Our initial take: BAM just reported Q3/22 results, with OFFO/share of US$0.73 ahead of our US$0.70 forecast due to slightly
higher-than-forecast FRE/share with invested capital OFFO/share marginally ahead of our forecast.
Asset Manager spin-off approved by shareholders at yesterday's vote. For a detailed analysis on the transaction, please see our primer on the asset manager spin-off.
In terms of key metrics:
• Consolidated OFFO/share was ahead of our estimate: Q3/22 Operating FFO (OFFO) of US$1,216MM (US$0.73/share) was slightly ahead of our US$1,178MM (US$0.70/share) forecast. On a Y/Y basis OFFO/share was +31%. The variance to our forecast primarily reflected slightly higher-than-forecast FRE and to a lesser extent higher-than-forecast invested capital OFFO.
• Fee related earnings (FRE) was slightly ahead of our estimate: Q3/22 FRE of US$531MM (US$0.33/share) was ahead of our US $502MM (US$0.31/share) forecast. On a Y/Y basis, FRE/share was +18%.
• Fee bearing capital (FBC): Q3/22 consolidated FBC (incl. Oaktree at 100%) was US$407B, +4% Q/Q from US$392B in Q2/22 and +19% Y/Y from US$341B in Q3/21. The Q/Q change primarily reflected significant increases across all asset classes.
• Invested capital (Hard NAV) OFFO/share was in line with our estimate: Q3/22 Invested capital OFFO of US$685MM (US$0.40/ share) was in line with our US$675MM (US$0.39/share) forecast. On a Y/Y basis Invested capital OFFO/share was +45%.
• Reported FFO/share was ahead of our estimate: Q3/22 Reported FFO of US$1.47B (US$0.89/share) was ahead of our US$1.23B (US$0.73/share) forecast. On a Y/Y basis Reported FFO/share was +5%. The variance to our forecast primarily reflected higher- than-forecast disposition gains and to a lesser extent higher-than-forecast FRE.
Conference call today at 10:00am ET; webcast only