Q4 2024 Brookfield Asset Management Ltd Earnings Call - Post-Earnings

[music] Brookfield asset management letters to shareholders fourth quarter 2024.

Overview.

We had a strong 2024 as both earnings and capital raising continued to gain momentum throughout the year, reflecting the strong growth profile of our business and the increasing positive sentiment among market participants, we raised $29 billion during the quarter our highest <unk>.

Level of organic capital raising bringing total capital raising for the year to over $135 billion combined with robust deployment. During the same period fee bearing capital R. F. B C grew to $539 billion, an increase of 18% or $82 billion over the past year.

The growth in our capital base drove strong earnings and margin improvement.

We generated a record $677 million or <unk> 42 cents per share of fee related earnings or FRE and $649 million or <unk> 40 per share of distributable earnings our day in the fourth quarter, representing increases of 17% and 11% respectively.

Over the prior year period.

This brought FRE and de for the full year to $2 $5 billion or $1.51 per share and $2 $4 billion or $1 45 per share respectively.

Our growing revenue base and stable costs also enabled margins to expand to 59% in the fourth quarter. We continued.

To benefit from our leadership in the most sought after alternative asset classes fueled by significant increases in artificial intelligence or AI investment surging corporate clean energy demand and the continued growth of private credit in the capital markets.

As a result, we expect the momentum in our operating and financial performance to continue throughout 2025.

Digitalization is being further propelled by AI is already reshaping industries, and creating more investment opportunities for us across our digital infrastructure asset classes data centers telecom towers and fiber. It will also drive immense energy requirements, which necessitates doubling power generation and transmission capacity.

Largely be a clean energy sources as they represent the lowest cost source of power with the fastest speed to delivery clean.

Clean energy continues to be preferred by the world's largest technology companies, whether it's digital infrastructure renewable power nuclear Brookfield is unique and maintaining a global leadership position in every core technology required for the AI Revolution.

At the same time, our operating businesses are using AI to drive more automation and productivity supply chain optimization and improved customer engagement, enhancing cashless and driving stronger investment returns.

In private credit the opportunity continues to be driven by growing recognition from borrowers of the benefits of having a flexible capital partner.

Many of our credit partners have long standing relationships with Brookfield and the experience and Knowhow. We have built from decades of investing in our core sectors enables us to be a sophisticated manager of credit risk as a result credit has grown substantially within our business over recent years and now represents the single largest source of our.

Assets under management.

With the support of tailwind and our significant growth prospects for 2025 and beyond we are pleased to announce that our board of directors has approved an increase in our dividend by 15% to $1.75 per share on an annual basis.

Business group updates in the fourth quarter, we raised $29 billion deployed $16 billion and monetize $9 billion of capital highlights during the fourth quarter include renewable power in transition.

Fund raising we raised $4.2 billion of capital, including $3 $5 billion for the second vintage of our global transition flagship strategy.

We expect to hold a final close for this flagship in the first half of 2025.

Deployment, we deployed $4 $5 billion of capital, including $3 $2 billion into our acquisition of Neo N. A global leading pure play renewable development business. We also deployed capital into a partnership with <unk>, a premium portfolio of contracted operating offshore wind assets in the U.

K subsequent.

Subsequent to the end of the quarter, we announced an 850 million dollar investment and two origin energy a use renewable energy developers from our infrastructure structured solutions fun.

Monetization, we monetize $1.4 billion of capital, including the sale of society, a yield and a partial sale of shepherds flat.

Infrastructure.

Raising we raised $2 $5 billion of capital, including $700 million for our Super core infrastructure strategy, our strongest quarter in over two years.

We also raised nearly $700 million for our private wealth infrastructure fund and over $500 million for infrastructure structured solutions fun.

Monetization, we monetize a total of $300 million of capital, including the sale of our fiber platform in France.

Private equity fundraising.

We raised $1.8 billion of capital, including $1 billion for Middle East fun and $500 million for the second vintage of our special investments fun.

Monetization subsequent to the end of the quarter clear is the world's leading provider of advanced look voltage batteries completed and up financing, which funded a $4 5 billion dollar distributions.

Real estate fund raising we raised over $700 million of capital during the quarter, including nearly $500 million for the fifth vintage of our flagship real estate fund strategy, we expect to hold a final close for this flagship in the first half of 2025.

Employment, we deployed $2 $4 billion of capital, including over $800 million in deployment out of the fifth vintage of our real estate flagship fund into a portfolio of U S. Multifamily properties with nearly 5000 units a portfolio of 14 U S student housing assets with nearly no.

9000 beds and pretax a publicly listed Pan European logistics right Mike.

Amortization, we monetized $1 $8 billion of capital, including the sale of a portfolio of shopping centers in the U K crew.

Credit.

Fund raising.

We raised approximately $20 billion of capital, including $9 $2 billion across Oaktree funds and strategies, one $7 billion for the fourth vintage of our infrastructure debt fund and approximately $900 million across our other credit partner managers six $6 billion from insurance claims.

Sing approximately $1.3 billion of capital related to a UK reinsurance transaction.

Deployment, we deployed $7 $7 billion of capital, including $2 $4 billion out of our opportunistic credit flagship fund series and over $900 million out of our strategic credit private wealth fun.

Building on our momentum and laying the foundation for future growth.

In 'twenty 'twenty four we delivered strong performance across our franchise strategically expanded our capabilities and product offerings and surpassed one trillion dollars of assets under management.

Delivering strong consistent performance, we deployed $48 billion of capital in 'twenty 'twenty four capitalizing both on short term pockets of market dislocations and long term secular trends.

These conditions. Unlike some of the most attractive investment opportunities we've encountered in years underscoring the strength of our platform and the advantage of our long term patient capital approach.

Highlights include our investments in New Zealand, a leading global renewables developer Jim's education, a prominent private education provider in the middle East and first energy a large scale U S electrical distribution company.

At the same time demand for high quality essential assets and businesses remained robust reinforcing the resilience and cash generative nature of our portfolio.

During the year, we sold assets and businesses valued at nearly $40 billion, representing $30 billion of equity capital, notably we sold the Conrad Hotel and sold a 49% stake in ICD Brookfield place in Dubai, and our stake in Green energy, a leading distributor of renewable road fuel in the U K.

We also strengthened our leadership position in renewables there a landmark agreement with Microsoft the largest of its kind to supply over 10 gigawatts of renewable power over the next five years.

And earlier this week in partnership with the French government, we announced a 20 billion Euro infrastructure investment program to support the deployment of AI in France. We are actively developing the core infrastructure needed to support digitalization, which is being accelerated by a IRA this comprehensive approach positions us to play.

A central role in the ongoing transformation of the digital economy.

All the above allowed us to continue to build upon our strong investment track record within our funds to meet or exceed their target returns.

Expanding our capabilities, we also strengthened our credit franchise by expanding our investment in fund raising capabilities as we continued to advance our leadership position across critical sectors laying the groundwork for long term value creation. This time last year, we formally launched our credit group, which brought together our long standing.

Capabilities across the firm with our growing portfolio of credit focused partner managers. The purpose was to coordinate our credit strategies across asset classes and to accelerate the growth of the business.

One year in and we are realizing the significant benefits of this effort.

Credit excluding the onetime mandate associated with a L represented approximately 60% of our capital raise in 2024 today, we have over $300 billion of assets under management within credit and over 600 dedicated investment professionals, we have combined the scale with capabilities across our Brookfield ecosystem.

To source attractive proprietary and differentiated opportunities we plan to more than double our platform size over the next few years differentiating ourselves through knowledge sharing and strategically leveraging our global scale.

This year, we significantly expanded and scaled our investment grade credit to support our insurance solutions capabilities not only has this enabled us to support the growth of Brookfield wealth solution. That's also opened up the opportunity to provide similar services to other third party insurers a very large market.

Notably we executed our first separately managed accounts or sma's with insurance clients delivering custom tailored credit strategies to meet their specific objectives. A channel we expect to be a major contributor to future capital raising we also strengthened our platform through further strategic acquisitions.

<unk> leadership position in aviation and asset based credit continues to broaden our credit platform SBB capital with a leading venture franchise will join our technology manager Pine Grove capital to further expand our technology and growth footprint. Additionally, we increased our ownership of oaktree from 68% to 73%.

We had one of the top fund raising years on the back of strong demand for credit.

These investments are expected to contribute an incremental $70 million of FRE on an annualized basis, adding further scale and diversification to our platform we.

We paved the way for broader index inclusion last year, we introduced our plan to position Bam for broader index inclusion we have since made significant progress by relocating our corporate headquarters to the U S where most of our senior management is base and which represents our largest employee base as well as the majority of our revenues and assets under.

Management as we've previously noted we also expect the board's composition will increasingly reflect our U S focus most.

Most recently, we completed the acquisition of 100% of our asset management business. After shareholders widely endorsed our initiative to exchange Brookfield corporations, 73% private ownership and our asset management business for an equivalent interests and the public shares of Bam.

This transaction simplified our corporate structure enhanced governance enabled the full value of our asset management business approaching $100 billion to now be reflected in Banff market capitalization bigger.

Beginning with our 2024 annual report to be released in the coming weeks, we will file our financial reports inline with those filed by other U S. Domestic issuers taken together these initiatives set the stage for a broader index inclusion diversifying our shareholder base and enabling us to tap deeper pools of public capital.

All signs point to a strong 2025.

Our success over the past year positions us well for an even better 2025.

The past few years have been the strongest ever for our asset management business and we've been pleased with our ability to deliver consistent performance and strong growth.

Quarter to quarter acceleration, we saw throughout 2024, particularly in the back half of the year is expected to continue driven by our flagship and complementary funds and credit activity. As we look ahead, we see a uniquely strong environment that should enable us to continue to deliver strong performance across fundraising deployment and monetization.

Fund raising.

Friend, raising should continue to accelerate going forward our flagship funds currently in the market. The fifth vintage of our real estate flagship fund and a second vintage of our global transition flagship funds are slated for final closes in the first half of 2025.

The 12th vintage of our opportunistic credit flagship fund held its final close in January at our strategy size of $16 billion.

This latest round of flagship fundraising has already collectively outweighs the prior round by over 15% and we expect to launch additional flagship strategies in 2025, our strong flagship franchises form the bedrock upon which we have built additional complementary strategies and next year's fundraising in these complementary offerings should reach.

An all time high for our business.

Lastly, the conversations we're having with clients to customize brought offering for them enable us to increasingly set ourselves apart from most others.

Within credit we are actively fund raising for the fourth vintage of our infrastructure debt fund and seven vintage of our real estate debt fund. The continued build out of our other credit strategies, including with our partner managers Oaktree Catholic LCM 17 capital and primary way will bring additional capital directed into more diversified.

Credit products and with our insurance fundraising channel Brookfield wealth solutions is now at scale and on track to originate in excess of $25 billion of retail annuities and pension risk transfer transactions annually.

Across our complementary strategies were fund raising for a number of new equity products.

This includes our emerging market transition fund, our financial infrastructure fund and our Middle East private equity strategy, we expect to close shortly our first infrastructure structured solutions fund, which focuses on structured equity and minority control investments and partnership with sponsors developers and corporates in the middle market. We're also fun.

Bracing for a complementary franchises that have established foundations such as the second vintage of our private equity special investments fun.

Finally, our private wealth channel, which has had steady progress over the past few years should continue to scale in 2020 five.

We have a strong foundation with more than 150 dedicated full time employees. Our internal research indicates that financial advisors are more open than ever before to learn about alternative products, which gives us the confidence for accelerated growth from our private wealth channel over the next couple of years.

Capital deployment and monetization.

Historically, an environment that offers compelling valuations for buying assets is not ideal for selling.

However, we now see conditions that are favorable for both capital deployment and monetization, allowing us to acquire high quality assets at attractive prices. While also realizing strong values for our mature investments in our infrastructure renewable power and transition platforms, there's vast demand for investment trillions of dollars over the coming years.

To deliver data centers telecom towers fiber semiconductor manufacturing automation and renewable power.

Our global reach and operational expertise in these areas yield a healthy pipeline of investment opportunities.

In parallel many investors remain eager for exposure to high quality long lived assets with dependable cash flows filling demand for derisked assets from our earlier vintage funds.

In real estate private equity fundamentals remain solid and sentiment is rapidly improving occupancy rates are healthy across most sectors. New supply has been limited in recent years and cash flows for quality properties have never been higher.

Meanwhile, the record levels of refinancing activity in 'twenty, and 2020 'twenty, one have led to a number of borrowers who need solutions to their financing in 2020, five and 'twenty 'twenty, six creating opportunities to lend to or acquire strong assets, which are over financed.

Simultaneously, we are ready to monetize a number of investments where we create value through our operating expertise. We believe 2025 will be a good year to pursue some of these capital recycling initiatives unfavorable terms. The current capital markets environment is increasingly robust and liquid for high quality businesses enhancing our ability to monetize.

Assets and return capital for distributions since the start of the year. We completed a 5 billion dollar of financing of Clariant. Our U S based car battery maker, which supported a $4 5 billion dollar distribution to Brookfield and our partners. We initially invested $3 billion of equity to acquire the business.

The scale of such a transaction is significant pricing was broadly in line with previously issued debt and the offering was multiple times oversubscribed.

Emily: Emily we recently executed a $6 1 billion dollar refinancing of our Intel investment terming out the maturities far ahead of schedule in a much tighter rates than underwriting. While these examples are both specific and recently we are seeing broad based support for the financing of our high quality portfolio.

Emily: <unk> by the more than $130 billion of financings, we completed in 2024.

Emily: Closing.

Emily: We remain committed to being a world class asset manager by investing our capital in high quality assets that earn solid returns, while emphasizing downside protection. The primary objective of the company continues to be to generate increasing cash flows on a per share basis and to distribute that cash to you by dividend or share repurchases.

Emily: Thank you for your interest in Brookfield, and please do not hesitate to contact any of US should you have suggestions questions comments or ideas you wish to share.

Emily: Sincerely Bruce Flatt, Chief Executive Officer, Conor Tusky President February 12, 2025.

Emily: Cautionary statement regarding forward looking statements and information.

All references to dollars are to U S. Dollars. This letter to shareholders contains forward looking information within the meaning of Canadian provincial securities laws and forward looking statements within the meaning of the U S. Securities Act of 1933. The U S Securities Exchange Act of 1930 for Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995.

Emily: And in any applicable Canadian Securities regulations collectively forward looking statements.

Emily: Forward looking statements include statements that are predictive in nature depend upon or refer to future results events or conditions that include but are not limited to statements, which reflect management's current estimates beliefs and assumptions regarding the operations business financial condition and expected financial results performance prospects opportunities.

Emily: Priorities targets goals ongoing objectives strategies capital management, an outlook of Brookfield Corporation, and its subsidiaries as well as the outlook for North American and international economies for the current fiscal year and subsequent periods and which in turn are based on our experience and perception of historical trends current conditions and expected future.

Emily: <unk> as well as other factors management believes are appropriate in the circumstances, the estimates beliefs and assumptions of Brookfield Corporation are inherently subject to significant business economic competitive and other uncertainties and contingencies regarding future events and as such are subject to change.

Emily: Forward looking statements are typically identified by words, such as expect anticipate believe foresee could estimate goal intend plan seek strive will may and should and similar expressions in particular the forward looking statements contained in this letter include statements referring to the Impac.

Speaker Change: A current market or economic conditions on our business the future state of the economy or the securities market. The Castle Lake acquisition, including its expected impact on our business the anticipated allocation and deployment of our capital our liquidity and ability to access and raise capital or fund raising targets, our target growth objectives, and our target carried interest.

Emily: Yeah.

Emily: Although Brookfield Corporation believes that such forward looking statements are based upon reasonable estimates beliefs and assumptions actual results may differ materially from the forward looking statements factors that could cause actual results to differ materially from those contemplated or implied by forward. Looking statements include but are not limited to one returns that are lower than target to be.

Emily: Pact or unanticipated impact of general economic political and market factors in the countries in which we do business three the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures for global equity and capital markets and the availability of equity and debt financing and refinancing within these markets five strategic.

Emily: Actions, including acquisitions and dispositions the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits six changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates.

Emily: And then the ability to appropriately manage human capital eight the effect of applying future accounting changes nine business competition 10 operational and reputation risks 11 technological change 12 changes in government regulation and legislation within the countries in which we operate 13 governmental investigations.

Emily: Sanctions 14 litigation 15 changes in tax laws.

Emily: <unk> ability to collect amounts owed 17 catastrophic events, such as earthquakes Hurricanes and epidemics Pandemics 18, the possible impact of international conflicts and other developments, including terrorist acts and cyberterrorism 19, the introduction withdrawal success and timing of business initiatives and strategies 'twenty the failure of effective disk.

Emily: As your controls and procedures and internal controls over financial reporting and other risks 21 health safety and environmental risks 'twenty to the maintenance of adequate insurance coverage 'twenty three the existence of information barriers between certain businesses within our asset management operations.

Emily: For risks specific to our business segments, including asset management wealth solutions renewable power and transition infrastructure private equity real estate and corporate activities and twenty-five factors detailed from time to time in our documents filed with the securities regulators in Canada, and the United States.

Emily: We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results.

Emily: Readers are urged to consider these risks as well as other uncertainties factors and assumptions carefully in evaluating the forward looking statements and are cautioned not to place undue reliance on such forward looking statements, which are based only on information available to us as of the date of this letter or such other dates specified herein, except as required by law Brookfield Corporation undertakes no.

Emily: <unk> to publicly update or revise any forward looking statements, whether written or oral that may be as a result of new information future events or otherwise.

Emily: Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future that future investments will be similar to historic investments discussed herein. The targeted returns growth objectives diversification or asset allocations will be met or that in investment strategy or investment objectives will be achieved because of economic conditions.

Emily: The availability of appropriate opportunities or otherwise.

Emily: Target returns and growth objectives set forth in this letter offer illustrated an informational purposes, only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved.

Due to various risks uncertainties and changes, including changes in economic operational political or other circumstances beyond Brookfield Corporation's control. The actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition industry experts may disagree with the assumptions used in presenting the target returns and growth objectives no assure.

Emily: <unk> representation or warranty is made by any person that the target returns or growth objectives will be achieved and undue reliance should not be put on them.

Emily: Cautionary statement regarding the use of non <unk> measures.

Emily: This letter to shareholders contains references to financial measures that are calculated and presented using methodologies other than in accordance with I FRS. These financial measures, which include distributable earnings as defined below its components and its per share equivalent should not be considered as the sole measure of our performance and should not be considered in isolation from or as a substitute.

Emily: For similar financial measures calculated in accordance with I F. R. S.

Emily: We caution readers that these non <unk> financial measures or other financial metrics are not standardized under <unk> and may differ from the financial measures or other financial metrics disclosed by other businesses and as a result may not be comparable to similar measures presented by other issuers and entities.

Emily: We make reference to distributable earnings which refers to the sum of distributable earnings from our asset management business distributable operating earnings from our insurance solutions business distributions received from our ownership of investments realized carried interest in disposition gains from principal investments net of preferred share dividends and equity based compensation costs. We also make.

Emily: To distributable earnings before realizations, which refers to distributable earnings before realized carried interest in disposition gains from principal investments and net operating income which refers to the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business our outlook for growth in distributable earnings assumes growth in fee related.

Emily: Earnings and realized carried interest in line with our business plans, which assume growth in our fee bearing capital consistent with our fundraising plans capital deployment expectations, maintaining the fee rates, we earn on fee bearing capital and earning margins consistent with our current margin.

Emily: Actual results may vary materially and are subject to market conditions and other factors and risks set out above for more information on non <unk> measures and other financial metrics see Brookfield Corporation's Q1, 2024 press release, which includes reconciliations of these non <unk> financial measures to their most directly comparable financial measures calculated and presented in accordance with <unk>.

Emily: Rs.

Emily: Okay.

Unknown Executive: Brookfield Asset Management Letters to Shareholders, fourth quarter 2024. Overview. We had a strong 2024 as both earnings and capital raising continued to gain momentum throughout the year, reflecting the strong growth profile of our business and the increasing positive sentiment among market participants. We raised $29 billion during the quarter, our highest level of organic capital raising, bringing total capital raising for the year to over $135 billion. Combined with robust deployment during the same period, fee-bearing capital, or FBC, grew to $539 billion, an increase of 18% or $82 billion over the past year. The growth in our capital base drove strong earnings and margin improvement.

Bruce Flatt: Brookfield Asset Management Ltd. shareholders' Q4 2024. Overview. We had a strong 2024 as both earnings and capital raising continued to gain momentum throughout the year, reflecting the strong growth profile of our business and the increasing positive sentiment among market participants. We raised $29 billion during the quarter, our highest level of organic capital raising, bringing total capital raising for the year to over $135 billion. Combined with robust deployment during the same period, fee-bearing capital, or FBC, grew to $539 billion, an increase of 18%, or $82 billion, over the past year. The growth in our capital base drove strong earnings and margin improvement.

Bruce Flatt: We generated a record $677 million, or $0.42 per share, of fee-related earnings, or FRE, and $649 million, or $0.40 per share, of distributable earnings, or DE, in the fourth quarter, representing increases of 17% and 11%, respectively, over the prior year period. This brought FRE and DE for the full year to $2.5 billion, or $1.51 per share, and $2.4 billion, or $1.45 per share, respectively. Our growing revenue base and stable costs also enabled margins to expand to 59% in the fourth quarter. We continue to benefit from our leadership in the most sought-after alternative asset classes, fueled by significant increases in artificial intelligence, or AI, investments, surging corporate clean energy demand, and the continued growth of private credit in the capital market.

Bruce Flatt: We generated a record $677 million, or $0.42 per share, of fee-related earnings, or FRE, and $649 million, or $0.40 per share, of distributable earnings, or DE, in Q4, representing increases of 17% and 11%, respectively, over the prior year period. This brought FRE and DE for the full year to $2.5 billion, or $1.51 per share, and $2.4 billion, or $1.45 per share, respectively. Our growing revenue base and stable costs also enabled margins to expand to 59% in Q4. We continue to benefit from our leadership in the most sought-after alternative asset classes, fueled by significant increases in artificial intelligence, or AI, investments, surging corporate clean energy demand, and the continued growth of private credit in the capital markets. As a result, we expect the momentum in our operating and financial performance to continue throughout 2025.

Bruce Flatt: As a result, we expect the momentum in our operating and financial performance to continue throughout 2025. Digitalization is being further propelled by AI. It is already reshaping industries and creating more investment opportunities for us across our digital infrastructure asset classes, data centers, telecom towers, and fiber. It will also drive immense energy requirements, which necessitates doubling power generation and transmission capacity, largely via clean energy sources, as they represent the lowest cost source of power with the fastest speed to delivery. Clean energy continues to be preferred by the world's largest technology companies, whether it's digital infrastructure, renewable power, or nuclear, Brookfield is unique in maintaining a global leadership position in every core technology required for the AI revolution.

Bruce Flatt: Digitalization is being further propelled by AI. It is already reshaping industries and creating more investment opportunities for us across our digital infrastructure asset classes, data centers, telecom towers, and fiber. It will also drive immense energy requirements, which necessitates doubling power generation and transmission capacity, largely via clean energy sources, as they represent the lowest cost source of power with the fastest speed to delivery. Clean energy continues to be preferred by the world's largest technology companies, whether it's digital infrastructure, renewable power, or nuclear. Brookfield is unique in maintaining a global leadership position in every core technology required for the AI revolution. At the same time, our operating businesses are using AI to drive more automation and productivity, supply chain optimization, and improved customer engagement, enhancing cash flows and driving stronger investment returns.

Bruce Flatt: At the same time, our operating businesses are using AI to drive more automation and productivity, supply chain optimization, and improved customer engagement, enhancing cash flows and driving stronger investment returns. In private credit, the opportunity continues to be driven by growing recognition from borrowers of the benefits of having a flexible capital partner. Many of our credit partners have long-standing relationships with Brookfield, and the experience and know-how we have built from decades of investing in our core sectors enables us to be a sophisticated manager of credit risk.

Bruce Flatt: In private credit, the opportunity continues to be driven by growing recognition from borrowers of the benefits of having a flexible capital partner. Many of our credit partners have longstanding relationships with Brookfield, and the experience and know-how we have built from decades of investing in our core sectors enables us to be a sophisticated manager of credit risk. As a result, credit has grown substantially within our business over recent years and now represents the single largest source of our assets under management. With these supportive tailwinds and our significant growth prospects for 2025 and beyond, we are pleased to announce that our board of directors has approved an increase in our dividend by 15% to $1.75 per share on an annual basis. Business group updates. In the Q4, we raised $29 billion, deployed $16 billion, and monetized $9 billion of capital.

Bruce Flatt: As a result, credit has grown substantially within our business over recent years and now represents the single largest source of our assets under management.

Bruce Flatt: With the support of Tailwinds and our significant growth prospects for 2025 and beyond, we are pleased to announce that our Board of Directors has approved an increase in our dividend by 15% to $1.75 per share on an annual basis.

Bruce Flatt: Business Group Updates. In the fourth quarter, we raised $29 billion, deployed $16 billion, and monetized $9 billion of capital. Highlights during the fourth quarter include renewable power and transition. Fundraising, re-raised $4.2 billion of capital, including $3.5 billion for the second vintage of our Global Transition Flagship Strategy.

Bruce Flatt: Highlights during the Q4 include renewable power and transition. Fundraising. We raised $4.2 billion of capital, including $3.5 billion for the second vintage of our global transition flagship strategy. We expect to hold a final close for this flagship in the H1 2025. Deployment. We deployed $4.5 billion of capital, including $3.2 billion into our acquisition of Neoen, a global leading pure-play renewable development business. We also deployed capital into a partnership with Ørsted, a premium portfolio of contracted operating offshore wind assets in the UK. Subsequent to the end of the quarter, we announced an $850 million investment into Origis Energy, a US renewable energy developer from our Infrastructure Structured Solutions fund. Monetization. We monetized $1.4 billion of capital, including the sale of Saeta Yield and a partial sale of Shepherds Flat. Infrastructure. Fundraising.

Bruce Flatt: We expect to hold a final close for this flagship in the first half of 2025. deployment. We deployed $4.5 billion of capital, including $3.2 billion into our acquisition of Neowind, a global leading pure play renewable development business. We also deployed capital into a partnership with Orsted, a premium portfolio of contracted operating offshore wind assets in the UK. Subsequent to the end of the quarter, we announced an $850 million investment into Orgis Energy, a U.S. renewable energy developer from our infrastructure structured solutions fund.

Bruce Flatt: Monetization. We monetize $1.4 billion of capital, including the sale of Syeda Yield and a partial sale of Shepard's Flat.

Bruce Flatt: Infrastructure. Fundraising. We raise $2.5 billion of capital, including $700 million for our SuperCore infrastructure strategy, our strongest quarter in over two years. We also raised nearly $700 million for our Private Wealth Infrastructure Fund and over $500 million for our Infrastructure Structured Solutions Fund.

Bruce Flatt: We raised $2.5 billion of capital, including $700 million for our Supercore Infrastructure strategy, our strongest quarter in over 2 years. We also raised nearly $700 million for our Private Wealth Infrastructure fund and over $500 million for our Infrastructure Structured Solutions fund. Monetizations. We monetized a total of $300 million of capital, including the sale of our fiber platform in France. Private equity. Fundraising. We raised $1.8 billion of capital, including $1 billion for our Middle East fund and $500 million for the second vintage of our Special Investments fund. Monetization. Subsequent to the end of the quarter, Clarios, the world's leading provider of advanced low-voltage batteries, completed an up-financing, which funded a $4.5 billion distribution. Real estate fundraising. We raised over $700 million of capital during the quarter, including nearly $500 million for the fifth vintage of our flagship real estate fund strategy.

Bruce Flatt: Monetizations. We monetize a total of $300 million of capital, including the sale of our fiber platform in France.

Bruce Flatt: Private Equity Fundraising We raised $1.8 billion of capital, including $1 billion for our Middle East Fund and $500 million for the second vintage of our Special Investments Fund. Monetization Subsequent to the end of the quarter, Clarius, the world's leading provider of advanced low-voltage batteries, completed an up-financing which funded a $4.5 billion distribution.

Bruce Flatt: Real Estate Fundraising. We raised over $700 million of capital during the quarter, including nearly $500 million for the fifth vintage of our flagship real estate fund strategy.

Bruce Flatt: We expect to hold a final close for this flagship in the first half of 2025. Deployment. We deployed $2.4 billion of capital, including over $800 million in deployments out of the fifth vintage of our real estate flagship fund into a portfolio of U.S. multifamily properties with nearly 5,000 units, a portfolio of 14 U.S. student housing assets with nearly 9,000 beds, and TreeTax, a publicly listed pan-European logistics REIT.

Bruce Flatt: We expect to hold a final close for this flagship in H1 2025. Deployment. We deployed $2.4 billion of capital, including over $800 million in deployments out of the fifth vintage of our real estate flagship fund into a portfolio of US multifamily properties with nearly 5,000 units, a portfolio of 14 US student housing assets with nearly 9,000 beds, and Tritax, a publicly listed Pan-European logistics REIT. Monetizations. We monetized $1.8 billion of capital, including the sale of a portfolio of shopping centers in the UK. Credit fundraising. We raised approximately $20 billion of capital, including $9.2 billion across Oaktree Funds and Strategies, $1.7 billion for the fourth vintage of our infrastructure debt fund, and approximately $900 million across our other credit partner managers, $6.6 billion from insurance clients, and approximately $1.3 billion of capital related to a UK reinsurance transaction. Deployment.

Bruce Flatt: Monetizations. We monetized $1.8 billion of capital, including the sale of a portfolio of shopping centers in the U.K.

Bruce Flatt: Credit. Fundraising. We raised approximately $20 billion of capital, including $9.2 billion across Oaktree funds and strategies, $1.7 billion for the fourth vintage of our infrastructure debt fund and approximately $900 million across our other credit partner managers. $6.6 billion from insurance clients and approximately $1.3 billion of capital related to a UK reinsurance transaction.

Bruce Flatt: Deployment. We deployed $7.7 billion of capital, including $2.4 billion out of our opportunistic credit flagship fund series and over $900 million out of our strategic credit private wealth fund.

Bruce Flatt: We deployed $7.7 billion of capital, including $2.4 billion out of our opportunistic credit flagship fund series and over $900 million out of our strategic credit private wealth fund. Building on our momentum and laying the foundation for future growth. In 2024, we delivered strong performance across our franchise, strategically expanded our capabilities and product offerings, and surpassed $1 trillion of assets under management. Delivering strong, consistent performance. We deployed $48 billion of capital in 2024, capitalizing both on short-term pockets of market dislocations and long-term secular trends. These conditions unlock some of the most attractive investment opportunities we've encountered in years, underscoring the strength of our platform and the advantage of our long-term patient capital approach. Highlights include our investments in Neoen, a leading global renewables developer, GEMS Education, a prominent private education provider in the Middle East, and FirstEnergy, a large-scale US electrical distribution company.

Bruce Flatt: building on our momentum and laying the foundation for future growth. In 2024, we delivered strong performance across our franchise, strategically expanded our capabilities and product offerings, and surpassed $1 trillion of assets under management. delivering strong, consistent performance. We deployed $48 billion of capital in 2024, capitalizing both on short-term pockets of market dislocations and long-term secular trends. These conditions unlock some of the most attractive investment opportunities we've encountered in years, underscoring the strength of our platform and the advantage of our long-term patient capital approach. Highlights include our investments in Neowen, a leading global renewables developer, Jim's Education, a prominent private education provider in the Middle East, and First Energy, a large-scale U.S.

Bruce Flatt: electrical distribution company. At the same time, demand for high-quality essential assets and businesses remained robust, reinforcing the resilience and cash-generative nature of our portfolio.

Bruce Flatt: At the same time, demand for high-quality essential assets and businesses remained robust, reinforcing the resilience and cash generative nature of our portfolio. During the year, we sold assets and businesses valued at nearly $40 billion, representing $30 billion of equity capital. Notably, we sold the Conrad Hotel in Seoul, a 49% stake in ICD Brookfield Place in Dubai, and our stake in Greenergy, a leading distributor of renewable road fuel in the UK. We also strengthened our leadership position in renewables through our landmark agreement with Microsoft, the largest of its kind, to supply over 10 gigawatts of renewable power over the next 5 years. Earlier this week, in partnership with the French government, we announced a €20 billion infrastructure investment program to support the deployment of AI in France. We are actively developing the core infrastructure needed to support digitalization, which is being accelerated by AI growth.

Bruce Flatt: During the year, we sold assets and businesses valued at nearly $40 billion, representing $30 billion of equity capital. Notably, we sold the Conrad Hotel in Seoul, a 49% stake in ICD Brookfield Place in Dubai, and our stake in Greenergy, a leading distributor of renewable road fuel in the U.K. We also strengthened our leadership position in renewables through our landmark agreement with Microsoft, the largest of its kind, to supply over 10 gigawatts of renewable power over the next five years. And earlier this week, in partnership with the French government, we announced a 20 billion euro infrastructure investment program to support the deployment of AI in France.

Bruce Flatt: We are actively developing the core infrastructure needed to support digitalization, which is being accelerated by AI growth.

Bruce Flatt: This comprehensive approach positions us to play a central role in the ongoing transformation of the digital economy. All the above allowed us to continue to build upon our strong investment track record within our funds to meet or exceed their target return.

Bruce Flatt: This comprehensive approach positions us to play a central role in the ongoing transformation of the digital economy. All the above allowed us to continue to build upon our strong investment track record within our funds to meet or exceed their target returns. Expanding our capabilities, we also strengthened our credit franchise by expanding our investment and fundraising capabilities as we continued to advance our leadership position across critical sectors, laying the groundwork for long-term value creation. This time last year, we formally launched our credit group, which brought together our longstanding capabilities across the firm with our growing portfolio of credit-focused partner managers. The purpose was to coordinate our credit strategies across asset classes and to accelerate the growth of the business. One year in, we are realizing the significant benefits of this effort.

Bruce Flatt: expanding our capabilities. We also strengthened our credit franchise by expanding our investment and fundraising capabilities. As we continued to advance our leadership position across critical sectors, laying the groundwork for long term value creation.

Bruce Flatt: This time last year, we formally launched our credit group, which brought together our long standing capabilities across the firm with our growing portfolio of credit focused partner managers. The purpose was to coordinate our credit strategies across asset classes and to accelerate the growth of the business. One year in and we are realizing the significant benefits of this effort. Credit, excluding the one-time mandate associated with AEL, represented approximately 60% of our capital raised in 2024. Today, we have over $300 billion of assets under management within credit and over 600 dedicated investment professionals. We have combined this scale with capabilities across the Brookfield ecosystem to source attractive, proprietary, and differentiated opportunities.

Bruce Flatt: Credit, excluding the one-time mandate associated with AEL, represented approximately 60% of our capital raise in 2024. Today, we have over $300 billion of assets under management within credit and over 600 dedicated investment professionals. We have combined the scale with capabilities across the Brookfield ecosystem to source attractive, proprietary, and differentiated opportunities. We plan to more than double our platform size over the next few years, differentiating ourselves through knowledge-sharing and strategically leveraging our global scale. This year, we significantly expanded and scaled our investment-grade credit to support our insurance solutions capabilities. Not only has this enabled us to support the growth of Brookfield Wealth Solutions, but it's also opened up the opportunity to provide similar services to other third-party insurers, a very large market.

Bruce Flatt: We plan to more than double our platform size over the next few years, differentiating ourselves through knowledge sharing and strategically leveraging our global scale. This year, we significantly expanded and scaled our investment-grade credit to support our insurance solutions capabilities. Not only has this enabled us to support the growth of Brookfield Wealth Solutions, it's also opened up the opportunity to provide similar services to other third-party insurers, a very large market. Notably, we execute our first separately managed accounts, or SMAs, with insurance clients, delivering custom-tailored credit strategies to meet their specific objectives, a channel we expect to be a major contributor to future capital raising.

Bruce Flatt: Notably, we execute our first separately managed accounts, or SMAs, with insurance clients delivering custom-tailored credit strategies to meet their specific objectives, a channel we expect to be a major contributor to future capital raising. We also strengthened our platform through further strategic acquisitions. Castlelake's leadership position in aviation and asset-based credit continues to broaden our credit platform. SVB Capital, with a leading venture franchise, will join our technology manager, Pinegrove Capital Partners, to further expand our technology and growth footprint. Additionally, we increased our ownership of Oaktree from 68% to 73%, who had one of their top fundraising years on the back of strong demand for credit. These investments are expected to contribute an incremental $70 million of FRE on an annualized basis, adding further scale and diversification to our platform. We paved the way for broader index inclusion.

Bruce Flatt: We also strengthened our platform through further strategic acquisitions. Casa Lake's leadership position in aviation and asset-based credit continues to broaden our credit platform. SBB Capital, with a leading venture franchise, will join our technology manager Pine Grove Capital to further expand our technology and growth footprint. Additionally, we increased our ownership of Oaktree from 68% to 73%, who had one of the top fundraising years on the back of strong demand for credit. These investments are expected to contribute an incremental $70 million of FRE on an annualized basis, adding further scale and diversification to our platform.

Bruce Flatt: We paved the way for broader index inclusion. Last year, we introduced our plan to position BAM for broader index inclusion. We have since made significant progress by relocating our corporate headquarters to the U.S., where most of our senior management is based, and which represents our largest employee base, as well as the majority of our revenues and assets under management. As we've previously noted, we also expect the board's composition will increasingly reflect our U.S. focus.

Bruce Flatt: Last year, we introduced our plan to position BAM for broader index inclusion. We have since made significant progress by relocating our corporate headquarters to the US, where most of our senior management is based, and which represents our largest employee base, as well as the majority of our revenues and assets under management. As we've previously noted, we also expect the board's composition will increasingly reflect our US focus. Most recently, we completed the acquisition of 100% of our asset management business after shareholders widely endorsed our initiative to exchange Brookfield Corporation's 73% private ownership in our asset management business for an equivalent interest in the public shares of BAM. This transaction simplified our corporate structure, enhanced governance, and enabled the full value of the asset management business, approaching $100 billion, to now be reflected in BAM's market capitalization.

Bruce Flatt: Most recently, we completed the acquisition of 100% of our asset management business after shareholders widely endorsed our initiative to exchange Brookfield Corporation's 73% private ownership and our asset management business for an equivalent interest in the public shares of BAM. This transaction simplified our corporate structure, enhanced governance, enabled the full value of our asset management business approaching $100 billion to now be reflected in BAM's market capitalization.

Bruce Flatt: Beginning with our 2024 annual report to be released in the coming weeks, we will file our financial reports in line with those filed by other U.S. domestic issuers. Taken together, these initiatives set the stage for broader index inclusion, diversifying our shareholder base, and enabling us to tap deeper pools of public capital.

Bruce Flatt: Beginning with our 2024 annual report, to be released in the coming weeks, we will file our financial reports in line with those filed by other US domestic issuers. Taken together, these initiatives set the stage for broader index inclusion, diversifying our shareholder base, and enabling us to tap deeper pools of public capital. All signs point to a strong 2025. Our success over the past year positions us well for an even better 2025. The past few years have been the strongest ever for our asset management business, and we've been pleased with our ability to deliver consistent performance and strong growth. The quarter-to-quarter acceleration we saw throughout 2024, particularly in H2 of the year, is expected to continue, driven by our flagship and complementary funds and credit activity.

Bruce Flatt: All signs point to a strong 2025. Our success over the past year positions us well for an even better 2025. The past years have been the strongest ever for our asset management business, and we've been pleased with our ability to deliver consistent performance and strong growth. The quarter-to-quarter acceleration we saw throughout 2024, particularly in the back half of the year, is expected to continue, driven by our flagship and complementary funds and credit activity.

Bruce Flatt: As we look ahead, we see a uniquely strong environment that should enable us to deliver strong performance across fundraising, deployment, and monetization.

Bruce Flatt: As we look ahead, we see a uniquely strong environment that should enable us to continue to deliver strong performance across fundraising, deployment, and monetization. Fundraising. Fundraising should continue to accelerate going forward. Our flagship funds currently in the market, the 5th vintage of our real estate flagship fund, and the 2nd vintage of our global transition flagship fund, are slated for final closes in H1 2025. The 12th vintage of our opportunistic credit flagship fund held its final close in January at a strategy size of $16 billion. This latest round of flagship fundraising has already collectively outraised the prior rounds by over 15%, and we expect to launch additional flagship strategies in 2025. Our strong flagship franchises form the bedrock upon which we have built additional complementary strategies, and next year's fundraising in these complementary offerings should reach an all-time high for our business.

Bruce Flatt: Fundraising. Fundraising should continue to accelerate going forward. Our flagship funds currently in the market, the fifth vintage of our real estate flagship fund, and the second vintage of our global transition flagship fund, are slated for final closes in the first half of 2025. The 12th vintage of our opportunistic credit flagship fund held its final close in January at a strategy size of $16 billion. This latest round of flagship fundraising has already collectively outraced the prior round by over 15% and we expect to launch additional flagship strategies in 2025. Our strong flagship franchises form the bedrock upon which we have built additional complementary strategies and next year's fundraising in these complementary offerings should reach an all-time high for our business.

Bruce Flatt: Lastly, the conversations we're having with clients to customize broad offerings for them enable us to increasingly set ourselves apart from most others.

Bruce Flatt: Lastly, the conversations we're having with clients to customize broad offerings for them enable us to increasingly set ourselves apart from most others. Within credit, we are actively fundraising for the fourth vintage of our infrastructure debt fund and seventh vintage of our real estate debt fund. The continued build-out of our other credit strategies, including with our partner managers Oaktree, Castlelake, LCM, 17Capital, and Primary Wave, will bring additional capital directed into more diversified credit products. With our insurance fundraising channel, Brookfield Wealth Solutions is now at scale and on track to originate in excess of $25 billion of retail annuities and pension risk transfer transactions annually. Across our complementary strategies, we are fundraising for a number of new equity products. This includes our emerging market transition fund, our financial infrastructure fund, and our Middle East private equity strategy.

Bruce Flatt: Within credit, we are actively fundraising for the fourth vintage of our infrastructure debt fund and seventh vintage of our real estate debt fund. The continued build out of our other credit strategies, including with our partner managers, Oaktree, Castle Lake, LCM, 17 Capital, and Primary Wave will bring additional capital directed into more diversified credit products. And with our insurance fundraising channel, Brookfield Wealth Solutions is now at scale and on track to originate in excess of $25 billion of retail annuities and pension risk transfer transactions annually.

Bruce Flatt: Across our complementary strategies, we are fundraising for a number of new equity products. This includes our Emerging Market Transition Fund, our Financial Infrastructure Fund, and our Middle East Private Equity Strategy. We expect to close shortly our first Infrastructure Structured Solutions Fund, which focuses on structured equity and minority control investments in partnership with sponsors, developers, and corporates in the middle market. We're also fundraising for our complementary franchises that have established foundations, such as the second vintage of our Private Equity Special Investments Fund.

Bruce Flatt: We expect to close shortly our first Infrastructure Structured Solutions fund, which focuses on structured equity and minority control investments in partnership with sponsors, developers, and corporates in the middle market. We're also fundraising for our complementary franchises that have established foundations, such as the second vintage of our Special Investments fund. Finally, our private wealth channel, which has had steady progress over the past few years, should continue to scale in 2025. We have a strong foundation with more than 150 dedicated full-time employees. Our internal research indicates that financial advisors are more open than ever before to learn about alternative products, which gives us the confidence for accelerated growth from our private wealth channel over the next couple of years. Capital deployment and monetization. Historically, an environment that offers compelling valuations for buying assets is not ideal for selling.

Bruce Flatt: Finally, our Private Wealth Channel, which has had steady progress over the past few years, should continue to scale in 2025. We have a strong foundation with more than 150 dedicated full-time employees. Our internal research indicates that financial advisors are more open than ever before to learn about alternative products, which gives us the confidence for accelerated growth from our private wealth channel over the next couple of years.

Bruce Flatt: Capital Deployment and Monetization. Historically, an environment that offers compelling valuations for buying assets is not ideal for selling. However, we now see conditions that are favorable for both capital deployment and monetization, allowing us to acquire high-quality assets at attractive prices while also realizing strong values for mature investments. In our infrastructure, renewable power, and transition platforms, there's vast demand for investment, trillions of dollars over the coming years to deliver data centers, telecom towers, fiber, semiconductor manufacturing, automation, and renewable power. Our global reach and operational expertise in these areas yield a healthy pipeline of investment opportunities. In parallel, many investors remain eager for exposure to high-quality, long-lived assets with dependable cash flows, filling demand for de-risked assets from our earlier vintage funds.

Bruce Flatt: However, we now see conditions that are favorable for both capital deployment and monetization, allowing us to acquire high-quality assets at attractive prices while also realizing strong values for our mature investments. In our infrastructure, renewable power, and transition platforms, there is vast demand for investment, trillions of dollars over the coming years to deliver data centers, telecom towers, fiber, semiconductor manufacturing, automation, and renewable power. Our global reach and operational expertise in these areas yield a healthy pipeline of investment opportunities. In parallel, many investors remain eager for exposure to high-quality, long-lived assets with dependable cash flows, filling demand for de-risked assets from our earlier vintage funds. In real estate and private equity, fundamentals remain solid and sentiment is rapidly improving. Occupancy rates are healthy across most sectors. New supply has been limited in recent years, and cash flows for quality properties have never been higher.

Bruce Flatt: In real estate and private equity, fundamentals remain solid and sentiment is rapidly improving. Occupancy rates are healthy across most sectors, new supply has been limited in recent years, and cash flows for quality properties have never been higher. Meanwhile, the record levels of refinancing activity in 2020 and 2021 have led to a number of borrowers who need solutions to their financing in 2025 and 2026, creating opportunities to lend to or acquire strong assets which are overfinanced. Simultaneously, we are ready to monetize a number of investments where we've created value through our operating expertise.

Bruce Flatt: Meanwhile, the record levels of refinancing activity in 2020 and 2021 have led to a number of borrowers who need solutions to their financing in 2025 and 2026, creating opportunities to lend to or acquire strong assets which are over-financed. Simultaneously, we are ready to monetize a number of investments where we've created value through our operating expertise. We believe 2025 will be a good year to pursue some of these capital recycling initiatives on favorable terms. The current capital markets environment is increasingly robust and liquid for high-quality businesses, enhancing our ability to monetize assets and return capital for distributions. Since the start of the year, we completed a $5 billion up financing of Clarios, our US-based car battery maker, which supported a $4.5 billion distribution to Brookfield and our partners. We initially invested $3 billion of equity to acquire the business.

Bruce Flatt: We believe 2025 will be a good year to pursue some of these capital recycling initiatives on favorable terms. The current capital markets environment is increasingly robust and liquid for high quality businesses, enhancing our ability to monetize assets and return capital for distributions. Since the start of the year, we completed a $5 billion up-financing of Clarius, our U.S.-based car battery maker, which supported a $4.5 billion distribution to Brookfield and our partners. We initially invested $3 billion of equity to acquire the business. While the scale of such a transaction is significant, pricing was broadly in line with previously issued debt and the offering was multiple times oversubscribed.

Bruce Flatt: While the scale of such a transaction is significant, pricing was broadly in line with previously issued debt, and the offering was multiple times oversubscribed. Similarly, we recently executed a $6.1 billion refinancing of our Intel investment, terming out the maturities far ahead of schedule and at much tighter rates than underwriting. While these examples are both specific and recent, we are seeing broad-based support for the financing of our high-quality portfolio, demonstrated by the more than $130 billion of financings we completed in 2024. Closing. We remain committed to being a world-class asset manager by investing our capital in high-quality assets that earn solid returns while emphasizing downside protection. The primary objective of the company continues to be to generate increasing cash flows on a per-share basis and to distribute that cash to you by dividend or share repurchases.

Bruce Flatt: Similarly, we recently executed a $6.1 billion refinancing of our Intel investment, terming out the maturities far ahead of schedule and at much tighter rates than underwriting.

Bruce Flatt: While these examples are both specific and recent, we are seeing broad-based support for the financing of our high-quality portfolio, demonstrated by the more than $130 billion of financings we completed in 2024.

Bruce Flatt: Closing We remain committed to being a world-class asset manager by investing our capital in high-quality assets that earn solid returns while emphasizing downside protection. The primary objective of the company continues to be to generate increasing cash flows on a per-share basis and to distribute that cash to you by dividend or share repurchases.

Bruce Flatt: Thank you for your interest in Brookfield and please do not hesitate to contact any of us should you have suggestions, questions, comments, or ideas you wish to share.

Bruce Flatt: Thank you for your interest in Brookfield, and please do not hesitate to contact any of us should you have suggestions, questions, comments, or ideas you wish to share. Sincerely, Bruce Flatt, Chief Executive Officer, Connor Teskey, President, 12 February 2025.

Bruce Flatt: Sincerely, Bruce Flatt, Chief Executive Officer, Connor Teskey, President, February 12, 2025.

Unknown Executive: Cautionary statement regarding forward-looking statements and information. All references to dollars are to U.S. dollars. This letter to shareholders contains forward-looking information within the meaning of Canadian provincial securities laws and forward-looking statements within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, and in any applicable Canadian securities regulations, collectively forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management's current estimates, beliefs, and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances.

Operator: Cautionary statement regarding forward-looking statements and information. All references to dollars are to US dollars. This letter to shareholders contains forward-looking information within the meaning of Canadian provincial securities laws and forward-looking statements within the meaning of the US Securities Act of 1933, the US Securities Exchange Act of 1934, safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, and in any applicable Canadian securities regulations, collectively, forward-looking statements.

Operator: Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events, or conditions and include, but are not limited to, statements which reflect management's current estimates, beliefs, and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management, and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs, and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events and as such, are subject to change.

Unknown Executive: The estimates, beliefs, and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as expect, anticipate, believe, foresee, could, estimate, goal, intend, plan, seek, strive, will, may, and should, and similar expressions.

Operator: Forward-looking statements are typically identified by words such as expect, anticipate, believe, foresee, could, estimate, goal, intend, plan, seek, strive, will, may, and should, and similar expressions. In particular, the forward-looking statements contained in this letter include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the Castlelake acquisition, including its expected impact on our business, the anticipated allocation and deployment of our capital, our liquidity and ability to access and raise capital, our fundraising targets, our target growth objectives, and our target carried interest. Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs, and assumptions, actual results may differ materially from the forward-looking statements.

Unknown Executive: In particular, the forward-looking statements contained in this letter include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the Castle Lake acquisition, including its expected impact on our business, the anticipated allocation and deployment of our capital, our liquidity and ability to access and raise capital, our fundraising targets, our target growth objectives, and our target carried interest. Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs, and assumptions, actual results may differ materially from the forward-looking statements.

Operator: Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: 1, returns that are lower than target. 2, the impact or unanticipated impact of general economic, political, and market factors in the countries in which we do business. 3, the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures. 4, global equity and capital markets and the availability of equity and debt financing and refinancing within these markets. 5, strategic actions including acquisitions and dispositions, the ability to complete and effectively integrate acquisitions into existing operations, and the ability to attain expected benefits. 6, changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates. 7, the ability to appropriately manage human capital. 8, the effect of applying future accounting changes.

Unknown Executive: Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to, 1. Returns that are lower than target, 2. The impact or unanticipated impact of general economic, political, and market factors in the countries in which we do business, 3. The behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures, 4. Global equity and capital markets and the availability of equity in debt financing and refinancing within these markets, 5. Strategic actions including acquisitions and dispositions, the ability to complete and effectively integrate acquisitions into existing operations, and the ability to attain expected benefits, 6.

Unknown Executive: Changes in accounting policies and methods used to report financial condition, including uncertainties associated with critical accounting assumptions and estimates, 7. The ability to appropriately manage human capital, 8. The effect of applying future accounting changes, 9. Business competition, 10. Operational and reputational risks, 11. Technological change, 12. Changes in government regulation and legislation within the countries in which we operate, 13. Governmental investigations and sanctions, 14. Litigation, 15. Changes in tax laws, 16. Ability to collect amounts owed, 17. Catastrophic events such as earthquakes, hurricanes, and epidemics pandemics, 18. The possible impact of international conflicts and other developments including terrorist acts and cyber terrorism, 19.

Operator: 9, business competition. 10, operational and reputational risks. 11, technological change. 12, changes in government regulation and legislation within the countries in which we operate. 13, governmental investigations and sanctions. 14, litigation. 15, changes in tax laws. 16, ability to collect amounts owed. 17, catastrophic events such as earthquakes, hurricanes, and epidemics, pandemics. 18, the possible impact of international conflicts and other developments, including terrorist acts and cyberterrorism. 19, the introduction, withdrawal, success, and timing of business initiatives and strategies. 20, the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks. 21, health, safety, and environmental risks. 22, the maintenance of adequate insurance coverage. 23, the existence of information barriers between certain businesses within our Asset Management operations. 24, risks specific to our business segments, including Asset Management, Wealth Solutions, Renewable Power and Transition, Infrastructure, Private Equity, Real Estate, and Corporate Activities.

Unknown Executive: The introduction, withdrawal, success, and timing of business initiatives and strategies, 20. The failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks, 21. Health, safety, and environmental risks, 22. The maintenance of adequate insurance coverage, 23. The existence of information barriers between certain businesses within our asset management operations, 24. Risks specific to our business segments including asset management, wealth solutions, renewable power and transition, infrastructure, private equity, real estate, and corporate activities, 25.

Operator: 25, factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States. We caution that the foregoing list of important factors that may affect future results is not exhaustive, and other factors could also adversely affect future results. Readers are urged to consider these risks as well as other uncertainties, factors, and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this letter or such other date specified herein. Except as required by law, Brookfield Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events, or otherwise. Past performance is not indicative nor a guarantee of future results.

Unknown Executive: Factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States. We caution that the foregoing list of important factors that may affect future results is not exhaustive, and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors, and assumptions carefully in evaluating the forward-looking statements, and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this letter or such other date specified herein, except as required by law.

Unknown Executive: Brookfield Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events, or otherwise.

Unknown Executive: Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met, or that an investment strategy or investment objectives will be achieved because of economic conditions, the availability of appropriate opportunities or otherwise. Target returns and growth objectives set forth in this letter are for illustrative and informational purposes only, and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect.

Operator: There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification, or asset allocations will be met, or that an investment strategy or investment objectives will be achieved because of economic conditions, the availability of appropriate opportunities, or otherwise. Target returns and growth objectives set forth in this letter are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved.

Unknown Executive: There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties, and changes, including changes in economic, operational, political, or other circumstances, beyond Brookfield Corporation's control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation, or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them.

Operator: Due to various risks, uncertainties, and changes, including changes in economic, operational, political, or other circumstances beyond Brookfield Corporation's control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation, or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them. Cautionary statement regarding the use of non-IFRS measures. This letter to shareholders contains references to financial measures that are calculated and presented using methodologies other than in accordance with IFRS.

Unknown Executive: CAUTIONARY STATEMENT REGARDING THE USE OF NON-IFRS MEASURES This letter to shareholders contains references to financial measures that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include distributable earnings, as defined below, its components and its per share equivalent, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities.

Operator: These financial measures, which include distributable earnings, as defined below, its components and its per share equivalent should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities. We make reference to distributable earnings, which refers to the sum of distributable earnings from our asset management business, distributable operating earnings from our insurance solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of preferred share dividends and equity-based compensation costs.

Unknown Executive: We make reference to distributable earnings, which refers to the sum of distributable earnings from our asset management business, distributable operating earnings from our insurance solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of preferred shared dividends, and equity-based compensation costs. We also make reference to distributable earnings before realizations, which refers to distributable earnings before realized carried interest and disposition gains from principal investments, and net operating income. Which refers to the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business.

Operator: We also make reference to distributable earnings before realizations, which refers to distributable earnings before realized carried interest and disposition gains from principal investments and net operating income, which refers to the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. Our outlook for growth in distributable earnings assumes growth in fee-related earnings and realized carried interest in line with our business plans, which assume growth in our fee-bearing capital consistent with our fundraising plans, capital deployment expectations, maintaining the fee rates we earn on fee-bearing capital, and earning margins consistent with our current margin. Actual results may vary materially and are subject to market conditions and other factors and risks set out above.

Unknown Executive: Our outlook for growth in distributable earnings assumes growth in fee-related earnings, and realized carried interest in line with our business plans, which assume growth in our fee-bearing capital consistent with our fundraising plans, capital deployment expectations, maintaining the fee rates we earn on fee-bearing capital and earning margins consistent with our current margin. Actual results may vary materially and are subject to market conditions and other factors and risks set out above. For more information on non-IFRS measures and other financial metrics, see Brookfield Corporation's Q1 2024 press release, which includes reconciliations of these non-IFRS financial measures to their most directly comparable financial measures calculated and presented in accordance with IFRS.

Operator: For more information on non-IFRS measures and other financial metrics, see Brookfield Corporation's Q1 2024 press release, which includes reconciliations of these non-IFRS financial measures to their most directly comparable financial measures calculated and presented in accordance with IFRS.