Brookfield Corporation Q3 FY2025 earnings call

• Markets: Economic activity and corporate earnings healthy, capital markets open with increasing transaction activity. Monetary policy turning with potential easing, structural forces affecting debt burdens.
• Business Update: Delivered strong financial results with distributable earnings before realizations $1.3 billion for Q3 and $5.4 billion over LTM, an 18% increase y-o-y. Key trends include AI innovation, aging populations, and real estate recovery.
• Asset Management: Strong fundraising with $30 billion inflows, final institutional close of $20 billion energy transition fund, launched private equity and AI infrastructure funds, and announced acquisition of remaining Oaktree interest.
• Wealth Solutions: Strong growth with $420 million Q3 distributable earnings, $5 billion annuities originated, progress in UK and Japan markets with acquisition of Just Group and reinsurance agreement in Japan.
• Operating Businesses: Resilient cash flows, $75 billion monetizations year-to-date, including Rockpoint IPO and US manufactured housing sales at attractive values.

Asset Management: Distributable earnings were $687 million or $0.29 per share in the quarter and $2.7 billion or $1.14 per share over the last 12 months. Fee-related earnings increased by 17% to a record $754 million as fee-bearing capital grew to $581 billion. Strong fundraising led to $30 billion of inflows during the quarter. Wealth Solutions: Distributable earnings were $420 million or $0.18 per share in the quarter and $1.7 billion or $0.70 per share over the last 12 months, representing organic growth over 15% year-over-year. Originated $5 billion of retail and institutional annuities, with 80% of new retail annuities having durations of 5 years or longer. Operating Businesses: Distributable earnings were $336 million or $0.15 per share in the quarter and $1.7 billion or $0.72 per share over the last 12 months, underscoring strong operating performance.

• Distributable earnings before realizations were $1.3 billion for Q3 and $5.4 billion over LTM, an 18% increase y-o-y.
• Outlook remains strong with underlying businesses executing strategic plans.
• Expect continued growth in results through 2026.
• Board declared a quarterly dividend of $0.06 per share.

• Forward-looking statements subject to known and unknown risks, future results may differ materially.
• Risks include monetary policy changes, labor market softness, debt burden management, and regulatory approvals for acquisitions.

Q: How do you see humanoid and AI broadly potentially creating another leg of the stool for Brookfield over time?

A: Most capital deployment is around building infrastructure to support AI growth, with unique position in renewable energy, nuclear, and data center/AI fund. Figure partnership is about staying ahead and participating in AI trends.

Q: How long do you think it may take to get to your approximate 200 basis point target net investment yield spread?

A: 200 basis points is a medium- to long-term target, taking time as cash is disciplined for deployment into real assets or credit/equity.

Q: Has the composition of the $3 billion purchase price between BAM BN shares and cash been settled?

A: Elections finalized, roughly $250 million of BN shares elected, balance in cash, with no impact on share repurchases.

Q: How is carry generation shaping up for 2026?

A: Outlook for carry still expects step up in 2026, with strong M&A and capital markets supporting activity, and continued monetization progress.