Partners Value Investments Inc. Reports Q2 2024 Interim Results
TORONTO — Partners Value Investments Inc. (the “Company”, TSX: PVF.WT, PVF.PR.V) has released its financial results for the six-month period ending June 30, 2024. All figures are presented in U.S. dollars.
For the three months ending June 30, 2024, the Company achieved a net income of $94.5 million, a notable turnaround from a net loss of $120.4 million during the same quarter last year. This remarkable increase in net income was mainly driven by remeasurement gains of $94.6 million linked to retractable shares, compared to remeasurement losses of $118.8 million in the corresponding quarter of the previous year. The Company’s retractable common shares are classified as liabilities due to their cash retraction feature, meaning that gains or losses in any given period are influenced by the fluctuation in the Partners Value Investments L.P. (the “Partnership”) unit price. During this quarter, the Partnership unit price fell by $1.34, whereas it had risen by $1.80 in the previous year.
When excluding the remeasurement gains from retractable shares and warrant liabilities, along with dividends paid on retractable shares, the Company’s Adjusted Earnings reached $28.9 million for the three months ended June 30, 2024. This marks a significant improvement compared to Adjusted Losses of $9.2 million in the same quarter last year, primarily due to gains from foreign currency and investment valuations.
As of June 30, 2024, the market prices for shares of Brookfield Corporation (NYSE/TSX: BN) and Brookfield Asset Management Ltd. (NYSE/TSX: BAM) were $41.54 and $38.05, respectively. As of August 16, 2024, these prices had updated to $46.57 and $40.90.
Financial Overview
The Company’s main investments consist of an interest in 121 million Class A Limited Voting Shares of the Corporation, along with approximately 31 million Class A Limited Voting Shares of the Manager. This translates to about an 8% stake in the Corporation and a 7% stake in the Manager as of June 30, 2024. Additionally, the Company maintains a diversified investment portfolio that includes marketable securities and private fund interests.
The financial details below are taken from the Company’s Consolidated Statements of Financial Position:
Consolidated Statements of Financial Position
(Unaudited, in Thousands, US dollars)
Assets
Cash and cash equivalents: $112,218
Accounts receivable and other assets: $38,739
Deferred tax assets: $1,185
Investment in Brookfield Corporation: $5,025,128
Investment in Brookfield Asset Management Ltd.: $1,172,250
Other investments carried at fair value: $950,302
Total Assets: $7,299,822
Liabilities and Equity
Accounts payable and other liabilities: $23,675
Corporate borrowings: $218,798
Preferred shares: $701,280
Retractable common shares: $3,838,591
Equity: $7,299,822
Total Liabilities and Equity: $7,215,834
For more information, please reach out to Investor Relations at ir@pvii.ca.
Frequently Asked Questions
1. What were the key financial results announced by Partners Value Investments Inc.?
Partners Value Investments Inc. reported a net income of $94.5 million for Q2 2024, marking a significant recovery from a net loss of $120.4 million in the same quarter last year.
2. How did the company's adjusted earnings change over the year?
The adjusted earnings rose to $28.9 million for Q2 2024, compared to adjusted losses of $9.2 million in the prior year quarter.
3. What were the market prices of Brookfield Corporation and Brookfield Asset Management Ltd. shares as of June 30, 2024?
As of June 30, 2024, the market prices were $41.54 for Brookfield Corporation shares and $38.05 for Brookfield Asset Management Ltd. shares.
4. What constitutes the Company’s principal investments?
The principal investments include an 8% interest in Brookfield Corporation and a 7% interest in Brookfield Asset Management Ltd., along with a diversified portfolio of marketable securities and private fund interests.
5. Who can be contacted for more information about the Company?
For additional inquiries, interested parties can contact Investor Relations at ir@pvii.ca.
