| For the years ended December 31 (Thousands, US dollars, except per share amounts) |
||||||||
| 2022 | 2021 | |||||||
| Investment income | ||||||||
| Dividends | $ | 1,120,641 | $ | 117,629 | ||||
| Other investment income | 6,694 | 5,361 | ||||||
| 1,127,335 | 122,990 | |||||||
| Expenses | ||||||||
| Operating expenses | (2,359 | ) | (3,249 | ) | ||||
| Financing costs | (9,789 | ) | (8,896 | ) | ||||
| Retractable preferred share dividends | (39,753 | ) | (33,628 | ) | ||||
| (51,901 | ) | (45,773 | ) | |||||
| Other items | ||||||||
| Investment valuation gains (losses) | 10,653 | (5,739 | ) | |||||
| Amortization of deferred financing costs | (3,363 | ) | (4,070 | ) | ||||
| Current tax (expense) recovery | (19,990 | ) | 7,816 | |||||
| Deferred tax recovery (expense) | 21,439 | (15,024 | ) | |||||
| Foreign currency gains (losses) | 37,272 | (28,706 | ) | |||||
| Net income | $ | 1,121,445 | $ | 31,494 | ||||
| For the years ended December 31 (Thousands, except per unit amounts) |
2022 | 2021 | |||||||||||||
| Total | Per Unit | Total | Per Unit | ||||||||||||
| Net book value, beginning of period1 | $ | 7,482,738 | $ | 92.47 | $ | 4,777,152 | $ | 54.25 | |||||||
| Net income2 | 1,114,558 | 24,606 | |||||||||||||
| Other comprehensive (loss) income2 | (3,910,893 | ) | 2,508,092 | ||||||||||||
| Adjustment for impact of warrant3 | (25,355 | ) | 2,842 | ||||||||||||
| Re-organization | — | 663,678 | |||||||||||||
| Equity LP repurchases | (4,224 | ) | (493,632 | ) | |||||||||||
| Net book value, end of period1,4 | $ | 4,656,824 | $ | 57.60 | $ | 7,482,738 | $ | 92.47 | |||||||
- Calculated on a fully diluted basis. Net book value is a non-IFRS measure used by management to measure the value of an Equity LP unit on a fully diluted basis. It is equal to total equity less General Partner equity and Preferred Limited Partners’ equity, plus the value of consideration to be received on exercising of warrants, which as at December 31, 2022 was $352 million (December 31, 2021 – $378 million). Opening net book values per unit have been re-casted to conform with the current year per unit presentation.
- Attributable to Equity Limited Partners.
- The basic weighted average number of Equity Limited Partnership (“Equity LP”) units outstanding during the year ended December 31, 2022 was 66,169,783 (December 31, 2021 – 72,953,504). The diluted weighted average number of Equity Limited Partnership (“Equity LP”) units available and outstanding during the year ended December 31, 2022 was 80,877,206 (December 31, 2021 – 87,662,153); this includes the 14,707,424 Equity LP units (December 31, 2021 – 14,708,648) issued through the exercise of all outstanding warrants.
- At the end of the year, the diluted Equity LP units outstanding were 80,844,367 (December 31, 2021 – 82,171,127).
Financial Profile
The Partnership’s principal investments are an ownership interest in approximately 132 million Class A Limited Voting Shares of the Corporation and approximately 33 million Class A Voting Shares of the Manager. These holdings represent an 8% interest as at December 31, 2022 in both entities. In addition, the Partnership owns a diversified investment portfolio of marketable securities.
The information in the following table has been extracted from the Partnership’s Consolidated Statements of Financial Position:
Consolidated Statements of Financial Position
| As at (Thousands, US dollars) |
December 31, 2022 |
December 31, 2021 |
||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 185,722 | $ | 80,704 | ||||
| Accounts receivable and other assets | 31,270 | 65,418 | ||||||
| Deferred tax asset | 1,604 | — | ||||||
| Investment in Brookfield Corporation1 | 4,149,188 | 7,869,681 | ||||||
| Investment in Brookfield Asset Management Ltd.2 | 934,183 | — | ||||||
| Other investments carried at fair value | 328,264 | 344,983 | ||||||
| $ | 5,630,231 | $ | 8,360,786 | |||||
| Liabilities and equity | ||||||||
| Accounts payable and other liabilities | $ | 36,860 | $ | 7,693 | ||||
| Corporate borrowings | 220,711 | 236,513 | ||||||
| Preferred shares3 | 905,132 | 835,019 | ||||||
| Deferred tax liability | — | 23,431 | ||||||
| 1,162,703 | 1,102,656 | |||||||
| Equity | ||||||||
| Equity Limited Partners | 4,304,516 | 7,105,075 | ||||||
| General Partner | 1 | 1 | ||||||
| Preferred Limited Partners | 153,049 | 153,054 | ||||||
| Non-controlling interests | 9,962 | — | ||||||
| 4,467,528 | 7,258,130 | |||||||
| $ | 5,630,231 | $ | 8,360,786 |
- The investment in Brookfield Corporation (formerly known as Brookfield Asset Management Inc.) consists of 132 million Corporation shares with a quoted market value of $31.46 per share as at December 31, 2022.
- The investment in Brookfield Asset Management Ltd. consists of 33 million Manager shares with a quoted market value of $28.67 per share as at December 31, 2022.
- Represents $680 million of retractable preferred shares less $13 million of unamortized issue costs as at December 31, 2022 (December 31, 2021 – $611 million less $13 million) and $152 million of three series of preferred shares (December 31, 2021 – $152 million) and $84 million of three series of preferred shares (December 31, 2021 – $84 million) of a subsidiary of the Partnership, issued in December 2021.
For further information, contact Investor Relations at [email protected] or 416-956-5141.
Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. The words “potential” and “estimated” and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify forward-looking information. Forward-looking information in this news release includes statements with regard to the Partnership’s potential future income taxes.
Although the Partnership believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond its control, which may cause the actual results, performance or achievements of the Partnership to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
