Brookfield Corporation (NYSE: BN, TSX: BN) today announced
financial results for the quarter ended June 30, 2023.
Nick Goodman, President of Brookfield
Corporation, stated, “Financial performance was very strong during
the second quarter, as our operations continued to generate stable
and growing cash flows. Momentum continues to grow across the
business; so far this year we have announced more than
$50 billion of acquisitions, sold approximately
$15 billion of assets, and are on track to achieve a record of
close to $150 billion of inflows in 2023.”
He added, “We continue to differentiate our
franchise with nearly $120 billion of liquidity, strong access to
large scale capital, and our deep investment and operating
expertise—all of which enables us to further scale our operations
with the goal of having one of the largest pools of discretionary
capital globally.”
Operating Results
Distributable earnings (“DE”) before
realizations increased by 21% compared to the prior year, after
adjusting for the special distribution of 25% of our asset
management business that we completed in December last year.
UnauditedFor the periods ended June 30(US$ millions, except per
share amounts) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net income1 |
$ |
1,512 |
|
$ |
1,475 |
|
$ |
2,696 |
|
$ |
10,618 |
Distributable earnings before
realizations2,3 |
|
1,013 |
|
|
1,009 |
|
|
4,316 |
|
|
3,881 |
–
Adjusted for the special distribution2,3,4 |
|
1,013 |
|
|
881 |
|
|
4,078 |
|
|
3,381 |
–
Per Brookfield share2,3,4 |
|
0.64 |
|
|
0.54 |
|
|
2.56 |
|
|
2.09 |
Distributable earnings2,3 |
|
1,187 |
|
|
1,186 |
|
|
5,205 |
|
|
4,911 |
–
Per Brookfield share2,3 |
|
0.75 |
|
|
0.73 |
|
|
3.26 |
|
|
3.03 |
See endnotes on page 8.
Net income in the second quarter was
$1.5 billion. DE before realizations were $1.0 billion
for the quarter and $4.3 billion for the last twelve months
(“LTM”). Both benefiting from the strong financial performance and
resilient nature of our underlying businesses with the comparative
period net income for the LTM including higher valuation gains.
Our asset management business benefited from
another strong quarter of fundraising and deployment, increasing
fee-related earnings by 16%, when excluding performance fees,
compared to the prior year.
Our insurance solutions business delivered a
very strong quarter as we continue to focus on expanding the
investment returns of our existing assets by redeploying our
short-duration investment portfolio into higher yielding
assets.
Our operating businesses generated stable and
recurring cash flows, reflecting the strong underlying fundamentals
of our high-quality businesses. This was supported by the earnings
growth across our renewable power & transition, infrastructure,
and private equity businesses and same-store net operating income
(“NOI”) growth in our real estate business.
During the quarter and over the LTM, earnings
from realizations were $174 million and $889 million,
respectively, with total DE for the quarter and LTM of $1.2 billion
and $5.2 billion, respectively.
Regular Dividend Declaration
The Board declared a quarterly dividend for the
Corporation of $0.07 per share, payable on September 29, 2023 to
shareholders of record as at the close of business on August 31,
2023. The Board also declared the regular monthly and quarterly
dividends on its preferred shares.
Operating Highlights
DE before realizations were $1.0 billion for the
quarter and $4.3 billion for the LTM, representing an increase of
21% over the prior year, after adjusting for the special
distribution of 25% of our asset management business. Total DE for
the quarter was $1.2 billion and $5.2 billion for the LTM.
Asset Management:
- Distributable
earnings were $604 million in the quarter and
$2.7 billion over the LTM.
- Fee-related
earnings increased by 16%, when excluding performance fees,
compared to the prior year.
- Fundraising
momentum remains strong with inflows of $37 billion year to
date and $74 billion for the LTM. Fee-bearing capital was
$440 billion as of June 30, 2023, an increase of
$48 billion or 12% over the LTM.
- Our fundraising
efforts are expected to accelerate in the second half of this year
which, when combined with insurance inflows, should allow us to
raise a record of close to $150 billion of capital in
2023.
Insurance Solutions:
- Distributable
operating earnings were $160 million in the quarter and
$634 million over the LTM.
- During the
quarter, spread earnings expanded by 20 bps with our average
investment portfolio yield now 5.4% on approximately
$45 billion of assets, about 220 bps higher than the average
cost of capital.
- We remain on
track to achieving annualized earnings from this business of
$800 million by the end of 2023, with a further step change in
earnings expected from the closes of Argo Group and the recently
announced acquisition of American Equity Life. With these recently
announced acquisitions, our Insurance Solutions business will grow
to over $100 billion of assets and the earnings base to a
stabilized run-rate of approximately $2 billion annually.
Operating Businesses:
- Distributable
earnings were $397 million for the quarter and
$1.5 billion over the LTM.
- Operating Funds
from Operations within our renewable power & transition and
infrastructure businesses increased by 23% over the LTM, supporting
stable and growing cash distributions. Our private equity business
continues to deliver resilient and high-quality cash flows.
- Strong leasing
momentum within our real estate business drove NOI growth of 8% in
our core portfolio compared to the prior year. Although cash flows
continue to be impacted by interest rates in the near term, we have
deep conviction in the value of our real estate portfolio over the
long term.
Earnings from realizations of mature assets were
$174 million for the quarter and $889 million for the
LTM.
- Transacted on
approximately $15 billion of asset sales during the first half
of the year, bringing the total monetizations completed over the
LTM to around $30 billion—all transacting at values higher than our
IFRS carrying values, providing strong support for the carrying
values of our investments and more than $20 billion of carried
interest we forecast to realize into income over the next 10
years.
- Year to date, we
have recognized $376 million of net realized carried interest
into income and continue to see a path to realize over
$500 million of net realized carried interest into income this
year.
- Total
accumulated unrealized carried interest now stands at
$9.5 billion, representing an increase of $104 million
during the quarter, net of carried interest realized into
income.
We ended the quarter with nearly
$120 billion of capital available to deploy into new
investments.
- In addition to
reinvesting back into our businesses, we returned $146 million
to shareholders through regular dividends and share repurchases
during the quarter. In the LTM, we have repurchased
$536 million of Class A shares in the open market.
- We have
significant group-wide liquidity of nearly $120 billion, which
includes $34 billion of cash, financial assets and undrawn credit
lines at the Corporation and our affiliates. Our balance sheet
remains conservatively capitalized, with a weighted-average term of
13 years and modest maturities through to the end of 2024.
CONSOLIDATED BALANCE SHEETS |
Unaudited(US$ millions) |
|
June 30 |
|
December 31 |
|
|
2023 |
|
|
2022 |
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
12,427 |
|
$ |
14,396 |
Other financial assets |
|
|
29,466 |
|
|
26,899 |
Accounts receivable and
other |
|
|
31,747 |
|
|
30,208 |
Inventory |
|
|
13,006 |
|
|
12,843 |
Equity accounted
investments |
|
|
52,141 |
|
|
47,094 |
Investment properties |
|
|
119,780 |
|
|
115,100 |
Property, plant and
equipment |
|
|
127,462 |
|
|
124,268 |
Intangible assets |
|
|
41,217 |
|
|
38,411 |
Goodwill |
|
|
32,329 |
|
|
28,662 |
Deferred income tax assets |
|
|
3,559 |
|
|
3,403 |
Total Assets |
|
$ |
463,134 |
|
$ |
441,284 |
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
Corporate borrowings |
|
$ |
13,068 |
|
$ |
11,390 |
Accounts payable and
other |
|
|
60,016 |
|
|
57,941 |
Non-recourse borrowings |
|
|
206,085 |
|
|
202,684 |
Subsidiary equity
obligations |
|
|
4,049 |
|
|
4,188 |
Deferred income tax
liabilities |
|
|
24,333 |
|
|
23,190 |
Equity |
|
|
|
|
Non-controlling interests in net assets |
$ |
110,982 |
|
$ |
98,138 |
|
Preferred equity |
|
4,103 |
|
|
4,145 |
|
Common equity |
|
40,498 |
|
155,583 |
|
39,608 |
|
141,891 |
Total Liabilities and Equity |
|
$ |
463,134 |
|
$ |
441,284 |
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
UnauditedFor the periods ended June 30(US$ millions, except per
share amounts) |
Three Months Ended |
|
Six Months Ended |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
$ |
23,668 |
|
|
$ |
23,256 |
|
|
$ |
46,965 |
|
|
$ |
45,138 |
|
Direct costs1 |
|
(17,692 |
) |
|
|
(17,955 |
) |
|
|
(35,324 |
) |
|
|
(34,839 |
) |
Other income and gains |
|
1,483 |
|
|
|
465 |
|
|
|
1,864 |
|
|
|
494 |
|
Equity accounted income |
|
401 |
|
|
|
564 |
|
|
|
830 |
|
|
|
1,407 |
|
Interest expense |
|
|
|
|
|
|
|
– Corporate borrowings |
|
(154 |
) |
|
|
(124 |
) |
|
|
(290 |
) |
|
|
(241 |
) |
– Non-recourse borrowings |
|
|
|
|
|
|
|
Same-store |
|
(3,160 |
) |
|
|
(2,281 |
) |
|
|
(5,845 |
) |
|
|
(4,302 |
) |
Acquisitions, net of dispositions2 |
|
(299 |
) |
|
|
— |
|
|
|
(782 |
) |
|
|
— |
|
Upfinancings2 |
|
(151 |
) |
|
|
— |
|
|
|
(460 |
) |
|
|
— |
|
Corporate costs |
|
(23 |
) |
|
|
(26 |
) |
|
|
(37 |
) |
|
|
(59 |
) |
Fair value changes |
|
62 |
|
|
|
(397 |
) |
|
|
100 |
|
|
|
1,383 |
|
Depreciation and
amortization |
|
(2,214 |
) |
|
|
(1,886 |
) |
|
|
(4,402 |
) |
|
|
(3,697 |
) |
Income
tax |
|
(409 |
) |
|
|
(141 |
) |
|
|
(683 |
) |
|
|
(849 |
) |
Net income |
$ |
1,512 |
|
|
$ |
1,475 |
|
|
$ |
1,936 |
|
|
$ |
4,435 |
|
|
|
|
|
|
|
|
|
Net income attributable
to: |
|
|
|
|
|
|
|
Brookfield shareholders |
$ |
81 |
|
|
$ |
590 |
|
|
$ |
201 |
|
|
$ |
1,949 |
|
Non-controlling interests |
|
1,431 |
|
|
|
885 |
|
|
|
1,735 |
|
|
|
2,486 |
|
|
$ |
1,512 |
|
|
$ |
1,475 |
|
|
$ |
1,936 |
|
|
$ |
4,435 |
|
|
|
|
|
|
|
|
|
Net income per share |
|
|
|
|
|
|
|
Diluted |
$ |
0.03 |
|
|
$ |
0.34 |
|
|
$ |
0.08 |
|
|
$ |
1.16 |
|
Basic |
|
0.03 |
|
|
|
0.35 |
|
|
|
0.08 |
|
|
|
1.20 |
|
- Direct costs
exclude depreciation and amortization expenses disclosed
above.
- Interest expense from acquisitions,
net of dispositions, and upfinancings completed over the twelve
months ended June 30, 2023.
SUMMARIZED FINANCIAL
RESULTS
DISTRIBUTABLE EARNINGS |
|
UnauditedFor the periods ended June 30(US$ millions) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Asset management |
$ |
604 |
|
|
$ |
768 |
|
|
$ |
2,721 |
|
|
$ |
2,919 |
|
|
|
|
|
|
|
|
|
Insurance solutions |
|
160 |
|
|
|
46 |
|
|
|
634 |
|
|
|
85 |
|
|
|
|
|
|
|
|
|
BEP |
|
105 |
|
|
|
100 |
|
|
|
410 |
|
|
|
390 |
|
BIP |
|
80 |
|
|
|
75 |
|
|
|
310 |
|
|
|
289 |
|
BBU |
|
9 |
|
|
|
9 |
|
|
|
36 |
|
|
|
27 |
|
BPG |
|
196 |
|
|
|
218 |
|
|
|
778 |
|
|
|
921 |
|
Other |
|
7 |
|
|
|
(23 |
) |
|
|
(22 |
) |
|
|
(99 |
) |
Operating businesses |
|
397 |
|
|
|
379 |
|
|
|
1,512 |
|
|
|
1,528 |
|
|
|
|
|
|
|
|
|
Corporate costs and other |
|
(148 |
) |
|
|
(184 |
) |
|
|
(551 |
) |
|
|
(651 |
) |
Distributable earnings before realizations1 |
|
1,013 |
|
|
|
1,009 |
|
|
|
4,316 |
|
|
|
3,881 |
|
Realized carried interest,
net |
|
170 |
|
|
|
48 |
|
|
|
755 |
|
|
|
463 |
|
Disposition gains from principal investments |
|
4 |
|
|
|
129 |
|
|
|
134 |
|
|
|
567 |
|
Distributable earnings1 |
$ |
1,187 |
|
|
$ |
1,186 |
|
|
$ |
5,205 |
|
|
$ |
4,911 |
|
- Non-IFRS measure – see Non-IFRS and Performance Measures
section on page 8.
RECONCILIATION OF NET INCOME TO DISTRIBUTABLE
EARNINGS |
|
UnauditedFor the periods ended June 30(US$ millions) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
1,512 |
|
|
$ |
1,475 |
|
|
$ |
2,696 |
|
|
$ |
10,618 |
|
Financial statement components
not included in DE: |
|
|
|
|
|
|
|
Equity accounted fair value changes and other items |
|
703 |
|
|
|
535 |
|
|
|
2,586 |
|
|
|
1,500 |
|
Fair value changes |
|
(62 |
) |
|
|
397 |
|
|
|
2,260 |
|
|
|
(4,063 |
) |
Depreciation and amortization |
|
2,214 |
|
|
|
1,886 |
|
|
|
8,388 |
|
|
|
7,053 |
|
Deferred income taxes |
|
(151 |
) |
|
|
(189 |
) |
|
|
(288 |
) |
|
|
956 |
|
Non-controlling interests in
the above items1 |
|
(3,127 |
) |
|
|
(2,857 |
) |
|
|
(10,574 |
) |
|
|
(11,100 |
) |
Realized disposition gains in
fair value changes or prior periods |
|
283 |
|
|
|
152 |
|
|
|
782 |
|
|
|
1,169 |
|
Less: total disposition
gains |
|
(416 |
) |
|
|
(197 |
) |
|
|
(1,196 |
) |
|
|
(1,232 |
) |
Less: realized carried
interest, net |
|
(170 |
) |
|
|
(48 |
) |
|
|
(755 |
) |
|
|
(463 |
) |
Cash
retained in (returned from) businesses |
|
227 |
|
|
|
(145 |
) |
|
|
417 |
|
|
|
(557 |
) |
Distributable earnings before
realizations2 |
|
1,013 |
|
|
|
1,009 |
|
|
|
4,316 |
|
|
|
3,881 |
|
Realized carried interest,
net3 |
|
170 |
|
|
|
48 |
|
|
|
755 |
|
|
|
463 |
|
Disposition gains from principal investments |
|
4 |
|
|
|
129 |
|
|
|
134 |
|
|
|
567 |
|
Distributable earnings2 |
$ |
1,187 |
|
|
$ |
1,186 |
|
|
$ |
5,205 |
|
|
$ |
4,911 |
|
- 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 |
|
UnauditedFor the periods ended June 30(US$ millions) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
1,512 |
|
|
$ |
1,475 |
|
|
$ |
2,696 |
|
|
$ |
10,618 |
|
Non-controlling interests |
|
(1,431 |
) |
|
|
(885 |
) |
|
|
(2,388 |
) |
|
|
(6,754 |
) |
Net income attributable to shareholders |
|
81 |
|
|
|
590 |
|
|
|
308 |
|
|
|
3,864 |
|
Preferred share
dividends1 |
|
(41 |
) |
|
|
(37 |
) |
|
|
(158 |
) |
|
|
(147 |
) |
Dilutive effect of conversion of subsidiary preferred shares |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Net income available to common shareholders |
|
40 |
|
|
|
553 |
|
|
|
150 |
|
|
|
3,716 |
|
Dilutive impact of exchangeable shares of affiliate |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
5 |
|
Net income available to common shareholders including dilutive
impact of exchangeable shares |
$ |
40 |
|
|
$ |
554 |
|
|
$ |
150 |
|
|
$ |
3,721 |
|
|
|
|
|
|
|
|
|
Weighted average shares |
|
1,564.0 |
|
|
|
1,564.4 |
|
|
|
1,568.3 |
|
|
|
1,562.3 |
|
Dilutive effect of conversion of options and escrowed shares using
treasury stock method2and exchangeable shares of affiliate |
|
14.4 |
|
|
|
52.7 |
|
|
|
16.2 |
|
|
|
58.6 |
|
Shares and share equivalents |
|
1,578.4 |
|
|
|
1,617.1 |
|
|
|
1,584.5 |
|
|
|
1,620.9 |
|
|
|
|
|
|
|
|
|
Diluted
earnings per share3 |
$ |
0.03 |
|
|
$ |
0.34 |
|
|
$ |
0.09 |
|
|
$ |
2.30 |
|
- Excludes dividends
paid on perpetual subordinated notes of $2 million (2022 –
$2 million) and $10 million (2022 – $9 million) for
the three and twelve months ended June 30, 2023, 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
June 30, 2023, 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 quarter and twelve months ended June 30,
2023, 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 have
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 2023 Second 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/BIf5973af872c94d779ebaa4984cdb3e25.
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/w4ycvbgx. For those unable to
participate in the Conference Call, the telephone replay will be
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About Brookfield
Corporation
Brookfield Corporation (NYSE: BN, TSX: BN) is
focused on compounding capital over the long term to earn
attractive total returns for our shareholders. Today, our capital
is deployed across three businesses – Asset Management, Insurance
Solutions and our Operating Businesses, generating substantial and
growing free cash flows, all of which is underpinned by a
conservatively capitalized balance sheet.
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:
Communications & Media:Kerrie McHugh HayesTel:
(212) 618-3469Email: kerrie.mchugh@brookfield.com |
|
Investor Relations: Linda Northwood Tel: (416)
359-8647Email: linda.northwood@brookfield.com |
|
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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 insurance 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 make reference to Funds from Operations
(“FFO”). We define FFO as net income attributable to shareholders
prior to fair value changes, depreciation and amortization, and
deferred income taxes, and it includes realized disposition gains
that are not recorded in net income as determined under IFRS. FFO
also includes the company’s share of equity accounted investments’
FFO on a fully diluted basis.
FFO consists of the following components:
- Operating FFO
represents 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 present
this measure as we believe it assists in describing our results and
variances within FFO.
- Realized Carried
Interest as defined above.
- Realized
Disposition Gains are included in FFO because we consider the
purchase and sale of assets 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 FFO.
We use DE and FFO 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 also 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 and FFO, 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.
- Consolidated basis – includes amounts attributable to
non-controlling interests.
- Excludes amounts attributable to non-controlling
interests.
- See Reconciliation of Net Income to Distributable Earnings
Before Realizations and 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 three months ended June 30, 2022 and the twelve
months ended June 30, 2023 and 2022 were adjusted for the special
distribution of 25% of our asset management business on December 9,
2022.
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, and, “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 which reflect
management’s expectations 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 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.” In particular, the forward-looking statements contained in
this news release include statements referring the impact of
current market or economic conditions on our operating businesses,
the future state of the economy or the securities market and
expected future deployment of capital and dispositions as well as
statements regarding future earnings.
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 Brookfield
Corporation or Brookfield Asset Management Ltd. 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: (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 including as a
result of COVID-19 and related global economic disruptions;
(iii) the behavior of financial markets, including
fluctuations in interest and foreign exchange rates;
(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; (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 real estate, renewable
power and transition, infrastructure, private equity, and credit;
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 its results. Readers are urged
to consider the foregoing risks, as well as other uncertainties,
factors and assumptions carefully in evaluating the forward-looking
information and are cautioned not to place undue reliance on such
forward-looking information. 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.
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. Prior performance is not
indicative of future results and there can be no guarantee that
Brookfield Corporation will achieve the target returns or growth
objectives or be able to avoid losses.
Certain of the information contained herein is
based on or derived from information provided by independent
third-party sources. While Brookfield Corporation believes that
such information is accurate as of the date it was produced and
that the sources from which such information has been obtained are
reliable, Brookfield Corporation makes no representation or
warranty, express or implied, with respect to the accuracy,
reasonableness or completeness of any of the information or the
assumptions on which such information is based, contained herein,
including but not limited to, information obtained from third
parties.
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