Q2 2025 Brookfield Corp Earnings Call

August 7, 2025

Today's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone to withdraw your question. Please press star one one again I would now like to hand, the conference over to your speaker today, Ms Katy but Italia.

This president Investor Relations. Please go ahead.

Thank you operator and good morning.

To Brookfield Corporation's second quarter 2025 conference call on the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookdale Corporation.

I'll start off by giving a business update followed by <unk>, 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 ask you to refrain from asking more than two questions.

Hello and welcome to the Brookfield. Corporation second, quarter 2025 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 to withdraw your question. Please press star 1 1 again, I would not like to hand the conference over to your speaker today. Miss Katie, Battaglia, vice, president investor relations. Please go ahead.

I would 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.

Thank you, operator. And good morning. Welcome to Brookfield. Corporation second quarter 2025 conference. Call on the call today are Bruce Flatt, our chief executive officer and Nick Goodman, president of Brookfield Corporation,

Including forward looking statements within the meaning of applicable Canadian and U S security laws.

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

These statements reflect predictions of future events and trends and do not relate to historic events.

Thank you, operator. And good morning. Welcome to Brookfield, Corporation second quarter 2025 conference call.

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

They are subject to known and unknown risks and future events and results may differ materially from such statements.

on the call today are Bruce spot, our chief executive officer and Nick Goodman, president of Brookfield Corporation,

In order to accommodate all those who want to ask questions, we ask you to refrain from asking more than 2 questions.

For further information on these risks and their potential impact on our company. Please see our filings with the securities regulators in Canada, and the U S and the information available on our website.

Bruce will start off by giving a business update, followed by neck 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.

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 US security laws.

In addition, when we speak about our wealth solutions business, our Brookfield Mall solution, we are referring to Brookfield investments in this business that supported the acquisition of its underlying operating subsidiaries.

In order to accommodate all those who want to ask questions, we ask you to refrain from asking more than 2 questions.

These statements reflect predictions of future events and Trends and do not relate to historic events.

With that I'll turn the call over to Bruce.

They are subject to known, and unknown risks, and future events and results May differ materially from such statements.

Thank you and welcome everyone on the call.

Including forward-looking statements within the meeting of applicable Canadian and US security laws.

We delivered strong second quarter results distributable earnings before realizations increased 13% year over year to $1 3 billion.

These statements reflect predictions of future events and Trends and do not relate to historic events.

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

That was 80 per share for the quarter and five 3 billion or $3 36 per share for the last 12 months.

They are subject to known, and unknown risks, and future events and results May differ materially from such statements.

In addition, when we speak about our wealth Solutions business or brookfield's wealth Solutions, we are referring to brookfield's investments in this business that supported the acquisition of its underlying operating subsidiaries.

Performance was supported by continued momentum across our core businesses.

With that, I'll turn the call over to Bruce.

For further information on these risks and their potential impact on our company, please see our filings with the Securities Regulators in Canada and the US and the information available on our website.

Thank you, and welcome, everyone on the call.

And a significant pickup in transaction activity.

Strong underlying operating fundamentals are driving demand and cash flow growth in both our asset management and operating businesses.

We delivered strong second quarter results distributor earnings before realizations increased 13% year-over-year to 1.3 billion.

With that, I'll turn the call over to Bruce.

Our wealth solutions business continues to grow its asset base and last week, we announced an agreement to acquire just group.

Thank you, and welcome. Uh, everyone on the call.

That was 80 cents per share for the quarter and 5.3 billion or 3.36 cents per share for the last 12 months.

A leading provider of pension risk transfer solutions in the United Kingdom.

Performance was supported by continued momentum across our core businesses.

This acquisition builds on the foundation, we established in the U K earlier this year.

We delivered strong second quarter results distributed earnings before realizations. Increased 13% year-over-year to 1.3 billion.

And a significant pickup in transaction activity.

Allow us to accelerate our growth in the country.

As already one of the largest infrastructure renewable and property investors in the U K.

That was 80 cents per share for the quarter and 5.3 billion or 3.36 cents per share for the last 12 months.

Strong. Underlying operating fundamentals are driving demand and cash flow growth in both our asset management and operating businesses.

This acquisition matches, well with our capabilities and positions us to assist policyholders.

Performance was supported by continued momentum across our core businesses.

And a significant pickup in transaction activity.

<unk> strong returns.

Turning briefly to the macro environment conditions continue to become increasingly constructive.

Our well Solutions, business continues to grow its asset base. And last week, we announced an agreement to acquire just group, a leading provider of pension risk transfer Solutions in the United Kingdom.

Strong. Underlying operating fundamentals are driving demand and cash flow growth in both our asset management and operating businesses.

During the quarter as most of you will know global equities hit all time highs.

This acquisition Builds on the foundation. We established in the UK earlier this year and will allow us to accelerate our growth in the country.

Credit spreads tightened dramatically and interest rates remain largely unchanged with growing expectations. So we may see cuts on the short end of the curve.

Our wealth Solutions business continues to grow its asset base. And last week, we announced an agreement to acquire just group

As already 1 of the largest infrastructure renewable and property investors in the UK.

A leading provider of pension risk transfer Solutions in the United Kingdom.

And the next while.

This acquisition matches well with our capabilities and positions us to assist policyholders, earn strong returns.

This relative stability has been supportive of increased monetization, which reflects both the quality of the businesses, we own and assets. We have so far this year, we've completed $55 billion of asset sales, including 35 billion in the quarter.

This acquisition Builds on the foundation. We established in the UK earlier this year and will allow us to accelerate our growth in the country.

Returning briefly to the macro environment, conditions continue to become increasingly constructive.

As already 1 of the largest infrastructure, renewable, and property investors in the UK.

Equities, hit all-time highs.

Each generating excellent returns and returning meaningful capital to investors.

And matches well with our capabilities and positions us to assist policy holders, earn strong returns.

We also saw continued strength in the financing markets, where we opportunistically completed $94 billion of financings across the franchise, enabling our capital structure.

Credit spreads Titan dramatically and interest rates remain, largely unchanged with growing expectations. That we may see cuts on the short end of the Curve.

Turning briefly to the macro environment conditions continue to become increasingly constructive.

In the next while.

During the quarter, as most of you will know Global equities hit all-time highs.

Enhancing our capital structure and deploying significant capital.

Within the business.

Against this increasingly.

Really constructive backdrop, the key themes that ground or capital deployment digitalization, the globalization and de carbonization are accelerating.

This relative stability has been supportive of increased monetization, which reflects both the quality of the businesses, we own and assets. We have so far this year, we've completed 55 billion of asset sales, including 35 billion in the quarter.

Credit spread Titan dramatically and interest rates remain largely unchanged with growing expectations. That we may see cuts on the short end of the Curve.

In the next while.

Each generating, excellent returns and returning meaningful Capital to investors.

With a record of 170 577 billion of deployable capital, we are well positioned to be at the forefront of these opportunities, including the next evolution of the build out of the global economy.

We also saw continued strength in the financing markets where we opportunistically completed, 94 billion of financings across the franchise enabling our capital structure.

This relative stability has been supportive of increased monetization, which reflects both the quality of the businesses, we own and assets. We have so far this year, we've completed 55 billion of asset sales, including 35 billion in the quarter.

As an example, we are launching our AI infrastructure strategy at the core of this strategy is the development of AI factories.

Uh, enhancing our capital structure and deploying significant Capital, uh, within the business.

Each generating, excellent returns and returning meaningful Capital to investors.

Which are large scale integrated site the combined power.

Against this increasingly constructive backdrop. The key themes that ground, our Capital deployment digitalization deglobalization, and decarbonization are accelerating,

<unk> shelves and the equipment to pop to provide compute capacity to the industry's leaders.

We also saw continued strength in the financing markets where we offer opportunistically completed 94 billion of financings across the franchise enabling our capital structure.

As well as governments and corporates seeking compute capacity.

Uh, enhancing our capital structure and deploying significant Capital, uh, within the business.

With a record of 17577 billion of Deployable Capital. We are well positioned to be at the Forefront of these opportunities.

Separate draws on our strength of our global operating teams in real estate power and infrastructure each today, a global leader in their category.

Including the next evolution of the buildout of the global economy.

Against this increasingly constructive backdrop. The key themes that ground, our Capital deployment digitalization deglobalization, and decarbonization are accelerating,

At the same time global electricity demand is accelerating at a very dramatic pace driven by power demand for the AI Revolution, and the broader electrification of the energy grid.

As an example, we are launching our AI infrastructure strategy at the core of this strategy is the development of AI factories.

With a record 17577 billion of Deployable Capital. We are well positioned to be at the Forefront of these opportunities.

Including the next evolution of the buildout of the global economy.

This coupled with AI infrastructure presents a tremendous investment opportunity predict, particularly for our renewables and our infrastructure platforms.

which are large scale, integrated sites that combined power data shells, and the equipment to to provide compute capacity to the industry's leaders, as well as governments and corporates seeking compute capacity,

As an example, we are launching our AI infrastructure strategy at the core of this strategy is the development of AI factories.

This afternoon draws on our strengths. There are Global operating teams in real estate power and infrastructure each today, a global leader in their category,

As the backbone of the global economy transforms sold as our approach to investing our capital.

Today, we have $180 billion of our own capital on our balance sheet predominantly invested in real assets beside or to assist our clients, where we have deep investing and operating expertise.

which are large scale, integrated sites that combined power data shells, and the equipment to Pro to provide compute capacity to the industry's leaders as well as governments and corporates seeking compute capacity,

At the same time, global electricity demand is accelerating at a very dramatic pace, driven by power demand for the AI revolution and the broader electrification of the energy grid.

This effort draws on our strengths of our Global operating teams in real estate power and infrastructure each today, a global leader in their category.

Our long term plan is to further enhance the efficiency of our capital structure.

This coupled with AI infrastructure, presents, a tremendous investment opportunity, predict particularly for our Renewables, and our infrastructure platforms.

At the same time, Global electricity demand is accelerating at a very dramatic pace.

Thereby enhancing the returns we can earn on our equity without changing the risk profile of the business.

As the backbone of the global economy transforms so does our approach to investing our capital.

Driven by power demand for the AI Revolution and the broader electrification of the energy grid.

This is being done by continued continuing to refocus overall Brookfield as an investment led insurance organization.

This coupled with AI infrastructure, presents, a tremendous investment opportunity, predict particularly for our Renewables, and our infrastructure platforms.

Using our large scale capital base to back low risk long duration insurance.

Today we have 180 billion dollars of cash our own capital and our balance sheet predominantly invested in real assets beside, or to assist our clients, where we have deep investing and operating expertise.

As the backbone of the global economy transformed so does our approach to investing our capital.

On the asset side of the balance sheet importantly, we remain focused on the exact same asset classes, where we have proven best in class investment skills for decades, and which are ideally suited.

Our long-term plan is to further enhance the efficiency of our capital structure.

Thereby enhancing the returns. We can earn on our Equity without changing the risk profile of the business.

Today we have $0 billion of C our own capital and our balance sheet predominantly invested in real assets beside or to assist our clients, where we have deep investing and operating expertise.

For wealth and insurance.

This shift is a natural extension of our platform to continue to drive long term shareholder value.

This is being done by continued continuing to refocus overall Brookfield as an investment-led insurance organization.

Our long-term plan is to further enhance the fish efficiency of our capital structure.

To date, we have had two primary sources of capital the first being our balance sheet and the second being institutional capital in our asset management business.

Using our large-scale Capital base to back low risk, long duration insurance.

Thereby enhancing the returns. We can earn on our Equity without changing the risk profile of the business.

And this next evolution.

Besides those two amounts were focusing our balance sheet to back our growing insurance operations, meaning that our capital will increasingly come from individual investors.

This is being done by continued continuing to refocus overall Brookfield as an investment-led insurance organization.

On the asset side of the balance sheet, importantly, we remain focused on the exact same asset classes, where we have proven best-in-class investment skills for decades.

And which are ideally Suited.

For wealth and insurance.

Using our large-scale Capital base to back low risk, long duration insurance.

Our insurance float.

The shift is a natural extension of our platform to continue to drive long-term shareholder value.

Our intention is to continue funding our insurance operations from the Brookfield Corporation balance sheet to.

On the asset side of the balance sheet, importantly, we remain focused on the exact same asset classes, where we have proven best-in-class investment skills for decades.

To ensure that our policy holders and regulators know that we have our capital at risk to assist them.

And which are ideally Suited.

To today, we have had 2 primary sources of capital, the first being our balance sheet and the second being institutional capital in our asset management business.

For wealth and insurance.

In this next evolution.

When we established our insurance business, we envisage this as one arm of Brookfield.

The shift is a natural extension of our platform to continue to drive long-term shareholder value.

But after five years of meaningful growth and with a large number of opportunities ahead. This business is becoming increasingly foundational part of our long term vision for Brookfield.

Beside those 2 amounts. We're focusing our balance sheet to back our growing Insurance operations meaning that our Capital will increasingly come from Individual investors via our insurance float.

Today we have had 2 primary sources of capital, the first being our balance sheet and the second being institutional capital in our asset management business.

In this next evolution.

Our intention is to continue funding. Our insurance operations from the Brookfield, Corporation balance sheet.

There will be more to come.

So stay tuned.

As we plan for the future. It's important also to reflect on what has been the foundation of our growth and success from past simply stated.

To ensure that our policy holders and Regulators know that we have our Capital At Risk to assist them.

Beside those 2 amounts. We're focusing our balance sheet to back our growing Insurance operations meaning that our Capital will increasingly come from Individual investors via our insurance float.

When we established our insurance business, we envisioned this as 1 arm of Brookfield.

It is our ability to consistently adapt.

Our intention is to continue funding. Our insurance operations from the Brookfield, Corporation balance sheet.

but after 5 years of meaningful growth,

And evolve with the shifts in the global economy.

While staying focused on generating investment returns over the long term.

and with a large number of opportunities ahead, this business is becoming increasingly foundational.

To ensure that our policy holders and Regulators know that we have our Capital At Risk to assist them.

Part of our long-term vision for Brookfield.

There will be more to come.

This started 30 years ago with real estate.

So, stay tuned.

When we established our insurance business, we envisioned this as 1 arm of Brookfield.

Move to pipelines and electricity transmission lines and is now led by renewable power data centers fiber lines Telecom towers and more recently.

As we plan for the future. It's important also to reflect on what has been the foundation of our growth and success from past.

Simply stated.

But after 5 years of meaningful growth, and with a large number of opportunities ahead, this business is becoming increasingly foundational.

AI infrastructure and battery storage, which are just developing.

There will be more to come.

Each step has been about anticipating where the world is going and positioning ourselves.

And a bulb with the shifts in the global economy.

So, stay tuned.

While staying focused on generating investment returns over the long term.

And our investors at the center of each transformation.

As we plan for the future, it's important also to reflect on what has been the foundation of our growth and success from the past.

This started 30 years ago with real estate.

Simply stated.

Our view is that AI is next and coming after that is AI AI.

It is our ability to consistently adapt.

AI led advances in manufacturing.

And evolve with the shifts in the global economy.

The World is always evolving and is exciting to be involved.

While staying focused on generating investment returns over the long term.

Moved to pipelines and electricity transmission lines and is now led by Renewable Power data centers. Fiber lines, Telecom towers and more recently, AI infrastructure and battery storage which are just developing

I will end my comments by saying that we look forward to seeing you at our Investor Day on September 10th at Brookfield place in New York additional details are on our website and as always thank you for your continued support and interest in Brookfield.

This started 30 years ago with real estate.

Each step has been about anticipating where the world is going and positioning ourselves.

And our investors at the center of each transformation.

Moved to pipelines and electricity transmission lines and is now led by Renewable Power data centers. Fiber lines Telecom towers and more recently.

Over to Nick.

AI infrastructure and battery storage, which are just developing.

Thank you Bruce and good morning, everyone financial results were strong for the quarter distributable earnings or de before realizations were $1 3 billion or <unk> 80 per share representing an increase of 13% per share over the prior year quarter.

Our view is that AI is next, and coming after that is AI, advanced AI lead advances in manufacturing.

Each step has been about anticipating where the world is going and positioning ourselves.

The world is always evolving, and is exciting to be involved.

And our investors at the center of each transformation.

Over the last 12 months <unk> before realizations was $5 3 billion or $3 36 per share.

Our view is that AI is next and coming after that is ai, advant ai lead advances in manufacturing.

I will end my comments by saying that we look forward to seeing you at our investor day on September 10th at Brookfield Place in New York additional details are on our website. And as always, thank you for your continued support and interest in Brookfield.

Total day, including realizations was $1 4 billion or <unk> 88 per share for the quarter and $5 9 billion or $3 71 per share over the last 12 months with total net income of $2 $9 billion over the same period.

Over to Nick.

The world is always evolving, and is exciting to be involved.

Starting with our operating performance, our asset management business generated distributable earnings of $650 million or <unk> 41 per share in the quarter and $2 7 billion or $1 72 per share over the last 12 months.

Thank you, Bruce and good morning. Everyone. Financial results were strong for the quarter. Distributable earnings or de before realizations were 1.3 billion or 80 cents per share representing an increase of 13% per share over the prior year quarter.

Over to Nick.

Over the last 12 months de before realizations, was 5.3 billion or 3.36 cents per share.

Strong fundraising across our flagship funds and complementary strategies led to inflows during the quarter of $22 billion.

Including over $5 billion from our retail and wealth solutions clients.

Over the last 12 months de before realizations, was 5.3 billion or 3.36 cents per share.

Total including realizations was $1.4 billion or $0.88 per share for the quarter and $5.9 billion or $3.00 per share over the last 12 months, with total net income of $2.9 billion over the same period.

Baron capital grew to $563 billion.

<unk> and fee related earnings of $676 million.

An increase of 10% and 16% respectively over the prior year quarter.

With final closes anticipated for our fifth vintage flagship opportunistic real estate strategy and our second vintage global transition strategy, we expect fundraising momentum to continue into the second half of 2025, which should should support further earnings growth.

Starting with our operating performance, our asset management business, generated distributable, earnings of 650 million of 41 cents per share in the quarter and 2.7 billion dollars or a $1.72 per share over the last 12 months.

Total de including realizations was 1.4 billion dollars or 88 cents per share for the quarter and 5.9 billion or 3 dollars per share over the last 12 months with total net income of 2.9 billion dollars over the same period.

Strong fundraising across our Flagship funds and complementary strategies led to infos during the quarter of 22 billion dollars including over 5 billion dollars from our retail and wealth Solutions clients.

Our wealth solutions business delivered another quarter of strong results benefiting from robust investment performance and disciplined capital deployment.

Starting with our operating performance, our asset management business, generated distributable, earnings of 650 million or 41 cents per share in the quarter and 2.7 billion dollars or a $1.72 per share over the last 12 months.

Distributable operating earnings were $391 million or 25 per share in the quarter and $1 6 billion or $1 <unk> per share over the last 12 months.

Fear and capital grew to 563 billion. Resulting in fear related, earnings of 676 million and increase of 10% and 16% respectively, over the prior year quarter.

During the quarter, we originated over $4 billion of retail and institutional annuities, bringing our total insurance assets to $135 billion on.

With final closest anticipated for our fifth vintage Flagship opportunistic, real estate strategy and our second vintage Global transition strategy. We expect fundraising momentum to continue into the second half of 2025 which should should support further earnings growth.

Fever and capital grew to $563 billion, resulting in fee-related earnings of $676 million, an increase of 10% and 16%, respectively, over the prior year quarter.

When the investments site, if we deploy deployed $3 $5 billion into Brookfield managed strategies across our portfolio at an average net yield of 8%.

Our wealth Solutions business delivered. Another quarter of strong results benefiting from robust investment performance and disciplined, Capital deployment.

Our investment portfolio generated an average yield of five 8%, allowing us to achieve strong spread earnings which were one 8% higher than our average cost of funds.

Distributable operating earnings for 391 million or 25 cents per share in a quarter and 1.6 billion dollars or a dollar and 2 cents per share over the last 12 months.

On both an LTM an annualized basis, we continued to deliver a return on equity is broadly in line with our long term target of 15% plus.

Our wealth Solutions business delivered. Another quarter of strong results benefiting from robust investment performance and disciplined, Capital deployment.

During the quarter, we originated over 4 billion dollars of retail and institutional, annuities bringing our total insurance assets to 135 billion.

As Bruce mentioned, we announced an agreement to acquire just group a U K leader in buying pensions from companies, who wish to get off the risks. This marks an important next step in scaling our global platform and expanding our presence in one of the world's fastest growing retirement markets.

Distributable operating earnings for 391 million or 25 cents per share in a quarter and 1.6 billion dollars or a dollar and 2 cents per share over the last 12 months.

On the investment site. We deploy deployed 3 and a half billion dollars into Brookfield managed strategies across our portfolio at an average, net yield of 8%

During the quarter, we originated over 4 billion dollars of retail and institutional, annuities bringing our total insurance assets to 135 billion.

Per the announcement, we plan to acquire the company for $3 2 billion and we plan to fund this with roughly two thirds from an acquisition credit facility and the balance from cash on hand at dws.

Our Investment Portfolio generated in an average yield of 5.8% allowing us to achieve strong spread earnings which were 1.8% higher than our average cost of funds.

On your investment site. We deploy deployed 3 and a half billion dollars into Brookfield managed strategies across our portfolio at an average, net yield of 8%

On both an LTM and annualized basis. We continue to deliver a return on Equity, that is broadly in line with our long-term Target of 15% Plus.

While we anticipate net investment income will take some time to ramp up following the close we expect the transaction to deliver a return on equity in line with our long term target for the overall business of 15% plus.

Our investment portfolio generated an average yield of 5.8%, allowing us to achieve strong spread earnings, which were 1.8% higher than our average cost of funds.

With this acquisition our insurance assets are expected to grow by approximately $40 billion significantly accelerating the growth of our business and advancing a short term path towards $200 billion of insurance assets.

As Bruce mentioned, we announced an agreement to acquire just group, a UK leader in buying. Pensions from companies who wish to get off the risks, this marks an important next step in scaling our Global platform and expanding our presence in 1 of the world's fastest growing retirement markets,

On both an LTM and annualized basis. We continue to deliver a return on Equity, that's broadly in line with our long-term Target of 15% Plus.

Per the announcement, we plan to acquire the company for $3.2 billion, and we plan to fund this with roughly two-thirds from an acquisition credit facility and the balance from cash on hand at BWS.

Our operating businesses continued to deliver stable and growing cash flows generating distributable earnings of $350 million or 22 per share in the quarter and $1 7 billion or $1 <unk> per share over the last 12 months.

While we anticipate that investment income, will take some time to ramp up following the clothes. We expect the transaction to deliver a return on equity in line with our long-term Target for the overall business of 15% Plus

These results were supported by strong underlying fundamentals and resilient operating earnings as an example, we signed a landmark agreement with Google to deliver up to 3000 megawatts of hydro electric capacity across the U S. A first of its kind partnership and a testament to our unique capabilities and demonstrates our relationships with the large.

Compared the announcement. We plan to acquire the company for 3.2 billion dollars and we plan to fund this with roughly 2/3 of an acquisition credit facility and the balance from cash on hand at bws.

With this acquisition, our insurance assets are expected to grow by approximately 40 billion dollars, significantly accelerating the growth of our business and advancing a short-term path towards 200 billion of insurance assets.

While we anticipate, net investment income will take some time to ramp up following the clothes. We expect the transaction to deliver a return on equity in line with our long-term Target for the overall business of 15% Plus

<unk> buyers of power in the world.

And our real estate business market fundamentals across the platform continued to strengthen.

Or 22 cents per share in the quarter and 1.7 billion or 1.7 cents per share over the last 12 months.

Grow by approximately 40 billion dollars, significantly accelerating the growth of our business and advancing a short-term path towards 200 billion of insurance assets.

While this quarter's performance performance was impacted by softer conditions in our North American residential business, where London housing sales have moderated most of our real estate business has performed well and we saw strong same store NOI growth across our core portfolio.

Our operating businesses continue to deliver stable and growing cash flows generating. Distributable earnings of 350 million or 22 cents per share in the quarter and 1.7 billion or a dollar and 7 cents per share over the last 12 months.

Demand for high quality office and retail space remains the first choice for tenants with active requirements, we signed nearly 4 million square feet of office and retail leases during the quarter, reflecting both strong tenant demand and limited availability across our premium space, our core office and retail assets continue to perform exceptionally well.

These results were supported by strong underlying fundamentals, and resilient operating earnings. As an example, we signed a landmark agreement with Google to deliver up to 3,000 megawatts of hydroelectric capacity across the US, a first-of-its-kind partnership, and a testament to our unique capabilities and demonstrates. Our relationships with the largest buyers of power in the world.

With occupancy of 94% and 97% respectively.

The global supply of Trophy office space Tightens, we're seeing leasing interest begin to spill over into other high quality well located assets across our portfolio and we are seeing this trend play out.

Real time for.

For example in downtown Toronto, one of our long term tenants in a trophy office building approached us with expansion plans with our trophy office space pool for a requirement of that size, we leveraged our broader platform to meet their needs by offering space in a nearby premium building, where they ultimately signed a 17 year lease.

At the same time, we're already in late stage discussions to backfill backfill the space to be vacated our rents approximately 10% higher than prior levels ransom premiums space are well above their highest on a net effective base ever we expect this evolving shift in tenant demand to support performance across our broader office portfolio in the coming <unk>.

Water reflecting, both strong tenant demand and limited availability across our premium space. Our core office in retail assets, continue to perform exceptionally well with occupancy and 94% and 97% respectively.

<unk>.

Moving to monetization market sentiment is improving and is increasingly supporting supportive for transactions for high quality assets.

As the global supply of trophy office space Titans, we're seeing leasing interest, begin to spill over into other high-quality well-located assets. Across our portfolio, and we are seeing this trend play out in real time.

As Bruce mentioned, we sold $55 billion of assets across the business. So far this year, including over $35 billion. Since the last quarter alone. This includes $15 billion of real estate sales nearly $13 billion of infrastructure investments and $7 billion within energy.

For example, in downtown Toronto 1 of our long-term tenants in a trophy office building approached us with expansion plans with our trophy office space pool for a requirement of that size. We leveraged our broader platform to meet their needs by offering space in a nearby premium building where they ultimately signed a 17-year lease

Some highlights include in real estate, we actually exited a leading student housing platform in southern Europe for $1 2 billion euros sold our triple net lease platform in the U S for $2 2 billion.

At the same time, we're already in late-stage discussions to backfill the space being vacated at rents approximately 10% higher than prior levels.

We also completed the successful IPO of Lila palaces in India, valuing the portfolio of $1 8 billion and marking the largest hospitality IPO in India history, and we executed to $3 9 billion Australian dollar sale of a senior living platform in Australia, the largest direct real estate transaction in the country's history and.

Rents and premium space are well, above their highest on a net effective base ever. We expect this evolving shift in tenant demand to support performance across. Our broader office portfolio, in the coming quarters

Moving to monetization, market sentiment is improving and is supportive for transactions involving high-quality assets.

In infrastructure, we sold our remaining interest in the U S gas pipeline for $1 4 billion of proceeds and our stake in PD ports, one of the Uk's largest poor operations for approximately $1 3 billion of proceeds.

In energy, we sold $7 billion in assets generating an aggregate 70 aggregate, 17% IRR underscoring the strength of our strategy and execution, while also illustrating the global demand for high quality renewable power assets remains strong.

As Bruce mentioned we've sold 55 billion dollars of assets across the business so far this year including over 35 billion dollars. Since the last quarter alone, this includes 15 billion dollars of real estate sales. Now, 13 billion dollars of infrastructure Investments and 7 billion dollars within energy,

Essentially all sales were completed at or above our carrying values monetizing significant value for our clients.

Tractive returns.

And as a result, we realized a $129 million of carried interest into income, but more importantly, with these asset sales. We've moved a number of our funds closer to carried interest realization.

Some highlights include in real estate, we ex exited a leading student, housing platform in southern Europe. For 1.2 billion euros, sold our triple net lease platform in the US for 2.2 billion dollars. We also completed the successful IPO of Leela, palaces in India valuing, the portfolio of 1.8 billion dollars and marking. The largest Hospitality IPO in India's history. And we executed the 3.9 billion Australian dollar sale of a senior living platform in Australia, the largest direct, real estate transaction in the country's history.

And finally across our assets, which are not our super Prime Super premium assets, we continued to make progress on our monetization pipeline.

Bleaching over 10 transactions. This year, one highlight was the sale of an office building in Washington D. C. At an 11% premium to recent market comps. This generated a five five times multiple on invested capital that is over five times equity of what we invested.

In infrastructure, we sold our remaining interest in the US gas pipeline for 1.4 billion dollars of proceeds. And a stake in PD ports, 1 of the UK's largest port operations for approximately 1.3 billion dollars of proceeds.

In energy, we sold 7 billion dollars in assets. Generating an aggregate, 70 aggregate 17% irr underscoring, the strength of our strategy and execution, while also illustrating the global demand for high-quality Renewable. Power assets, remains strong

As markets remain constructive we expect this momentum and monetization to continue through the remainder of 2025 and beyond as we continue to see strong demand for high quality cash generates of assets we own.

Substantially all sales were completed at above our carrying values, monetizing significant value for our clients at attractive returns.

Shifting to capital allocation during the quarter, we reinvested excess cash flow back into the business and returned $432 million.

And as a result, we realized the 129 million of carried interest into income, but more importantly, with these asset sales, we've moved the number of our funds closer to carried interest realization.

To shareholders through regular dividends and share buybacks, notably, we repurchased over $300 million of shares in the open market in the quarter at an average price of $49 three I.

Adding 21 sense of value to each remaining share with.

Continued to be strong access to the capital markets executing $94 billion of financing. So far this year further bolstering our capital structure and liquidity.

And we ended the quarter with conservative capitalization and high levels of liquidity, including record deployable capital of 177 billion.

And finally across our assets which are not our super Prime super premium assets. We continue to make progress on our monetization pipeline completing over 10 transactions. This year 1 highlight was the sale of an office building in Washington DC at an 11% premium to recent Market. Comps this generated a 5.5 times multiple on invested Capital that is over 5 times, Equity of what we invested.

Bringing altogether, our financial results were strong and we expect continued growth in our results over the remainder of the year I am pleased to confirm that our board of directors has declared a quarterly dividend of <unk> <unk> per share payable at the end of September to shareholders of record at the close of business on September 12 2025.

His markets remain constructive. We expect this momentum and monetization to continue through the remainder of 2025 and Beyond as we continue to see strong demand for high-quality Cash Generator of assets, we own

The board of Directors also approved a three for two stock split of the outstanding class a limited voting shares implemented by way of a stock dividend, which will be payable on October 19, 2025 to shareholders of record at the close of business on October <unk> 2025.

Shifting to capital allocation, during the quarter we reinvested excess cash flow back into the business and returned $432 million to shareholders through regular dividends and share buybacks. Notably, we repurchased over 1 million shares in the open market in the quarter at an average price of $9.33, adding 21% of value to each remaining share.

Thank you for your time, and I will hand, the call back to the operator for questions.

We continue to mean, strong access to the capital markets, executing 94 billion dollars of financing. So far this year. Further bolstering, our capital structure and liquidity.

Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment for questions.

and we ended the quarter, with conservative capitalization and high levels of liquidity, including record, Deployable capital of 177 billion dollars,

Our first question comes from Bob <unk> with RBC capital markets. You May proceed.

Hi, good morning, Thanks for taking the question. So just wanted to ask about in the letter to shareholders you talked about the growth that youre seeing in the P&C over time and potentially scaling that business to a $30 to $50 billion of equity. So can you just unpack that a little bit and how you're thinking about getting there what timeframe and then.

Bringing it all together our financial results were strong and we expect continued growth in our results, over the remainder of the year. I am pleased to confirm that our board of directors has declared a quarterly dividend of 9 cents per share. Payable, at the end of September to shareholders of record and the close of business on September 12th 2025,

Inorganic or organic plans. Thanks.

October 3rd, 2025.

Hello, and welcome to the call.

Listen when we started this business our focus was and still is to focus on low risk liabilities and not the predominant focus so far has been on.

Thank you for your time. And I will hand the call back to the operator for questions.

The annuity business, the PRT market and that's where we've scaled significantly. We also identified P&C is a potential opportunity for us if we could find.

Thank you as a reminder, to ask a question. Please press star 1, 1 on your telephone and wait for your name to be announced to withdraw your question. Please. Press star 1 1 again, 1 moment for questions.

Our first question comes from barsky with RBC Capital markets, you may proceed

And product lines, where we felt we could bring a competitive advantage, where the brookfield experience and insight to the lowest scale something and if operated well we could run.

Less than a 100 combined ratio effectively giving us access to attractive fluids to be invested into the things that we do at Brookfield and it could be very profitable we've taken our time to to assess that we continue assess it but as we do and as we identify those markets, where we think we could scale, while managing risk and operating something differentiated.

Hi, good morning. Uh, thanks for taking the question. So just wanted to ask about the uh, in the letter to shareholders. You talked about the growth that you're seeing in the PNC over time and potentially scaling that business to 30 to 50 billion of equity. So just unpack that a little bit and you know how you're thinking about getting their what time frame uh and any inorganic or organic plants. Thanks.

We will do that and allocate capital to scale. So that will be done inorganically to begin with and that's where we focus with Argo and some P&C within American National we are refocusing those businesses on the lines that we think have long term potential and as we proceed there could be inorganic opportunities, but for now the focus is organic.

Great. Thanks, and then just to follow up on pricing competitive advantage that you talked about with within P&C like help us understand some of those dynamics in terms of what you see in these assets and your ability to price better than <unk>.

All right, how about and welcome to the the call. Um, listen, when we started this business, our Focus was, and still is to focus on low-risk liabilities, and that's meant the predominant, Focus so far has been on, uh, the annuity business, the PRT market. And that's where we've scaled significantly. We also identified PNC as a potential, uh, opportunity for us. If we could find, um, product lines, where we felt, we could bring a competitive Advantage where the Brookfield experience and insight could allow us to scale something. And if operated well we could run a less than 100 combined ratio effectively giving us access to a track to float.

Incumbents.

I think that I think that just comes down to risk tolerance, which comes down to your experience with an asset class and that's leveraging our operating capabilities around the assets, where we are not just an investor, but we've been an operator in those assets for a very long time and that allows you to price risk better we believe whilst not actually increasing that.

Risk profile of the business because we just have a deeper understanding of operations. So that's what we'll be levering leveraging as we look to grow.

Great. Thank you.

To be invested into the things that we do at Brookfield and it could be very profitable. We've taken our time to to assess that we continue assess it. But as we do and as we identify those markets where we think we could scale while managing risk and operating something differentiated, um, then we will do that, um, and allocate Capital to scale, so that will be done, organically to begin with. And that's where we focused with Argo and some PNC within American National. We are really focusing those businesses on the lines that we think of long-term potential, um, and as we proceed, there could be inorganic opportunities. But for now the the focus is organic.

Thank you.

Our next question comes from Kenneth Worthington with Jpmorgan you May proceed.

Hi, good morning, Thanks for taking the questions.

Wanted to dig into carry and real estate dispositions really centered around this theme of market conditions are getting better.

Great, thanks. And then just to follow up on the pricing competitive advantage that you talked about with within PNC, like help us understand some of those Dynamics in terms of, you know, what you see in these assets and your ability to price better than, than the incumbents

So.

Is the environment better enough to start to pull forward carry that might have largely been expected for 2027 and 26 into the second half of this year or maybe even early 'twenty six.

The market condition past sort of continues on its current trajectory.

And then from a real estate perspective sort of Flushing out Nick your comments are the conditions better enough.

Thanks. I think that I think that just comes down to risk tolerance, which comes down to your experience with an asset class. And that's leveraging our operating, uh, capabilities around the assets where we are, not just an investor, but we've been an operator in those assets for a very long time and that allows you to price risk better. We believe whilst not actually increasing the risk profile of the business because we just have a deeper understanding of operations. So that's what we'll be leveraging leveraging as we look to grow.

<unk> for the timing of dispositions on that T&D portfolio as well. Thank you.

Great. Thank you.

Thank you.

Thanks, Ken So I'll start with the timing of Carey listen we are we're making excellent progress on the monetization as you said, it's $55 billion year to date and is diversified across asset class and geography, which is very encouraging the breadth and depth of interest from <unk>.

Our next question comes from Kenneth Worthington with JP Morgan. You may proceed.

Hi, good morning. Thanks for taking the questions. I wanted to dig into Carrie and real estate dispositions really centered around this theme of market conditions or getting better.

<unk> has been very strong.

As it relates to carried interest and obviously it takes time the market is strong the focus today is on well run assets with good platforms that good growth potential and that's what we've been bringing to market to bring them to market to execute sales to complete the sales takes time. So I think what we are doing is executing probably in line with the plan that we had in <unk>.

so, is the environment better enough to start to pull forward Carrie that might have logically been expected for 2027 and 26 into the second half of this year, maybe even early 26, if the market condition passed sort of continues on, its current trajectory

<unk> at the start of the year and obviously the capital markets in general conditions are being conducive to executing that plan. So it has not changed significantly our expected timing on carry we would still expect this year to be sort of a bridge year broadly in line with last year, and then see a significant step up into next year and that will just really be depend.

And then from a real estate perspective sort of flushing out Nick your comments are the conditions better enough to to pull for the timing of dispositions on that tnd portfolio as well. Thank you.

On the actual timing of the transactions and the processes, but right now it's pointed to as being broadly in line with what we would have laid out before.

Thanks again. So I'll start with the, the timing of Carrie. Listen, we are we are making excellent progress on the monetization. As you said, it's 55 billion dollars year to date and its Diversified across asset class and geography and which is very uh, encouraging and the breadth and depth of interest from viruses has been very strong.

On real estate.

I'd say on real estate my observation as we've talked extensively over the last few years.

We've been fairly consistent in saying that for real estate transaction <unk> pick up we need to key foundations to be in place one we need to see the strong operating fundamentals and therefore, the sentiment turned more positive and secondly, we need to see constructive capital markets to support transaction activity on.

And I would say that both of those boxes fuel like their check note the operating fundamentals for high quality real estate across the board a very strong specifically as you are asking on balance sheet for office and retail as we talked about the occupancy is high supply demand fundamentals are heavily in our favor and that is why we are seeing consistent record rent signed across the port.

Polio and across the globe. So I think with those two boxes checked we're now starting to see transaction activity pick up within the T&D portfolio said, we sold over at.

Um, on real estate, you know what I'd say on real estate my observation as we talked extensively over the last few years.

<unk> 13 assets. So far this year, we have a lot of assets. There that is contributing equity and will continue to execute again it takes time to.

To execute those sales, but we have more assets coming to market. We have some actively in the market right now and we will just continue to execute the plan.

Okay, Great and just a little one on the just acquisition I think you said two thirds of the financing was coming from a facility can you sort of describe what that facility is and how does that facility or the funding for that facility impacts the economics for you in the accretion if at all.

So Ken I would just make a general comment and this would apply to broadly most questions on just that you may have on the call that this is a public to private transaction and is subject to pretty strict UK takeover rules. So we are very limited in what we will and can say about the transaction at this stage.

If you read the information contained in the public two seven announcement that will give you extra detail on there our exit documents filed on a micro site that we can point you to it but we are limited in what we can say at this time about the transaction.

Um, and we've been fairly consistent in saying that for real estate. Uh, transaction TV pickup, we need 2 key foundations to be in place 1. We need to see the strong operating fundamentals and therefore the sentiment turn more positive. And secondly we need to see constructive Capital markets to support transaction activity and I'd say that both of those boxes feel like they are checked. Now, the operating fundamentals for high-quality real estate across the board are very strong specifically, as you're asking on balance sheet for office and retails. We talked about to occupancy is high Supply demand. Fundamentals are heavily in our favor and that is why we're seeing consistent record rents signed across the portfolio and across the globe. So, I think with those 2 boxes checked, we're now starting to see transaction activity pick up and within the tnd portfolio. We said we sold over uh, 13 assets so far this year, we have a lot of assets, there that's contributing equity, and we will continue to execute again, it takes time, uh, to execute those sales but we have more assets coming tomorrow.

Market, we have some actively in the market right now and we will just continue to execute the plan.

Yes, I should have known better. Thank you so much thanks Ken.

Thank you.

Our next question comes from Mario <unk> with Scotiabank you May proceed.

Hi, Good morning, just one for me and maybe coming back to the disclosed evolution of focusing on the balance sheet on growing the insurance operations.

Okay, great. And just a little 1 on the just acquisition. I think you said 2/3 of the financing was coming from a facility. Can you sort of describe what that facility is? And how does that facility, or or the funding from that facility impact the economics for you and the accretion? If at all

With that in mind are there any kind of longer term desired implications corporate structure that.

Perhaps you did five years ago. When this initiative started crops desired ownership levels in other listed vehicles.

Not as it pertains to those Mario listen I think Bruce said in his remarks that when we started this company and we thought it would be a very attractive opportunity to deploy capital and would have synergies with broader brookfield, but it would be a discrete investment I think what we're seeing is the opportunity on the synergy.

So I Ken, I would just make a general comment and this would apply to broadly most questions on just that you may have on the call that this is a public to private transaction, and it's subject to pretty strict UK, uh, take over rules. So, we are very limited in what we will and can say about the transaction at this stage. Um, if you read the information contained in the public 2.7 announcement, that will give you extra detail and there are extra documents filed, uh, on a micro site that we can point you to, but we're limited on what we can say at this time about the transaction.

Yep. I should have known better. Thank you so much. Thank you.

Thank you.

These are more significant and therefore, it's become more integrated into overall Brookfield and.

Our next question comes from Mario Sr with Scotia Bank. You may proceed.

And I think when we started this we always had the intention to fund on balance sheet.

Uh, good morning, uh, just just 1 for me and maybe coming back to the disclosed evolution of focusing, the balance sheet on growing the insurance operations.

What we're seeing in the business just reaffirm that expectation this business will stay heavily integrated into Brookfield.

And that would be the approach and I think the important three things to note as we scale. The business is one that will be a tremendous engine for growth for <unk>, who manages the the capital to as pension markets open up this will be very powerful for broader Brookfield and three we just think it could be it is or it will be.

Um, with that in mind, are there any kind of longer term kind of desired or implications for the corporate structure that exists today? But perhaps, you didn't Envision 5 years ago. When this initiative started including perhaps desired ownership levels and other listed vehicles,

A more efficient capital structure and will allow us to enhance our returns on capital.

So I think thats the key messages in the probably the last thing I would add and just to be very clear.

Our single skill and Brookfield is investing People's capital institutions sovereigns individuals and making good risk adjusted returns and none of that is changing this is just potentially a more efficient way to accelerate the scale and the returns of our business.

Okay. That's it for me thank you.

Thank you.

Our next question comes from Cherilyn Radbourne with TD.

TD Cowen you May proceed.

Thanks, very much and good morning.

With respect to the dedicated AI infrastructure strategy that you're preparing for launch can you give us some color on whether you expect to have cornerstone investors and support that launched the way that you did with the inaugural transmission strategy.

Um, not as it pertains to, to those Mario this. And I think, you know, Bruce said it in his remarks that when we started this company and we thought it would be a very attractive opportunity to deploy Capital, um, and it would have synergies with broader Brookfield, but it would be a discrete investment. I think what we're seeing is the opportunity and the synergies are more significant and therefore, it's become more integrated into overall Brookfield. Um, and I think when we started this, we always had the intention to fund it on balance sheet and what we're seeing in the business is just reaffirm that expectation. This business will stay heavily integrated into Brookfield. Um, and that would be the approach. And I think the important 3 things to, to note as we scale, the business is 1, it will be a tremendous engine for growth for bam. Who manages the the capital, to as pension markets open up, this will be very powerful for broader Brookfield and 3. We just think it could be it is or it will be a more efficient capital structure and will allow us.

And can you elaborate on how you will mitigate exposure Q technological obsolescence risk inside the box.

Yes, Sharon Hi, it's Nick I think first of all.

Yes, I think that is something that we are working on when we launch these new strategies.

To enhance our Returns on Capital. Um so I think that's the key messages and the probably, the last thing I would add and just to be very clear like our single skill in Brookfield is investing people's Capital institutions, sovereigns individuals, and making good risk, adjusted returns, and none of that is changing. This is just a potentially a more efficient way to accelerate the scale and the returns of our business.

Okay. That's it for me. Thank you.

It can be very appealing to some of our largest shareholders run the world and this is obviously an asset class. They are very focused on so we are engaged with a number of our largest clients.

Thank you.

Our next question comes from Sharon reborn with TD Cowen, you may proceed

If things play out it would be similar to how we launched the transition fund I think on your second question that is sort of how that's through our engagement with the off takers or who will be writing providing these services to we will be structuring. These investments in a way, where we can limit our downside risk and exposure and effectively providing capital.

Thanks very much and good morning.

Two to fund the build out of the backbone of that infrastructure. So it will come down to the structure and the terms of the capital we provide.

With respect to the dedicated AI infrastructure strategy that you're preparing to launch. Can you give us some color on whether you expect to have Cornerstone investors to support that launched the way that you did with the inaugural transition strategy? Um and can you elaborate on how you will mitigate exposure to technological? Obstacle lessons risk Inside the Box.

It will be done to meet the criteria of the risk return profile of this capital, which will be similar to other funds that we've raised.

Great and then just as a quick follow up with respect to carried interest can you remind us which funds are currently recognizing carried interest and which are approaching that milestone.

Yes, so the carrier contribution this year has come from some oaktree funds.

And then we've been finishing off the carry really in the first global vintage of our funds, which would have been the first infrastructure fund the first real estate fund, which is actually.

Tied up it's finished it's complete has delivered an excellent return and with north of 20% and so that fund is now done with the final two transactions this quarter.

And it would have been our fourth private equity fund, which is also largely done those would have been the contributors to date, the mixed funds, which will be significant contributors as we execute on.

These new strategies, um, it can be very appealing to some of our largest shareholders around the world and this is obviously an asset class they're very focused on. So we are engaged with a number of our largest clients and um, you know, if things play out it would be similar to how we launched the transition fund. I think on your second question, that is sort of how that's through our engagement, with the off-takers, or who will be riding providing these services to. We will be structuring these investments in a way where we can limit our dense address and exposure and effectively, providing Capital to, um, to fund the buildout of the backbone of that infrastructure. So it will come down to the structure and the terms of the capital we provide but um it will be done to make the criteria of the risk return profile of this Capital, which will be similar to other funds that we've raised

Currently signed on planned sales will be the next global infrastructure funds or two and then working into best Rep. Two beds Rep III and then the oaktree opportunity funds coming shortly after that into 10 and 11.

Right. And then just as a quick follow-up, with respect to carried interest, can you remind us which funds are currently recognizing carried interest and which are approaching that milestone?

Yeah, so the carrier contribution, um this year has come from um some oak tree funds.

That's all for me. Thank you thanks, Joe.

Thank you.

Our next question comes from James <unk> with National Bank You May proceed.

Thanks, Good morning, just.

In the.

The wealth solutions business, just wanted to get a little bit more color.

And then we've been finishing off the carry really in the first Global vintage of our funds, which would have been the first infrastructure fund. The first real estate fund, which is actually now tied up. It's finished. It's complete, it's delivered. An excellent, uh, return um, of North to 20%. And so that fund is now done with the final 2 transactions, this quarter um

Looks like spread at one 8% came in a little lighter than the last couple of quarters.

By my calculations I reading that right and then maybe you can just sort of talk through some of the drivers of that.

<unk> dot.

Sure and also welcome to the call and thanks for joining.

We were roughly at one 8% last quarter. So was broadly consistent with last quarter, but I think when you look at the rounding it's done slightly compared to last quarter I'd say, there's nothing really instructive in that we are still seeing excellent deployment opportunities and it's probably more just about the timing of the inflows versus the speed to deployment. So when we look at the <unk>.

And it would have been our fourth private Equity Fund, which is also largely done. Those would have been the contributors to date the next funds which will be significant contributors as we execute on, uh, currently signed and planned sales, will be the next Global infrastructure fund. So fifth to, uh, and then working into best rep to be best rep 3, and then the oak tree opportunity funds coming short of after that into 10 and 11.

That's all for me. Thank you. Thanks Cheryl.

Thank you.

Our next question comes from James, going with National Bank. You may proceed.

<unk> opportunity set for deployment, we're really seeing an excellent.

The opportunity set and.

Don't see any risk to the downside on that spread as we sit here today.

Okay, Great and then on the.

On the real estate.

Operating business two questions here.

Thanks, uh, good morning. Just, um, in the, uh, the well Solutions business. Just wanted to get a little bit more color. Um, looks like spread at 1.8% came in a little lighter than, uh, the last couple of quarters. Um, by my calculations, am I reading that, right? And then maybe you can just sort of talk through some of the, the drivers, uh,

First cash distributions coming in a little lighter than that in previous quarters, what could be driving that and then with the improved operating environment for real estate.

Website, stuff down.

Do you have a sense as to the timeline when operating at that's all our NOI would begin to close the gap to those cash distributions.

Sure. So just on your first question the cash distribution this quarter that the reduction is really just a product of.

Sure. And, uh, also welcome to the call, and thanks for joining. We were roughly at 1.8% last quarter, so it's broadly consistent with last quarter. I think when you look at the rounding, it’s down slightly compared to last quarter. I'd say there's nothing really instructive in that. We are still seeing excellent opportunities, and it's probably more just about the timing of the inflows versus the speed to deployment.

The residential London housing business, where last year, we had one time income from lot sales that were not repeated this year and we have seen a little bit of a slowdown in home sales I'd say the long term outlook for the business remains strong and intact really driven by the supply demand fundamentals in housing, but that reduction this quarter.

So, when we look at the opportunity separate deployment, we're really seeing an excellent, uh, opportunity set. And don't, uh, don't see any, um, risk to the downside on that spread. As we sit here today,

The day, it was really driven by and aligned and housing business.

On your question about the operating off a full for the business and the outlook listen I think the underlying fundamentals for the business are very strong and so we had obviously we had the impact from Ramsey I would tell you that the <unk>. This quarter also if you look at it year over year is impacted by the fact that we have sold assets so that has.

Great. And then, uh, on the real estate operating business, um, two questions here. Um, first, cash distributions are coming in a little lighter than previous quarters. Um, what could be driving that? And then, with the improved operating environment for real estate, um, do you have a sense of the timeline when operating FFO or NOI would begin to close the gap to those cash distributions?

As an impact to income and then we have the absence of some one time events that were there last year.

These impacts were offset by lower rates tightening credit spreads and the effects of the deleveraging we've undertaken in the business and I think that deleveraging better capital markets tighter spreads, but that supported by the core NOI continuing to grow and the business is going to drive <unk> growth over.

The next months and years.

Sure. So, uh, just on your first question, the cash distribution this quarter, the reduction is really uh, just the product of um, the residential land and housing business where last year we had one-time income from lot sales that were not repeated this year, and we have seen a little bit of a slowdown in home sales. I'd like to take a long-term outlook for the business, which remains strong and intact, uh, really driven by the supply-demand fundamentals in housing. But that reduction this quarter, um, in the DE was really driven by, as of London, the housing business.

As we sign these new rents by just this week, we are poised to sign a rent in a building in New York at close to $300 a square foot with $300 a square foot for a new lease we're poised to sign in New York.

This week and as those leases start to work their way through earnings as we burn off the ramp freeze and they start to work their way through earnings we have a tremendous tailwind for <unk> coming from these assets. So I think you have strong ethical coming from those assets and while the <unk>.

Um, on your question about the operating offer for for the business and the Outlook, listen, I think the underlying fundamentals for the business are very strong and so we had obviously, we had the, the impact from resi I would tell you that the effort for this quarter. Also, if you look at it year-over-year is impacted by the fact that we have sold assets so that has an impact income. And then we have the absence of some 1-time events that were there last year.

Take time to pick up these leases are fully reflected into the valuation of the assets now as people do a long term DCF on these assets. So I think you have that positive driver and then I think on top of that the increased pace of monetization is going to bring significant capital and cash flow back to back to the the the business.

Just if you think about the three transactions announced that a best rep and our interest in those assets, that's going to be 5% to $600 million of cash flow for the real estate business from three transactions alone. So I think the outlook for the the liquidity capital on <unk> for the real estate business is very positive.

Thank you very much.

Thank you.

Our next question comes from Sohrab <unk> with BMO capital markets. You May proceed.

So Rob your line is now open.

And as there are no more questions I will now turn it back to Ms. Katie with Italia for any closing remarks.

But that supported by the core, noi continuing to grow in the business is going to drive ffo growth over. Um, you know, the next months and years and, you know, as we sign these new rents. Like, just this week, we're poised to sign a rent in a building in New York. It close to 300 a square foot. It's $300, a square foot for a new lease. We're poised to sign in New York. Um, this week and as those leases start to work their way through earnings, as we burn off the rent freeze and they start to work their way through earnings. We have a tremendous Tailwind for ffo coming from these assets. So, I think you have strong effort for coming from those assets. And while the ffo makes it take time to pick up these leases are fully reflected into the valuations of the Assets. Now, as people do a long-term DCF on these assets. So I think you have that positive driver and then I think on top of that the increased pace of monetization is going to bring significant capital and cash flow back to back to the the the business I mean just if you think about the 3,

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

Thank you. This concludes the conference. Thank you for your participation you may now disconnect.

Transactions announced out of Beth, and our interest in those assets that's going to be 5 to 600 million dollars of cash flow for the real estate business from 3 transactions alone. So I think the outlook for the, um, the liquidity capital and ffo for the real estate, business is very positive.

Thank you very much.

Thank you.

Our next question comes from sarab MOA Eddie with BMO, Capital markets, you may proceed.

To Rob your line is now open.

And is there no more questions? I will now turn it back to Miss. Katie, Battaglia for any closing remarks

Thank you, everybody.

Joining us today.

At that, we'll end the call.

Thank you, this concludes the components. Thank you for your for your participation. You may now disconnect

Q2 2025 Brookfield Corp Earnings Call

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