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  • Writer's pictureShernel Thielman

Brookfield Corporation Reports 21% Increase in Distributable Earnings to $4.3 billion

Brookfield Corporation has reported its financial results for the second quarter ended June 30, 2023. President Nick Goodman highlighted strong performance during this period, noting stable and increasing cash flows across their operations. The company has seen significant momentum in various business aspects, including $50 billion in acquisitions, around $15 billion in asset sales, and an anticipated inflow of approximately $150 billion in 2023.

Goodman also emphasized their unique attributes, such as substantial liquidity of nearly $120 billion, extensive access to capital, and expertise, which positions them to expand operations significantly and maintain one of the world's largest discretionary capital pools.

The company's distributable earnings (DE) before realizations grew by 21% compared to the previous year, excluding the impact of a special distribution completed in the prior December. Second-quarter net income reached $1.5 billion, with DE before realizations at $1.0 billion for the quarter and $4.3 billion for the last twelve months (LTM). Asset management and insurance solutions divisions both displayed strong performance, while operating businesses generated steady cash flows.

Brookfield's dividend for the Corporation was declared at $0.07 per share, scheduled for payment on September 29, 2023. The company is focused on expanding its investment returns and increasing its existing assets' yields.

Noteworthy achievements include substantial fundraising and deployment efforts, leading to increased fee-related earnings and overall growth in various sectors. The company is on track to achieve a record capital raise of nearly $150 billion in 2023.

Moreover, the insurance solutions business showcased impressive results, with a focus on enhancing investment returns through strategic redeployment of short-duration investments. The company expects significant earnings growth with upcoming acquisitions.

The operating businesses segment demonstrated resilience and growth, as evidenced by increased cash distributions and net operating income (NOI). Asset sales, earnings from realizations, and a strong balance sheet underscore Brookfield's financial strength and strategic positioning for continued growth and investment.

With a substantial amount of capital available for investment, combined with prudent financial management, Brookfield Corporation remains well-prepared to pursue growth opportunities and maintain its financial stability.

Investment Disclaimer:

This communication is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell securities. Past performance is not indicative of future results. Investments carry risks, and individuals should consult with their financial advisors before making investment decisions.

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