Brookfield Corp Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ken Worthington - JPMorgan Chase & Co - Analyst : Hi, good morning. Thanks for taking the question. So much to ask here. But I think I'll focus on capital management. It would seem like a target-rich environment for Brookfield. And I would love to better understand what makes the most sense for you now given your view of the future, especially in the context of improving cash flows. So in terms of insurance, could a large insurance deal still makes sense, assuming a good fit in price? Or are blocks, bolt-ons and organic growth really sort of the exclusive path forward on the insurance side? And then in infrastructure and renewables for Brookfield Corporation, given the size of the opportunity that you, asset management, your peers are all sort of talking about. And given the size of these deals, like Intel and now the French AI announcement, do you see increased indirect opportunity here such as BIP and BEP or even more direct opportunities for Brookfield Corporation from an investment perspective? Thanks.

Question: Ken Worthington - JPMorgan Chase & Co - Analyst : Thank you very much.

Question: Michael Cyprys - Morgan Stanley - Analyst : Hey, good morning, thanks for taking the question. Maybe just one on real estate. I was hoping maybe you could elaborate a bit more on your expectations for monetizations this year. You sound pretty optimistic. Maybe you could unpack what sort of instills that confidence? How do you see sort of the impact from the recent uplift in 10-year treasury yield over the past 6 months and potential risks from tariffs and such. Maybe just talk a little bit about what gives you the confidence there? And how do you see the sort of pace, magnitude and cadence of this evolving throughout the year? Thank you.

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. And just a follow-up question, if I could, on the wealth solutions side. Maybe you could talk a little bit to the organic growth of annuities and flows broadly on the wealth solutions side. Maybe talk a little bit about where you are in the process of expanding distribution, what steps are you REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2025 / 3:00PM, BN.N - Q4 2024 Brookfield Corp Earnings Call looking to take in '25 to drive continued growth from here? How might a credit ratings upgrade be helpful, if at all, how you might think about achieving that?

Question: Robert Kwan - RBC Capital Markets - Analyst : Great, good morning. If I can just start to ask about the carried interest. And so you've got the $11.5 billion or $7 billion net and most you're talking about realizing over the next five years. So can you just talk about how you could see that pace of realizations annually? And if you want to talk about 2025, that would be obviously very interesting. And then just as that $20 billion number you put out there over 10 years, is there any material amount of that, that you would see falling into the five year period?

Question: Robert Kwan - RBC Capital Markets - Analyst : Okay. Got it. No update there. And then just on the listed affiliates, just overall, the fundraising has been strong at BAM, and we heard that commentary yesterday. Just some of the listed affiliate valuations and just how they're trading, struggling a bit. And just given you've done such a good job with growing the other fundraising channels, just -- do you have some updated thoughts as to how you're thinking about the vehicles? Is the solution that maybe just participate in future funds at a lower amount? Or is there something larger that you're considering here?

Question: Robert Kwan - RBC Capital Markets - Analyst : Okay, that's great thank.

Question: Cherilyn Radbourne - TD Cowen - Analyst : Thanks very much and good morning. You mentioned that your internal view of intrinsic value has increased to $100 versus $84 in late September, can you comment on some of the major contributors to that increase?

Question: Cherilyn Radbourne - TD Cowen - Analyst : Separately, in terms of the private wealth market, as I understand it, Brookfield is very competitive in terms of its product offerings and shelf space but has been a bit more conservative versus peers as far as modulating intake to stay disciplined on deployment. Does that give you any concern from a competitive perspective?

Question: Cherilyn Radbourne - TD Cowen - Analyst : A quick follow-up. Like, do you have any concern that there might be an accident elsewhere that could taint the market for everyone?

Question: Cherilyn Radbourne - TD Cowen - Analyst : That's all for me. Thank you.

Question: Mario Saric - Scotiabank Global Banking and Markets - Analyst : Thank you and good morning. When it comes to Brookfield, I think the market has historically been very focused on the trading discount to intrinsic value as part of the investment thesis. That said at the Investor Day, you did highlight a five year CAGR on DE of 25%, which I think still kind of flies under the radar a little bit. How do you think about the corporation's ability to exceed that 25% target in the short term, like, let's say, over the next couple of years, perhaps highlighting some of the puts and takes in terms of '25 and '26 versus the five year horizon?

Question: Mario Saric - Scotiabank Global Banking and Markets - Analyst : Okay. And then just coming back to the intrinsic value versus trading price, you're continuing to buy back shares. I think year-to-date, the volume exceeded the combined second half of '24 despite the share price being up 55% in '24. So when you look at '25, are you open to putting a target out there like you did for '24? And then I guess the second part of the question would be, when you think about the intrinsic value per share growth driver in '25 in the business, what do you think is the one part of the business that you're most excited about today in terms of near-term growth that the market under appreciating? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2025 / 3:00PM, BN.N - Q4 2024 Brookfield Corp Earnings Call

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : Okay, thank you. Nick, I appreciate lots of liquidity. But is there a preference to monetize before investing?

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : Monetize assets. Yeah, just monetize assets. I mean, obviously, I think we've heard also yesterday that it's a good market to both buy and sell. How important is it to -- preferential, I guess, what's the preference, to monetize first or just remain opportunistic and roll with the punches?

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : Okay. And so when you think about at least what some of us think through the uncertainty, whether it's around trade, whether it's policy, it doesn't seem to be just unique to the US. I mean, I suppose it's creating this near-term uncertainty, which you guys like because it creates medium-term opportunities. But if you had to think through the various vectors or the silos of investing that you do, like where is the opportunity greatest? And where are you being a little bit more cautious because of the uncertainty caused in the current environment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 13, 2025 / 3:00PM, BN.N - Q4 2024 Brookfield Corp Earnings Call

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : So just a quick one on that one. So it hasn't changed. So you are just as, I'll call it, optimistic today, as you would have been, I don't know, six months ago or four months ago when you had an outlook on 2025 for your business?

Question: Sohrab Movahedi - BMO Capital Markets - Analyst : Thank you for taking my questions.