounting assumptions and estimates);
the effect of applying future accounting changes; business competition;
operational and reputational risks; technological change; changes in government
regulation and legislation within the countries in which we operate; changes in
tax laws, catastrophic events, such as earthquakes and hurricanes; the possible
impact of international conflicts and other developments including terrorist
acts; and other risks and 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. When relying on our forward-looking statements,
investors and others should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law, the company
undertakes no obligation to publicly update or revise any forward-looking
statements or information, whether written or oral, that may be as a result of
new information, future events or otherwise.
CONSOLIDATED BALANCE SHEETS
(Unaudited) March 31 December 31
US$ millions 2014 2013
----------------------------------------------------------------------------
Assets
Cash and cash equivalents $ 3,555 $ 3,663
Other financial assets 6,610 4,947
Accounts receivable and other 6,253 6,666
Inventory 6,342 6,291
Equity accounted investments 13,836 13,277
Investment properties 39,287 38,336
Property, plant and equipment 31,042 31,019
Sustainable resources 452 502
Intangible assets 4,870 5,044
Goodwill 1,638 1,588
Deferred income tax assets 1,397 1,412
----------------------------------------------------------------------------
Total Assets $ 115,282 $ 112,745
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Equity
Accounts payable and other $ 10,820 $ 10,316
Corporate borrowings 4,364 3,975
Non-recourse borrowings
Property-specific mortgages 36,878 35,495
Subsidiary borrowings 7,666 7,392
Deferred income tax liabilities 6,570 6,164
Capital securities 765 791
Interests of others in consolidated funds 1,265 1,086
Equity
Preferred equity 3,279 3,098
Non-controlling interests in net assets 25,828 26,647
Common equity 17,847 17,781
----------------------------------------------------------------------------
Total Equity 46,954 47,526
----------------------------------------------------------------------------
Total Liabilities and Equity $ 115,282 $ 112,745
----------------------------------------------------------------------------
----------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended March 31
US$ millions (except per share amounts) 2014 2013
----------------------------------------------------------------------------
Total revenues and other gains $ 4,373 $ 4,951
Direct costs (2,990) (3,420)
----------------------------------------------------------------------------
1,383 1,531
Equity accounted income 274 266
----------------------------------------------------------------------------
1,657 1,797
Expenses
Interest (626) (655)
Corporate costs (33) (44)
----------------------------------------------------------------------------
998 1,098
Fair value changes 715 61
Depreciation and amortization (376) (365)
Income tax (494) (97)
----------------------------------------------------------------------------
Net income $ 843 $ 697
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income attributable to:
Brookfield shareholders $ 541 $ 360
Non-controlling interests 302 337
----------------------------------------------------------------------------
$ 843 $ 697
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income per share
Diluted $ 0.80 $ 0.51
Basic 0.82 0.52
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SUMMARIZED FINANCIAL RESULTS(3)
(Unaudited)
For the three months ended
March 31
US$ millions (except per Funds from Net
share amounts) Operations(1) Income(1)
------------------------------------------------
2014 2013 2014 2013
----------------------------------------------------------------------------
Operating activities $ 387 $ 364 $ 387 $ 364
Realized disposition
gains(2) 105 325 35 61
Fair value changes - - 568 136
Depreciation and
amortization - - (177) (165)
Income tax - - (272) (36)
----------------------------------------------------------------------------
$ 492 $ 689 $ 541 $ 360
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Per share $ 0.72 $ 1.03 $ 0.80 $ 0.51
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:
1. Excludes amounts attributable to non-controlling interests
2. FFO includes gains recorded in net income, directly in equity as well as
the realization of appraisal gains recorded in prior years
3. Includes non-IFRS measures - see Basis of Presentation on page 3
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS(1)
(Unaudited)
For the three months ended March 31
US$ millions 2014 2013
----------------------------------------------------------------------------
Net income prior to fair value changes,
depreciation and amortization and income tax (see
page 6) $ 998 $ 1,098
Adjust for:
Fair value changes within equity accounted
income (14) (68)
Current income taxes (37) (34)
Realized disposition gains not included in net
income 207 350
----------------------------------------------------------------------------
1,154 1,346
Non-controlling interest (662) (657)
----------------------------------------------------------------------------
Funds from operations(1) $ 492 $ 689
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Notes:
1. Non-IFRS measure - see Basis of Presentation on page 3
FOR FURTHER INFORMATION PLEASE CONTACT:
Brookfield Asset Management Inc. - Media:
Andrew Willis
Communications and Media
(416) 369-8236
(416) 363-2856 (FAX)
andrew.willis@brookfield.com
Brookfield Asset Management Inc. - Investors:
Amar Dhotar
Investor Relations
(416) 359-8629
(416) 363-2856 (FAX)
amar.dhotar@brookfield.com
www.brookfield.com
Brookfield Asset Managem... (TSX:BAM.A)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Brookfield Asset Managem... (TSX:BAM.A)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024
