Brookfield Ord Shs Class A T.BN

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

Financial Services Asset Management

Brookfield Corporation is a Canada-based global investment firm focused on building long-term wealth for institutions and individuals around the world. The Company has three core businesses: alternative asset management, wealth solutions, and its operating businesses which are in renewable power, infrastructure, business and industrial services, and real estate. Its asset management business includes managing long-term private funds, perpetual strategies and liquid strategies on behalf of its investors and itself. Its wealth solutions business includes its equity accounted interest in Brookfield Reinsurance Ltd. Its renewable power and transition business includes the ownership, operation and development of hydroelectric, wind and others. Its infrastructure business includes the ownership, operation and development of utilities, transport, midstream, and data assets. Its private equity business is focused on ownership and operations in the business and industrial services sector.

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Brookfield Ord Shs Class A

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Post by retiredcfon Mar 08, 2023 10:24am

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Post# 35325696

RBC

March 7, 2023

Brookfield Corporation
Highlights from the RBC Global Financial Institutions Conference

NYSE: BN | USD 33.53 | Outperform | Price Target USD 54.00

Sentiment: Neutral

Bruce Flatt, CEO of Brookfield Corporation and Brookfield Asset Management, participated in a Fireside Chat at the RBC Global Financial Institutions Conference.

Key takeaway: We think Brookfield Corp. is well-positioned to capitalize on several attractive long-term investing themes (e.g., Global Transition/Renewables, Infrastructure, etc.) and view the significant discounted valuation as attractive.

Other takeaways include:

Macro outlook - In part driven by its long-term investing horizon, while acknowledging the potential for a recession, BN is positive on the current market environment and believes that its current asset mix is well-positioned to perform during a weaker economic environment and/or high interest rates and high inflation, but also deliver strong returns over time. BN noted one issue is that bank financing remains constrained to finance acquisitions, but that there are some early signs of that abating.
Fundraising - BN remains bullish on its fundraising outlook and believes it can raise another US$100B or more in 2023. The Company also highlighted what appears to be a disconnect in the alternatives/private equity industry with larger players with more diversified product offerings generally having less difficulty fundraising as institutional investors/sovereign wealth funds are potentially further consolidating the number of providers they use.
Real Estate - Acknowledging investor sentiment is generally cautious towards Real Estate, BN's view is that quality always wins and thinks that, in this moment, that gap is wider than before. The Company pointed to Industrial driven by location, Retail by the quality of the center and Office by the newness of the building, and that in many cases, rents are very strong (e.g., some segments are seeing rents 50% higher than pre-pandemic) and that ~80% of BN's Real Estate portfolio is really high quality.
Global Transition - BN expects to be fundraising for its 2nd fund soon (the 1st fund was US$15B). BN believes within the last 2-3 years CEOs globally recognize the need to adapt to the theme of de-carbonization. Furthermore, the dynamic has changed where today there is far more demand from counterparties than BN's ability to find Renewable Power sites which is the opposite dynamic vs historical.
Other - We think BN had positive comments about its other segments (e.g., long-term growth in Infrastructure and with greater scale, this gets higher quality and larger partnerships; attractive growth in Reinsurance and the ability to deliver strong investment returns to capture attractive spread income).