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Partners Value Investments Inc. Announces 2024 Annual Results

1. Partners Value Investments reported a $3.8 billion net loss for 2024. 2. Losses driven by retractable shares, partially offset by higher investment earnings. 3. Adjusted Earnings rose to $122 million from $27 million year-on-year. 4. Brookfield Asset Management share price fell to $48.50 as of March 2025. 5. Higher valuation gains and foreign currency gains noted compared to 2023.

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Why Bearish?

The significant net loss could signal further financial distress for BAM.

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The financial health of Partners Value directly affects investor perception of BAM.

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Short-term price fluctuations likely due to negative sentiment from the losses.

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BNBAM
March 28, 2025 20:00 ET  | Source: Partners Value Investments Inc. TORONTO, March 28, 2025 (GLOBE NEWSWIRE) -- Partners Value Investments Inc. (the “Company”, TSX: PVF.WT, PVF.PR.V) announced today its financial results for the year ended December 31, 2024. All amounts are stated in U.S. dollars. The Company recorded net loss of $3.8 billion for the year ended December 31, 2024, compared to $333 million in the prior year. The decrease in income was primarily attributable to the current year remeasurement losses associated with the retractable shares and warrant liabilities, partially offset by higher investment income and valuation gains as well as foreign currency gains compared to the prior year. The Company’s retractable common shares are classified as liabilities due to their cash retraction feature. The remeasurement gains or losses in a given period are driven by the respective appreciation or depreciation of the Partners Value Investments L.P. (the “Partnership”) unit price as the exchangeable shares are recognized at fair value based on the quoted price of the Partnership’s Equity LP units. During the year, the Partnership unit price increased by $51.79 compared to $4.96 in the prior year. Excluding retractable share and warrant liability remeasurement gains and dividends paid on retractable shares, Adjusted Earnings for the Company was $122 million for the year ended December 31, 2024, compared to $27 million in the prior year. Adjusted Earnings were higher in the current year as a result of higher investment income and valuation gains as well as foreign currency gains. As at December 31, 2024, the market prices of a Brookfield Corporation (the “Corporation”, NYSE/TSX: BN) and Brookfield Asset Management Ltd. (the “Manager”, NYSE/TSX: BAM) share were $57.45 and $54.19, respectively. As at March 28, 2025, the market prices of a BN and BAM share were $51.85 and $48.50, respectively. Consolidated Statements of Operations For the years ended December 31(Thousands, US dollars)         2024   2023  Investment income           Dividends     $ 108,428   $96,269  Other investment income       18,607    11,802         127,035   108,071  Expenses           Operating expenses       (5,553)  (5,843) Financing costs      (38,777)  (35,210) Retractable preferred share dividends       (33,399)  (35,456)        (77,729)  (76,509) Other items           Investment valuation gains (losses)      5,703    (6,237) Retractable share remeasurement losses      (3,575,080)  (281,451) Warrant liability remeasurement losses      (306,473)  (52,694) Amortization of deferred financing costs       (3,506)  (3,380) Foreign currency gain (loss)      53,280   (15,983) Current tax expense       (3,514)  (1,270) Deferred tax expense      (7,489)  (3,280) Net loss     $(3,787,773) $(332,733)  Financial Profile The Company’s principal investments are its interest in 121 million Class A Limited Voting Shares of the Corporation and approximately 31 million Class A Limited Voting Shares of the Manager. This represents approximately an 8% interest in the Corporation and a 7% interest in the Manager as at December 31, 2024. In addition, the Company owns a diversified investment portfolio of marketable securities and private fund interests. The information in the following table has been extracted from the Company’s Consolidated Statements of Financial Position: Consolidated Statements of Financial Position As at(Thousands, US dollars)   December 31, 2024   December 31, 2023 Assets       Cash and cash equivalents  $ 156,952   $199,856 Accounts receivable and other assets   69,776   31,456 Deferred tax assets   —   4,309 Investment in Brookfield Corporation1    6,949,656    4,853,261 Investment in Brookfield Asset Management Ltd.2    1,669,488    1,237,554 Other investments carried at fair value   1,141,048    889,398    $9,986,920   $7,215,834 Liabilities and Equity       Accounts payable and other liabilities  $42,824  $34,916 Corporate borrowings    208,168    225,789 Preferred shares3    703,044   757,254 Retractable common shares   7,312,467   3,718,510 Warrant liability   494,710   218,051 Deferred tax liabilities   7,933   —     8,769,146   4,954,520 Equity       Accumulated deficit   (6,821,786)  (3,034,013)Accumulated other comprehensive income   8,027,580   5,283,347 Non-controlling interest   11,980   11,980    $9,986,920   $7,215,834  The investment in Brookfield Corporation consists of 121 million Corporation shares with a quoted market value of $57.45 per share as at December 31, 2024 (December 31, 2023 – $40.12).The investment in Brookfield Asset Management Ltd. consists of 31 million Manager shares with a quoted market value of $54.19 per share as at December 31, 2024 (December 31, 2023 – $40.17).Represents $712 million of retractable preferred shares less $9 million of unamortized issue costs as at December 31, 2024 (December 31, 2023 – $767 million less $10 million). For further information, contact Investor Relations at ir@pvii.ca or 416-643-7621. Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. The words “potential” and “estimated” and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify forward-looking information. Although the Company believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond its control, which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward‐looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation, the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchanges rates; limitations on the liquidity of our investments; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws; risks associated with the use of financial leverage; catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed from time to time in the Company’s documents filed with the securities regulators in Canada. The Company cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the Company’s forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements and information, whether written or oral, that may be as a result of new information, future events or otherwise.

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