Brookfield Announces Reset Dividend Rate on Its Series 24 Preference Shares

Brookfield resets Series 24 dividend, introduces Series 25 conversion option

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    <h3>Information</h3>
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    <h3>AI Summary</h3>
    <p>Brookfield announced a five-year reset for Series 24 preferred shares, fixing the annual dividend at 5.432% from July 1, 2026 to June 30, 2031. Holders may convert to Series 25 (floating, 2.30% over 3-month GOC yields) by June 15, 2026, with Series 25 listing contingent on TSX requirements. The near-term dynamic will influence investor demand between Brookfield’s preferreds and its overall capital structure.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Brookfield resets Series 24 fixed dividend to 5.432% for 2026–2031.</li><li>Holders may convert to Series 25 by June 15, 2026.</li><li>Series 25 dividends float at 2.30% over 3-month GOC yields; Q3 2026 rate 1.16525%.</li><li>Auto-conversion triggers limited to thresholds; current Series 24 outstanding: 10.808M.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Brookfield Corporation (BN)</strong>: Announces Series 24 dividend reset; potential impact on Brookfield&#039;s preferreds and capital structure.</li><li><strong>Series 24 Preferred Shares (BN-24)</strong>: 10.808M outstanding; fixed 5.432% annual dividend; conversion option to Series 25.</li><li><strong>Series 25 Preferred Shares (BN-25)</strong>: Floating dividends; conversion option; TSX listing conditional.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. This is a financing/structure change for Brookfield&#039;s preferred equity that could influence demand for related securities and Brookfield&#039;s cost of capital.</p>
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    <h3>Market-Moving</h3>
    <ul><li>Fixed 5.432% Series 24 yield may attract investors seeking steady income.</li><li>Convertibility option could shift supply to Series 25 if exercised.</li><li>TSX listing for Series 25 is conditional, impacting near-term liquidity.</li><li>Common stock unaffected in near term; focus on preferreds&#039; valuation.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Five-year reset period: July 1, 2026 to June 30, 2031.</li><li>Annual fixed dividend: 5.432% ($0.3395 per share per quarter).</li><li>Conversion deadline: June 15, 2026.</li><li>Outstanding Series 24: 10,808,027 shares.</li><li>Series 25 rate: 1.16525% for Jul-Sep 2026 (4.623% annualized).</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>BN&#039;s preferreds may stay flat near-term; monitor conversions over 1–3 months.</p>
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  <p><em>All amounts in Canadian dollars unless otherwise stated.</em></p>

  <section>
    <h2>Brookfield Announces Reset Dividend Rate on Its Series 23 Preference Shares</h2>
    <p>Brookfield Corporation ("Brookfield") (<strong>NYSE: BN</strong>, <strong>TSX: BN</strong>) today announced the reset dividend rate on its Cumulative Class A Preference Shares, Series 24 (the "Series 24 Shares") (<strong>TSX: BN</strong>) for the five years commencing July 1, 2026 and ending June 30, 2031.</p>
    <p>If declared, the fixed quarterly dividends on the Series 24 Shares during the five years commencing July 1, 2026 will be paid at an annual rate of <strong>5.432%</strong> (<strong>$0.3395</strong> per share per quarter).</p>
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  <section>
    <h3>Conversion rights and Series 25 Shares</h3>
    <p>Holders of Series 24 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2026, to convert all or part of their Series 24 Shares, on a one-for-one basis, into Cumulative Class A Preference Shares, Series 25 (the "Series 25 Shares"), effective June 30, 2026.</p>
    <p>The quarterly floating rate dividends on the Series 25 Shares will be paid at an annual rate, calculated for each quarter, of 2.30% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the July 1, 2026 to September 30, 2026 dividend period for the Series 25 Shares will be 1.16525% (4.623% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.2913125 per share, payable on September 30, 2026.</p>
    <p>Holders of Series 24 Shares are not required to elect to convert all or any part of their Series 24 Shares into Series 25 Shares.</p>
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  <section>
    <h3>Automatic conversion provisions and outstanding shares</h3>
    <p>As provided in the share conditions of the Series 24 Shares, (i) if Brookfield determines that there would be fewer than <strong>1,000,000</strong> Series 24 Shares outstanding after June 30, 2026, all remaining Series 24 Shares will be automatically converted into Series 25 Shares on a one-for-one basis effective June 30, 2026; and (ii) if Brookfield determines that there would be fewer than <strong>1,000,000</strong> Series 25 Shares outstanding after June 30, 2026, no Series 24 Shares will be permitted to be converted into Series 25 Shares. There are currently <strong>10,808,027</strong> Series 24 Shares outstanding.</p>
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  <section>
    <h3>TSX listing and regulatory approval</h3>
    <p>The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Series 25 Shares effective upon conversion. Listing of the Series 25 Shares is subject to Brookfield fulfilling all the listing requirements of the TSX.</p>
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  <section>
    <h2>About Brookfield Corporation</h2>
    <p>Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Asset Management, Wealth Solutions, and our Operating Businesses which are in energy, infrastructure, private equity, and real estate.</p>
    <p>We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).</p>
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  <section>
    <h3>Key Facts at a Glance</h3>
    <ul>
      <li><strong>Five-year fixed dividend rate</strong> on Series 24 Shares: <strong>5.432%</strong> per year, or <strong>$0.3395</strong> per share per quarter</li>
      <li>Conversion right: Holders may convert all or part of their Series 24 Shares to Series 25 Shares on a one-for-one basis, exercisable by June 15, 2026; effective June 30, 2026</li>
      <li>Series 25 floating-rate dividend: <strong>2.30%</strong> over the annual yield on three-month Government of Canada treasury bills; actual for July 1, 2026 to September 30, 2026: <strong>1.16525%</strong> (annualized <strong>4.623%</strong>) and per-share dividend <strong>$0.2913125</strong></li>
      <li>Automatic conversion threshold: fewer than <strong>1,000,000</strong> Series 24 Shares outstanding triggers automatic conversion to Series 25; fewer than <strong>1,000,000</strong> Series 25 Shares outstanding prevents Series 24 conversion</li>
      <li>Current Series 24 Shares outstanding: <strong>10,808,027</strong></li>
      <li>TSX listing: Series 25 Shares listing conditional on conversion and TSX listing requirements</li>
      <li>Ticker references: Brookfield Corporation is publicly traded as <strong>BN</strong> on both NYSE and TSX</li>
    </ul>
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  <section>
    <h2>Contact Information</h2>
    <ul>
      <li><strong>Communications & Media:</strong> Kerrie McHugh<br> Tel: (212) 618-3469<br> Email: <a href="mailto:kerrie.mchugh@brookfield.com">kerrie.mchugh@brookfield.com</a></li>
      <li><strong>Investor Relations:</strong> Katie Battaglia<br> Tel: (416) 359-8544<br> Email: <a href="mailto:katie.battaglia@brookfield.com">katie.battaglia@brookfield.com</a></li>
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Brookfield announced a five-year reset for Series 24 preferred shares, fixing the annual dividend at 5.432% from July 1, 2026 to June 30, 2031. Holders may convert to Series 25 (floating, 2.30% over 3-month GOC yields) by June 15, 2026, with Series 25 listing contingent on TSX requirements. The near-term dynamic will influence investor demand between Brookfield’s preferreds and its overall capital structure.

Brookfield Announces Reset Dividend Rate on Its Series 24 Preference Shares

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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