Brookfield (BN) investor relations material

Strategic vision, evolution, and growth outlook

• Over the past five years, the organization doubled core earnings at a 16% CAGR, broadened capabilities, and reached $1.3T in AUM and $5.7B in distributable earnings before realizations by 2026, positioning itself at the intersection of capital and the real economy.

• The plan targets doubling core earnings again over the next five years with a 17% CAGR, aiming for $11.6B in DE before realizations and $16.8B including carry and capital allocation by 2031, translating to a 24% annualized growth rate.

• Plan Value per share is targeted to rise from $67 in 2026 to $140 by 2031, representing a 16% CAGR and exceeding the long-term 15%+ total return target, driven by electrification, digital infrastructure, and real estate recovery.

• The business model leverages a diversified, flexible capital base, expanded access to institutional and retail capital, and a $345B balance sheet, with the potential to grow insurance assets to $1T if opportunities arise.

• The new structure combines permanent capital and insurance float, enhancing flexibility, capital efficiency, and index inclusion potential, with a transition to U.S. GAAP reporting in 2027 for improved comparability.

Financial guidance and capital allocation

• Execution of the plan is expected to generate $54B in free cash flow over the next five years, with $26B in excess cash flow available for reinvestment or return to shareholders.

• Capital allocation remains disciplined and centralized, prioritizing reinvestment in core and new businesses, strategic transactions, and shareholder returns.

• Share buybacks and special dividends are used opportunistically, balancing capital returns with flexibility, and a modest dividend is maintained for index inclusion.

• The share price is considered to offer a ~40% margin of safety relative to Plan Value.

• Management emphasizes transparency, long-term alignment with shareholders, and a commitment to compounding value, with a track record of delivering on objectives.

Business segment performance and market opportunities

• Asset management is set to scale fee-bearing capital to $1.3T, with direct investments expected to resurface $6B for reinvestment and carried interest projected to triple, with $5B realized over the next three years.

• Wealth solutions, now a global leader in retirement, targets $375B in insurance assets and $5B in annual distributable earnings within five years, leveraging demographic tailwinds and expanded distribution in the U.S., U.K., and Asia.

• Operating businesses in infrastructure, energy, private equity, and real estate are positioned for strong FFO and earnings growth, with real estate benefiting from constrained supply, robust demand, and pricing power, driving 4% same-store NOI growth and $3B in distributions to asset management.

• Real estate and retail portfolios are showing strong fundamentals, with high occupancy, rising rents, and liquidity returning to the market, while strategy focuses on super core assets, active management, and capital recycling.

• 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.