Brookfield Corp. Q3 FY2024 earnings call

• Market conditions: Reduction in short interest rates globally, liquidity returning to capital markets, transaction activity picking up.
• Business evolution: Built Wealth Solutions business when rates were zero, expanded outside North America, evolved into energy transition and AI-related infrastructure, widened service capabilities.
• Financial results: Strong distributable earnings, record $1.3 billion DE before realizations in Q3, 19% increase. Asset management had strong fundraising, Wealth Solutions growing fast, operating businesses resilient.
• Monetizations: Over $17 billion of asset sales closed or advanced, real estate and renewable power/transition had significant monetizations.
• Capital allocation: Returned $203 million to shareholders through dividends and buybacks, $1 billion of share repurchases in last 12 months.

Asset Management: Distributable earnings were $694 million or $0.44 per share in the quarter and $2.6 billion or $1.64 per share over the last 12 months. Fee-bearing capital at quarter end was $539 billion, 23% higher than 12 months ago. Wealth Solutions: Earnings doubled compared to prior year quarter. Distributable operating earnings were $364 million or $0.23 per share in the quarter and $1.2 billion or $0.75 per share over the last 12 months. Insurance assets increased over $115 billion at quarter end. Operating Businesses: Generated distributable earnings of $356 million or $0.23 per share in the quarter and $1.5 billion or $0.93 per share over the last 12 months. Real estate core portfolio had 4% growth in same-store net operating income.

• Distributable earnings before realizations expected to continue growing, driven by fundraising momentum and business evolution.
• Expect strong recovery in real estate markets over next couple of years.
• Target to achieve spread earnings of approximately 2% in Wealth Solutions, growing annualized earnings to $2 billion in near-term.
• Board declared quarterly dividend of $0.08 per share.

• Risks associated with forward-looking statements, known and unknown risks that could cause results to differ materially.
• Market conditions and regulatory changes could impact business operations.

Q: On capital allocation, should we infer share repurchases will be bigger?

A: Nick said it's just better illustration, done $1B repurchases, will continue but nothing more.

Q: Wealth Solutions spread target, when to hit 200 basis points?

A: Nick said next 12 months.

Q: Real estate transition and development portfolio, plan for lump sum?

A: Plans to monetize assets and recycle capital, will execute at right time. On discount rates, will assess at year end but no significant changes expected.

Q: BAM eligibility for U.S. index inclusion, desired stake in BAM?

A: Focused on positioning BAM for index inclusion, down to 73% ownership, will be significant owner long-term with flexibility.

Q: Asset transaction environment, best opportunities for monetization and acquisitions?

A: Opportunities across business groups, buying assets with broken capital structures and selling after derisking.

Q: Discount to plan value, which bucket misunderstood?

A: Hard to say, need to execute and deliver returns to crystallize value. No impact on BAM ownership from tax or disposition gain.

Q: Insurance P&C business, hurricane impact in Q3?

A: Small impact in Q3, not material, not expecting significant in Q4 as reinsured exposure. On energy transition and U.S. election, insulated, invest based on demand and fundamentals, optimistic about renewables business.