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 Nov 09, 2023 10:59am

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Post# 35726087

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