Distributable Earnings Before Realizations Increased 15% to a Record $4.9 billion or $3.07 Per Share
Quarterly Dividend Raised by 13%
BROOKFIELD, NEWS, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Brookfield Corporation (NYSE: BN, TSX: BN) announced record financial results for the year ended December 31, 2024.
Nick Goodman, President of Brookfield Corporation, said, "We delivered record financial results in 2024, with strong contributions from each of our businesses. Our asset management business had inflows of over $135 billion, our wealth solutions business is now firmly established as a top-tier annuity writer in the U.S., and our operating businesses continue to generate high-quality and stable cash flows.”
He continued, "We expect the positive momentum in each of our businesses to continue this year. Our access to scale capital remains very strong and with transaction activity expected to pick up throughout 2025, we are well positioned to continue to generate strong growth in our cash flows and intrinsic value.”
Operating Results
Distributable earnings ("DE”) before realizations increased by 24% and 15% on a per share basis compared to the prior year periods.
| Unaudited For the periods ended December 31 (US$ millions, except per share amounts) | Three Months Ended | Years Ended | |||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income of consolidated business1 | $ | 101 | $ | 3,134 | $ | 1,853 | $ | 5,105 | |||
| Net income attributable to Brookfield shareholders2 | 432 | 699 | 641 | 1,130 | |||||||
| Distributable earnings before realizations2,3 | 1,498 | 1,209 | 4,871 | 4,223 | |||||||
| - Per Brookfield share2,3 | 0.94 | 0.76 | 3.07 | 2.66 | |||||||
| Distributable earnings2,3 | 1,606 | 1,312 | 6,274 | 4,806 | |||||||
| - Per Brookfield share2,3 | 1.01 | 0.83 | 3.96 | 3.03 | |||||||
Total consolidated net income was $101 million in the quarter and $1.9 billion for the year. Distributable earnings before realizations were a record $1.5 billion ($0.94/share) for the quarter and $4.9 billion ($3.07/share) for the year.
Our asset management business generated a 17% increase in fee-related earnings compared to the prior year quarter, benefiting from strong fundraising momentum and the scaling of its credit platform through strategic partnerships.
Wealth solutions earnings nearly doubled compared to the prior year, on the back of the acquisition of American Equity Life ("AEL”), organic growth and the attractive returns on our investment portfolio.
Our operating businesses continue to deliver stable and growing cash flows, underpinned by the strong earnings of our renewable power and transition, infrastructure and private equity businesses and 4% growth in same-store net operating income ("NOI”) from our core real estate portfolio.
During the quarter and for the year, earnings from realizations were $108 million and $1.4 billion, with total DE for the quarter and for the year of $1.6 billion ($1.01/share) and $6.3 billion ($3.96/share), respectively.
Regular Dividend Declaration
The Board declared a 13% increase in the quarterly dividend for Brookfield Corporation to $0.09 per share (representing $0.36 per annum), payable on March 31, 2025 to shareholders of record as at the close of business on March 14, 2025. The Board also declared the regular monthly and quarterly dividends on our preferred shares.
Operating Highlights
Distributable earnings before realizations were a record $1.5 billion ($0.94/share) for the quarter and $4.9 billion ($3.07/share) for the year, representing an increase of 24% and 15% on a per share basis over the prior year periods, respectively. Total distributable earnings were $1.6 billion ($1.01/share) for the quarter and $6.3 billion ($3.96/share) for the year.
Asset Management:
- DE was $694 million ($0.44/share) in the quarter and $2.6 billion ($1.67/share) for the year.
- Fee-related earnings grew by 17% compared to the prior year quarter, driven by an 18% increase in fee-bearing capital over the prior year to $539 billion as at December 31, 2024. Total inflows were over $135 billion in 2024.
- Our latest round of flagship funds have raised approximately $40 billion across our second global transition fund strategy, our fifth opportunistic real estate fund strategy, and our flagship opportunistic credit fund strategy. Heading into 2025, we expect to hold final closes for our latest flagship funds and continue to actively deploy capital, which should contribute to strong earnings growth.
- Distributable operating earnings were $421 million ($0.26/share) in the quarter and $1.4 billion ($0.85/share) for the year.
- Insurance assets increased to over $120 billion, as we originated approximately $19 billion of retail and institutional annuity sales in 2024. We continue to diversify the business by growing our pension risk transfer capabilities and expanding into new markets. An example of this is the completion of our first reinsurance transaction in the U.K., at $1.3 billion which closed in the fourth quarter.
- The average investment portfolio yield was 5.4%, 1.8% higher than the average cost of capital. As we continue to rotate the investment portfolio, annualized earnings for the business are well positioned to grow from approximately $1.6 billion today to $2 billion in the near term.
- We are raising close to $2 billion of retail capital per month via our combined wealth solutions platforms.
- DE was $562 million ($0.35/share) in the quarter and $1.6 billion ($1.03/share) for the year.
- Operating Funds from Operations in our renewable power, transition and infrastructure businesses increased by 10% over the prior year. Our private equity business continues to contribute resilient, high-quality cash flows. Our core real estate portfolio continues to grow its same-store NOI, delivering a 4% increase over the prior year quarter.
- In our real estate business, we signed close to 27 million square feet of office and retail leases during the year. Rents on the newly signed leases were approximately 35% higher compared to those leases expiring in the fourth quarter. Also during the fourth quarter, our DE benefited from monetizing a land parcel within our North American residential operations.
- As real estate markets continue to recover in the coming years, we expect earnings and valuations of the business to strengthen.
- During the year, we closed nearly $40 billion of asset sales at strong returns, which include a portfolio of U.S. manufactured housing assets and several renewable power and infrastructure assets globally. With the pick-up in transaction activity, we expect this momentum to accelerate into 2025.
- Total accumulated unrealized carried interest was $11.5 billion at year end, representing an increase of 13% over the prior year, net of carried interest realized into income. We recognized approximately $400 million of net realized carried interest into income in 2024, and we expect to realize significant carried interest as we actively monetize assets in the coming years.
- We have record deployable capital of approximately $160 billion, which includes $68 billion of cash, financial assets and undrawn credit lines at the Corporation, our affiliates and our wealth solutions business.
- Our balance sheet is robust and remains conservatively capitalized. Our corporate debt at the Corporation has a weighted-average term of 14 years and today we have no maturities through to the end of 2025.
- Over the year, we returned $1.5 billion to shareholders through regular dividends and share repurchases, with total share buybacks of approximately $1 billion. In 2025 so far, we have repurchased over $200 million of shares.
- We had an active year in the capital markets. We executed approximately $135 billion of financings, including issuing $700 million of 30-year subordinated notes and a $1 billion, 7-year non-recourse loan to a large institutional partner of ours, the proceeds of which will mainly be directed towards share repurchases.
| Unaudited (US$ millions) | December 31 | December 31 | ||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 15,051 | $ | 11,222 | ||||
| Other financial assets | 25,887 | 28,324 | ||||||
| Accounts receivable and other | 40,509 | 31,001 | ||||||
| Inventory | 8,458 | 11,412 | ||||||
| Equity accounted investments | 68,310 | 59,124 | ||||||
| Investment properties | 103,665 | 124,152 | ||||||
| Property, plant and equipment | 153,019 | 147,617 | ||||||
| Intangible assets | 36,072 | 38,994 | ||||||
| Goodwill | 35,730 | 34,911 | ||||||
| Deferred income tax assets | 3,723 | 3,338 | ||||||
| Total Assets | $ | 490,424 | $ | 490,095 | ||||
| Liabilities and Equity | ||||||||
| Corporate borrowings | $ | 14,232 | $ | 12,160 | ||||
| Accounts payable and other | 60,223 | 59,011 | ||||||
| Non-recourse borrowings | 220,560 | 221,550 | ||||||
| Subsidiary equity obligations | 4,759 | 4,145 | ||||||
| Deferred income tax liabilities | 25,267 | 24,987 | ||||||
| Equity | ||||||||
| Non-controlling interests in net assets | $ | 119,406 | $ | 122,465 | ||||
| Preferred equity | 4,103 | 4,103 | ||||||
| Common equity | 41,874 | 165,383 | 41,674 | 168,242 | ||||
| Total Equity | 165,383 | 168,242 | ||||||
| Total Liabilities and Equity | $ | 490,424 | $ | 490,095 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS
| Unaudited For the periods ended December 31 (US$ millions, except per share amounts) | Three Months Ended | Years Ended | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | $ | 19,426 | $ | 24,518 | $ | 86,006 | $ | 95,924 | |||||||
| Direct costs1 | (11,977 | ) | (18,168 | ) | (58,199 | ) | (72,334 | ) | |||||||
| Other income and gains | 52 | 4,256 | 1,247 | 6,501 | |||||||||||
| Equity accounted income | 1,034 | 429 | 2,729 | 2,068 | |||||||||||
| Interest expense | |||||||||||||||
| - Corporate borrowings | (183 | ) | (142 | ) | (727 | ) | (596 | ) | |||||||
| - Non-recourse borrowings | |||||||||||||||
| Same-store | (3,474 | ) | (3,903 | ) | (14,889 | ) | (14,907 | ) | |||||||
| Acquisitions, net of dispositions2 | (136 | ) | - | (319 | ) | - | |||||||||
| Upfinancings2 | (186 | ) | - | (680 | ) | - | |||||||||
| Corporate costs | (20 | ) | (16 | ) | (76 | ) | (69 | ) | |||||||
| Fair value changes | (1,759 | ) | (1,326 | ) | (2,520 | ) | (1,396 | ) | |||||||
| Depreciation and amortization | (2,417 | ) | (2,427 | ) | (9,737 | ) | (9,075 | ) | |||||||
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