Q4 2022 Brookfield Corp Earnings Call
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Good day and thank you for standing by welcome to Brookfield Corporation's fourth quarter 2022 results conference call. At this time, all participants are in a listen only mode.
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It is now my pleasure to introduce managing partner Suzanne Fleming.
Thank you operator, and good morning, welcome to Brookdale Corporation's fourth quarter and full year 2022 conference call on the call today are Bruce Flatt, Our Chief Executive Officer, and Nick Goodman, President and Chief Financial Officer of Brookdale Corporation.
Bruce will start off by giving a business update followed by Mac, who will discuss our financial and operating results for the quarter and a year.
After our formal comments, we'll turn the call over to the operator and take analyst questions.
To remind you that in today's comments, including in responding to questions and then discussing new initiatives and our financial and operating performance. We may make forward looking statements, including forward looking statements within the meaning of the applicable Canadian and U S Securities law.
These statements reflect predictions of future events and trends and do not relate to historic events.
They are subject to known and unknown risks and future events may differ materially from such statements.
Further information on these risks and their potential impact on our company. Please see our filings with the securities regulators in Canada, and the U S. Any information available on our website and with that I'll turn the call over to Bruce.
Thank you Suzanne and welcome everyone on the call.
2022 was a strong year for Brookfield.
Even though at times market conditions were more challenging in some years.
Our manager had a record year for fundraising.
Now separately listed.
Our operating businesses posted strong underlying results.
And our insurance solutions business is beginning to meaningfully ramp up its earnings.
We returned a record amount of capital to our shareholders in 'twenty two.
Approximately $15 billion.
Our regular dividend.
Share repurchases and a special distribution of the Bam shares in December .
Despite the market volatility in 2022, and the fact that a recession is likely taking place.
Real assets are demonstrating the resiliency.
And are benefiting from the higher levels.
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We have seen for many decades.
With approximately $125 billion of capital to deploy.
Our large perpetual capital structure.
And our global scale and expertise in value investing.
Now more than ever.
The corporation is well positioned in the current environment.
To grow and widen its reach.
While our underlying performance was excellent this past year like everything in the market.
Performance of Brookfield Corporation's stock was not.
General market conditions, and the distribution of shares of our manager caused some short term pressure on our share price.
This has started to dissipate and most importantly, the underlying value of the business continues to compound.
Our share performance has been strong on a longer term basis and we believe this will carry on.
And with a net asset value per share that we estimate to be far higher than our current share trading price. We expect to continue to use our vast liquidity to repurchase shares in the market.
And if the discount discount persists, we will consider other options, including tender offers.
Balancing the addition of new businesses to increase returns.
And strategically position us for the future.
As we look forward our objective remains the same to deliver compound annual returns of 15% over the longer term.
Each of our businesses.
A manager our insurance solutions business and our operating businesses on their own generate very attractive returns.
When we leverage the synergies that exist between the broader Brookfield the earnings potential.
It becomes even greater.
Starting with our asset manager, we have a number of tail winds that are accelerating for our highly differentiated asset management business.
And we are set to continue to deliver strong earnings in 'twenty three and beyond.
Our asset manager security now provides direct access to this business.
And provides us with optionality for strategic acquisitions.
This business to execute on its next.
Phase of growth.
Our insurance solutions business continues to grow in scale and strategic importance to the organization.
Financial results are strong.
Our return on invested capital and we continue to redeploy assets across the board.
We have high goals for this business and are actively pursuing a number of investment opportunities to add further scale and diversity in line with our objectives laid out to you in past of surpassing $200 billion of insurance float in the next five years.
To that end yesterday, we announced the acquisition.
Through Brookfield reinsurance of Argo group, a well established specialty P&C you see business in the U S.
Adding another platform and pool of assets to the franchise.
Nick will speak.
To this later in more detail, but as a reminder, part of the capital of the Corporation has also invested in a highly diversified very high quality portfolio of real estate assets.
In many of the best locations in the World.
This business has been has proven to be a great compound or a capital across economic cycles deliver.
Delivering strong returns over the long term.
We're seeing this today with demand for assets continuing to be very strong supporting valuations and our outlook for growth.
As an aside much of the high quality real estate, which we own today will eventually find its way into our insurance business.
Due to its long duration nature, which will further support the growth of our insurance business.
Lastly, our remaining operating businesses continue to perform well and have a proven track record of delivering excellent long term returns.
The organic growth leavers within each of these operating businesses combined with the continued allocation of capital to funds from asset minute management business should support growth at or above our targeted levels.
With such strong and visible growth ahead for each of our businesses.
Bar for new investments is very high.
Since it is hard to look past the opportunity to divest more capital into each of these businesses.
The repurchase or our repurchase of shares as they are undervalued.
That being said, we continue to look at investment opportunities to further accelerate growth, which likely will fit into one of the following categories first investing excess capital into our insurance solutions business to continue to grow it.
Second potentially a strategic acquisition that may be too large for any of our funds are in partnership with some of our funds.
Third investing into new businesses that are adjacent to what we do and last investing in sectors, where we do not yet have full scale teams and in turn this could lead to new businesses for us down the road.
In summary, holding Brookfield Corporation shares offers a unique opportunity to own a stake in our asset management franchise.
<unk> solutions business and all of our operating business is benefiting from the earnings growth of each businesses.
The resulting synergies between them and the ability to participate in the next chapter of what we are building.
We believe the corporation is a very attractive proposition and it's poised to deliver excellent returns.
Over the long term.
As always thank you for your continued support and interest in Brookfield.
I will now turn the call over to Nick.
Thank you Bruce and good morning, everyone.
2022 was another significant and very successful year for our business. Despite a more challenging economic backdrop, we delivered very strong financial results.
The separate listing of our asset management business now complete we are set up well to execute on our next phase of growth.
Distributable earnings or de which continues to be the key performance metric for our business was $5 2 billion for the year and day before realizations were $4 3 billion, representing an increase of 24% compared to the prior year.
Operating <unk> was $4 6 billion for the year of 23% increase compared to the prior year with total <unk> and net income for the year of $6 3 billion and $5 2 billion respectively.
The strong financial performance from our existing businesses and the returns generated from the deployment of excess cash flow with a driving force behind our financial results and 2022.
Taking each of our businesses in turn.
First we've talked about the importance of separately listing our asset management business and yesterday, we released earnings for this business for the first time as a standalone public company.
And the financial results were very strong.
Fee related earnings increased by 26% when excluding performance fees compared to 2022, driven by inflows of $93 billion and Thats a record fundraising year for us.
With a number of funds currently in the market and the benefit of the full year effect of funds raised during 2022, we expect 2023 to be another strong year.
On a longer term basis, we see a number of tier ones accelerating in our favor, which should continue to support growth for some time and we believe the best is yet to come for this business.
Distributions from our operating businesses and investments were $2 $6 billion in 2020% to 20% higher than the prior year.
These results are especially impressive when you consider the market environment.
We continued to see strong demand for the essential services, our businesses provide be it for backbone infrastructure renewable power Premier office space or to extend physical retail presence.
The essential service businesses owned within private equity continued to deliver earnings growth and value creation.
As an example in 2022, our infrastructure business groups <unk> per share by 12% with our renewable and transmission business also delivering strong growth.
EBITDA from our private equity business increased by 33% benefiting from the addition of some high quality businesses and growth in the underlying earnings of existing investments.
Underlying operating cash flow and real estate grew by 13% compared to the prior year.
While interest rates were higher for some of our floating rate debt in 2022 growth in cash flows did offset the impact of interest rates during the year.
With interest rates expected to peak in the coming months, we do believe that the NOI growth from the portfolio will offset the impact of interest rates in the medium term ultimately driving <unk> growth.
Our real estate business is highly diverse by asset class and geography and across the portfolio. We continued to see strong demand for our high quality assets and fundamentals remained strong in almost all of the markets in which we operate.
The dynamic market in 2022 caused us to adjust the valuations of certain properties.
Overall, the impact of higher discount rates was largely offset by improving market conditions and the strong performance and outlook for many of our assets evident in the recent NOI growth.
During the year, we had adjustments down of roughly $1 $7 billion across certain assets and that's more than offset by other assets that were adjusted upwards by $1 8 billion for the year.
While valuations were relatively flat for the year, the <unk> net asset value of our real estate business decreased but thats predominantly due to the distributions of gains on asset sales proceeds from asset refinancings and some FX.
The net the net asset value for our invested capital and real estate sits at 33 billion as at December 31.
Our equity can be broken down as follows.
$8 billion of our capital and real estate is invested in our real estate private funds, which are highly diversified by both geography and by sector.
Asset management business has a proven track record of delivering returns of roughly 20% over the long term.
These assets are turned into cash over a five to 10 year period.
$15 billion of our capital is invested directly into our top 35 Trophy office and retail complex is globally.
These are amongst the best in the world and get better and better over time.
This includes assets like Brookfield place, New York, which is 92% leased for an average of eight years.
Manhattan, West, which is 97% leased for an average of 12 years.
Canadian Wharf in London, where the office is 93% leased for an average of 10 years and the retail was 96% leased for seven years, and we are highly attractive and diverse development opportunities.
On top of that we own 19 of the best mall in urban retail properties in the United States, which are currently 97% leased on average.
$3 billion of our capital is invested in our residential land and development business in the U S and Canada.
This business has delivered very strong financial results for decades in the region of 20%.
Over time these assets alternative cash as we build out developments unless we choose to reinvest.
And lastly, $7 billion of our capital is invested in other real estate assets, which as we have discussed before will be liquidated overtime with proceeds reinvested to drive further growth across our various businesses.
Given the nature quality and diversification of the real estate that we own we have deep conviction that the underlying portfolio will continue to deliver strong returns for us for a long time.
Our insurance solutions business continues to make an increasingly higher contribution to our earnings and is a really good example of how we are able to redeploy our free cash flow into an investment that any very short period of time is delivering mid teens cash on cash returns and excellent total returns on our invested capital.
This business generated distributable earnings of $388 million in 2022 up from $13 million in the prior year.
With the growth in our insurance space over the last 12 months and.
And significant liquid investments available to be redeployed into higher yielding investments our insurance earnings should continue to scale meaningfully in 2023.
In the last six months, we have been actively redeploying capital increasing the average investment yield to 5% a year, a year and supporting liabilities with an average cost of 3%.
During the fourth quarter alone, we redeployed over $2 billion across our portfolio at an approximate yield of 8% increasing annualized earnings to approximately $650 million at year end.
And we expect annualized earnings to grow to roughly $800 million by the end of 2023.
It should also be noted that the positive impact of higher interest rates. In this business has acted as a significant natural interest rate hedge to the rest of our business.
It is clear from our results in 2022 that the earnings power of our business is incredibly strong as we have stated each business is expected to continue delivering strong growth and by leveraging the synergies the offer each other and reinvesting our annual free cash flow, we plan to grow our distributable earnings at <unk>.
The annual growth rate of approximately 25% over the next five years.
In addition to investing capital back into the business. We will also look to repurchase shares when they are undervalued enhancing the return of capital to our shareholders.
In 2022, our share buybacks totaled nearly $700 million.
And when combined with our regular and special dividends, we returned almost $15 billion of capital to our shareholders.
We ended the quarter with liquidity at approximately $125 billion of deployable capital. This includes $37 billion of core liquidity and $87 billion of Uncalled fund commitments.
As we look forward, we remain very well positioned to utilize this liquidity combined with our ability to source proprietary scale investment opportunities to do something large and interesting shoot them when it show up.
Finally, I am pleased to confirm that our board of directors has declared a quarterly dividend of <unk> <unk> per share payable at the end of March to shareholders of record at the close of business on February 28 2023.
As a reminder, Brookfield Corporation's quarterly dividend of <unk> <unk> per share combined with Brookfield asset management's quarterly dividend of <unk> 32 per share.
Which is equivalent to <unk> <unk> per class a share held prior to the distribution in total this equates to <unk> 15 per class a share for those held prior to the special distribution, which represents a 7% increase compared to last year.
With that I'd like to thank you for your time and I'd like to pass the call back to the operator for questions.
Thank you.
As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced.
To withdraw your question. Please press star one one again please.
Please standby, while we compile the Q&A roster.
And our first question comes from the line of Sohrab <unk> with BMO capital markets.
Thank you.
Bruce I guess when you sit back and you think of Brookdale cooperation as a capital allocator.
You've highlighted.
I think three or four areas, one of which was at.
Pursuing strategic opportunities that may be too large for the funds.
By themselves.
When I think about what you've done in recent past Oaktree may have been a strategic acquisition, obviously getting into the reinsurance business can you can you provide a little bit more color as to what sort of a strategic.
Acquisition would be entailed in that.
Comment.
I would just say who knows.
It will be something that is.
A step out from what we do today.
<unk> competitive with any of our funds large.
It could be done with one of our funds.
But.
It will be something that we understanding is that we can.
We can add value to and where it fits we will have to see over time in it.
If another oaktree was done it would be done in our asset management business not in Brookdale Corporation.
So this will be an industrial operating business or something like that.
Okay and then.
I think both you and Nick have made reference to.
The disconnect with the net asset value of the corporation and the stock price and I guess every day, you are making capital allocation decisions.
So I know this is a bit of a naive question, but when and when you. When there is the opportunity to buy Argo and deploy $1 billion there versus $1 billion in buybacks can you just talk through about.
What sort of considerations go into choosing one over the other.
Yes, so maybe I'll just.
Say that.
But theres no.
There is now.
Science to repurchases of shares and capital allocation. This is an art overtime and I'd say over time, we have.
We've always balanced share.
Share repurchases with the fact that.
If you can deploy capital and operating businesses within the company.
And operate them well on a compound basis the returns can be extra special.
And.
Over time, we've always been able to find some amazing businesses and grow them and that's been very very additive to shareholders over the longer term.
Despite that when there are big discounts to share price, it's easy money.
Buying back shares so, but we always balance that too often I would say youre going to see.
Some of all of the above.
Always but more repurchases when the discount is larger.
Okay. Thank you for your time.
Thank you.
Our next question comes from the line of Mario <unk> with Scotiabank.
Thank you and good morning.
Just maybe dovetailing on the back of the last question.
With respect to the big disconnect between intrinsic value and trading price, which you've also talked about the past.
You had mentioned in your prepared remarks as well as in the shareholder letter our potential tender offer if the discount persists.
My question is just internally.
Should we think about the definition of persists and does the asset manager spinoff changed that definition in your mind at all.
Yes look the only thing Nick can add to this but I would just say is.
We have been repurchasing shares in the last little while we'll continue to do that the option of tender offers is always out there.
We've done many in past.
Over the past 25 years.
And often when we've done them theres been a big discount to be able to capture so.
Will we.
We look at that compared to everything else, that's going on in the business and what opportunities are out there and and have to weigh them them each.
I have nothing to add.
Okay.
My second question just relates to monetization in 'twenty. Two you completed $34 billion of them, leading totaled $7 billion realized gain okay. I appreciate the outlook.
May be cloudy.
Pending potential recession, but I suspect it was equally uncertain kind of going into 'twenty two.
The heightened geopolitical risk.
That in mind.
Can you provide any color on whether you think you can exceed last year's monetization that realized gains this year and in particular, if there are specific asset classes, where you where you think you see a lot of opportunity to surprise to the upside.
Hi, Mario its Nick.
I think if.
If you look at the nature of the assets that we did sell last year and continued to sell it's a diversified global portfolio of summit, the highest quality infrastructure renewable real estate businesses and some private equity and I think if anything they have proven their worth more solar in the last 12 months with the resiliency of cash flow in the <unk>.
They keep delivering and remember many of these assets financed an investment grade basis with Portugal that we think they are still very attractive to buyers and executable, we have to see how the market conditions play out, but our intention is we have a number off.
Assets that we plan to take to market this year and see how the process goes and it's our expectation that there should still be buyers for those.
Really transaction activity has been muted recently, but.
But we do expect it to pick up through the year and the exact scale of disposition gains was obviously down to timing in our execution.
But I think we should still be able to deliver strong growth from.
Monetization this year.
Got it okay.
I don't think Suzanne mentioned, a two question limit so maybe I'll throw one more in there before I hop off just coming back to the real estate.
I appreciate the incremental color in terms of the equity value by by segment and some of the operational kind of tailwind that you referenced with respect to the sea.
<unk> store NOI growth and the answer is yes.
In the retail spreads.
I think part of the challenge in the market today, given volatility of the <unk>.
Generally investors just put that in place NOI and look at where they think in place cap rates, whereas your evaluations.
Incorporate a DCF approach over a longer period of time.
In general how much higher or do you expect that NOI.
Our DCF relative to our in place NOI is today.
Listen Mario like we talked about the growth in the assets.
We expect to see good growth coming through our retail NOI just in next year of upwards of 5% next year, we expect to see office continued to grow and I remember lot of these assets are leased.
We have leased space rolling over in the office and even in the last 12 months, we continued to execute.
Leases at record rents in Manhattan initiatives, when it comes back to quality and a focus on quality of the assets that we own and they will continue in our mind to attract premium rents on premium valuations because the concentration and quality is highly significant and I think often overlooked in our port.
Folio.
As you know rates are arguably getting near the top end at some point they are coming back down again, but the NOI is going to keep growing because these are the best assets with the highest demand. So I think over the 10 years, we see that being more than offset but you should know we have moved discount rates. This year and evaluations did go higher.
Relative to the 10 year, they didnt go down significantly when rates from zero, but they have gone higher note but.
But that's being offset by broad based growth in the portfolio and most of the portfolio.
Okay. Thanks for the color and that's it for me.
Thank you.
And our next question comes from the line of Geoff Kwan with RBC capital markets.
Hi, Good morning, I, just wanted to go back to that comment on.
The potential large acquisition that might happen to Brookdale corp level, so you're mentioning it wouldn't be an alternative asset manager it would be more like an operating company. My question was just.
Is there a reason why it would be you would think about doing it at the Brookdale Corp level as opposed to having one of your funds participated in it and then having additional on co invest that would be at the Brookfield Corp level and from the <unk>.
Yes.
Firstly it could be in partnership with one of our funds, but remember even at 30, our funds our 2000 $30 billion a piece.
Even one of those funds can only take $2 billion to $3 billion of equity.
<unk>.
Yes.
It's just assume it could be one of those funds that we have.
Taking 3 billion of equity it could be five partners of ours taking.
Two or $3 billion each of equity and it could be as putting up $10 billion.
So it.
The benefit that we have because of our asset manager is that we have relationships with large.
Large institutional investors, who can become our partner and who want to directly invest with us so not only is this.
Could it be a great business investment for Brookfield Corporation.
It will also be highly additive to engaging our institutional clients with us to benefit our asset manager.
And so we continue to see those types of opportunities.
At some point in time, one of them will do I suspect.
Sorry, just if I can add on that additional co invest if it is outside of if you would you went at the fund level I'm happy to co invest outside and I get that.
You can only put so much.
That additional equity amount on the co invest both <unk> <unk> from the Lps.
With that have positive implications for Bam.
Bart would it be done on a fee basis.
It all depends on the transaction.
<unk>.
I can't really comment.
Okay.
My second question then was.
The negative for them how about that.
Okay.
This is my second license going back to the wide discount to NAV.
Stock's trading at.
And it seems at least part of it.
Investor focus on the value of real estate investments, even though you've got I think very strong conviction about being invested in this asset class just given this dynamic and how you think about value creation for shareholders.
What we've seen with how the share price has traded recently change much as to how you think about how much you want real estate comprised as part of the B and NAV over time.
So the only thing I'll say and then.
And Nick can add is I actually don't know why that is.
Stock prices trading the way. It is you just thought it was real estate I actually don't think it's that I think there's a big recirculation going on in the markets between Bam and BN and I think ultimately this is all going to settle out and.
And the company will trade.
At a proper valuation, but <unk>.
Some of it may be that and I guess to directly answer your question.
The real estate business has been.
Unbelievably positive.
Value creation business for us as a company.
And we're going to continue to invest in real estate, whether it's smaller or larger percentage of our assets in the future I suspect its smaller on a percentage basis.
Partly because it's an ideal asset for our insurance business and it'll be fit a lot of the assets are going to be held.
50 years in our insurance business has great long duration match.
For liability.
Okay, great. Thank you.
Thank you.
And our next question comes from the line of Ken Worthington with Jpmorgan.
Okay, Hi, Thank you for taking the question.
Two I'll ask about the discount to NAV.
And I guess, we're all circle around the questions.
But I guess first.
Is a discount to NAV.
Something that we should expect in <unk> learned to live with and if so is there a level of discount that that we should find acceptable or you find acceptable.
Maybe part two is I think BP wide traded at a perpetual discount to NAV, which I think frustrated you and US and was the driver of the privatization. So if the discount is not acceptable how do you prevent BN from trading at that discount like BP Y did over time prior to private is.
Asian.
And then lastly, you did mentioned buybacks are a much bigger buybacks or a tender to help close that discount it looks like a lot of your cash is locked up in Bam and the uses of cash seem to be pretty high here.
Is drawing credit lines sort of the preferable approach to pursuing a much bigger buyback or a tender if we're going to do this near term or do your comments really.
Contemplate a tender or much larger buyback longer term when cash starts to build again.
I know there was a lot there.
There is a law and I think I've written them down snacks. So I think I can address them in turn.
I'd start by saying, we absolutely don't like a discount in our share price because we have complete conviction in what we believe the fair value of our business is.
As shareholders ourselves, we don't like to see a discount, but we have conviction in the value of our business and the compounding value that we're creating by the decisions. We are taking every day and as Bruce said.
The buybacks are something we can consider but when you buy back the capital leaves the business, whereas if you look at what we've done in the last three years with the acquisition of Oak tree, the privatization of BP Y and the acquisition of American National we have taken cash flow and reinvest it into businesses that have been.
Highly strategic added significant value and will complement tremendous value over the long term arguably adding more value than buybacks would have so that's the.
That's how we think about it on a daily basis, we don't like the discount there is nothing we can necessarily do to change the market, except consider buyback at the right time, and we tell the story educate people and we prove out the thesis and as we prove out the earnings power of the real estate as we prove out the values over time, then hopefully the market.
To that end as we realized carried interest which is also a concept and cash comes in that's how we use that cash and how we create the value will prove out with a fair value of the business over time in the market hopefully gravitates as it relates to available cash.
Generating upwards of a $4 $5 billion of cash flow a year in this business, we have significant some months of liquid investments in the market. We have many aspects to our business. We are constantly monetizing through our direct investments we have many many sources of capital and cash flow in this business.
I wouldn't say, it's constrained in any way we have significant resources should we choose to do something available to us.
Okay, great. Thank you very much.
Yeah.
Thank you.
And our next question comes from the line of Sharon Radburn with TD Securities.
Thanks, very much and good morning.
Firstly in the letter you mentioned that Brookdale has been investing as an LP and nextgen on private funds in sectors, where your franchise doesn't yet have both scale and.
And I appreciate that you really wanted to see.
Sir but perhaps you could give us a bit more color on the nature and extent of those investments.
Yes look I would just say there.
Relatively modest and there are areas, where we don't participate today.
I'd say around technology investing would be one of the main areas, where we have some investments.
Okay, and then secondly, maybe you could elaborate on the acquisition of Argos by the insurance business, which was announced yesterday and just how that deal.
Darren platform.
Hi, Shirley it's Nick So obviously Argo as a public company and has to go through a process. So a little bit limited in what we can say, but I mean, all I would say is this is just part of our broader strategy to build and diversify our insurance platform to help it reached scale.
Over time and consistent with how we've built other of our businesses, we like operating platforms and they are building platforms that we can then we believe create better value over time and this is complementary to the American national business that we own and the P&C business there and so it's just execution of our strategy.
That's probably as much as I can say at this point in the process.
Okay, that's fair enough.
You can just give specific detail in terms of where you're at in insurance.
Even more to build versus buy at this point.
Listen it's like the rest of our businesses, we have platforms note and so they continue to be able to grow their businesses every day.
Through the writing of new policies by us winning PRT transactions in our Canadian business. So the business is always growing and compounding and then at the same time, we're looking for the opportunity to create step change growth.
By buying things that we think will add value to the franchise. So it's a combination of both consistent with <unk>.
We largely grow the rest of our businesses, but we're we're highly optimistic and excited about the future for the business.
Thank you for the time.
Thanks Cheryl.
Sure.
Thank you.
And our next question comes from the line of Dean Wilkinson with CIBC.
Thank you and good morning, everyone.
Just a question on the real estate you talked about some of that.
So your trophy and retail complex is potentially finding their way into the insurance business.
Would that be the entirety of that $15 billion would the sale necessitate a crystallize Asian or again, and how big would the insurance business need to be to absorb sort of all the real estate you want to put into there.
Hey, it's Nick listen I think as you think about the way we've broken down the portfolio.
Obviously, we have the LP investments, which have continued to compound at 20%. We have the residential loan business and then we have that kind of seven to eight bucket that we're monetizing over time. So yes. What you are left rest of these trophy asset that we want on all or part of over time, because they are tremendous assets and the duration of the matches liabilities.
And so yes, the process of moving them across is something we have to figure out the.
The transaction, but if you look at many insurance companies around the World David Owen.
Assets like the ones, we own or maybe not even as good as the ones that we own and so that could be in natural home for them and the details of the transactions, we'd be figured out, but youre right. It would need to scale to absorb that amount of real estate, we need to scale much larger, but that's consistent with our plans for the business.
Perfect. Thanks, guys.
Thanks, Steve.
Thank you.
I will now turn the call back over to the managing partner Suzanne Fleming for any closing remarks.
Thank you everybody for joining us today and with that we will end the call.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating and you may now disconnect.
The conference will begin shortly to raise and lower Johan during Q&A, you can dial star one one.
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The conference will begin shortly to raise and lower Johan during Q&A you can dial one one.
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