Bullboard - Stock Discussion Forum Brookfield Ord Shs Class A T.BN

Alternate Symbol(s): BN | T.BN.PR.C

Brookfield Corporation is an owner and operator of real assets. It is focused on compounding capital over the long term to earn attractive total returns for its shareholders. Its operating segments include the asset management business and insurance solutions business. Its operating businesses include Renewable Power and Transition business, which includes the ownership, operation, and... see more

Add To Watchlist

TSX:BN - Post Discussion

Brookfield Ord Shs Class A > RBC

View:

Post by retiredcf on Nov 09, 2023 10:59am

RBC

November 9, 2023

Brookfield Corporation
Q3/23 Distributable Earnings/share was well ahead of our forecast

NYSE: BN | USD 32.18 | Outperform | Price Target USD 43.00

Sentiment: Positive

Our initial take: BN just reported Q3/23 results, with DE/share (before realized carried interest and disposition gains) of US$0.67 well ahead of our US$0.54 forecast due to higher-than-forecast FRE, distributions from real estate and reinsurance and lower- than-forecast corporate operating expenses and taxes. In terms of key metrics:

Q3/23 Real Estate FFO was +US$166MM, compared to negative -US$13MM Q/Q in Q2/23 and -US$2MM in Q1/23 and +US $83 MM Y/Y in Q3/22. The significant improvement in FFO whether Y/Y or Q/Q was driven by FFO by Real Estate LP investments (e.g., investments in the BSREP flagship funds) and appears to be likely helped by disposition gains in Q3/23. Q3/23 Operating FFO from Core plus Transition & Development was +US$7MM vs. Q/Q of +US$32MM in Q2/23 and -US$6MM in Q1/23, so it appears to show stabilization of OFFO in Core plus Transitional & Development.
Q3/23 Reinsurance DE was US$182MM, ahead of our US$164MM forecast and vs. US$160MM Q/Q and US$159MM Y/Y.
Fee related earnings (FRE) was ahead of our estimate: Q3/23 FRE of US$426MM (US$0.27/share) was ahead of our US$376MM (US$0.23/share) forecast. On a Y/Y basis, FRE was +8% after adjusting for the BAM spin-off.

Conference call today at 10:00am ET; webcast only