Q2 2024 Brookfield Corp Earnings Call

Operator: ... , , , , , , , , , , , , , ,.

Operator: Hello, and welcome to the Brookfield Corporation's second quarter 2024 conference call and webcast. At this time, all participants are in a listening mode. After the speaker's presentation, there will be a question-and-answer session.

Hello, and welcome to the Brookfield Corporation's second quarter, 2024, conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone.

Operator: To ask the questions on the session, you will need to press star 1-1 on your telephone.

Angela Yulo: I would now like to hand the conference call over to our first speaker, Ms. Angela Yulo, Vice President and Vessel Relations.

Operator: ... A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A,.

I would now like to hand the conference call over to our first speaker, Ms. Angela Yulo, Vice President, Investor Relations. Please go ahead.

Angela Yulo: Please go ahead. Thank you, operator, and good morning. Welcome to Brookfield Corporation's second quarter, 2024 conference.

Operator: ...

Thank you, Operator, and good morning. Welcome to Brookfield Corporation's second quarter 2024 conference call. On the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation.

Angela Yulo: On the call today, our Bruce Flat, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation. Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter.

Unknown Executive: On the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation. After our formal comments, we'll turn the call over to the operator and take analyst questions.

Unknown Executive: Our speakers on the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation. Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. After our formal comments, we'll turn the call over to the operator and take analyst questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions.

Speaker Change: Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter.

Angela Yulo: After our formal comments, we'll turn the call over to the operator and take a list of questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions.

Unknown Executive: After our formal comments, we'll turn the call over to the operator and take analyst questions.

Unknown Executive: In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions.

Angela Yulo: I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meeting as applicable Canadian and US 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, and results made defer materially from such statements.

Unknown Executive: I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives and our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. securities. 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 and results may differ materially from such statements.

Speaker Change: I would like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. securities law.

Unknown Executive: 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 and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website.

Unknown Executive: 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 and results may differ materially from such statements.

Angela Yulo: For further information on these risks and their potential impacts on our company, please see our filings to the securities regulators in Canada and the US, and the information available on our website.

Unknown Executive: For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. With that, I'll turn the call over to Bruce.

Bruce: For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. With that, I'll turn the call over to Bruce.

Bruce Flatt: With that, I'll turn the call over to Bruce. Thank you, Angela, and welcome everyone on the call. Results for the second quarter were strong, with each of our businesses performing well and continuing to deliver strong cash flows. Distributable earnings before realizations were 1.1 billion for the quarter and 4.4 billion for the last 12 months, representing an increase compared to the prior year quarter of 11% on a total share basis. Total distributed earnings increased by 80% to 2.1 billion for the quarter as transaction activity continues to pick up. With regard to the economy, inflation is cooling down, short-term interest rates are starting to decline in major economies around the world, and risk appetite has been coming back.

Bruce Flatt: Thank you, Angela, and welcome everyone on the call. Results for the second quarter were strong, with each of our businesses performing well and continuing to deliver strong cash flow. Distributable earnings before realizations were $1.1 billion for the quarter and $4.4 billion for the last 12 months, representing an increase compared to the prior year quarter of 11% on the total per share basis. Total distributable earnings increased by 80% to $2.1 billion for the quarter as transaction activity continues to pick up, with regard to the economy.

Operator: !!musiC! !! !musiC!! !musiC!! !musiC!! !musiC!! !musiC!! !musiC!! !musiC!

Operator: ....

Unknown Executive: Thank you, Angela, and welcome, everyone, on the call.

Operator: Please subscribe to my channel Please subscribe to my channel. Hello, and welcome to the Brookfield Corporation's second quarter 2024 conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. I would now like to hand the conference call over to our first speaker, Ms. Angela Yulo, Vice President, Investor Relations. Please go ahead. Thank you, operators.

Speaker Change: Results for the second quarter were strong, with each of our businesses performing well and continuing to deliver strong cash flows.

Bruce Flatt: Distributable earnings before realizations were $1.1 billion for the quarter and $4.4 billion for the last 12 months, representing an increase compared to the prior year quarter of 11% on the total per share basis. Total Distributable Earnings increased by 80% to $2.1 billion for the quarter as transaction activity continues to pick up, monetize mature assets and deliver strong returns, and Investment teams with operational expertise and access to scale capital.

Angela Yulo: Thank you, Operator, and good morning. Welcome to Brookfield Corporation's second quarter 2024 conference. On the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation. Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. After our formal comments, we'll turn the call over to the operator and take analyst questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions.

Bruce Flatt: Distributable earnings before realizations were $1.1 billion for the quarter and $4.4 billion for the last 12 months, representing an increase compared to the prior year quarter of 11% on a total per share basis.

Bruce Flatt: Total distributable earnings increased by 80% to $2.1 billion for the quarter as transaction activity continues to pick up.

Angela Yulo: I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. securities laws. These statements reflect predictions of future events and trends and do not relate to historic events. These risks and uncertainties are known and unknown, and future events and results may differ materially from such statements.

Bruce Flatt: Inflation is cooling down, short term interest rates are starting to decline in major economies around the world and risk appetite has been coming back. In just the last six months, we successfully financed approximately $75 billion of debt and realized $15 billion from monetizations across a number of assets globally. With this constructive economic backdrop, albeit volatile, over the last week, liquidity continues to return to the private market, setting us up well to capitalize on attractive growth opportunities, monetize mature assets and deliver strong return As we look forward, we believe this should be a great environment for real assets and specifically for those, Investment teams with operational expertise and access to scale capital. At the same time, we continue to take the opportunity to repurchase our shares at significantly lower prices compared to our view of intrinsic value.

Angela Yulo: For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website.

Speaker Change: With regard to the economy,

Speaker Change: Inflation is cooling down, short-term interest rates are starting to decline in major economies around the world, and risk appetite has been coming back.

Bruce Flatt: In just the last six months, we successfully financed approximately $75 billion of debt and realized $15 billion from monetizations across a number of assets globally. With this constructive economic backdrop, albeit volatile over the last week, liquidity continues to return to the private markets, setting us up wealth, capitalize on attractive growth opportunities, monetize mature assets, and deliver strong returns. As we look forward, we believe this should be a great environment for real assets and specifically for those investment teams with operational expertise and access to scale capital. At the same time, we continue to take the opportunity to repurchase our shares at significantly lower prices compared to our view of intrinsic value.

Bruce Flatt: In just the last six months, we successfully financed approximately $75 billion of debt and realized $15 billion from monetizations across a number of assets globally.

Bruce Flatt: With this constructive economic backdrop, albeit volatile over the last week, liquidity continues to return to the private markets.

Bruce Flatt: Thank you, Angela, and welcome everyone on the call. Results for the second quarter were strong, with each of our businesses performing well and continuing to deliver strong cash flow. Distributable earnings before realizations were $1.1 billion for the quarter and $4.4 billion for the last 12 months, representing an increase compared to the prior year quarter of 11% on the total per share basis. Total Distributable Earnings increased by 80% to $2.1 billion for the quarter as transaction activity continues to pick up with regard to the economy.

Bruce Flatt: Setting Us Up Well to Capitalize on Attractive Growth Opportunities.

Bruce Flatt: monetize mature assets and deliver strong returns

Bruce Flatt: Inflation is cooling down, short-term interest rates are starting to decline in major economies around the world, and risk appetite has been coming back. In just the last six months, we successfully financed approximately $75 billion of debt and realized $15 billion from monetizations across a number of assets globally. With this constructive economic backdrop, albeit volatile, over the last week, liquidity continues to return to the private market, setting us up well to capitalize on attractive growth opportunities, monetize mature assets, and deliver strong returns. As we look forward, we believe this should be a great environment for real assets and specifically for those investment teams with operational expertise and access to scale capital. At the same time, we continue to take the opportunity to repurchase our shares at significantly lower prices compared to our view of their intrinsic value.

Bruce Flatt: As we look forward, we believe this should be a great environment for real assets and specifically for those investment teams with operational expertise and access to scale capital.

Bruce Flatt: At the same time, we continue to take the opportunity to repurchase our shares at significantly lower prices compared to our view of intrinsic value.

Bruce Flatt: Lee. Since the start of this year, we completed over $800 million of share buybacks, which added very meaningfully to the value of our company based on our view of that value. We intend to continue to allocate capital to share repurchase when it makes sense, enhancing the underlying value of the business for each remaining share.

Bruce Flatt: Since the start of this year, we have completed over $800 million of share buybacks, which have added very meaningfully to the value of our company based on our view of that value. We intend to continue to allocate capital to share repurchase when it makes sense, enhancing the underlying value of the business for each remaining share. As we plan for the future, it is important to reflect on what has been the foundation of our growth and success in the past.

Bruce Flatt: Since the start of this year, we completed over $800 million of share buybacks, which added very meaningfully to the value of our company based on our view of that value. We intend to continue to allocate capital to share repurchase when it makes sense, enhancing the underlying value of the business for each remaining share. As we plan for the future, it is important to reflect on what has been the foundation of our growth and success from the past.

Bruce Flatt: Since the start of this year, we completed over $800 million of share buybacks, which added very meaningfully to the value of our company based on our view of that value.

Bruce Flatt: we intend to continue to allocate capital to share repurchase when it makekes sense enhancing the underlying value of the business for each remaining share

Bruce Flatt: As we plan for the future, it is important to reflect on what has been the foundation of our growth and success from the past. Our ability to consistently generate strong investment returns over the long term is certainly one of those. This has contributed to our success in the past, and should it continue to drive success for years to come. Our investment philosophy has been and continue to be built on our key principles, which have applied well investor our own capital for over 100 years, and this has enabled us to compound our own capital, build a large perpetual capital base and establish ourselves as one of the largest global asset managers with a very strong investment track record.

Bruce Flatt: As we plan for the future, it is important to reflect on what has been the foundation of our growth and success from the past.

Bruce Flatt: Our ability to consistently generate strong investment returns over the long term is certainly one of them. This has contributed to our success in the past and should contribute continue to drive success for years to come. Our investment philosophy has been, And continue to be built on our key principles, which have applied while investing our own capital for over 100 years. And this has enabled us to compound our own capital, build a large perpetual capital base and establish ourselves as one of the largest global asset managers with a very strong investment track record.

Bruce Flatt: Our ability to consistently generate strong investment returns over the long term is certainly one of them. This has contributed to our success in the past and should continue to drive success for years to come. Our investment philosophy has been, and will continue to be built on our key principles, which have been applied while investing our own capital for over 100 years. This has enabled us to compound our own capital, build a large perpetual capital base, and establish ourselves as one of the largest global asset managers with a very strong investment track record.

Bruce Flatt: Our ability to consistently generate strong investment returns over the long term is certainly one of those.

Bruce Flatt: This has contributed to our success in the past and should continue to drive success for years to come. Our strong investment performance has led, therefore, to our clients meeting their financial objectives. The economy is always evolving, and we must change with it. 20 years ago Our recent agreement with Microsoft and our advancements through our Westinghouse business also give us an enormous lead in pursuing.

Bruce Flatt: This has contributed to our success in the past and should continue to drive success for years to come.

Bruce Flatt: Our investment philosophy has been and continues to be built on our key principles, which have applied while investing our own capital for over 100 years.

Bruce Flatt: And this has enabled us to compound our own capital, build a large perpetual capital base, and establish ourselves as one of the largest global asset managers with a very strong investment track record.

Bruce Flatt: The same principles, though, should apply as we further scale our wealth solutions business, which after just three years has generated annual returns compounded 20% and looks to be only getting started. Our strong investment performance has led, therefore, to our client's meeting, their financial objectives, our manager further deepening client relationships, our balance sheet continue to compound it approximately 20% annualized for the past 30 years, and our ability to realize carried interest, which can be reinvested back into the business for return to shareholders. Our differentiated platform, which is evolved with the backbone of the global economy, has enabled us to continue to compound capital and deliver strong returns on a per share-based where shareholders over the longer term.

Bruce Flatt: These same principles, though, should apply as we further scale our wealth solutions business, which after just three years has generated annual compound returns of 20% and looks to be only getting started. Our strong investment performance has led, therefore, to our clients meeting their financial objectives. Our manager is further deepening client relationships, our balance sheet continues to compound at approximately 20% annualized for the past 30 years, and our ability to realize carried interest, which can be reinvested back into the business, or Returned Shareholder.

Bruce Flatt: These same principles, though, should apply as we further scale our wealth solutions business, which after just three years has generated annual returns compounded 20% and looks to be only getting started. Our strong investment performance has led, therefore, to our clients meeting their financial objectives. Our manager further deepening client relationships.

Bruce Flatt: These same principles, though, should apply as we further scale our wealth solutions business.

Bruce Flatt: Which after just three years has generated annual returns compound of 20% and looks to be only getting started.

Bruce Flatt: Our strong investment performance has led, therefore, to our clients meeting their financial objectives.

Speaker Change: our manager further deepening client relationships our balance sheet continued to compound it approximately twenty percent annualized for the past thirty years and our ability to realizede carried interest which can be reinvested back into the business

Bruce Flatt: Our differentiated platform, which has evolved with the backbone of the global economy, has enabled us to continue to compound capital and deliver strong returns on a per share basis to our shareholders over the longer term. Note that we invest in the backbone of the global economy. That the economy is always evolving, and we must change with it. I would point out to you that 50% or more of the assets that we own today did not exist as an asset class. 20 years ago,

Bruce Flatt: Our balance sheet continued to compound at approximately 20% annualized for the past 30 years, and our ability to realize carried interest, which can be reinvested back into the business, or Returned Shareholder. Our differentiated platform, which has evolved with the backbone of the global economy, has enabled us to continue to compound capital and deliver strong returns on a per share base to our shareholders over the longer term. Note that we invest in the backbone of the global economy. That economy is always evolving and we must change with it. I would note for you that 50% or more of the assets that we own today did not exist as an asset class. 20 years ago.

Bruce Flatt: or Returned Shareholders.

Bruce Flatt: Our differentiated platform which has evolved with the backbone of the global economy has enabled us to continue to compound capital and deliver strong returns on a per share base to our shareholders over the longer term.

Bruce Flatt: Note that we invest into the backbone of the global economy. That economy is always evolving, and we must change with it. I would note for you that 50% or more of the assets that we own today did not exist as an asset class 20 years ago.

Bruce Flatt: note that we invest into the backbone of the global economy

Bruce Flatt: That economy is always evolving and we must change with it.

Bruce Flatt: I would note for you that 50% or more of the assets that we own today did not exist as an asset class 20 years ago.

Bruce Flatt: One of the few areas where we are seeing very strong investment opportunities is the AI revolution. Fortunately, we are at the center of the backbone of this revolution, and our combined development pipeline of renewable power and data centers is by far the largest of any entity globally. There is an increase in demand for power to run data centers used in computing capacity for AI. It's the largest builder of renewables and data centers combined in the world. This is very exciting for us. However, our scale must increase dramatically to meet the needs of our customers. As a result, we have acquired several renewable operating and development platforms, as well as data center businesses, over the past number of years to scale our capabilities.

Bruce Flatt: One of the few areas where we're seeing very strong investment opportunities is the AI revolution. Fortunately, we are at the center of the backbone of this revolution and our combined development pipeline of renewable power and data centers is by far the largest of any entity globally. There is an increase in demand for power to run data centers used in computing capacity for AI. As the largest builder of renewables and data centers combined in the world, this is very exciting for us.

Bruce Flatt: One of the few areas where we're seeing very strong investment opportunities is the AI revolution. Fortunately, we are at the center of the backbone of this revolution, and our combined development pipeline of renewable power and data centers is by far the largest of any entity globally. There is an increase in demand for power to run data centers used in computing capacity for AI. It's the largest builder of renewable energy and data centers combined in the world.

Bruce Flatt: One of the few areas where we're seeing very strong investment opportunities is the AI revolution.

Bruce Flatt: Fortunately, we are at the center of the backbone of this revolution and our combined development pipeline of renewable power and data centers is by far the largest of any entity globally.

Bruce Flatt: There is an increase in demand for power to run data centers used in computing capacity for AI.

Bruce Flatt: This is very exciting for us. However, our scale must increase dramatically to meet the needs of our customers. As a result, we have acquired several renewable operating development platforms, as well as data center businesses, over the past number of years to scale our capability. Our recent agreement with Microsoft and our advancements through our Westinghouse business also give us an enormous lead in pursuing. Before I pass the floor over to Nick, I'll end by saying that we look forward to seeing you at our Investor Day on September 10th in New York. Additional details about that are on our website. And, as always, thank you for your continued support and interest in Brookfield. I'll now turn the call over to Nick.

Speaker Change: It's the largest builder of renewables and data centers combined in the world. This is very exciting for us.

Bruce Flatt: However, our scale must increase dramatically to meet the needs of our customers. As a result, we have acquired several renewable operating development platforms, as well as data center businesses over the past number of years to scale our capability. Our recent agreement with Microsoft and our advancements through our Westinghouse business also give us an enormous lead, in pursuing. Before I pass this, the floor over to Nick, I'll end by saying that we look forward to seeing you at our Investor Day on September 10th in New York. Additional details for that are on our website. And as always, thank you for your continued support and interest in Brookfield. Now I'll turn the call over to Nick.

Bruce Flatt: however our scale must increase dramatically to meet the needs of our customers as a result we have acquired several

Bruce Flatt: Renewable operating and development platforms as well as data center businesses over the past number of years to scale our capabilities. Our recent agreement with Microsoft and our advancements through a Westinghouse business also give us an enormous lead in pursuing this.

Bruce Flatt: Our recent agreement with Microsoft and our advancement through a Westinghouse business also gives us an enormous lead in pursuing this.

Nick Goodman: Thank you, Bruce. And good morning, everyone.

Bruce Flatt: Before I pass the floor over to Nick, I will end by saying that we look forward to seeing you at our Investor Day on September 10th in New York. Additional details for that are on our website. As always, thank you for your continued support and interest in Brookfield.

Bruce Flatt: before i pass this the floor over the neck i end by saying welookforward to seeing you at our investor day on september tenth in new york additional details for that or on our website and as always thank you for your continued support an interest in brookfield i' now 'll turn the call over to nick

Nicholas Goodman: I will now turn the call over to Nick. Thank you, Bruce, and good morning, everyone. We delivered strong financial results in the second quarter, generating stable and growing cash flows across our business. Distributable earnings are DE before realizations were $1.1 billion or $0.71 cents per share for the quarter, representing an increase of 11% on a per share basis over the prior period. Over the last 12 months, DE before realizations were $4.4 billion or $2.1 billion in 77 cents per share. Total DE was $2.1 billion or $1.35 per share for the quarter, and $5.8 billion or $3.67 per share over the last 12 months, with net income of $1.1 billion at our share, or $3.4 billion in total over the same period.

Nick Goodman: Thank you, Bruce. And good morning, everyone. We delivered strong financial results in the second quarter, generating stable and growing cash flows across our business. Distributable Earnings, or DE, before realizations were $1.1 billion, or $0.71 per share for the quarter, representing an increase of 11% on a per share basis over the prior period. Over the last 12 months, DE before realizations were $4.4 billion, or $2.77 per share.

Bruce Flatt: Thank you, Bruce, and good morning, everyone. We delivered strong financial results in the second quarter, generating stable and growing cash flows across our business.

Nick Goodman: We delivered strong financial results in the second quarter, generating stable and growing cash flows across our business. Distributable Earnings, or DE, before realizations were $1.1 billion, or 71 cents per share for the quarter, representing an increase of 11% on a per share basis over the prior period. Over the last 12 months, DE before realizations were $4.4 billion or $2.77 per share.

Speaker Change: Distributable Earnings, or DE, before realizations were $1.1 billion, or $0.71 per share for the quarter, representing an increase of 11% on a per share basis over the prior period.

Speaker Change: over the last twelve mons de before realizations where four point four billion dollars or two dollars in seventy-seven cents per share

Nick Goodman: Total DE was $2.1 billion, or $1.35 per share for the quarter, and $5.8 billion, or $3.67 per share over the last 12 months, with net income of $1.1 billion at our share, or $3.4 billion in total over the same period. So, focusing first on our operating performance, our asset management business generated distributable earnings of $636 million, or $0.40 per share, in the quarter and $2.5 billion, or $1.61 per share, over the last 12 months.

Nick Goodman: Total DE was $2.1 billion or $1.35 per share for the quarter and $5.8 billion or $3.67 per share over the last 12 months with net income of $1.1 billion at our share or $3.4 billion in total over the same period. So focusing first on our operating performance, our asset management business generated distributable earnings of $636 million or $0.40 per share in the quarter and $2.5 billion or $1.61 per share over the last 12 months. We continue to see strong fundraising across our diversified fund offerings. Assets under management are now approximately one trillion dollars.

Speaker Change: Total DE was $2.1 billion or $1.35 per share for the quarter and $5.8 billion or $3.67 per share over the last 12 months, with net income of $1.1 billion at our share or $3.4 billion in total over the same period.

Nicholas Goodman: So focusing first on our operating performance, our asset management business generated distributed earnings of $636 million or $0.40 per share in the quarter, and $2.5 billion or $1.61 per share over the last 12 months. We continued to see strong fundraising across our diversified fund offerings. Assets under management are now approximately $1 trillion, and fee bearing capital was $514 billion as of June 30th, and that 17% higher than 12 months ago. Influos during the quarter were $68 billion, by the scaling of our credit platform. This increased support to the 11% growth and annualized fee related earnings compared to the prior year quarter.

Bruce Flatt: So focusing first on our operating performance, our asset management business generated distributable earnings of $636 million, or $0.40 per share, in the quarter and $2.5 billion, or $1.61 per share, over the last 12 months. This increase supported 11% growth in annualized fee-related earnings compared to the prior year quarter.

Bruce Flatt: So focusing first on our operating performance, our asset management business generated distributable earnings of $636 million or 40 cents per share in the quarter and $2.5 billion or $1.61 per share over the last 12 months.

Nick Goodman: We continue to see strong fundraising across our diversified fund offerings. Assets under management are now approximately one trillion dollars, and fee-bearing capital was five hundred and fourteen billion dollars as of June 30th, and that's 17 percent higher than 12 months ago. Infos during the quarter were $68 billion due to the scaling of our credit platform.

Bruce Flatt: We continue to see strong fundraising across our diversified fund offerings. Assets under management are now approximately $1 trillion, and fee-bearing capital was $514 billion as of June 30th, and that's 17% higher than 12 months ago.

Nick Goodman: And fee bearing capital was five hundred and fourteen billion dollars as of June 30th, and that's 17 percent higher than 12 months ago. Infos during the quarter were $68 billion, backed by the scaling of our credit platform. This increase supported the 11% growth in annualized fee-related earnings compared to the prior year quarter. We expect fundraising to ramp up in the back half of the year, with closes anticipated for our latest flagship funds in the market, which should result in further earnings growth. During the quarter, our ownership in BAM decreased by 2% to 73% as we used approximately $1 billion of BAM shares as part of the consideration for the Acquisition of American Equity Life or AEL.

Bruce Flatt: Infos during the quarter were $68 billion, backed by the scaling of our credit platform.

Nick Goodman: This increase supported the 11% growth in annualized fee-related earnings compared to the prior year quarter. We expect fundraising to ramp up in the back half of the year, with closes anticipated for our latest flagship funds in the market, which should result in further earnings growth. During the quarter, our ownership in BAM decreased by 2% to 73%, as we used approximately $1 billion of BAM shares as part of the consideration for the acquisition of American Equity Life, or AEL.

Bruce Flatt: This increase supported the 11% growth in annualized fee-related earnings compared to the prior year quarter. We expect fundraising to ramp up in the back half of the year, with closes anticipated for our latest flagship funds in the market, which should result in further earnings growth.

Nicholas Goodman: We expect fundraising to ramp up in the back half of the year with closes anticipated for our latest flagship funds in the market, which should result in further earnings growth. During the quarter, our ownership in BAM decreased by 2% to 73%, as we used approximately $1 billion at BAM shares as part of the consideration for the acquisition of American Equity Life or AEL. This demonstrates the valuable currency and liquidity that BAM and our other listed securities provide us. Our wealth solutions business had another strong quarter, continuing to deliver growing, long dated and newty light cashless.

Bruce Flatt: We expect fundraising to ramp up in the back half of the year, with closes anticipated for our latest flagship funds in the market, which should result in further earnings growth. We doubled the size of the business in the quarter, taking our insurance assets to over $110 billion on the back of the acquisition of AEL and the origination of $3.5 billion of new business through our annuity channel. Our operating businesses continue to deliver resilient and growing cash flows, generating distributable earnings of $371 million, or $0.24 per share, in the quarter and $1.5 billion, or $0.93 per share, over the last 12 months.

Nick Goodman: This demonstrates the valuable currency and liquidity that BAM and our other listed securities provide us. Our Wealth Solutions business had another strong quarter, continuing to deliver growing, long-dated annuity-like cash flows. Distributable Operating Earnings were $292 million, or $0.19 per share, in the quarter and $1 billion, or $0.63 per share, over the last 12 months. We doubled the size of the business in the quarter, taking our insurance assets to over $110 billion on the back of the acquisition of AEL and the origination of $3.5 billion of new business through our annuity channel.

Bruce Flatt: during the quarter our ownership and bomb decreased by two percent to seventy-three percent as we used approximately one billion dollars of bam shares as part of the consideration for the acquisition of american xty life or a

Nick Goodman: This demonstrates the valuable currency and liquidity that BAM and our other listed securities provide us. Our Wealth Solutions business had another strong quarter, continuing to deliver growing, long-dated annuity-like cash flows. Distributable Operating Earnings were $292 million or $0.19 per share in the quarter and $1 billion or $0.63 per share over the last 12 months. We doubled the size of the business in the quarter, taking our insurance assets to over $110 billion on the back of the acquisition of AEL and the origination of $3.5 billion of new business through our annuity channel. Excluding AEL, the net investment spread on our assets was consistent with the prior quarter at approximately 2%.

Speaker Change: This demonstrates the valuable currency and liquidity that BOM and our other listed securities provide us.

Bruce Flatt: Our Wealth Solutions business had another strong quarter, continuing to deliver growing, long-dated annuity-like cash flows. Distributable operating earnings were $292 million, or $0.19 per share in the quarter, and $1 billion, or $0.63 per share over the last 12 months.

Nicholas Goodman: Distributable operating earnings were $292 million, or $0.19 per share in the quarter, and $1 billion, or $63 per share over the last 12 months. We doubled the size of the business in the quarter, taking our insurance assets to over $110 billion on the back of the acquisition of AEL, and the origination of $3.5 billion of new business through our newty channel. Excluding AEL, the net investment spread on our assets was consistent with the prior quarter at approximately 2%. As you may recall, when we acquired American National or ANICLE back in May 2022, the annualized spread earnings of the business were approximately $300 million.

Bruce Flatt: We doubled the size of the business in the quarter, taking our insurance assets to over $110 billion on the back of the acquisition of AEL and the origination of $3.5 billion of new business through our annuity channel.

Nick Goodman: Excluding AEL, the net investment spread on our assets was consistent with the prior quarter at approximately 2%. Now, as you may recall, when we acquired American National and Aneco back in May 2022, the annualized spread earnings of the business were approximately $300 million. Our investment thesis at the time was predicated on being able to leverage the credit origination and investment capabilities of our asset manager to rotate the investment portfolio into higher-yielding assets with the target of doubling the yield on the investment portfolio and, thus, the earnings of the business. Within 12 months of taking ownership of Anaco, the annualized spread earnings had indeed doubled to over $600 million. We have a very similar plan with the AEL.

Bruce Flatt: Excluding AEL, the net investment spread on our assets was consistent with the prior quarter at approximately 2%. Now, as you may recall, when we acquired American National, or Anaco, back in May 2022, the annualized spread earnings of the business were approximately $300 million.

Nick Goodman: Now, as you may recall, when we acquired American National, or Aneco, back in May 2022, the annualized spread earnings of the business were approximately $300 million. Our investment thesis at the time was predicated on being able to leverage the credit origination and investment capabilities of our asset manager to rotate the investment portfolio into higher yielding assets with the target of doubling the yield on the investment portfolio and thus the earnings of the business. Within 12 months of taking ownership of Anaco, the annualized spread earnings had indeed doubled to over $600 million. We have a very similar plan with the AEL.

Nicholas Goodman: Our investment thesis at the time was predicated on being able to leverage the credit, origination, and investment capabilities of our asset manager to rotate the investment portfolio into higher yielding assets, with the target of doubling the yield on the investment portfolio and thus the earnings of the business. Within 12 months of taking ownership of ANICLE, the annualized spread earnings had indeed doubled to over $600 million.

Speaker Change: Our investment thesis at the time was predicated on being able to leverage the credit origination and investment capabilities of our asset manager to rotate the investment portfolio into higher yielding assets with the target of doubling the yield on the investment portfolio and thus the earnings of the business.

Bruce Flatt: Within 12 months of taking ownership of Anaco, the annualized spread earnings had indeed doubled to over $600 million.

Nicholas Goodman: Force. We have a very similar plan with the AEL, as we steadily reposition the investment portfolio. We expect the spread earnings of the AEL business to increase from roughly 1.5% today to closer to 2%. And this will have the effect of growing our annualized earnings from $1.4 billion today to $2 billion. Through our combined well solutions platforms, we are raising close to $2 billion of retail capital per month, which now includes approximately $400 million a month from retail products for high net worth clients. Our operating businesses continue to deliver resilient and growing cashless, generating distributable earnings of $371 million or $0.24 cents per share in the quarter, and $1.5 billion or $0.93 cents per share over the last 12 months.

Nick Goodman: As we steadily reposition the investment portfolio, we expect the spread earnings of the AEL business to increase from roughly 1.5% today to closer to 2%. And this will have the effect of growing our annualized earnings from $1.4 billion today to $2 billion. Through our combined wealth solutions platforms, we are raising close to $2 billion of retail capital per month, which now includes approximately $400 million a month from retail products for high net worth clients.

Bruce Flatt: We have a very similar plan with the AEL. As we steadily reposition the investment portfolio, we expect the spread earnings of the AEL business to increase from roughly 1.5% today to closer to 2%.

Nick Goodman: As we steadily reposition the investment portfolio, we expect the spread earnings of the AEL business to increase from roughly 1.5% today to closer to 2%, and this will have the effect of growing our annualized earnings from $1.4 billion today to $2 billion. Through our combined wealth solutions platforms, we are raising close to $2 billion of retail capital per month, which now includes approximately $400 million a month from retail products for high net worth clients.

Bruce Flatt: and this will have the effect of growing our annualized earnings from one point four billion dollars to date to two billion dollars

Bruce Flatt: Through our combined wealth solutions platforms, we are raising close to $2 billion of retail capital per month, which now includes approximately $400 million a month from retail products for high net worth clients.

Nick Goodman: Our operating businesses continue to deliver resilient and growing cash flows, generating distributable earnings of $371 million, or $0.24 per share, in the quarter and $1.5 billion, or $0.93 per share, over the last 12 months. Cash distributions are underpinned by the high-quality earnings of our businesses. Operating funds from operations, or operating FFO, in our renewable power, transition, and infrastructure businesses increased by 7% over the prior year quarter, while same-store operating FFO in our private equity business grew by 17%.

Nick Goodman: Our operating businesses continue to deliver resilient and growing cash flows, generating distributable earnings of $371 million, or $0.24 per share in the quarter, and $1.5 billion, or $0.93 per share, over the last 12 months. Cash distributions are underpinned by the high-quality earnings of our businesses. Operating funds from operations, or operating FFO, in our renewable power, transition and infrastructure businesses increased by 7% over the prior year quarter, while same-store operating FFO in our private equity business grew by 17%.

Bruce Flatt: Our operating businesses continue to deliver resilient and growing cash flows, generating distributable earnings of $371 million, or $0.24 per share in the quarter, and $1.5 billion, or $0.93 per share, over the last 12 months.

Nicholas Goodman: Cash distributions are underpinned by the high-quality earnings of our businesses. Operating funds from operations are operating effortful in our renewable power, transition and infrastructure businesses increased by 7% over the prior year quarter, while same-store operating effortful in our private equity business grew by 17%. In our real estate business, our core portfolio delivered 3% growth in same-store net operating income over the last 12 months. In the quarter, we signed nearly 5 million square feet of office and retail leases. Now, focusing on our core office portfolio, rents on newly signed leases increased by 23% compared to those leases expired.

Speaker Change: cash distributions are underpinned by the high-quality earnings of our businesses operating funds from operations are operating fthfo in our renewable power transition and infrastructure businesses increased by seven percent over the prior year quarter

Speaker Change: while same-store operating ffofu and our private actity business grew by seventeen percent

Nick Goodman: In our real estate business, our core portfolio delivered 3% growth in same store net operating income over the last 12 months. In the quarter, we signed nearly 5 million square feet of office and retail. Focusing on our core office portfolio, rents on newly signed leases increased by 23% compared to those leases expiring. A few highlights of our robust office leasing activity include nearly 670,000 square feet leased in South Korea, over 400,000 square feet in Toronto, New York, and over 400,000 square feet in London and Germany.

Nick Goodman: In our real estate business, our core portfolio delivered 3% growth in same store net operating income over the last 12 months. In the quarter, we signed nearly 5 million square feet of office and retail. Focusing on our core office portfolio, rents on newly signed leases increased by 23% compared to those leases expiring. A few highlights of our robust office leasing activity include nearly 670,000 square feet leased in South Korea, over 400,000 square feet in Toronto in New York, and over 400,000 square feet in London and Germany.

Bruce Flatt: In our real estate business, our core portfolio delivered 3% growth in same-store net operating income over the last 12 months.

Bruce Flatt: In the quarter, we signed nearly 5 million square feet of office and retail leases. Now focusing on our core office portfolio, rents on newly signed leases increased by 23% compared to those leases expiring.

Bruce Flatt: Focusing on our core office portfolio, rents on newly signed leases increased by 23% compared to those leases that were expiring. In our renewable power and transition business, we expanded our footprint into a number of key renewables markets. During the quarter, we agreed to acquire a majority stake in Nuen, a leading global renewables platform located in Australia, France, and the Nordics. Backed by our expertise and reputation as the largest provider of renewable power in data centers, our combined 230 plus gigawatts is the largest operating and development pipeline behind the AI revolution taking hold.

Nicholas Goodman: A few highlights of our robust office leasing activity include nearly 670,000 square feet leased in South Korea, over 400,000 square feet in Toronto, in New York, and over 400,000 square feet in London and Germany. In our retail portfolio, occupancy levels remained high at 95%. In our renewable power and transition business, we expanded our footprint into a number of key renewables markets. During the quarter, we agreed to acquire a majority stake of New End, a leading global renewables platform located in Australia, France, and the Nordics. Bad by our expertise and reputation as the largest provider of renewable power and data centers, our combined 230 plus gigawatts is the largest operating and development pipeline behind the AI revolution taking hold.

Speaker Change: a few highlights of our robust office leasing activity include nearly six hundred and seventy thousand square feet least insouth korea over four hundred thousand square feet in toronto in new york and over four hundred thousand square feet in london and germany

Nick Goodman: And in our retail portfolio, occupancy levels remain high at 95%. In our renewable power and transition business, we expanded our footprint into a number of key renewables markets. During the quarter, we agreed to acquire a majority stake in Nuen, a leading global renewables platform located in Australia, France, and the Nordics. Backed by our expertise and reputation as the largest provider of renewable power in data centers, our combined 230 plus gigawatts is the largest operating and development pipeline behind the AI revolution taking hold. And this should be a tremendous tailwind for the earnings of our operating business. Now, moving on to monetization.

Nick Goodman: And in our retail portfolio, occupancy levels remain high at 95%. In our renewable power and transition business, we expanded our footprint into a number of key renewables markets. During the quarter, we agreed to acquire a majority stake of Nuen, a leading global renewables platform located in Australia, France and the Nordics. Backed by our expertise and reputation as the largest provider of renewable power in data centers, our combined 230 plus gigawatts is the largest operating and development pipeline behind the AI revolution taking hold. And this should be a tremendous tailwind for the earnings of our operating business. Now moving on to monetization.

Speaker Change: and in our retail portfolio occupancy levels remain high and ninety-five percent

Bruce Flatt: In our Renewable Power and Transition business, we expanded our footprint into a number of key renewables markets.

Bruce Flatt: And this should be a tremendous tailwind for the earnings of our operating business. Now, moving on to monetization. With transaction activity picking up, we expect an increased level of monetizations going forward. During the quarter, we advanced or completed several sales as strong investment returns, including a luxury hotel in South Korea, an office asset in Washington, D.C., a road fuels operation in Europe, and several renewable assets. In addition, we realized a gain of approximately $950 million on the sale of 2% of our BAM shares, and this assists with increased flow of shares.

Nicholas Goodman: And this should be a tremendous tailwind for the earnings of our operating businesses.

Nicholas Goodman: Now moving on to monetization. With transaction activity picking up, we expect an increased level of monetization going forward. During the quarter, we advanced or completed several sales as strong investment returns, including on our luxury hotel in South Korea, an office asset in Washington, D.C., a road fuels operation in Europe, and several renewable assets. In addition, we realized the gain of approximately $950 million on the sale of 2% of our bomb shares, and this assists with increased flows in the shares. Over the last 12 months, we generated $2.3 billion of unrealized carried interest, increasing our total accumulated unrealized carried interest to $10.7 billion, of which $9.5 billion is directly owned by the corporation.

Nick Goodman: With transaction activity picking up, we expect an increased level of monetizations going forward. During the quarter, we advanced or completed several sales as strong investment returns, including a luxury hotel in South Korea, an office asset in Washington, D.C., a road fuels operation in Europe, and several renewable assets. In addition, we realized a gain of approximately $950 million on the sale of 2% of our BAM shares, and this assists with increased flow of shares.

Nick Goodman: With transaction activity picking up, we expect an increased level of monetizations going forward. During the quarter, we advanced or completed several sales at strong investment returns, including on a luxury hotel in South Korea, an office asset in Washington, D.C., a road fuels operation in Europe, and several renewable assets. In addition, we realized a gain of approximately $950 million on the sale of 2% of our BAM shares, and this assists with increased float in the shares.

Bruce Flatt: Over the last 12 months, we generated $2.3 billion of unrealized carried interest, increasing our total accumulated unrealized carried interest to $10.7 billion, of which $9.5 billion is directly owned by the corporation. Fundamentals remain strong across our businesses, however, our total consolidated net income was impacted in the quarter mainly from the accounting treatment of recent acquisitions in our infrastructure business, resulting in higher non-cash depreciation and amortization costs. Given the quality of our assets and the continued recovery in transaction activity, we see many tailwinds that will drive further earnings growth in each of our businesses.

Nick Goodman: Over the last 12 months, we generated $2.3 billion of unrealized carried interest, increasing our total accumulated unrealized carried interest to $10.7 billion, of which $9.5 billion is directly owned by the corporation. We have also recognized $234 million of net realized carried interest into income to date this year, and we expect to realize additional carried interest through the end of the year.

Nick Goodman: Over the last 12 months, we generated $2.3 billion of unrealized carried interest. Increasing our total accumulated unrealized carried interest to $10.7 billion, of which $9.5 billion is directly owned by the corporation. We also recognize $234 million of net realized carried interest into income to date this year, and we expect to realize additional carried interest through the end of the year.

Bruce Flatt: $9 5 billion is directly owned by the Corporation.

Nicholas Goodman: Foundation, we also recognize 234 million dollars of net realized carried interest into income to date this year, and we expect to realize additional carried interest through the end of the year. Fundamentals remain strong across our businesses. However, our total consolidated net income was impacted in the quarter, mainly from the accounting treatment of recent acquisitions in our infrastructure business, resulting in higher known cash depreciation and amortization costs. Given the quality of our assets and the continued recovery and transaction activity, we see many tailwinds that would drive further earnings growth in each of our businesses. Our side of our financial results are conservative balance sheet and strong liquidity position continued to differentiate our franchise.

Bruce Flatt: We also recognized $234 million of net realized carried interest into income to date. This year and we expect to realize additional carried interest through the end of the year.

Nick Goodman: Fundamentals remain strong across our businesses; however, our total consolidated net income was impacted in the quarter, mainly due to the accounting treatment of recent acquisitions in our infrastructure business, resulting in higher non-cash depreciation and amortization costs. Given the quality of our assets and the continued recovery in transaction activity, we see many tailwinds that will drive further earnings growth in each of our businesses. Outside of our financial results, our conservative balance sheet and strong liquidity position continue to differentiate our franchise.

Nick Goodman: Fundamentals remain strong across our businesses, however, our total consolidated net income was impacted in the quarter, mainly from the accounting treatment of recent acquisitions in our infrastructure business, resulting in higher non-cash depreciation and amortization costs. Given the quality of our assets and the continued recovery in transaction activity, we see many tailwinds that will drive further earnings growth in each of our businesses. Outside of our financial results, our conservative balance sheet and strong liquidity position continue to differentiate our franchise.

Bruce Flatt: Fundamentals remained strong across our businesses. However, our total consolidated net income was impacted in the quarter, mainly from the accounting treatment of recent acquisitions and our infrastructure business, resulting in higher noncash depreciation and amortization costs, given the quality of our assets and a continued recovery in transit.

Bruce Flatt: Activity, we see many tailwind that will drive further earnings growth in each of our businesses.

Bruce Flatt: Outside of our financial results, our conservative balance sheet and strong liquidity position continued to differentiate our franchise, we have approximately $150 billion of deployable capital at quarter end, which includes $62 billion of cash and liquid assets at the corporation, our affiliates on our wealth solutions business with this law.

Nicholas Goodman: We have approximately 150 billion dollars of deployable capital of quarter end, which includes 62 billion dollars of cash and liquid assets at the corporation, our affiliates and our wealth solutions business. With this large scale capital, we are well positioned to focus on attractive growth opportunities. We continue to capitalize on the narrowing credit spreads and strong demand in the capital markets. We executed on approximately 75 billion dollars of financing across the group to date this year, supporting growth and ongoing operations. Notable highlights include at the corporation, we issued 650 million dollars of 10 and 30 year bonds, tightening credit spreads by 55 and 10 basis points, respectively, relative to the most recent comparable issuances.

Nick Goodman: We have approximately $150 billion of deployable capital at quarter end, which includes $62 billion of cash and liquid assets at the corporation, our affiliates, and our wealth solutions business. With this large-scale capital, we are well-positioned to focus on attractive growth opportunities. We continue to capitalise on the narrowing credit spreads and strong demand in the capital market. We have executed on approximately $75 billion of financing across the group to date this year, supporting growth and ongoing operations.

Nick Goodman: We have approximately $150 billion of deployable capital quarter end, which includes $62 billion of cash and liquid assets at the corporation, our affiliates and our wealth solutions business. With this large-scale capital, we are well positioned to focus on attractive growth opportunities. We continue to capitalise on the narrowing credit spreads and strong demand in the capital market. We executed on approximately $75 billion of financings across the group to date this year, supporting growth and ongoing operations.

Bruce Flatt: Large scale capital, we are well positioned to focus on attractive growth opportunities.

Bruce Flatt: We continue to capitalize on the narrowing credit spreads and strong demand in the capital markets. We executed on approximately 75 billion of financings across the group to date this year supporting growth and ongoing operations.

Bruce Flatt: We have executed on approximately $75 billion of financing across the group to date this year, supporting growth and ongoing operations. Notable highlights include, at the corporation, we issued $650 million of 10 and 30 year bonds, tightening credit spreads by 55 and 10 basis points, respectively, relative to the most recent comparable issuance. At Brookfield Renewable Partners, we successfully compressed the credit spreads on a 400 million Canadian dollar bond issuance by an average of 65 basis points, and we closed approximately $160 million of 60-year subordinated notes at Brookfield Infrastructure Partners.

Nick Goodman: Notable highlights include, at the corporation, we issued $650 million of 10 and 30-year bonds, tightening credit spreads by 55 and 10 basis points, respectively, relative to the most recent comparable issuance. At Brookfield Renewable Partners, we successfully compressed the credit spreads on a $400 million Canadian bond issuance by an average of 65 basis points, and we closed approximately $160 million of 60-year subordinated notes at Brookfield Infrastructure Partners. These financings demonstrate the very strong interest in businesses aligned with global secular trends.

Nick Goodman: Notable highlights include, at the corporation we issued $650 million of 10 and 30 year bonds, tightening credit spreads by 55 and 10 basis points respectively, relative to the most recent comparable issuance. At Brookfield Renewable Partners, we successfully compressed the credit spreads on a $400 million Canadian bond issuance by an average of 65 basis points, and we closed approximately $160 million of 60-year subordinated notes at Brookfield Infrastructure Partners. These financings demonstrate the very strong interest in businesses aligned with global secular trends.

Bruce Flatt: Notable highlights include at the Corporation, we issued $650 million of 10, and 30 year bonds tightening credit spreads by 55, and 10 basis points, respectively relative to the most recent comparable issuances.

Nicholas Goodman: At Brookfield Renewable Partners, we successfully compressed the credit spreads on a 400 million Canadian dollar bond issuance by an average of 65 basis points, and we closed approximately 160 million dollars of 60 year subordinated notes of Brookfield Infrastructure Partners. These financings demonstrate the very strong interest in businesses aligned with global secular trends. In our real estate business, we refinanced an approximately 800 million dollar New York office loan with a new five year loan at a spread of 225 basis points, a strong signal of the significantly improved financing markets for real estate. And lastly, we reprised approximately 11 billion dollars of financing across six portfolio companies, reducing the credit spreads by 55 basis points on average.

Bruce Flatt: At Brookfield renewable partners, we successfully compressed credit spreads on a 400 million Canadian dollars bond issuance by an average of 65 basis points and we closed approximately $160 million of 60 year subordinated notes at Brookfield infrastructure partners. These financings demonstrate the very strong interest in businesses aligned with global.

Bruce Flatt: These financings demonstrate the very strong interest in businesses aligned with global secular trends. Shifting to capital allocation, we reinvested our excess cash flow back into our businesses and returned $408 million to shareholders through regular dividends and share buybacks during the course. Thank you for your time, and I will now hand the call back to the operator for questions.

Nick Goodman: In our real estate business, we refinanced an approximately $800 million New York office loan with a new five-year loan at a spread of 225 basis points, a strong signal of the significantly improved financing markets for real estate. And lastly, we repriced approximately $11 billion of financing across six portfolio companies, reducing the credit spreads by 55 basis points on average. Shifting to capital allocation, we reinvested our excess cash flow back into our businesses and returned $408 million to shareholders through regular dividends and share buybacks during the course.

Nick Goodman: In our real estate business, we refinanced an approximately $800 million New York office loan with a new five-year loan at a spread of 225 basis points, a strong signal of the significantly improved financing markets for real estate. And lastly, we repriced approximately $11 billion of financings across six portfolio companies, reducing the credit spreads by 55 basis points on average. Shifting to capital allocation, we reinvested our excess cash flow back into our businesses and returned $408 million to shareholders through regular dividends and share buybacks during the quarter.

Bruce Flatt: Secular trends.

Bruce Flatt: In our real estate business, we refinanced approximately $800 million in New York Office, one with a new five year loan at a spread of 225 basis points, a strong signal of the significantly improved financing markets for real estate.

Bruce Flatt: And lastly, we repriced approximately $11 billion of financings across six portfolio companies, reducing the credit spreads by 55 basis points on average.

Nicholas Goodman: Shifting to capital allocation, we reinvested our excess cash flow back into our businesses and returned $408 million to shareholders through regular dividends and share buybacks during the quarter. To date this year, we repurchased over 800 million dollars of shares in the open market, adding approximately 55 cents of value to each remaining share. And we expect to continue to further allocate capital to share repurchases over the remainder of 2024. In summary, we achieved strong financial performance, and we expect this momentum to continue to build over the balance of the year and beyond. With the improving market conditions, we anticipate transaction activity to pick up over the coming quarters, positioning as well to execute monetization and further bolster our earnings.

Bruce Flatt: Shifting to capital allocation, we reinvested, our excess cash flow back into our businesses and returned $408 million to shareholders through regular dividends and share buybacks during the quarter to.

Nick Goodman: To date this year, we repurchased over $800 million of shares in the open market, adding approximately $0.55 of value to each remaining share, and we expect to continue to further allocate capital to share repurchases over the remainder of 2024. In summary, we achieve strong financial performance and we expect this momentum to continue to build over the balance of the year and beyond. With the improving market conditions, we anticipate transaction activity to pick up over the coming quarters, positioning as well to execute on monetizations and further bolster our earnings.

Nick Goodman: To date this year, we repurchased over $800 million of shares in the open market, adding approximately $0.55 of value to each remaining share, and we expect to continue to further allocate capital to share repurchases over the remainder of 2024. In summary, we achieved strong financial performance, and we expect this momentum to continue to build over the balance of the year and beyond. With the improving market conditions, we anticipate transaction activity to pick up over the coming quarters, positioning us as well to execute on monetizations and further bolster our earnings.

Bruce Flatt: To date this year, we repurchased over $800 million of shares in the open market, adding approximately 55 cents of value to each remaining share.

Bruce Flatt: Expect to continue to further allocate capital to share repurchases over the remainder of 2024.

Bruce Flatt: In summary, we achieved strong financial performance and we expect this momentum to continue to build over the balance of the year and beyond with the improving market conditions, we anticipate transaction activity to pick up over the coming quarters positioning us well to execute our monetization.

Speaker Change: Further bolster our earnings.

Nicholas Goodman: With that, I am pleased to confirm that our board of directors has declared a quarterly dividend of eight cents per share, payable on September 27th to shareholders of record at the close of business on September 12th, 2020.

Nick Goodman: With that, I am pleased to confirm that our Board of Directors has declared a quarterly dividend of $0.08 per share payable on September 27 to shareholders of record at the close of business on September 12, 2024. Thank you for your time, and I will now hand the call back to the operator for questions.

Nick Goodman: With that, I am pleased to confirm that our Board of Directors has declared a quarterly dividend of $0.08 per share payable on September 27 to shareholders of record at the close of business on September 12, 2024. Thank you for your time and I will now hand the call back to the operator for questions.

Speaker Change: With that I am pleased to confirm that our board of directors has declared a quarterly dividend of <unk> <unk> per share payable on September 27 to shareholders of record at the close of business on September 12 2024.

Operator: Thank you for your time, and I will never hand the call back to the operator for questions. Thank you, and as a reminder, if you have a question, please press star one one of your telephone. If your question has been answered or you wish to move yourself in a queue, please press star one one again.

Bruce Flatt: Thank you for your time and I'll now hand, the call back to the operator for questions.

Operator: Thank you. And as a reminder, if you have a question, please press star 11 on your telephone. If your question hasn't been answered or you wish to remove yourself from the queue, please press star 11 again. Our first question comes from the line of Geoff Kwan with RBC Capital Markets. Your line is now open.

Operator: Thank you. And as a reminder, if you have a question, please press star 11 on your telephone. If your question has been answered or you wish to remove yourself from the queue, please press star 11 again. Our first question comes from the line of Geoff Kwan with RBC Capital Markets. Your line is now open.

Speaker Change: Thank you.

Speaker Change: Wonder if you have a question. Please press star one on your telephone answer. Your question has been answered or you wish to remove yourself from the queue. Please press star one again.

Geoff Kwan: Our first question comes from the line of Geoff Kwan with RBC Capital Markets. Your line is now open. Hi, good morning.

Speaker Change: First question comes from the line of Geoff Kwan with RBC capital markets. Your line is now open.

Unknown Analyst: Hi, good morning. My first question was on the wealth segment. They closed their first SMA for a third party, I think, insurer to manage the investment in Q2. I'm just wondering if you can talk about the pipeline and the opportunity to do more of these types of transactions, you know, potential timing, fee structures, and margins.

Geoff Kwan: Hi, good morning. My first question was on the wealth segment. They closed their first SMA for a third party, I think, insurer to manage the investment in Q2. I'm just wondering if you can talk about the pipeline and the opportunity to do more of these types of transactions, you know, potential timing, fee structures and margins.

Geoff Kwan: Hi, good morning. My first question was on the wealth segment. They closed their first SMA for a third party, I think, insurer to manage the investment in Q2. I'm just wondering if you can talk about the pipeline and the opportunity to do more of these types of transactions, you know, potential timing, fee structures, and margins.

Bruce Flatt: Okay.

Geoff Kwan: My first question was on the wealth segment. They closed their first desk of May for a third party, I think, in order to manage the investment in Q2. I'm just wondering if you can talk about the pipeline and the opportunity to do more of these types of transactions, you know, potential timing, fee structures, and margins.

Speaker Change: Hi, good morning.

Unknown Analyst: Question was on the wealth segment. They closed their first SMA for third party I think insurer.

Unknown Analyst: The investment in Q2 I was just wondering if you can talk about the pipeline and the opportunity to do more of these types of transactions.

Speaker Change: Potential timing fee structures margins.

Nicholas Goodman: Hi, Jeff. Listen, happy to comment, and I think we're going to see more of these, and I think the scale will continue to build. And there's a couple of driving forces behind it. One, I think, as we grow the insurance business on our books and the appetite that we have to originate credit is going significantly, and the capability that we have to originate that is really strong within the asset management business. We will scale up our capability alongside our capital, and then we can bring our clients alongside us as we scale, and we will build these SMAs, and they can then invest alongside BN.

Nick Goodman: Hi Geoff, it's Nick. Yeah, listen, happy to comment. And I think we're going to see more of these, and I think the scale will continue to build. And there are a couple of driving forces behind it. One, I think, is as we grow the insurance business on our books, and the appetite that we have to originate credit is growing significantly. And the capability that we have to originate is really strong within the asset management business.

Nick Goodman: Hi, Geoff, it's Nick. Yeah, listen, happy to comment. And I think, I think we're going to see more of these. And I think the scale will continue to build. And there's a couple of driving forces behind it. One, I think, as we grow the insurance business on our books, and the appetite that we have to originate credit is growing significantly. And the capability that we have to originate that is really strong within the asset management business.

Unknown Analyst: Okay.

Unknown Analyst: Hi, Jeff, It's Nick Yes, listen happy to comment and I think.

Speaker Change: I think we're going to see more of these and I think the scale will continue to build and there's a couple of driving forces behind that one I think as we grow the insurance business on our books and the appetite that we have to originate credit is growing significantly and the capability that we have to originate that is a really strong within the asset manager.

Speaker Change: <unk> business, we will scale up our capability alongside our capital and then we can bring our clients alongside us and as we scale and we will build these smes and <unk> invest alongside <unk>. So I think we signed one in the quarter you continue to see these scale up because we were able to originate the exact type of credit assets that these clients want to be invested in.

Nick Goodman: So we will scale up our capability alongside our capital, and then we can bring our clients alongside us as we grow. And we will build these SMAs, and they can then invest alongside BNRE. So I think we signed one in the quarter. You continue to see these scale up because we're able to originate the exact type of credit assets that these clients want to be invested in. And the fee structures will evolve over time but be broadly consistent with other credit SMAs.

Nick Goodman: So we will scale up our capability alongside our capital, and then we can bring our clients alongside us as we scale. And we will build these SMAs, and they can then invest alongside BNRE. So I think we signed one in the quarter, you continue to see these scale up, because we're able to originate the exact type of credit assets that these clients want to be invested in. And the fee structures will evolve over time, but broadly consistent with other credit SMAs.

Nicholas Goodman: So I think we say one in the quarter, you continue to see these scale up because we're able to originate the exact type of credit assets that these clients want to be invested in. The fee structures will evolve over time, but broadly consistent with other credit SMAs, and we should have a lot of operating leverage in that business because we have a lot of the credit sourcing and underwriting capability in place. And I think it should be a strong tailwind of growth for earnings for the asset management business.

Speaker Change: And the fee structures will evolve over time, but broadly consistent with other credit Sma's and we should have a lot of operating leverage in that business. Because we have a lot of the credit sourcing and underwriting capability in place and I think it should be a strong tailwind of growth for earnings for the asset management business.

Nick Goodman: And we should have a lot of operating leverage in that business because we have a lot of the credit sourcing and underwriting capability in place. And I think it should be a strong tool. And, of course, for earnings in the asset management business.

Nick Goodman: And we should have a lot of operating leverage in that business, because we have a lot of the credit sourcing and underwriting capability in place. And I think it should be a strong tool. And of course, for earnings for the asset management business.

Geoff Kwan: Okay, thank you. And just my other question is, I mean, and you talked about it earlier, it seems like the general consensus is monetization markets are improving. Maybe there's a bit of a quality bias where hard quality business are easier to transact. Maybe less so for lower quality businesses.

Unknown Analyst: Okay, thank you. And just my other question is, I mean, you talked about it earlier. It seems like the general consensus is that monetization markets are improving. Maybe there's a bit of a quality bias for high-quality businesses or either transact, maybe less so for lower-quality businesses. And really, my question is, how might this play out within the real estate space, in particular, when real estate M&A really starts to pick up? Do you think there might be some sort of lag effect on when you might be able to monetize assets within the T&D portfolio?

Geoff Kwan: Okay, thank you. And just my other question is, and you talked about it earlier, it seems like the general consensus is that monetization markets are improving. Maybe there's a bit of a quality bias for high-quality businesses or for businesses that are easier to transact, maybe less so for lower-quality businesses. And really, my question is, I'm wondering how this might play out within the real estate space, in particular, when real estate M&A really starts to pick up. Do you think there might be some sort of lag effect on when you might be able to monetize assets within the T

Geoff Kwan: Okay, thank you. And just my other question is I mean, you talked about it earlier, it seems like the general consensus is monetization markets are improving. Maybe there's a bit of a quality bias for high quality business or easier to transact, maybe less so for lower quality businesses. And really, my question is, I'm wondering how this might play out within the real estate space, in particular, when real estate M&A really starts to pick up, do you think there might be some sort of lag effect on when you might be able to monetize assets within the T&D portfolio?

Speaker Change: Okay. Thank you and just my other question is.

Unknown Analyst: And you talked about it earlier it seems like the general consensus is monetization market are improving maybe there's a bit of a quality bias for higher quality business are either transact maybe less so for lower quality business is really my question is I'm wondering how this might play out within the real estate space in particular.

Geoff Kwan: And really my question is, I'm wondering how this might play out within the real estate space in particular when real estate M&A really starts to pick up. Do you think there might be some sort of lag effect on when you might be able to monetize assets within the T&D portfolio?

Unknown Analyst: Real estate M&A really starts to pick up do you think there might be some sort of lag effect on when you might be able to monetize assets within the T&D portfolio.

Nick Goodman: Geoff, you're right. The initial transactions have a bias for quality, but I would say that within the T&D, we own high quality assets. They're maybe not the assets we consider core or ones we want to want to own for a long term, but they are high quality. And also, remember, they are geographically diverse.

Nick Goodman: Um, Geoff, you're right, the initial transactions have a bias for quality, but I would say that within T&D, we own high-quality assets. They're maybe not the assets we consider core or ones we want to want to own for the long term, but they are high quality. And also, remember, they are geographically diverse.

Nick Goodman: Geoff, you're right. The initial transactions have a bias for quality. But I would say that within T&D, we own high-quality assets. They're maybe not the assets we consider core or ones we want to want to own for the long term, but they are high quality. And also, remember, they are geographically diverse.

Nicholas Goodman: Jeff, you're right; the initial transactions have a bias for quality, but I would say that within the T&D, we own high quality assets. There may be not the assets we consider quarter ones we want to own for a long term, but they are high quality. And also remember, they are geographically diverse. So a lot of the transaction activity is returning. We sold out of T&D in Brazil, and we're working on transactions across the globe, and we sold one asset in the US. So I think it will be dependent on the assets, but even within T&D, we have high-quality assets, and we expect that A, transaction activity picks up.

Speaker Change: Jeff you are right. The initial transactions have a bias for quality, but I would say that within the T&D, we own high quality assets, they're maybe not the assets. We consider core once we onto a want to own for a long term, but they are high quality and also remember they are geographically diverse. So a lot of the transaction activity is returning we sold.

Operator: Hello, and welcome to the Brookfield Corporation's second quarter, 2024 conference call and webcast. At this time, all participants are in a listenly mode. After the speaker's presentation, there will be a question and answer session. To ask the questions during the session, you will need to press star 1-1 on your telephone.

Nick Goodman: So a lot of the transaction activity is returning; we've sold out T&D in Brazil, and we're working on transactions across the globe. And we sold one asset in the US. So I think it will be dependent on the assets. But even within T&D, we have high-quality assets. And we expect that transaction activity picks up B, and interest rates are going to be coming down, which will be a positive catalyst for credit capacity and investor appetite and valuations. And that should be a strong tailwind for monetizations.

Geoff Kwan: So a lot of the transaction activity is returning. We've sold out of T&D in Brazil. And we're working on transactions across the globe, and we sold one asset in the US. So I think it will be dependent on the assets. But even within T&D, we have high-quality assets, and we expect that A, transaction activity picks up. B. Finally, it looks like interest rates are going to be coming down, which will be a positive catalyst for credit capacity and investor appetite and valuations, and that should be a strong tailwind for monetization.

Nick Goodman: T&D in Brazil, and we're working on transactions across the globe and we sold one asset in the U S. So I think it will be dependent on the the assets, but even within T&D, we have high quality assets and we expect that a transaction activity picks up be it looks like interest rates are going to be coming down which will be a positive catalyst for.

Angela Yulo: I would now like to hand the conference call over to our first speaker, Ms. Angela Yulo, vice president and vice relations. Please go ahead. Thank you, operator, and good morning.

Nick Goodman: So a lot of the transaction activity is returning. We've sold out of T&D in Brazil, and we're working on transactions across the globe, and we sold one asset in the US. So I think it will be dependent on the assets. But even within T&D, we have high quality assets, and we expect that A, transaction activity picks up. B, it looks like interest rates are going to be coming down, which will be a positive catalyst for credit capacity and investor appetite and valuations. And that should be a strong tailwind for monetizations.

Angela Yulo: Welcome to Brookfield Corporation's second quarter, 2024 conference call.

Geoff Kwan: B, it looks like interest rates are going to be coming down, which will be a positive catalyst for credit capacity and investor appetite and valuations. And that should be a strong tailwind from monetization. Okay, yeah, no, sorry. I know you; there's a lot of quality in there.

Angela Yulo: On the call today, our Bruce Flatt, our chief executive officer, and Nick Goodman, president of Brookfield Corporation. Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. After our formal comments, we'll turn the call over to the operator and take analyst questions.

Nick Goodman: Credit capacity, and investor appetite and valuations and that should be a strong tailwind for monetization.

Geoff Kwan: Okay yeah no sorry I know you there's a lot of quality in there I was just thinking if I remember correctly there's like a hundred and seventy ish assets, and you know, some labs here are maybe more opportunistic than some of the others. And that's what that's what I was kind of getting at. Yeah, they are. They are. And Jeff, I would also just say

Nick Goodman: Okay, yeah, no, sorry, I know you there's a lot of quality in there. I was just thinking, if I remember correctly, there are like a hundred and seventy ish assets, and you know, some labs here are maybe more opportunistic than some of the others. And that's what I was kind of getting at. Yeah, they are. Yeah, they are.

Speaker Change: Okay, Yeah, no sorry, I know, there's a lot of quality and they're just thinking if I remember correctly there was like a 100.

Nicholas Goodman: I was just thinking if I remember correctly, there's like a hundred and seven D-ish assets. And you know, some labs here are... Or maybe more opportunistic than some of the others. That's what I was kind of getting at. Yeah, they are. And Jeff, I would also just say the option to comment on if you look at the equity we have in real estate. 5% is in what we would consider a regional office in the US. So it's, it's not a significant number.

Nick Goodman: <unk>.

Angela Yulo: In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions. I'd like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meeting as applicable Canadian and US securities law. These statements reflect predictions of future events and trends and do not relate to historic events.

Speaker Change: Assets some of them obviously are maybe.

Nick Goodman: And Jeff, I would also just give you.

Speaker Change: More opportunistic than somebody that's what that's what I was kind of getting out.

Nick Goodman: Yeah, they are. They are.

Nick Goodman: And Jeff, I would also just take the opportunity to comment on if you look at the equity we have in real estate. 5% is in what we would consider regional office in the US. So it's it's not a significant number and it's not going to be a major driver of monetization activity even if we are successful because that number is relatively small in context of the overall portfolio.

Nick Goodman: Yeah, they are. They are!

Angela Yulo: They are subject to known and unknown risks and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings to the securities regulators in Canada and the US and the information available on our website.

Nick Goodman: And Jeff I would also just take the opportunity to comment on if you look at the equity we have in real estate.

Nick Goodman: And Jeff, I would also just take the opportunity to comment on the equity we have in real estate. 5% is in what we would consider regional offices in the U.S. So it's not a significant number and it's not going to be a major driver of monetization activity even if we are successful because that number is relatively small in context of the overall portfolio.

Unknown Analyst: 5% is in what we would consider a regional office in the US. So it's not a significant number, and it's not going to be a major driver of monetization activity, even if we are successful, because that number is relatively small in context of the overall portfolio.

Speaker Change: 5% is in what we would consider a regional office in the U S. So it's not a significant number and its not going to be a major driver of monetization activity. Even if we are successful because that number is relatively small in context of the overall portfolio.

Nicholas Goodman: And it's not going to be a major driver of monetization activity, even if we are successful, because that number is relatively small in context of the world portfolio.

Geoff Kwan: Got it. Thank you.

Speaker Change: Got it thank you.

Operator: Thank you. Our next question comes from the line of Mario Saric with Scotiabank. Your line is now open.

Mario Saric: Thank you. Our next question comes from the line of Mario Saric with Scotiabank. Your line is now open.

Mario Saric: Our next question comes from the line of Mario Saric with Skillshare Bank.

Unknown Analyst: Thank you. Our next question comes from the line of Mario Sorry, with Scotiabank. Your line is now open.

Mario Saric: You want us to open. Good morning. Thank you for taking the questions. Nick, just sticking to real estate, core real estate seems to run on our growth rate, healthy at 3%, but higher debt costs have impacted the FFO. So that said, the core flow is showing sequential improvement this quarter.

Mario Saric: Hi, good morning. Thank you for taking the question. Nick, just sticking to real estate, core real estate seems to be healthy at 3%, but higher debt costs have impacted the FFO. That said, the core FFO is showing sequential improvement this quarter. As kind of monetary policy looks like it's going to be easing in the second half this year. Can you remind us of the FFO kind of sensitivity within BPG to variable debt costs? Something like for example, if, you know, if we come down 25 basis points, it could impact your annualized effort for a lot of BPG by x

Unknown Analyst: Hi, good morning. Thank you for taking the question. Nick, just sticking to real estate, core real estate seems to be running arguably healthy at 3%, but higher debt costs have impacted the FFO. That said, the core FFO is showing sequential improvement this quarter.

Mario Saric: Hi, good morning. Thank you for taking the time to answer the question. Nick, just sticking to real estate; core real estate seems to generate a lot of growth for me. It's healthy at 3%, but higher debt costs have impacted the FFO. That said, the core FFO is showing sequential improvement this quarter, and some kind of monetary policy looks like it's going to be easing in the second half this year. Can you remind us of the FFO kind of sensitivity within BPG to variable debt costs? Something like, for example, if we come down 25 basis points, it could impact your annualized FFO out of BPG by X.

Speaker Change: Hi, good morning, and thank you for taking the questions.

Speaker Change: Nick just sticking to real estate core real estate things, where NOI growth remains healthy at 3%, but higher debt costs have impacted the ethical.

Bruce Flatt: With that, I'll turn the call over to Bruce. Thank you, Angela, and welcome everyone on the call. Results for the second quarter were strong with each of our businesses performing well and continuing to deliver strong cash flows. Distributable earnings before realizations were 1.1 billion for the quarter and 4.4 billion for the last 12 months, representing an increase compared to the prior year quarter of 11% on the total share basis. Total distributed earnings increased by 80% to 2.1 billion for the quarter as transaction activity continues to pick up.

Speaker Change: That said the core photo showing sequential improvement this quarter.

Mario Saric: As kind of monetary policy looks like it's going to be easing the second half of this year, can you remind us of the FFO kind of sensitivity within BPG to variable debt costs? Something like, for example, if, you know, if we come down to 25 basis points, going to could impact your annualized FFO out of BPG by X percent.

Speaker Change: Kind of monetary policy looks like it's going to be either in the second half this year could you remind us.

Speaker Change: So kind of sensitivity within BTG to variable debt costs.

Speaker Change: For example.

Unknown Analyst: Yes.

Speaker Change: If rates come down 25 basis points it could impact your annualized ethical lot of BTG by X percent.

Nick Goodman: Yeah, the specific lesson, I think Mario, you're right, interest rates are coming down. On top of interest rates coming down, credit spreads have compressed significantly. They're in about 150 basis points in some areas compared to 12 months ago. They're 25, 50 basis points off their historical average, but we still think they have further room to compress. So I think that, combined with interest rate cuts, with maybe about 30% of the variable rate debt in the portfolio today, will be a positive catalyst as we work through it.

Nick Goodman: Yeah, the specific lesson, I think Mario, you're right. Interest rates are coming down. On top of interest coming down, credit spreads have compressed significantly. They're in about 150 basis points in some areas compared to 12 months ago. They're 25, 50 basis points off historical average, but we still think they have further room to compress. So I think that combined with interest rate cuts, with maybe about 30% variable rate debt in the portfolio today, will be a positive catalyst as we work through.

Nicholas Goodman: Yeah, this is just a lesson. I think Mario, you're right; interest rates are coming down. On top of interest coming down, credit spreads have compressed significantly. There are about 150 basis points in some areas compared to 12 months ago.

Unknown Analyst: Yes.

Unknown Analyst: Mario you're right interest rates are coming down on top of interest coming down credit spreads have compressed significantly they are at about 150 basis points in some areas compared to 12 months ago.

Bruce Flatt: With regard to the economy, inflation is cooling down, short-term interest rates are starting to decline in major economies around the world and risk appetite has been coming back. In just the last six months, we successfully financed approximately $75 billion of debt and realized $15 billion from monetizations across a number of assets globally. With this constructive economic backdrop, albeit volatile over the last week, liquidity continues to return to the private markets, setting us up wealth, capitalize on attractive growth opportunities, monetize mature assets, and deliver strong returns.

Nicholas Goodman: There are 25 50 basis points off historical average, but we still think they are further room to compress. So I think that combined with interest rate cuts with maybe about 30% variable rate debt in the portfolio today will be a positive capitalist as we work through now to give you the exact percentage of varies.

Speaker Change: There are $25 50 basis points off historical average, but we still think they have further room to compress so I think that combined with interest rate cuts.

Speaker Change: With maybe about 30% variable rate debt in the portfolio today.

Speaker Change: We will be a positive catalyst as we worked through now to give you the exact percentage of various because some it depends on when we refinance fixed rate debt into low rate market and the impact of floating rate book with hedges rolling off but you are going to see the impact coming through earnings almost immediately as rates start to come down.

Nick Goodman: Now, to give you the exact percentage, it varies because some of it depends on when we refinance fixed-rate debt into the low-rate market and the impact of floating rates, but with hedges rolling off. But you are going to see the impact coming through earnings almost immediately as rates start to come down.

Nick Goodman: Now to give you the exact percentage, it varies. Because some, it depends on when we refinance fixed rate debt into low rate market and the impact of floating rate, but with hedges rolling off. But you are going to see the impact coming through earnings almost immediately as rates start to come down.

Nicholas Goodman: Because some it depends on when we refinance fixed rate debt into lower rate market and the impact of voting rate, but with hedges rolling off, but you are going to see the impact coming through earnings almost immediately as rates start to come down.

Mario Saric: Okay, and my second question is more of a kind of a somatic long-term question. I think Bruce highlighted the need to evolve with time with respect to investment capital, as you asked the class to emerge. I think I guess collectively, how do you think about that concept of the pertains to the BN corporate structure?

Mario Saric: Okay, and my second question, more of a kind of a thematic, long term question. I think Bruce highlighted the need to evolve with time with respect to invested capital as we've asked the class to emerge. I think, I guess, collectively, how do you think about that concept as it pertains to the BN corporate structure? Do you see the present BN corporate structure with respect to investments and listed subsidiaries, fully owning the real estate and the wealth solution businesses as something you expect to endure over the next 1, 5, 10, 20 years?

Mario Saric: Okay, and my second question, more of a kind of thematic, long-term question. I think Bruce highlighted the need to evolve with time with respect to invested capital as you asked the class to emerge. I think, I guess, collectively, how do you think about that concept as it pertains to the BN corporate structure? Do you see the present BN corporate structure with respect to investments and listed subsidiaries, fully owning the real estate and the wealth solution businesses as something you expect to endure over the next 1, 5, 10, 20 years?

Speaker Change: Okay, Okay and my my second question is more of a kind of a dramatic long term question.

Bruce Flatt: As we look forward, we believe this should be a great environment for real assets and specifically for those investment teams with operational expertise and access to scaled capital. At the same time, we continue to take the opportunity to repurchase our shares at significantly lower prices compared to our view of intrinsic value.

Unknown Analyst: Bruce highlighted the need to evolve with time with respect to invested capital as you asked it causes emerge.

Unknown Analyst: I think, I guess, collectively, how do you think about that concept as it pertains to the BN corporate structure? Do you see the present BN corporate structure with respect to investments and listed subsidiaries, fully owning the real estate and the wealth solution businesses as something you expect to endure over the next 1, 5, 10, 20 years? Or is the optimal structure still a work in progress? And the genesis or the reason behind the question is that despite the pretty strong move in the share price recently, it still materially lags your estimated. Yeah, that's a good observation.

Mario Saric: Or is the optimal structure still a work in progress? And the genesis or the reason behind the question is that despite the pretty strong move in the share price recently, it still materially lags your estimated. Yeah, that's a good observation.

Mario Saric: Or is the optimal structure still a work in progress? And the genesis or the reason behind the question is that despite the pretty strong share price recently, it still materially lags your estimated, Yeah, that's a good observation.

Speaker Change: I think collectively how do you think about that concept as it pertains to the corporate structure.

Nicholas Goodman: Do you see the present BN corporate structure with respect to investment and listen to subsidiaries? Well, you're owning the real estate and the wealth solution business is something you expect to endure over the next month, five, 10, 20 years, or is the optimal structure still a working progress? And the genesis or the reason behind the question is that, despite the pretty strong move and share price recently, it still materially lags your estimated intrinsic value.

Unknown Analyst: Do you see the program be in corporate structure with respect to the Boston public subsidiaries.

Speaker Change: Owning our real estate and walk solution business is that something you expect to do over the next one 510 20 years, whereas the optimal structure still a work in progress.

Bruce Flatt: Lee. Since the start of this year, we completed over $800 million of share buybacks, which added very meaningfully to the value of our company based on our view of that value. We intend to continue to allocate capital to share repurchase when it makes sense, enhancing the underlying value of the business for each remaining share.

Unknown Analyst: Genesis or that we've gotten the question.

Speaker Change: Despite the pretty strong share price recently, it's still material lags year estimated intrinsic value.

Nick Goodman: Yeah, that's good observation, Mario. And listen, our primary focus is on being invested in assets that are going to generate attractive long-term returns. And in the real estate that we own, the insurance that we own, they are generating excellent returns, and insurance is just getting going and has enormous potential. So that's the primary focus.

Nicholas Goodman: Yeah, that's a good observation, Mario, and listen, our primary focus is on being invested in assets that are going to generate attractive long-term returns. And in the real estate that we own, the insurance that we own, they are generating excellent returns, and insurance is just getting going in as enormous potential. So that's the primary focus.

Nick Goodman: Yeah, that's a good observation, Mario. And listen, our primary focus is on being invested in assets that are going to generate attractive long-term returns. And the real estate that we own, the insurance that we own, they are generating excellent returns, and insurance is just getting going and has enormous potential. So that's the primary focus.

Speaker Change: Yes, that's a good observation Mario Unlistening. Our primary focus is on being invested in assets that are going to generate attractive long term returns and in the real estate that we own the insurance that we own. They are generating excellent returns on insurance is just getting going and has enormous potential. So that's the primary focus now.

Bruce Flatt: As we plan for the future, it is important to reflect on what has been the foundation of our growth and success from the past. Our ability to consistently generate strong investment returns over the long term is certainly one of those. This has contributed to our success in the past and should it continue to drive success for years to come. Our investment philosophy has been and continue to be built on our key principles, which have applied well investor our own capital for over 100 years, and this is enabled us to compound our own capital, build a large perpetual capital base and establish ourselves as one of the largest global asset managers with a very strong investment track record.

Nicholas Goodman: Now, as these businesses evolve and as the markets evolve, we do assess the structure real-time.

Nick Goodman: Now, as these businesses evolve, and as the markets evolve, we do assess the structure, real time, you know, and as you saw, as our asset management business grow, great tailwind, a deep public market developed for that business, it reached a scale where we thought it was better served in the public markets. But as we sit here today, the structure we have is the structure that we're planning on having for some time, and that may evolve.

Nick Goodman: Now, as these businesses evolve, and as the markets evolve, we do assess the structure, real time, you know, and as our asset management business grows, with great tailwind, a deep public market develops for that business, it reached a scale where we thought it was better served in the public markets. But as we sit here today, the structure we have is the structure that we're planning on having for some time, and that may evolve.

Speaker Change: As these businesses evolve and as the markets evolve we do assess the structure real time.

Nicholas Goodman: You know, as you saw, as our asset management business grew, a great tailwind, a deep public market developed for that business, a reach to scale where we thought it was better served in the public markets. But as we sit here today, the structure we have is the structure that we're planning on having for some time, and that may evolve. But right now, the focus primarily is on compounding value in the business, and we may make decisions over time that can improve our access to capital. And so it's always going to be an evolution, and we'll see how it plays out.

Speaker Change: As our as you saw as our asset management business growth great tailwind a deep public market developed for that business at reached a scale, where we thought it was better served in the public markets, but as we sit here today. The structure. We have is the structure that we're planning on having for some time and that may evolve, but right now the focus primarily is on compounding value in the business.

Nick Goodman: But right now, the focus primarily is on compounding value in the business. And we may make decisions over time that can improve our access to capital. And so it's always going to be an evolution. And we'll see how it plays out.

Nick Goodman: But right now, the focus primarily is on compounding value in the business. And we may make decisions over time that can improve our access to capital. And so it's always going to be an evolution. And we'll see how it plays out.

Bruce Flatt: The same principles, though, should apply as we further scale our wealth solutions business, which after just three years has generated annual returns compounded 20% and looks to be only getting started. Our strong investment performance has led therefore to our clients meeting their financial objectives, our manager further deepening client relationships, our balance sheet continue to compound it approximately 20% annualized for the past 30 years, and our ability to realize carried interest which can be reinvested back into the business for return to shareholders.

Speaker Change: And we may make decisions over time that can improve our access to capital.

Speaker Change: And so it's always going to be an evolution.

Speaker Change: And we will see how it plays out.

Mario Saric: Okay, thank you. Thank you.

Speaker Change: Okay. Thank you.

Cherilyn Radbourne: Thank you. Our next question comes from the line of Cherilyn Radbourne with TD Cowen. Your line is now open.

Operator: Thank you. Our next question comes from the line of Cherilyn Radbourne with TD Cowen. Your line is now open.

Cherilyn Radbourne: Thank you. Our next question comes from the line of Cherilyn Radbourne with TD Cowen. Your line is now open.

Cherilyn Radbourne: Our next question comes from the line of Cheryl and Radbourne with T.D. Cowan. Your line is now open. Thanks very much, and good morning.

Unknown Analyst: Thank you. Our next question comes from the line of Cherilyn Radbourne with TD Cowen. Your line is now open.

Cherilyn Radbourne: Thanks very much and good morning. As you're no doubt very aware, there's been concern raised this quarter about the potential for spread compression in insurance. Can you talk about how you see the trade off between growth versus maintaining a desired spread? And or are we in that business going forward? Yes.

Cherilyn Radbourne: Thanks very much. And good morning.

Cherilyn Radbourne: Thank you very much and good morning.

Cherilyn Radbourne: As you're no doubt very aware, there's been concern raised this quarter about the potential for spread compression in insurance. Can you talk about how you see the trade-off between growth versus maintaining a desired spread and or are you not business going forward? Yes, absolutely, Sherlyn. Good morning. The I would just tell you the primary focus on our business's return on equity. So we will stay incredibly focused and disciplined on that, which is why we want to draw out for people that the spread of our pre-existing business this quarter was maintained at 2%. Now, AEL comes on at a lower spread, but that will gravitate towards to his reposition, the investment portfolio.

Speaker Change: As you are no doubt very aware, there's been concern raised this quarter about the potential for spread compression in insurance can.

Cherilyn Radbourne: Can you talk about how you see the trade off between growth versus maintaining it.

Bruce Flatt: Our differentiated platform, which is evolved with the backbone of the global economy, has enabled us to continue to compound capital and deliver strong returns on a per share based where shareholders over the longer term. Note that we invest into the backbone of the global economy. That economy is always evolving and we must change with it. I would note for you that 50% or more of the assets that we own today did not exist as an asset class 20 years ago.

Speaker Change: Rod and or are we in that business going forward.

Nick Goodman: Yes, absolutely, Cherilyn. Good morning. I would just tell you that the primary focus of our business is return on equity. So we will stay incredibly focused and disciplined on that, which is why we wanted to point out for people that the spread of our pre-existing business this quarter was maintained at 2%. Now, AEL comes on at a lower spread, but that will gravitate towards, too, as we reposition the investment portfolio. And how we manage that is, as the rate environment changes, we are fairly quick to react in changing the rate that we offer annuitants.

Nick Goodman: Yes, absolutely, Cherilyn. Good morning. I would just tell you that the primary focus on our business is return on equity. So we will stay incredibly focused and disciplined on that, which is why we wanted to draw out for people that the spread of our pre-existing business this quarter was maintained at 2%. Now, AEL comes on at a lower spread, but that will gravitate towards too as we reposition the investment portfolio. And how we manage that is as the rate environment changes, we are fairly quick to react in changing the rate that we offer annuitants.

Cherilyn Radbourne: As you're no doubt very aware, there's been concern raised this quarter about the potential for spread compression in insurance. Can you talk about how you see the trade-off between growth versus maintaining a desired spread? And or are we in that business going forward? Yeah.

Cherilyn Radbourne: Yes, absolutely cherilyn.

Cherilyn Radbourne: <unk>.

Speaker Change: I would just tell you the primary focus on our business is return on equity.

Speaker Change: So we will stay incredibly focused and disciplined on that which is why we wanted to drive for people that the spread of our preexisting business. This quarter was maintained at 2% now ADL comes on at a lower spread but that will gravitate towards to as we reposition the investment portfolio and how we manage that is as the rate environment.

Nicholas Goodman: And how we manage that is, as the rate environment changes, we are fairly quick to react in changing the rate that we offer in nuisance. So, as the rate market has evolved and dynamic has changed, we've lowered the rate that we've been offering in nuisance by up to 50 basis points in just the last week. And we're matching that against the investment opportunity that we see with a primary focus on maintaining those 18 to 20% ROE. So our primary focus is going to be return on equity.

Bruce Flatt: One of the few areas where we are seeing very strong investment opportunities is the AI revolution. Fortunately, we are at the center of the backbone of this revolution and our combined development pipeline of renewable power and data centers is by far the largest of any entity globally. There is an increase in demand for power to run data centers used in computing capacity for AI. It's the largest builder of renewables and data centers combined in the world.

Speaker Change: <unk> changes, we are fairly quick to react and changing the rate that we offer and Europeans. So as the rate market has evolved and dynamic has changed we've lowered the rate that we've been offering and your attempts by up to 50 basis points in just the last week and we're matching that against the investment opportunity that we see.

Nick Goodman: So as the rate market has evolved and dynamic has changed, we've lowered the rate that we've been offering annuitants by up to 50 basis points in just the last week. And we're matching that against the investment opportunity that we see with a primary focus on maintaining those 18 to 20% ROEs. So our primary focus is going to be return on equity.

Nick Goodman: So as the rate market has evolved and the dynamics have changed, we've lowered the rate that we've been offering annuitants by up to 50 basis points in just the last week. And we're matching that against the investment opportunity that we see with a primary focus on maintaining those 18 to 20% ROEs. So our primary focus is going to be return on equity.

Speaker Change: Our primary focus on maintaining those 18% to 20% ROE. So our primary focus is going to be return on equity.

Cherilyn Radbourne: Okay, and then switching gears a little bit here in terms of the deal pipeline.

Bruce Flatt: This is very exciting for us. However, our scale must increase dramatically to meet the needs of our customers. As a result, we have acquired several renewable operating and development platforms as well as data center businesses over the past number of years to scale our capabilities. Our recent agreement with Microsoft and our advancement through a Westinghouse business also give us an enormous lead in pursuing this.

Cherilyn Radbourne: Okay, and then switching gears a little bit here in terms of the deal pipeline, there's been a so-called wall of debt maturity that's been talked about for a while, which Ben touched on in part in the context of real estate yesterday. Maybe you want to expand on that, but can you also touch on what Oak Tree sees developing in terms of the potential for a distressed credit cycle at some point?

Nick Goodman: Okay, and then switching gears a little bit here in terms of the deal pipeline, there's been a so called wall of debt maturity that's been talked about for a while, which Ben touched on in part in the context of real estate yesterday. Maybe you want to expand on that. But can you also touch on what Oak Tree sees developing in terms of the potential for a distressed credit cycle at some point?

Cherilyn Radbourne: Okay, and then switching gears a little bit here in terms of the deal pipeline.

Cherilyn Radbourne: There's been a still-called wall of debt maturity that's been talked about for a while, which then touched on in part in the context of real estate yesterday.

Speaker Change: And then on a so called wallet debt maturity, that's been talked about for a while which.

Speaker Change: <unk> touched on in part.

Speaker Change: Context real estate yesterday, maybe you want to expand on that but can you also touch on what <unk> is developing in terms of the potential for a distressed credit cycle at some point.

Nicholas Goodman: Maybe you want to expand on that, but can you also touch on what O3C is developing in terms of the potential for a distressed credit cycle at some point? Yeah, it was nice. We've not seen the distress yet. We've seen opportunities and gaps in the financing market in certain areas, which has provided the opportunity for us to make pretty attractive loans, but still to good credits, but just for one reason or another, they've fallen out of favor with the capital markets. So maybe stress, the opportunity to deal average, provide gap capital, where the banks have had to take a step back.

Bruce Flatt: Before I pass the floor over to Nick, I will end by saying that we look forward to seeing you at our investor day on September 10th in New York. Additional details for that are on our website.

Nick Goodman: Yeah, we've not seen the distress yet. We've seen opportunities and gaps in the financing market in certain areas, which has provided the opportunity for us to make pretty attractive loans, but still to good credit. But just for one reason or another, they've fallen out of favor with the capital markets. So maybe they should stress the opportunity to deleverage, provide gap capital, where the banks have had to take a step back. So it's maybe been driven by regulatory impacts and market dynamics as opposed to necessarily underlying portfolio stress or distress.

Nick Goodman: Yeah, we've not seen the distress yet. We've seen opportunities and gaps in the financing market in certain areas, which has provided the opportunity for us to make pretty attractive loans, but still to good credits. But just for one reason or another, they've fallen out of favor with the capital markets. So maybe stress the opportunity to deleverage, provide gap capital, where the banks have had to take a step back. So it's maybe been driven by regulatorily impacts market dynamics, as opposed to necessarily underlying portfolio stress or distress.

Speaker Change: Yes. It was nice we have not seen the distress yet.

Speaker Change: We've seen opportunities on gaps in the financing market in certain areas, which has provided the opportunity for us to make pretty attractive loans, but still see good credits, but just for one reason or another they fallen out of favor with the capital markets. So maybe stress the opportunity to deleverage provide GAAP capital, whereas the <unk>.

Bruce Flatt: And as always, thank you for your continued support and interest in Brookfield.

Nick Goodman: I'll now turn the call over to Nick. Thank you, Bruce.

Nick Goodman: Good morning, everyone. We delivered strong financial results in the second quarter, generating stable and growing cash flows across our business. Distributable earnings are DE before realizations were $1.1 billion or $71 cents per share for the quarter, representing an increase of 11% on a per share basis over the prior period. Over the last 12 months, DE before realizations were $4.4 billion or $2.77 per share. Total DE was $2.1 billion or $1.35 per share for the quarter and $5.8 billion or $3.67 per share over the last 12 months, with net income of $1.1 billion at our share or $3.4 billion in total over the same period.

Speaker Change: Thanks, if I take a step back so it is maybe being driven by regulators really impacts market dynamics as opposed to necessarily underlying portfolio stress or distress, but without doubt. There was a lot of leverage added when rates were zero and credit spreads were tight and as those do come up for renewal I think across Oaktree on our credit funds, we are going to.

Nicholas Goodman: So it's maybe being driven by regulatory impacts, market dynamics as to post the necessarily underlying portfolio stress or distress. But without doubt, there was a lot of leverage added when rates were zero, when credit spreads were tight. And as those do come up for renewal, I think, across O3 on our credit funds, we are going to see the opportunity to provide lending to cover the gaps, but still for high quality assets, and we have the capital available to participate.

Nick Goodman: But without doubt, there was a lot of leverage added when rates were zero and credit spreads were tight. And as those do come up for renewal, I think across Oaktree and our credit funds, we are going to see the opportunity to provide lending to cover the gaps, but still for high quality assets, and we have the capital available to participate.

Nick Goodman: But without doubt, there was a lot of leverage added when rates were zero and credit spreads were tight. And as those do come up for renewal, I think across Oaktree and our credit funds, we are going to see the opportunity to provide lending to cover the gaps, but still for high-quality assets, and we have the capital available to participate.

Speaker Change: See the opportunity to prove to provide lending to cover the gaps, but still for high quality assets and we have the capital available to participate.

Cherilyn Radbourne: Thank you.

Cherilyn Radbourne: Thank you. That's all for me.

Cherilyn Radbourne: Thank you. That's all for me.

Operator: That's all for me. Thank you.

Speaker Change: Thank you that's all from me.

Operator: Thank you. Our next question comes from the line of Sohrab Movahedi with BMO Capital Markets. Your line is now open.

Sohrab Movahedi: Our next question comes from the line of Sohrab Movahedi with BMO Capital Markets. Your line is now open.

Sohrab Movahedi: Our next question comes from the line of so-called Mova Headey with BMO Capital Markets. Shilane is now open. Okay. Thank you, Nick. I just wanted to go back to the answer you gave to the earlier question here on insurance spreads. I mean, one and a half to two percent spread, sorry, for the insurance one and a half to two percent spread like what did they wear on that range? You operate. How much of it is kind of macro as opposed to, I don't know, I'll call that management decision. Yeah, a lot of the plan for the Yale Sohrab is just reallocation of the existing investment portfolio.

Cherilyn Radbourne: Thank you.

Speaker Change: Our next question comes from the line of silver optimal Vahidi with BMO capital markets. Your line is now open.

Nick Goodman: So focusing first on our operating performance, our asset management business generated distributed earnings of $636 million or $0.40 per share in the quarter and $2.5 billion or $1.61 per share over the last 12 months. We continue to see strong fundraising across our diversified fund offerings. Acid's under management are now approximately $1 trillion and fee bearing capital was $514 billion as of June 30th and that 17% higher than 12 months ago. Influos during the quarter were $68 billion by by the scaling of our credit platform.

Sohrab Movahedi: Thank you, Nick. I just wanted to go back to the answer you gave to the earlier question here on insurance spreads. I mean, One and a half to or the credit spread, sorry for the insurance one and a half to two percent spread like, What did they wear in that rain? you operate, how much of it is kind of macro as opposed to I don't know, I'll call it a management decision. Yeah, a lot of them.

Sohrab Movahedi: Thank you, Nick. I just wanted to go back to the answer you gave to the earlier question here on on insurance spreads. I mean, One and a half to or the credit spread sorry for the insurance one and a half to 2% spread like, What decades were on that range?

Cherilyn Radbourne: Okay. Thank you Nick I just wanted to go back to.

Speaker Change: To answer you gave to the earlier question here on that.

Speaker Change: On insurance spreads.

Speaker Change: One path or the credit spread sorry for the insurance.

Speaker Change: Two 2% spread.

Cherilyn Radbourne: Ken.

Speaker Change: What dictate where on that range.

Nick Goodman: you operate? How much of it is kind of macro as opposed to I don't know, I'll call it a management decision. Yeah, a lot of

Speaker Change: You operate how much it is kind of macro as opposed to.

Speaker Change: I don't know I'll call it a management decision.

Nick Goodman: Yeah, a lot of the plan with the AEL, Sohrab, is just reallocation of the existing investment portfolio. There's no real macro thesis here, it's just we look at the portfolio, a lot of it is held in short-term liquid assets that are lower yielding relative to the credit opportunities that we see. Anne, So it's really about barbelling the portfolio. They'll maintain some liquid, but they're over allocated to short-term cash and liquid assets. And between that and repositioning, similar to the ANICO portfolio, we just see an uplift in the spread without really adding that much risk to the portfolio.

Nick Goodman: Yeah, a lot of the plan with the AEL, Sohrab, is just a reallocation of the existing investment portfolio. There's no real macro thesis here; it's just that we look at the portfolio, and a lot of it is held in short-term liquid assets that are lower yielding relative to the credit opportunities that we see.

Nick Goodman: Yeah, a lot of the plan with the AEL, Sohrab, is just a reallocation of the existing investment portfolio. There's no real macro thesis here; it's just that we look at the portfolio, and a lot of it is held in short-term liquid assets that are lower yielding relative to the credit opportunities that we see. And... So it's really about enhancing the portfolio. They will maintain some liquidity, but they're over allocated to short-term cash and liquid assets. And between that and repositioning, similar to the ANICO portfolio, we just see an uplift in the spread without really adding that much risk to the portfolio.

Speaker Change: A lot of a lot of the plan with AGL.

Nick Goodman: <unk> is just reallocation of the existing investment portfolio. There is no real macro.

Nick Goodman: This increased support to the 11% growth and annualized fee related earnings compared to the prior year quarter. We expect fundraising to ramp up in the back half of the year with closes anticipated for our latest flagship funds in the market, which should result in further earnings growth. During the quarter, our ownership in BAM decreased by 2% to 73% as we used approximately $1 billion at BAM shares as part of the consideration for the acquisition of American equity life or AEL.

Sohrab Movahedi: There's no real macro thesis here. It's just been look at the portfolio. A lot of it is held into short-term liquid assets that are lower yielding relative to the credit opportunities that we see. So it's really, it's really about barbelling the portfolio. They will maintain some liquid, but they're overallocated to short-term cash and liquid assets. And between that and repositioning similar to the analytical portfolio, we just see an uplift in the spread without really adding that much risk to the portfolio.

Nick Goodman: Thesis here is just to look at the portfolio a lot of it is held in short term liquid assets that are lower yielding relative to the credit opportunities that we see.

Nick Goodman: So it's really a.

Nick Goodman: It's really about bar belling the portfolio they will maintain some liquid but theyre over allocated to short term cash and liquid assets and between that on repositioning similar to the animal portfolio. We just see an uplift in the spread without really adding that much risk to the portfolio.

Nick Goodman: This demonstrates the valuable currency and liquidity that BAM and our other listed securities provide us. Our wealth solutions business had another strong quarter continuing to deliver growing, long dated, and unity light cashless. Distributable operating earnings were $292 million or $0.19 per share in the quarter and $1 billion or $63 per share over the last 12 months. We doubled the size of the business in the quarter, taking our insurance assets to over $110 billion on the back of the acquisition of AEL and the origination of $3.5 billion of new business through our new IT channel.

Sohrab Movahedi: And I just maybe just for crystal clarity because I think I got a lot of confused from earlier answer like you can't like you are probably price takers on the rate at the end of 10 and you can't really price up too far off market. Otherwise, you won't get any volume, right. But that's the point. So I think that's exactly the point. We will offer it at a rate that we are comfortable we can earn a spread on. If that means for that quarter, then maybe our sales sales are a little bit lower than we are willing to live with that.

Sohrab Movahedi: And I just maybe just for crystal clarity, because I think I got a little bit confused from the earlier answer. Like, you can't like, you're probably price takers on the rate that the annuitants want. Like you can't really price up too far off market. Otherwise, you won't get any volume, right?

Sohrab Movahedi: And maybe just for crystal clarity, because I think I got a little bit confused from the earlier answer. Like, you can't like, you're probably price takers on the rate that the annuitants want. You can't really price up too far off the market. Otherwise, you won't get any volume, right?

Unknown Analyst: And maybe just for crystal clarity, because I think I got a little bit confused from the earlier answer, like, you can't, like, you're probably price takers on the rate that the annuitants want. You can't really price up too far off the market. Otherwise, you won't get any volume, right?

Nick Goodman: Okay.

Speaker Change: Just maybe just for crystal clarity, because I think I got a little bit confused from guaranty are answered like you can't.

Speaker Change: You are probably price takers on the rate at the end of <unk> and <unk>.

Unknown Analyst: Just like you can't really price up too far off market, otherwise you won't get any volume Brian.

Nick Goodman: But that's the point, Sohrab; I think that's exactly the point. We will offer it at a rate that we are comfortable we can earn a spread on. If that means for that quarter, maybe our sales are a little bit lower, then we are willing to live with that. Now, in the current environment, we believe at the rate we've been offered, we're still running about a $15 billion inflow run rate, and we think we can maintain it at these levels. But I think our point is that we are a price taker, but we're going to set it at a price where we're comfortable that we can earn a good return.

Nick Goodman: But that's the point, Sohrab; I think that's exactly the point. We will offer it at a rate that we are comfortable we can earn a spread on. If that means for that quarter, maybe our sales are a little bit lower, then we are willing to live with that. Now, in the current environment, we believe at the rate we've been offered, we're still running about a $15 billion inflow run rate, and we think we can maintain it at these levels. But I think our point is that we are a price taker, but we're going to set it at a price where we're comfortable that we can earn a good return.

Nick Goodman: But that's the point, Sohrab, I think that's exactly the point. We will offer it at a rate that we are comfortable we can earn a spread on. If that means for that quarter, then maybe our sales are a little bit lower, then we are willing to live with that. Now, in the current environment, we believe at the rate we've been offered, we're still running about a $15 billion inflow run rate, and we think we can maintain it at these levels. But I think our point is, we are a price taker, but we're going to set it at a price where we're comfortable we can earn a good return.

Speaker Change: But thats the point store up I think that's exactly the point, we will offer at a rate that we are comfortable we can earn a spread on if that means for that quarter than maybe our sales sales are a little bit lower than we are willing to live with that now in the current environment. We believe at the rate. We've been offered we're still running at about a $15 billion inflow run rate and we.

Sohrab Movahedi: Now, in the current environment, we believe that the rate we've been offered, we're still running about a 15 billion dollar inflow run rate. And we think we can maintain it at these levels. But I think our point is, we are a price taker, but we're going to set it out of price where we're comfortable we can earn a good return.

Nick Goodman: Excluding AEL, the net investment spread on our assets was consistent with the prior quarter at approximately 2%. As you may recall, when we acquired American national or ANICLE back in May 2022, the annualized spread earnings of the business were approximately $300 million. Our investment thesis at the time was predicated on being able to leverage the credit origination and investment capabilities of our asset manager to rotate the investment portfolio into higher yielding assets, with the target of doubling the yield on the investment portfolio and thus the earnings of the business.

Nick Goodman: I think we can maintain it at these levels, but I think our point is we are a price taker, but we're going to set a price where we're comfortable we can earn a good return.

Nick Goodman: Within 12 months of taking ownership of ANICLE, the annualized spread earnings had indeed doubled to over $600 million. Force. We have a very similar plan with the AEL. As we steadily reposition the investment portfolio, we expect the spread earnings of the AEL business to increase from roughly 1.5% today to closer to 2%. And this will have the effect of growing our annualized earnings from $1.4 billion today to $2 billion. Through our combined well solutions platforms, we are raising close to $2 billion of retail capital per month, which now includes approximately $400 million a month from retail products for high net worth clients.

Sohrab Movahedi: Okay, I appreciate that.

Sohrab Movahedi: Okay, I appreciate that. And just and just on that same topic, 18 to 20% type ROE that you're you're targeting for that for that business is still predicated on around the 10 times leverage. Yeah, in that range, 8 to 10 times.

Sohrab Movahedi: Okay, I appreciate that. And just on that same topic, 18 to 20% type ROE that you're targeting for that business is still predicated on around 10 times leverage. Yeah, in that range, 8 to 10 times.

Sohrab: Okay I appreciate.

Sohrab Movahedi: And just on that same topic, 18 to 20% type of early that you're targeting for that, for that business is still predicated on around the 10 times leverage. Yeah, and that range 8 to 10 times leverage. Appreciate it.

Nick Goodman: <unk> and.

Speaker Change: And just on that same topic, 18% to 20% type Roe.

Sohrab: You are targeting for that for that business is still predicated on around 10 times leverage.

Nick Goodman: Yeah, in that range, 8 to 10 times leverage.

Nick Goodman: Yeah, in that range of 8 to 10 times leverage.

Speaker Change: Yes in that range eight to 10 times leverage.

Sohrab Movahedi: Thank you. Thanks a lot.

Nick Goodman: I appreciate it thank you thanks Sarah.

Operator: Thank you.

Kenneth Worthington: Thank you. Our next question comes from the line of Kenneth Worthington with J.P. Morgan. Your line is now open.

Operator: Thank you. Our next question comes from the line of Kenneth Worthington with J.P. Morgan. Your line is now open.

Kenneth Worthington: Our next question comes from the line of Kenneth Worthington with JP Morgan. Your line is open.

Speaker Change: Thank you. Our next question comes from the line of Kenneth Worthington with Jpmorgan. Your line is now open.

Alexander Bernstein: Hi, it's Alex Bernstein on for Ken. Thanks so much for taking our question. We wanted to double-click on the realization pipeline. You made some comments today suggesting that transaction activities due to go up. Those comments were in line with some of what we heard in the band call yesterday, especially as pertaining to the renewable sector. With that in mind, is it still the case that your guidance for the year holds at the prior 400 to 500 that you mentioned? Or is it possible that we might see some upsides to that number? Thank you so much.

Unknown Analyst: Hi, it's Alex Bernstein on for Ken. Thanks so much for taking our question. We wanted to double-click on the realization pipeline. You made some comments today suggesting that transaction activities are due to go up. Those comments were in line with some of what we heard on the BAM call yesterday, especially as pertaining to the renewable sector. With that in mind, is it still the case that your guidance for the year holds at the prior 400 to 500 that you mentioned? Or is it possible that we might see some upside to that number? Thank you so much. Yeah, no.

Alex Bernstein: Hi, it's Alex Bernstein on for Ken. Thanks so much for taking our question. We wanted to double-click on the realization pipeline. You made some comments today suggesting that transaction activities are due to go up. Those comments were in line with some of what we heard on the BAM call yesterday, especially as pertaining to the renewable sector. With that in mind, is it still the case that your guidance for the year holds at the prior 400 to 500 that you mentioned? Or is it possible that we might see some upside to that number? Thank you so much. Yeah,

Alex Bernstein: Hi, it's Alex Bernstein on for Ken. Thanks so much for taking our question. We wanted to double click on the realization pipeline. You made some comments today suggesting that transaction activities due to go up. Those comments were in line with some of what we heard on the BAM call yesterday, especially as pertaining to the renewable sector. With that in mind, is this still the case that your guidance for the year holds at the prior 400 to 500 that you mentioned? Or is it possible that we might see some upside to that number? Thank you so much. Yeah, no.

Alex Bernstein: Hi, It's Alex Bernstein on for Ken. Thanks, So much for taking our questions. We wanted to double click on the realization pipeline you made some comments, suggesting that transaction activity did it go up those comments were in line with some of what we heard on the call yesterday.

Speaker Change: Just to ask presenting the renewable sector.

Unknown Analyst: That in mind is this still the case that your guidance for the year olds at the prior 400 to 500 that you mentioned or is it possible that we might see some upside to that number. Thank you so much.

Nick Goodman: Yeah, no worries. Yeah, listen, you're right.

Nick Goodman: Yeah, no worries. Yeah, listen, you're right.

Nick Goodman: Yeah, no worries. Yeah, listen, you're right.

Nicholas Goodman: Yeah, Norris. Yeah, listen, you're right. The comments are consistent with what was said on the band call yesterday. And we are seeing sales activity picking up US Canada. I'm globally. And in the short term, those sales activity, what it means immediately is it means our return of capital at excellent returns, either to be in or are listed affiliates depending on who made the investments. We have that immediate impact.

Speaker Change: Yes, listen you're right. The comments are consistent with what we said on the bond call yesterday, and we are seeing sales activity picking up.

Nick Goodman: Our operating businesses continue to deliver resilient and growing cashless, generating distributable earnings of $371 million or $24 cents per share in the quarter, and $1.5 billion or $93 cents per share over the last 12 months. Cash distributions are underpinned by the high-quality earnings of our businesses. Operating funds from operations are operating effortful in our renewable power, transition and infrastructure businesses increased by 7% over the prior year of quarter, while same-store operating effortful in our private equity business grew by 17%.

Speaker Change: U S, Canada and globally.

Nick Goodman: The comments are consistent with what was said on the BAM call yesterday, and we are seeing sales activity picking up U.S., Canada, and globally. And in the short term, those sales activity, what it means immediately is it means a return of capital at excellent returns, either to BN or our listed affiliates, depending on who made the investments. We have that immediate impact.

Nick Goodman: The comments are consistent with what was said on the BAM call yesterday, and we are seeing sales activity picking up in the U.S., Canada, and globally. And in the short term, that sales activity means immediately, a return of capital at excellent returns, either to BN or our listed affiliates, depending on who made the investments. We have that immediate impact.

Nick Goodman: The comments are consistent with what was said on the BAM call yesterday, and we are seeing sales activity picking up in the U.S., Canada, and globally. And in the short term, that sales activity means immediately, a return of capital at excellent returns, either to BN or our listed affiliates, depending on who made the investments. We have that immediate impact.

Speaker Change: In the short term those sales activity what it means immediately as it means our return of capital at excellent returns either to BN.

Nick Goodman: Our listed affiliates, depending on who made the investments we have that immediate impact.

Nicholas Goodman: And then longer term. It turns into carry, but I think I would tend for expectations on carry realization because the assets we are monetizing are in later vintage. We are working on returning original capital working away through the preferred return, but what it does is it sets us up really well going into 2025. As we execute on these sales and more to come, then you'll start to see that carry realization come through our earn.

Nick Goodman: And then longer term, it turns into carry. But I think I would temper expectations on carry realization because the assets we are monetizing are in later vintage funds where we are working on returning original capital, working our way through the preferred return. But what it does is it sets us up really well going into 2025. As we execute on these sales and more to come, then you'll start to see that carry realization come through our earnings. Understood.

Nick Goodman: And then, longer term, it turns into carry. But I think I would temper expectations on carry realization because the assets we are monetizing are in later-vintage funds where we are working on returning original capital, working our way through the preferred return. But what it does is it sets us up really well going into 2025. As we execute on these sales and more to come, then you'll start to see that carry realization come through our earnings. understood.

Nick Goodman: And then longer term.

Nick Goodman: It turns into carry but I think I would temper expectations on carry realization because the assets. We are monetizing our in later vintages later vintage funds, where we are working on returning original capital working our way through the preferred return, but what it does is it sets us up really well going into 2025 as we execute on these sales and more to come.

Alex Bernstein: Understood. Thank you so much.

Alex Bernstein: I understand. Thank you so much.

Nick Goodman: In our real estate business, our core portfolio delivered 3% growth in same-store net operating income over the last 12 months. In the quarter, we signed nearly 5 million square feet of office and retail leases. The focusing on our core office portfolio rends on newly signed leases increased by 23% compared to those leases' expirates. A few highlights of our robust office leasing activity include nearly 670,000 square feet leased in South Korea, over 400,000 square feet in Toronto in New York, and over 400,000 square feet in London and Germany, and in our retail portfolio occupancy levels remain high and 95%.

Nick Goodman: Youll start to see that carry realization come through our earnings.

Unknown Analyst: I understand. Thank you so much.

Alexander Bernstein: Thank you.

Speaker Change: Understood. Thank you so much thank you.

Unknown Analyst: <unk>.

Operator: As there are no more questions, I will now turn it back to Ms. Angela Yulo for closing remarks.

Operator: As there are no more questions, I will now turn it back to Ms. Angela Yulo for closing remarks.

Operator: As there are no more questions, I will now turn it back to Ms. Angela Yule for closing remarks. Thank you, everybody, for joining us today, and with that, we'll end the call. This concludes today's conference call. Thank you for participating, and you may now disconnect. Thank you very much.

Unknown Analyst: Thank you.

Angela Yulo: Thank you everybody for joining us today and with that we'll end the call.

Unknown Analyst: As there are no more questions I will now turn it back to Ms. Angela Halo for closing remarks.

Angela Yulo: Thank you everybody for joining us today. And with that, we'll end the call.

Unknown Executive: Thank you everybody for joining us today, and with that, we'll end the call.

Speaker Change: Thank you everybody for joining us today and with that we'll end the call.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for participating and you may now disconnect.

Unknown Executive: Okay.

Unknown Executive: [music].

Unknown Executive: Okay.

Unknown Executive: Okay.

Nick Goodman: In our renewable power and transition business, we expanded our footprint into a number of key renewables markets. During the quarter, we agreed to acquire a majority stake of new end, a leading global renewables platform located in Australia, France and the Nordics. Back by our expertise and reputation as the largest provider of renewable power and data centers, our combined 230 plus gigawatts is the largest operating and development pipeline behind the AI revolution taking hold, and this should be a tremendous tailwind for the earnings of our operating businesses.

Unknown Executive: [music].

Unknown Executive: Okay.

Unknown Executive: Okay.

Unknown Executive: Okay.

Unknown Executive: [music].

Unknown Executive: Sure.

Unknown Executive: [music].

Unknown Executive: Okay.

Unknown Executive: [music].

Nick Goodman: Now moving on to monetizations. With transaction activity picking up, we expect an increase level of monetization is going forward. During the quarter, we advanced or completed several sales as strong investment returns, including on a luxury hotel in South Korea, an office asset in Washington, DC, a road fuels operation in Europe and several renewable assets. In addition, we realized the gain of approximately $950 million on the sale of 2% of our bomb shares, and this assists with increased flows in the shares.

Unknown Executive: Yes.

Unknown Executive: Okay.

Unknown Executive: Okay.

Nick Goodman: Over the last 12 months, we generated $2.3 billion of unrealized carried interest, increasing our total accumulated unrealized carried interest to $10.7 billion, of which $9.5 billion is directly owned by the corporation. Foundation. We also recognize 234 million dollars of net realized carried interest into income to date this year, and we expect to realize additional carried interest through the end of the year. Fundamentals remain strong across our businesses. However, our total consolidated net income was impacted in the quarter, mainly from the accounting treatment of recent acquisitions in our infrastructure business, resulting in higher known cash depreciation and amortization costs.

Nick Goodman: Given the quality of our assets and the continued recovery and transaction activity, we see many tailwinds that would drive further earnings growth in each of our businesses. Outside of our financial results, our conservative balance sheet and strong liquidity position continue to differentiate our franchise. We have approximately $150 billion of deployable capital quarter end, which includes $62 billion of cash and liquid assets at the corporation, our affiliates, and our wealth solutions business.

Nick Goodman: With this large scale capital, we are well positioned to focus on attractive growth opportunities. We continue to capitalize on the narrowing credit spreads and strong demand in the capital markets. We executed on approximately $75 billion of financing across the group to date this year, supporting growth in ongoing operations. Notable highlights include, at the corporation, we issued $650 million of 10 and 30-year bonds, tightening credit spreads by 55 and 10 basis points respectively, relative to the most recent comparable issuances.

Nick Goodman: At Brookfield Renewable Partners, we successfully compressed the credit spreads on a $400 million Canadian bond issuance by an average of 65 basis points, and we closed approximately $160 million of 60-year subordinated notes of Brookfield Infrastructure Partners. These financing demonstrate the very strong interest in businesses aligned with global secular trends. In our real estate business, we refinanced an approximately $800 million New York office loan with a new five-year loan at a spread of 225 basis points, a strong signal of the significantly improved financing markets for real estate.

Nick Goodman: And lastly, we reprised approximately $11 billion of financing across six portfolio companies reducing the credit spreads by 55 basis points on average. Shifting to capital allocation, we reinvested our excess cash flow back into our businesses and returned $408 million to shareholders through regular dividends and share buybacks during the quarter. To date this year, we repurchased over $800 million of shares in the open market, adding approximately 55 cents of value to each remaining share. And we expect to continue to further allocate capital to share repurchases over the remainder of 2024.

Nick Goodman: In summary, we achieved strong financial performance, and we expect this momentum to continue to build over the balance of the year and beyond. With the improving market conditions, we anticipate transaction activity to pick up over the coming quarters, positioning as well to execute monetization and further bolster our earnings.

Nick Goodman: With that, I am pleased to confirm that our Board of Directors has declared a quarterly dividend of $8 cents per share, payable in September 27th to shareholders of record at the close of business on September 12th, 2020. Thank you for your time and I will never hand the call back to the operator for questions. Thank you. And as a reminder, if you have a question, please press star one one of your telephone. If your question has been answered or you wish to move yourself in a queue, please press star one one again.

Geoff Kwan: Our first question comes from the line of Geoff Kwan with RBC Capital Markets. Your line is now open. Hi, good morning.

Nick Goodman: My first question was on the wealth segment. They closed their first desk of May for a third party, I think, in order to manage the investment and in queue two. I'm just wondering if you can talk about the pipeline and the opportunity to do more of these types of transactions, potential timing, fee structures and margins. Hi, Jeff. It's not yet. Listen, happy to comment. And I think we're going to see more of these and I think the scale will continue to build.

Nick Goodman: And there's a couple of driving forces behind it. One, I think, as we grow the insurance business on our books and the appetite that we have to originate credit is going significantly and the capability that we have to originate that is really strong within the asset management business. We will scale up our capability alongside our capital and then we can bring our clients alongside us as we scale and we will build these SMAs and they can then invest alongside BN.

Nick Goodman: So I think we say one in the quarter, you continue to see these scale up because we're able to originate the exact type of credit assets that these clients want to be invested in. And the fee structures will evolve over time, but broadly consistent with other credit SMAs and we should have a lot of operating leverage in that business because we have a lot of the credits sourcing and underwriting capability in place. And I think it should be a strong tool and of growth for earnings for the asset management business.

Nick Goodman: Okay, thank you. And just my other question is, I mean, and you talked about it earlier, it seems like the general consensus is monetization markets are improving. Maybe there's a bit of a quality bias for hard quality business or a easier to transact. Maybe less so for lower quality businesses. And really my question is, I'm wondering how this might play out within the real estate space in particular when real estate M&A really starts to pick up.

Nick Goodman: Do you think there might be some sort of lag effect on when you might be able to monetize assets within the T&D portfolio? Jeff, you're right. The initial transactions have a bias for quality, but I would say that within the T&D, we own high quality assets. There may be not the assets we consider core ones we want to own for a long term, but they are high quality. And also remember, they are geographically diverse.

Nick Goodman: So a lot of the transaction activity is returning. We sold out of T&D in Brazil, and we're working on transactions across the globe, and we sold one asset in the US. So I think it will be dependent on the assets, but even within T&D, we have high quality assets. And we expect that a transaction activity picks up. B, it looks like interest rates are going to be coming down, which would be a positive catalyst for credit capacity and investor appetite and valuations. And that should be a strong tailwind for monetization.

Nick Goodman: Okay. No, sorry. I know there's a lot of quality in there. I was just thinking if I remember correctly, there's like a hundred and seven D-ish assets. And some labs here are... Or maybe more opportunistic than some of the others. That's what I was kind of getting at. Yeah, they are. They are. And Jeff, I would also just say the option to comment on if you look at the equity we have in real estate.

Nick Goodman: 5% is in what we would consider regional office in the US. So it's, it's not a significant number and it's not going to be a major driver of monetization activity, even if we are successful because that number is relatively small in context of the world portfolio.

unknown: Got it.

unknown: Thank you.

Mario Saric: Our next question comes from the line of Mario Saric with Skillshare. Thank you. Thank you for taking the questions.

Nick Goodman: Nick, just sticking to real estate. Core real estate seems to run on our growth rate, healthy at 3%, but higher debt costs have impacted the FFO. So that said, the core flow is showing sequential improvement this quarter. As kind of monetary policy looks like it's going to be easing the second half of this year, can you remind us of the FFO kind of sensitivity within BPG to variable debt costs? That's something like, for example, if, you know, if we've come down to 25 basis going to could impact your annualized FFO out of BPG by X%.

Nick Goodman: Yeah, this is just a lesson. I think Mario, your right interest rates are coming down on top of interest coming down credit spreads have compressed significantly. There are about 150 basis points in some areas compared to 12 months ago. There are 25 50 basis points off historical average, but we still think they have further room to compress. So I think that combined with interest rate cuts with maybe about 30% variable rate debt in the portfolio today will be a positive capitalist as we work through.

Nick Goodman: Now, to give you the exact percentage of varies because some it depends on when we refinance fixed rate debt into low rate market and the impact of voting rate, but with hedges rolling off. But you are going to see the impact coming through earnings almost immediately as rates start to come down.

Nick Goodman: Okay, and my second question more of a kind of a somatic long-term question. I think Bruce highlighted the need to evolve with time with respect to investment capital as we've asked the class to emerge. I think I guess collectively, how do you think about that concept of the pertains to the BN corporate structure? If you see the present BN corporate structure with respect to investment and listen to subsidiaries, holding the real estate and the wealth solution business is something you expect to endure over the next one five 10 20 years.

Nick Goodman: Or is the optimal structure still a working progress? And the genesis or the reason behind the question is that despite the pretty strong move and share price recently, it still materially lags your estimated intrinsic value. Yeah, that's good observation Mario. And listen, our primary focus is on being invested in assets that are going to generate attractive long-term returns. And in the real estate that we own, the insurance that we own, they are generating excellent returns and insurance is just getting going in as enormous potential.

Nick Goodman: So that's the primary focus. Now as these businesses evolve and as the markets evolve, we do assess the structure real time. As you saw, as our asset management business grew, great tailwind, a deep public market developed for that business, a reach to scale where we thought it was better served in the public markets. But as we sit here today, the structure we have is the structure that we're planning on having for some time, and that may evolve.

Nick Goodman: But right now, the focus primarily is on compounding value in the business, and we may make decisions over time that can improve our access to capital. And so it's always going to be an evolution, and we'll see how it plays out.

unknown: Okay, thank you. Thank you.

Cherilyn Radbourne: Our next question comes from the line of Cheryl and Radbourne with T.D. Cowan. Your line is now open. Thanks very much and good morning. As you're no doubt very aware there's been concern raised this quarter about the potential for spread compression in insurance. Can you talk about how you see the trade-off between growth versus maintaining a desired spread and or are you not business going forward? Yes, absolutely, Sherilyn. Good morning. I would just tell you the primary focus on our business is return on equity.

Cherilyn Radbourne: So we will stay incredibly focused and disciplined on that, which is why we want to draw out for people that the spread of our pre-existing business this quarter was maintained at 2%. Now, AEL comes on at a lower spread, but that will gravitate towards to his reposition the investment portfolio. And how we manage that is as the rate environment changes, we are fairly quick to react in changing the rate that we offer in Uyutans.

Cherilyn Radbourne: So as the rate market has evolved and dynamic has changed, we've lowered the rate that we've been offering in Uyutans by up to 50 basis points in just the last week. And we're matching that against the investment opportunity that we see with a primary focus on maintaining those 18 to 20 percent are we.

Nick Goodman: So our primary focus is going to be return on equity. Okay, and then switching gears a little bit here in terms of the deal pipeline, there's been a still-called wall of debt maturity that's been talked about for a while, which then touched on in part in the context of real estate yesterday. Maybe you want to expand on that, but can you also touch on what O3C is developing in terms of the potential for a distressed credit cycle at some point?

Nick Goodman: Yeah, it was nice. We've not seen the distress yet. We've seen opportunities and gaps in the financing market in certain areas, which has provided the opportunity for us to make pretty attractive loans, but still to good credits, but just for one reason or another, they've fallen out of favor with the capital markets. So maybe stress, the opportunity to deal average, provide gap capital, where the banks have had to take a step back.

Nick Goodman: So it's maybe being driven by regulatory impacts, market dynamics as to post the necessarily underlying portfolio stress or distress. But without doubt, there was a lot of leverage added when rates were zero when credit spreads were tight. And as those do come up for renewal, I think across O3C on our credit funds, we are going to see the opportunity to provide lending to cover the gaps, but still for high-quality assets, and we have the capital available to participate. Thank you. That's all for me. Thank you.

Sohrab Movahedi: Our next question comes from the line of so-called Mova Headey with BMO Capital Market.

Nick Goodman: Shilane is now open. Okay. Thank you, Nick. I just wanted to go back to the answer you gave to the earlier question here on insurance spreads. I mean, one and a half or the credit spread, sorry, for the insurance one and a half to two percent spread. Like What did they wear on that range? You operate. How much of it is kind of macro as opposed to, I don't know, I'll call that management decision.

Nick Goodman: Yeah, a lot of a lot of the plan for the Yale Sohrab is just reallocation of the existing investment portfolio. There's no real macro thesis here. It's just been look at the portfolio. A lot of it is held into short term liquid assets that are lower yielding relative. To the credit opportunities that we see. So it's really a, it's really about barbelling the portfolio. They will maintain some liquid, but they're over allocated to short term cash and liquid assets.

Nick Goodman: And between that and repositioning similar to the analytical portfolio, we just see an uplift in the spread without really adding that much risk to the portfolio. And I just maybe just for crystal clarity because I think I got a lot of confused from earlier answer like you can't like you are probably price takers on the rate at the end of 10 and you can't really price up too far off market. Otherwise you won't get any volume, right.

Nick Goodman: But that's the point. So I think that's exactly the point we will offer at a rate that we are comfortable we can earn a spread on if that means for that quarter, then maybe our sales sales are a little bit lower. Then we are willing to live with that now in the current environment. We believe that the rate we've been offered. We're still running about a 15 billion dollar inflow run rate.

Nick Goodman: And we think we can maintain it at these levels, but I think our point is we are a price taker, but we're going to set out a price where we're comfortable we can earn a good return. Okay, I appreciate that. And just on that same topic 18 to 20% type of early that you're you're targeting for that for that business is still predicated on around the 10 times leverage. Yeah, and that range 8 to 10 times leverage. Appreciate it. Thank you. Thanks so much. Thank you.

Kenneth Worthington: Our next question comes from the line of Kenneth Worthington with JP Morgan. Your line is open. Hi, it's Alex Bernstein on for Ken. Thanks so much for taking our question. We wanted to double click on the realization pipeline. You made some comments today suggesting that transaction activity is due to go up. Those comments were in line with some of what we heard in the band call yesterday, especially us pertaining to the renewable sector.

Kenneth Worthington: With that in mind, is it still the case that you're guidance for the year holds at the prior 400 to 500 that you mentioned or is it possible that we might see some upsides that number. Thank you so much. Yeah, Norris. Yeah, listen, you're right. The comments are consistent with what was said on the band call yesterday and we are seeing sales activity picking up US Canada. I'm globally. And in the short term, those sales activity, what it means immediately is it means our return of capital at excellent returns, either to be in or are listed affiliate, depending on who made the investments.

Kenneth Worthington: We have that immediate impact. And then longer term, it turns into carry, but I think I would tend for expectations on carry realization because the assets we are monetizing are in later vintage, just later vintage funds, where we are working on returning original capital, working away through the preferred return. But what it does is it sets us up really well going into 2025 as we execute on these sales and more to come, then you start to see that carry realization come through our earn. Thank you so much. Thank you.

Angela Yulo: As there are no more questions, I will now turn it back to Ms. Angela Yulo for closing remarks.

Angela Yulo: Thank you everybody for joining us today.

Angela Yulo: And with that, we'll end the call. This concludes today's conference call. Thank you for participating.

unknown: And you may now disconnect. [inaudible] Thank you very much.

unknown: Thank you very much for joining us today.