Brookfield (BN) investor relations material

Strategic vision, evolution, and growth outlook

• Over the past five years, the organization repositioned itself as a global leader, doubling its investment platform to $1.3T in assets, building a $200B insurance platform, and broadening its capital base and execution capabilities.

• The long-term goal is to deliver 15%+ compound annual returns for institutions and individuals, leveraging a diversified, flexible capital base and deep relationships.

• The next phase targets a 16% CAGR in Plan Value, aiming to grow from $67/share to $140/share by 2031, with disciplined, methodical growth and risk management.

• The new structure combines permanent capital and insurance float, providing $345B in deployable capital, enhancing flexibility, capital efficiency, and index inclusion potential, with a transition to U.S. GAAP reporting in 2027.

• The organization is positioned to capitalize on a global investment super-cycle driven by AI, energy transition, infrastructure, and private credit, with opportunities estimated in the tens of trillions.

Financial guidance, business segment performance, and capital allocation

• Core earnings are projected to double again over the next five years, with distributable earnings before realizations expected to grow from $5.3B in 2026 to $11.6B in 2031, and total DE to $16.8B, driven by strong tailwinds.

• Asset management scaled fee-bearing capital to $1.3T, with an 18% annual growth rate in DE, and direct investments expected to resurface $6B for reinvestment.

• Wealth solutions grew insurance assets to nearly $200B, targeting $375B and a 23% CAGR in earnings, with assets projected to reach $400B and distributable earnings targeting $5B annually within five years.

• Carried interest is at an inflection point, with $5B expected to be realized into income over the next three years and $25B over the next decade, tripling net generated carry.

• $54B of free cash flow is projected over five years, with $26B in excess cash flow available for reinvestment or return to shareholders, and disciplined, centralized capital allocation focused on growth and shareholder returns.

Real estate, wealth solutions, and market opportunities

• Real estate portfolio is concentrated in super core office and retail assets in global gateway cities, with 95% occupancy, strong tenant demand, and 4% same-store NOI growth over five years.

• Office and retail markets are in recovery, with constrained supply, robust demand, and increasing transaction volumes; operational excellence and active asset management are key.

• Wealth solutions business is now a global retirement leader, with growth driven by organic expansion, increased distribution, and strategic acquisitions, leveraging demographic trends and longevity.

• Strategic investments in technology and real assets, including partnerships with leading firms, are creating new growth avenues.

• The business is positioned to recreate its current share price value in wealth solutions alone within five years, leveraging integration with asset management and demographic tailwinds.