Brookfield Corp. Q1 FY2025 earnings call

• Bruce Flatt: Strong start to the year with DE before realizations up 30% to $1.3 billion. Businesses performed well, macro trends like deglobalization, digitalization, decarbonization drive investment pipeline. Committed $20 billion to acquire businesses and repurchased $850 million of shares.
• Nick Goodman: Financial results strong, DE before realizations $1.3 billion ($0.82 per share) Q1. Asset management had strong fundraising, Wealth Solutions performed well, operating businesses resilient. Real estate benefited from demand for premium assets, sold $22 billion of assets. Reinvested $3 billion and returned $700 million to shareholders.
• Sachin Shah: Wealth Solutions business grew to over $140 billion assets and $1.7 billion annualized earnings. Scaling U.S. annuity business, expanding internationally with U.K. pension license, expects $25 billion of annuities in 2025 and leverages Brookfield ecosystem for returns.

Asset Management: Distributions were $684 million ($0.43 per share) in the quarter and $2.7 billion ($1.71 per share) over the last 12 months. Fee-bearing capital grew to $549 billion at quarter end, with fee-related earnings up 26% to a record $698 million. Wealth Solutions: Distributable operating earnings were $430 million ($0.27 per share) in the quarter and $1.5 billion ($0.95 per share) over the last 12 months. Originated $4 billion of retail and institutional annuities, statutory capital over $16 billion, and ROE in line with 15% target. Operating Businesses: Distributable earnings were $426 million ($0.27 per share) in the quarter and $1.7 billion ($1.08 per share) over the last 12 months. Real estate had 3% same-store net operating income growth, 95% occupancy, and leased nearly 9 million square feet. North American residential sold 5 master plan communities, realized $189 million carried interest, and accumulated unrealized carried interest was $11.6 billion.

• Bruce: Committed $20 billion to acquire businesses, will invest disciplinedly and continue opportunistic share repurchases.
• Nick: Expect to continue positive momentum with sales processes underway.
• Sachin: Anticipates writing $25 billion of combined retail and institutional annuities in 2025.

• Market volatility due to trade policy impacting capital markets. - Uncertainty in transaction activity affecting monetization plans.

Q: Apart from semiconductors and pharmaceuticals, investors are skeptical about broad reindustrialization in the U.S. Elaborate on Brookfield's perspective and Intel deal.

A: Bruce Flatt states supply chains are reorienting globally, presenting attractive investment opportunities, and Brookfield has the capital, scale, and expertise to capitalize on this.

Q: Regarding $25 billion of Wealth Solutions business expected in 2025, elaborate on where it's coming from and distribution.

A: Sachin Shah mentions progression in U.K. pension deals, growth in retail annuity distribution through broker-dealers and bank channels, and product evolution to serve market needs.

Q: Talk about real estate monetization pipeline and cadence.

A: Nick Goodman says real estate fundamentals are strong, capital markets are constructive, with assets in market across sectors and geographies, and monetization pipeline is active.

Q: U.S. financial media suggests another large annuity company is in play; how beneficial is size and scale to Brookfield?

A: Sachin Shah states Brookfield grew the business from a value perspective, current valuations make M&A at high prices unlikely, but they can lean on organic growth and pursue M&A opportunistically.