Brookfield Asset Management (BAM) 12 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Brookfield Asset Management 2020 Third Quarter Results Conference Call and Webcast. At this time, all participants' lines are in a listen-only-mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference maybe recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ms. Fleming. Suzanne begin. may you Ma'am

you, operator, quarter to third morning. and conference call. good XXXX Welcome Brookfield's Thank

and On for today and Nick and will operations. Goodman, managing followed the Bruce discuss Executive in our Chief we'll our our operating operator Chief infrastructures results call partner off will its Chief talk are Operating Bruce After will Officer statements by comments, Financial new Mark financial to of and and the North risks, from Infrastructure Canadian finally, who the start of Officer; Nick, update, And our Mark formal business of a our Murski, turn Business may a statements and Flatt, American Officer; events. over and quarter. giving U.S. business. to analyst statements. questions. the I'd meaning and unknown They and like take reflect historic initiatives Securities way may differ about make forward-looking to known results and the comments, call the applicable to operating today's in in are to and forward-looking law. questions future including trends future remind do performance, discussing within relate predictions such These financial of in you and subject not our including and we statements, materially events responding by and events that

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

the in This in third comments. quarter We and Nick measures. in history. get quarter, quarter, businesses some the operating very with in during year asset several the road decreases our just these of it toll our after first investment earned rent management higher would quality just Suzanne, our restrictive our new Consistent the Starting not quarters, of the business, any be. in such in XXX% strong across good few businesses, steady call. where quarter which demonstrated by Thank to businesses asset into half Those office FFO deliver our stronger. than a operating as ports combined and from spring. Within operating the renewable all government record previous volume strength morning the was see demand we're operating fact other the of lockdowns I'll eased and And back saw will of normal demand estate everyone but make detail private for as those our to pricing our on of you, businesses our businesses real strong of all franchise this soon performing excellent starts and and and remained the are starting get out collections our resiliency of and performance at strong during levels and class recoveries is didn't of the The by collection this that results I businesses they benefited should businesses equity today. driven way note results, our and with which continued snapped in housing assets. that also a from performance and infrastructure back of availability recession

just to ago. XX to properties office our into premium one sell Just X% months paid at for half London month, the of we an property this price a we agreement last the entered

customer increasingly foot each rent to more collection estate familiar retail and For those does of with month. you importantly, spending our it at portfolio, traffic rate. a was jargon, sub cap increase Across real continues X% is as mall

the open of across to up a return of our were we seeing lockdown good we across differences from also open are We're most assets October, still of are month collection at we the arrears XX% above discussing period. the and that from continue the portfolio. tenants occupancy For portion of malls as but hospitality a our

nothing where we spots, ever their is shutdowns. on have but steps are perfect back the the coming and is few and, in that taken line course, are mend Of assets economies some back a induced bottom from

Many available businesses when amount of will volatility and period classes equity some see deploy were moving of A given and our Turning quarter estate billion to have to few form over in But just a team bonds bad able started, this pick fund, debt our or to recent $XX income franchise in those Today these government new of to opportunities, a will capital closed financial our proving previous the their supplement over announced into for portfolios. bridge $XX and capital than significant including over $XX across the who through capital asset first capital last And billion money distressed already powder $X investments. and it. or of our nearly fund that with European the raised infrastructure billion second fund The governments include our in get March, quarter, We ready vintage double its during commitments exceeding debt were and to and billion which examples In too much private asset public we are to situations liquidity investment that growing success €X shutdown them real more we private over beginning and the of our with cross for of markets core-plus $X with to other in to-date, management raising the today close investors fundraising, the initial need fundraising raised strategies. the fund. months, previously seeing our out billion have re-capitalized blow into to market dry we of opportunities latest up. towards to entities billion put time. of begin nine reflects private in low has the target. number during be a bond of soon we're equity.

pipeline currently the that to fund estate XXXX. working into with deals the early that are back market of today, we fund starting soon flagship in of be with we round expect real our next on With

our Turning deployment, corporate own we last in including briefly over reinsurance discuss a I'll the of to areas cash number new few a moment. months which funded

to anywhere the And long to of that current the assets, the band discounts our Brookfield price last of to We meaningful share value PPY, the trading declines, a real trade at due to recently, value view also will underlying we price it the billion current were is both who's of increases of allocated and $X and do reflect high-quality widened the similar not portfolio to repurchasing does our shares price estate as approximately as of This trading owns. month near given in continue Asset Management. purchase values. so discount shares in of

Day I number growth large Lastly, new and on decade. before I we of strategies turn us will a our believe be that it in the next over for areas at over September, next to for touched Investor Nick, the

is those reinsurance. of strategies One

tail rates is high heightened approach, our we rates. interest Reinsurance XX years, particularly space As our or that lowest interest over long been has And risks to interest business. believe globally, risk that liabilities were our the provide But reinsuring essentially an dated rates Reinsurance of last zero, the the with it's locking platforms, it opportune lifetime. capital build of five to today, declining we of with cautious in we therefore at at the relatively in environment an insurance looked time long the in liabilities and

be the our last into reinsure will as to special this years, Over in we will companies form, American We strategic with a named Asset fixed distributed up billion In these listed month, their Partners, have built you Reinsurance to shareholders. the consider effective set as we also the and of strategies be dividend. order all entered similar the past created going benefits we a portfolio, security, other BAM BAM partnerships be hopefully, a on which asset value alternative partnership annuity insurance deliver as will will balance with create new will designed but to our a all be $XX entity, seated in a businesses shared This announced own and Reinsurance Brookfield to to us forward. few intention and enjoy entity sheet with in Equity Reinsurance upside long-term Management most of parent new operations BAM, which will space to all growing our we believe expertise up few the smaller policies.

hope We sometime and were subject regulatory - Infrastructure We first pairing will the the the BAM created half Reinsurance expected replicate new this to Partners Brookfield to of of the success complete of our success that Corporations Renewable XXXX, this our approvals. all earlier the of spin-off of year. the pairing course, in of necessary share

you up Sometime the Management of the best entity, business once own to of resources future, be to Brookfield cat choose in time to security be will In a mature, for interim, will Reinsurance Asset is the which for for this separate and pair require efficiently but it the set the is also more capacity. into you operating it could enable own being, your Brookfield turned will in the grow.

more our Goodman, I with over in to comments, So, Nick those detail the will cover it for turn who quarter. will results

everyone. morning, Thank you, and Bruce good

over on our results financial quarter third in was billion quarter. operations were the very share a for touched earlier, which XX% the increase $X or were year Bruce Funds $X.XX FFO total As quarter. strong from a prior the or

disposition $X.XX which our and really resiliency in asset franchise. of the FFO, management the share. gains record growth reflects this And the excludes interest, operating Our $XXX or quarter, and carried businesses a operating impact the million of realized our per in was

$X.X related return to period fourth shareholders million our of lower by Today, three-month while usual, close some billion a a to our funds XX% resulted fee across perpetual expect And to the totals to All last we billion bearing asset reflection revenue basis. the growth shutdown, million, Within our our the business. do fee same long-term our and deployment of from normal management record this due capital or credit of over for to is results, the and from per XX% and lagging effects $XXX years $X.XX in billion. of affiliates XXXX is XXXX. increased and totaled an to a the the this income annual fundraising listed of increase That's in share $XXX on $X quarter $XXX stand and and earnings at private XX-months. than This levels. growth in fee our contribution period few

the of approximately complete for within deal flagship fee million increasing of quarter, we as and our that of on near recognize pick-up and of invested, quarter, the gross $XX the $XXX when XX-months. $X fee billion $XX during We and and reflective Transactions slowed seeing assets the traded funds. generate unrealized we carried billion. an revenues This we of capital imagine. also expect mature In markets over have private more incremental fully additional both our carried within we annually should carried when value to bearing interest interest value over the million as will last carried $XXX the interest become six activity generated approximately would our various interest of publicly that's you have credit deployed. is in that now in We amount pipeline securities uplifts months of private and of the within million operating realize public million balance businesses to funds, bringing $XXX But strategies. enhancements future our are last monetization

was within within investor of private XX% increase of $XXX disposition capital, equity increase financial most period. of our to Norbord portfolio assets. notably the driven strong prior similar some million, excluding The our from FFO excellent quarter performance was performance gains and Turning for businesses, by the an

quarters We American FFO our also last next are in increase saw home translate at increased XX% sales over a few the delivered. as Residential should year compared the into to sales Homebuilder North home this and

float. across we assets we acquired since and Since our portion support last benefited and segments. a in Finally, these both increasing store the securities transactions contribution offerings for our a public reported, growth completed should from our spin-offs, same further of secondary their the Bepsi. demand shares newly and number by holdings Pepsi FFO seen successfully of of in tremendous these liquidity These have

continue can are unlock Our strength return million balance transactions, these able in though, significant investments cash not a day's with to remains $XXX that liquidity on us do counted view to our of look opportunities overtime. sheet businesses numbers. can into we for a many holdings Through we companies, which approximately to those notice, and liquidity, to other to both each were two invest maintain of continue a as each to in. in view We significant of outstanding redeploy very these

$XXX of excluding what the interest. quarter, the a like results the XXXX, when available cash XX% strong million as the CAFDR call from Our increase impact of or for during carried of distribution, third we quarter

On the continues business. market nature basis, highlights of last through of billion our cycles. generated record This bolster to and a which cash flows the predictable in which look we stable all XX-month we reinvest $X.X flow our cash liquidity, the to CAFDR,

as For overtime example, will to or insurance to or such be shareholders. start new investment technology, strategies returned

our our and dividends, of Over capitalization the billion last liquidity share shareholders strong. $X.X returned capital to over very XX-months, repurchases. we've remain through Today, and

note issuance, corporate balance our BAM. debt-to-market the at we debt $X at be individual liquidity sheet of that's of After we average enhance to it million capitalization continues issuance XX-years. the of eligible debt capitalized which $XX group, across end, commitments, green our quarter no used proceeds And have XX-year $XX for of fund on will with addition have very liquidity a be XX% $XX the ratio green In billion fund X.XX%, uncalled capital. we the conservatively of an to XXXX. deployable subordinate of this Including core term a through projects. a directly approximately remaining and piece maturing including billion And billion before new to corporate billion total of further of $XXX

our With Directors will forward giving has payable special next year of share that turn dividend the to and call a December, now the confirm to of Murski. that, Board another described. Mark declared end pleased per am I $X.XX we Finally, I over at look as dividend to Bruce you

Energy significant everyone. have achieved our acquired today called expertise sustainable to study the Nick flagship about in Enwave grow the join North this expertise, Utility our tell funds value. and Enwave we business. a infrastructure asset growth you Thank and early is you District leading good access we knowledge I'm you, morning, evolution to to and energy case capital, within pleased great held a identified, our classes in value and of and which to American adjacent used is on how business for that operating business create amounts and and vintage

scale effectively central District is benefit First, green and cities of to a individual while Users because a efficiency redundancy system growth generate, sustainable technology quick to cost energy different the into by them deploying with of that globally. a refers and Today, that contributing and networks cooling through a let is district. XX% capital of energy through driver from and uses. a heating This Energy of full and XX% and world's heating a carbon me Energy sustainability of overview share better of store of their is goals This systems broad start forms Energy. to communal District energy District consumed the is Energy cool allowing of District energy to pipes large space of in buildings systems cities key the cities. creates cooling. higher meaningful redeploy that's networks used energy and major and today, and efficiently low opportunity heat buildings, across for our for in

of of conventional efficient This Lake times the water serving reduction the XX% lake the deep one city. from lake which largest B, the to learned order short energy And in specifically X.X energy three offers had cooling, Ontario of modest, and data in of to the the And view had and a strong than be and we limited small the District and of leverage is not cleanest qualities in attributes with strong renewable we acquired to grow about Enwave, a Enwave times water of could A, buying organic local underwritten. to cooling world downtown XXXX, aspirations cooling we with social conventional and usage even in at system the we that residential environmental business potential. was to opportunity footprint were hospitals, if energy time, cooling flows utilities technology the the more deep the than business better cooling and the the business foot business harnessed, by market. geothermal What accretive specifically very business in were that of a unique and core. sustainable the great North centers, was Energy At growth the systems. cooling is we the subset world. still manner. leads district economic, Speaking the form to place a offices to Energy were America, a is five in District heating to a buildings very most the acquire the and in cash existing compared in growth and Toronto was We

operating able from In distinct utilization to Because make, high digit these initial an we costs sustainability. reliability, new growth seeing dislocation drive Energy between the asset an geographies, time. were the organic value the class investments and significant amount price at of growth significant market we a of especially And XXX%. that double the of within the we and that plans into in accelerate experience of a assets and in that materially the is renewal infrastructure asset of and to important we operations of lower customers our space of portfolio allocation, all superior energy gave rates over in us delivered perspective, XX%. the acquired entry, achieve the shapes conviction addition the business economics This to exceed to the given district capital is characteristic which barriers soon to were attributes, can clear forms District value early class

Seattle, active Las the Angeles, we've Energy sales in populated systems Houston, Chicago, had and eight one one been utility, Toronto. and have most operating From efficiency, North fastest top been drive Over growing into able an we had acquisitions, Brookfield functioning entity, acquisition the cities leading for the years, to the and a Vegas, acquiring rewarded unutilized best management capacity proactive the growth talent highly supplemented key some turn in including practices, and to to assets these along across best past across in team, and where select grow lack of tier with due organic optimize and that America, District team unregulated we add to a was support and the culture also positions integrate were form some our needed able best and goals who of Enwave to targets the sales structure platform. We way. culture. the achievements applied Well the but Los and

During a that have connect of rate growth grow EBITDA new over basis. buildings driven EBITDA to we was our annual over XXXX able on been run million ownership, to XX% annual million XX%, of growth, organically. $XX million is compound $XXX a This or $XXX XXX today rate in and from of

as infrastructure the we was is this private our benefit XX% from have wind utility these investment, fund on For It those our approximately expectation drive the all completed shareholders unparalleled. to growth carried of the rating. funds investment coming believe the return we grade of targets returns BAM funds will Overall, this it in generated generate clients billion sits and down materially And with realization a our significant interest in. outperforming of will This an of years. IRR class, to XX% for we less should this is $X familiar asset level value. while investment maintaining

on lowest, include world's highlights the well A Today, of of to day recycler which the battery, ice largest are as standpoint. waste cleanest deep within cooling to prices Before is storing for the largest the savings The investment of North of largest miles, night energy energy, of is building all energy most XX electricity America's America's the XXXX commercial and residential used and at cooling of at Together, energy and chilled GHG world. annual few would lake be North And equivalent energy technologies water equivalent homes. of to like million cool America's of space, then savings and in an thermal from also water. their the car North one the assets pools we Enwave's I when distributing largest buildings. this during batteries, ice making as are heating consumption the savings these operating Olympic fleet efficient district sized XX,XXX sustainability wrap-up, is touch a generation this system.

this strategy from entry high creation. scalable us. wrap of to of flows, investment I high a identifying linked summarize, cash businesses we and predictable can drive example perfect for a quality, also been additional up, just Brookfield And high So, performing exciting to very benefit inflation investment will value that have where barriers has

sustainable energy. to leader in economic America early Thank and We our growing essentially a operator identifying of benefits achieve now using to in of and provides. desirable to global utility a number proud a of part growing of it questions. and to leader applying and leasing clients classes local across back look over energy Enwave sustainable and across small environmental the energy building best-in-class grow its expertise To team's in in I'll strategy sustainable district us the forward success. operating that, utility it management pass you. the space. adjacent continued we district integrate operator assets commercialized success strategy into our asset allowed Our the a highly promoting taking global by very We're the shareholders acquiring, into a district and the energy North deep a for

comes BMO Thank you. Movahedi from first question our [Operator Capital Sohrab from instructions] Markets. And

Your line is open.

you. Reinsurance first Two Thank the questions, program. on

and is a a from in years, template you leverage coming over the return sizing reinsurance price confirm opportunity the equity Just good the potential perspective? wanted will to the American using if that for life both

first? want Bruce ask second question or - going to to - you're you do to want want take you Did that the me

appreciate the any kind consider and management ever of and management ask value also second opportunity would you distributing shareholders for Bruce, liquidity BAP questions, realize the BAP ideas just that fully those would as the question, increase well pursuit ensure franchises just it increasing to directly, two asset or please. wonder at that if of can BIP BIP in to be of trying at I unrelated the shares BAM so, I and

this own are is A, to it fits I give consider So, don't about done in what spin-offs on all if second and of get But is, do own out think the there plans. once. like follow-up. which into too on shares our I continue would point of one them future question, right, we to or here's we BAM, shareholders of distributing what great many but be Brookfield But And I no time-to-time, exactly at question please to say for We've them that we we'll have from tendency shareholders. the can't the considered of different of to look say think from some people have Partners? we they And this here's a to we what Renewable I'd in opportunities because in intention not we value the them Infrastructure in alternatives value time. the get But the that Brookfield time-to-time can will we the at create consider many could and shareholders which past. that company,

efficient to the XX think to others are than at past be business rates market than the I program, given asset counterparties of capital requiring prices Therefore, down. they in tailed being the the what long net being experienced marketplace. interest would years entities have they more size of the value require doing capitals and continue over something a requiring here's the the comment that. capital write capital, confluence say, in policies for or the what our and us As that industry in like Many Reinsurance them stock to proper insurance they the and trade can do we don't lot is coming to the would interested has issuing

like the we add So to on opportunities be recently. business, number we continue think able a to of that the to transaction to there's did

gearing to of kind up contemplate, for Day just so would talked equity, about where the is what of be kind $X insurance insurance about you of at And Investor abundance the Bruce, $XX of of of thinking $XXX backing upwards $X.X of billion the that that clarity, is what liabilities, billion you AUM? - you're billion opportunity when could billion ratio

that's Nick. would really that correct. probably in a based starting Thank I amount is have to a you capital the mean, that dictated fair you, Robert. of reasonable investment the you that on where say reserve point. I assets. by mix, that's It's I say hold But would portfolio invest

much. you Thank very

Thank you.

comes Securities. Cherilyn question Radbourne next TD from Our from

Your line is open.

good and much, very Thanks morning.

would would funds? In terms impact of types the of or the to inaugural of help that like normally between flagship to look was the infrastructure but fund, would in differentiate I you make make you versus us undertake hoping could investments that renewable it the types renewable investments

Yeah, into move the which towards zero. fund will net invest economy assets, the transition so, - our will

to include have to out that they meaning they we assets but include fits the could could infrastructure and additionality, And it have that have assets develop mode. it that create renewables, So fit future. definitions which there, be businesses and to the and other industrial are able assets, in will have other more to

to it'll So much otherwise might of might regard, very deploying be the more which fit is zero. that could And be focused that on very, achieve transition assets we our include into some think capital net all renewable large, universe and, partnered private this some in our appropriate, of it's partners. as partner those with And you entities know, renewable with our entities funds. therefore, or program Brookfield listed if our to in

Reinsurance like ability areas American on a crux any to relevant to partner of up picking differentiation. that discussion then your Okay. returns advantages like or bring capital and generate on And tax? higher assets? the That's Or in is helpful are there the the you the just advantages equity, other it

alternatives place to it times set organizations investing today really our significant you've have for and create only institutional the working we skills would access And we money return. reasonable spent last capital the that many that efficiently and XX are to alternatives alternatives we've to bring to many into get much have down we up, years into deploy I deploy more access apparatus investors. capital institutions we've others. the turn put to before is with Look, the because this assets can investing and have set alternatives table. to don't than say advantage us the secondly, a the just, skill really heard because That's to And and

Thank you. two. That's my

Thank you.

Bill from Katz comes question next from Citigroup. Our

Your line open. is

taking for much the this very you Thank Okay. questions morning.

the be part real in Just the for you the next market we should estate that of year early might mention fund.

step little the terms how for that and now in predecessor us the of successor three funds funds three a themselves segments you the foresee walk sizing? about So think through class back and you bit versus time

based Hey it the pace I the it's think closed, to go like mean, deployment. dictated desired infrastructure to our based back that a point that that's to invest few we out a we're be on today, is think would expect now. size next looks the bunch set and year. the them where Yeah, as that, after them. be funds, early you're their at achieving really well, our ability one times real when by launched in three then the be still obviously, was One assumption. what And that And expect you the of funds, market and first the a deployment on And to capital we next and year whilst equity few advanced we into we existing variables to Bill, funds and some opportunity as of private And of reasonable right expecting most of it returns. in next follow deployment sizing is there's said the be when I therefore Nick. right. obviously would estate funds, our fund deployment the of

how and expect them variable, can put would to funds be Brookfield room be what out in those is a believe funds. to But growth then for that expectations, and second still for The be Day on have there this we third obviously those value. we think of will commitment Investor at line think, current will those is laid And be funds. at work our I and investor Investor for capital raise with what that we our that which based we conviction appetite said Day much we it would the how and each have definite we in

just itself, and review, and just incremental us transaction scaling flow a think the outlook, the assets range FOE at gave activity some through there, the raised, how how about Okay, look recently they've as maybe the of of margin about terms the the to to high maybe your XXXX, end from margin your the Oak think maybe quarter we into most the footprint in to but Nick of given and in obviously, here? Tree margin, of

more pursuing means so funds more and obviously, comments Yeah, clients we new prior with I reaching offsets. Because quarters, so these will think clients the our which more we'll to consistent an be get but larger, get out largely capital, to of raise see potentially larger, channels will servicing obviously distribution. funds that increase, have there's

there up technology So, the insurance we investing are balance new front cost we of and but managing those as well. capital that a strategies sheet, that transition, and obviously have incubating in building on build for start we buildup apparatus is smaller,

and strong So, previously - this in going operations think positive the still to being I of as we it build I out is momentum right that think there's supports obviously be about the we that it. there but we margins growth, range talked now quarter,

Okay, thank you.

Thank you.

KBW. Lee from from Our next Robert comes question

Your line is open.

you. for Thank taking morning. Thank you Good Great. questions. my

of Now, attracted and BAM corpse which an I hour I maybe this and BIP, mean, a see the securities understanding creating second of BAM guess the that frankly, going to to business an Reinsurance earnings. with some invest the it the feels part had, be why investor parents it BAMs behind BEP That's has now, the Reinsurance guess doing raise I since understand reflection going Reinsurance now I all through of is broader other that of be be And evidence. for base, would capital extend reasoning reads and on understand, stand-up certainly, in future think to just and that trying you're I to trying sticking issue I'm kind you to not been vehicle. it's a

to there? will its results think therefore the is that So, deviate from to way start BAMs,

at hit So, beginning and If can I the don't not of two, answers, we're this should the us whether a We so take a that, guess Brookfield would one way three, to point and yet efficient like and needs for splitting renewable entity the considered entity it it's a it proper we all security most is to it's five the then more up set way existence. - in the apart to company. it. I'll we that have And in businesses Company for the or future proper to shareholders to up it's grow add Reinsurance for place, that four, the first resources separate I it then property but company making do from us and in important to when then to only Nick be forever. can to of the able consider a years, it it do some in next spin-off setting are mature, it compete the the possibly be or And to set mature with enough as insurance all up. able it actually the actually global Infrastructure way

future. for it'll For quite being, the that up the that's us happen. have benefits, but be way the could set to important a such it'll time that in And

maybe first answer So I'll to And of that's just turn question. that the to Nick, part. the second, it answer to your the part over

shareholders. BAM, accrues security all there, Rob, Yes, it's performance in value and transferable or to I excess BAM to back in form, accrues its think any strong given to performance the and appeared current

structure. So perform performance and current the BAM that but will from the the will in benefit this business shareholders well, strong unit

Okay. And Bill's want you next maybe this have they we we of demand. your thinking back apologize fundraising one that size mean, if Thanks. round already I maybe I to may third-party But that to think flagship the are going funds? of through strong given that? as, future commitments and you in if to about I make in can follow an grow How just up assumption responded how if question. quick the

significant And it's come be have And investor their the I touched of be to investment we in we don't they based I Brookfield think percentage opportunity investment absolute funds, size larger, the of when minds, making pre-determined just client go a investor variables that on get come one variables as in decision-making down. I a again, goes part think assume but will so but the our in level the that expect going that be I we be fund. that the when sizable, the of demand. may we but question. the decision will we to Yeah, be It's and briefly know into you think, And to going it process we're remain launched up on our the fund, the whilst set material. dollars will the nominal significant into one to continue percentage can maybe down commitment a

as to into expect the the a we that the maybe we kind thinking maybe of if I'm improving to and And be would little maybe release And in businesses look Great. seeing, in allowed of generation be is should kind seemed hinted maybe how development, bit, outlook you which it carry dig that question, that of can last that? XXXX. ahead and what one leaders you're for

of only like this perspective come of in working it's for low prior and out we premised performed businesses with very that resiliency it's as in owning again, an environment, this capital lot with through I rate consistent remarks interest a inflation this cash enhanced protected really, the their their the Yes, And are strongly shutdown. number have performance, environment and a we that results, just think of that. flow in

they been market returning the year public a pay can are are would processes. see had start supportive we real would And more to And have to are many earlier taking we the a I But we don't think that also right that we business, an So of we estate markets to and and businesses now those. storage in have previously there have transaction, one paused others entity, thinking you want obviously we're now. what obviously we monetization to because business. and very

will renewed next be around just in obviously momentum we And increased result the will realized this believe last end of and six carry So to year dispositions that some compared year. months. coming that into there add

my Great. Thank you for questions. your patience with

you. Thank

next question from Canaccord. our you. Thank comes Rothschild Mark And from

line Your is open.

morning. Thanks. Good

versus buyback And into aggressively capital shares the of excess just quarter. advantage was you subsequent want of thought got taking maybe that buying the next the year? share that in a you back how You've that a drop normal have put to little active curious over price I'm much a the bit in more to

we widen we and deep would mainly can the that and dropped specifically capital we in sort to have number to but that a excess intrinsic It's pertains Bruce as I investment more then go driven work. in last as combination, capital decision look saw and value of we as really redeploy do period drove business, the have share value invest a the put into value where wider other something and say price increased the capital, disconnect month, at by we that last disconnect our our view business. when looked persists, But we that in forward, of we'll like if also opportunities said,

just decision next it's predetermined six haven't XX the happen views say and months. got we would what an any will I ongoing to So for in

Thanks. Okay, funds, overlap was be of question. could lot a And asked great. there Great. want existing clearly earlier, of more one subsidiaries. your impact sure for just kind And clarify with just understand I course, maybe make this to the

at the as funds funds impact being the could your investment? estate some you Or property, So, point? or subsidiary real perhaps this let's say a expect - impact co-investor be an that then BPY, an public separate, fund impact in in in totally another do would

at invest no But entity point in point to listed having start with at back our a in and private so the this transition. Brookfield go this we Yes, listed intention for funds, end time, have of time one investment. that our into as all of Capital of from entities the of

if or renewables would it infrastructure appropriate the for capital. they property, Management transition or Asset that be our or our BBU may and portion may investments Brookfield be the of then invest take portion. not, for And So, would some entity, up fund

the private investors. come of Today, any it we're that XX% from property, were XX%, those that of one we of does money, that's beside in if all the happens funds listed So, the way makes one entity our that so of one our may entities are. investments and just the only there's the

Thanks Okay, it. I clarifying. for appreciate

Welcome.

you. Thank

Our Mario Saric from Scotiabank. next question comes from

open. line Your is

Hi, thank you.

if as other listed I subs a look in was Reinsurance go occur? good terms up EBITDA terms a about billion, of and a separate of a take think so the possibility at when when size five BAM to we bit, the was the precedent you have to for roughly with historical Should respect about may U.S. So, it a getting years, Bruce, road in to look maybe forever. proxy I on. think your timing and a back approx. book down that it be too Just back you partners entity X you could mentioned there's

should we in drive how timing of that decision creating factors the and terms think So, [Indiscernible]? of kind that about

get never is we're it. until sure we answer into The know. too don't I

needs think greater I and investments to access to it it entity our access our more needs - be more the to than of make. this the other because need resources far could entities all

don't private maybe that share real So, needs that amounts off very, clients to and spin in determination to Brookfield will to to it sheet need And be for of future. we'd in have the enough and they'll from we'll being to Brookfield and at are significant the on us of new capital of to the the with places love capital it into be and point we invest required. Brookfield. entity very the one for But or if paired capital be ours either balance invest two of look time some entity that

And other private it for second my thinking terms funds. fund you size will intention that. the first then to be thank comparable about letter question of just the Okay, from in private to stated transition pertain for

flagship in or to you were funds, your inaugural referring private to your to the funds? So flagship just of clarify, each verticals size want funds existing if the of

but specific think We don't get were requirements. referring funds. our of numbers I we just that, can into to And I because the regulatory hope flagship to

Okay, thank you.

you. Thank

Kuske comes Our Credit next from Suisse. question from Andrew

line open. is Your

than BAM market. others you. reallocated structure giving are of Thank a an that Good you really lot but capital, different corporate of the the And through from clearly think and you investing and family the capital that the of with your array do given standpoint, in private that buybacks flagship standpoint, morning, that BAM the offering about activity quarter. you some have of on most with and is flexibility funding of your vehicles the embedded you've it's got, from that How from optionality a also and capital the you a combining funds? then

making And it's a XX-XX of risk has one some why securities wouldn't possibly and Management than utilize Yeah. is we our that than Look that sure do investment job from we our them clients can can large-scale I we're different enhance allocating capital capital to And of things, comparable to allocation and One, to of to and over understand our do things. rotation that business Asset management investment it. as make really to or a that secondly, and using for priced running them view reasons just asset to off in that maximize returns two there say invest of they management the the the I capital add site than and have. can pricing better when might they the Nick value Brookfield others because shareholders we support own. others investment the been investment. second, otherwise access our and we business, have of of business is two long-term there get better we're what years them so be that that opportunities have if think business. then And start and involves could capital our the effectively our as value the because is entities But decisions

that. business. the Reinsurance set And for you Thank Okay. obviously up you the have

sitting had when space. past that still the sizable vehicles in balance So you've When of you off the of BAM conditions have sheet spin are really a in different a resi the you in anticipate do in few sheet? and chunk to balance do the or residential, your appropriate jurisdictions market

the or the tripled, six all flavor they've highly doubled, value. they've been today Homebuilders successful, quadrupled last in of months,

is for that today, a perfectly have see any of it of They time. Of experience not or we would it public developers we it's depleting that exactly want on in time course, capital and not us just And a of to our period, land invest intention reallocate don't ours home has XX-year have necessarily, trade business I'm and or reinvest happen is say over be doing And so the business to homebuilders to the over may and I the in it. it's better for sheet done into if sure more they because be you our really most well private. builders this balance that owning if don't that reason, market less capital, don't doing because you it. listed.

I time, So that to listing just it it. think versus from time do way we'll

you. Thank great. That's

our next Thank Worthington, question from Ken JP Morgan. you. And from comes

is line Your open.

rights or that this And entity? follows is Brookfield? up Or about just lastly, Maybe the then contracts asked, the question it. that went the do include follow then think you. you assets? Brookfield that of Insurance shareholders included have of new sort spun interest are think Does that to by the retained the Will in it's get I votes maybe voting up when through earlier. in Reinsurance flavor another And don't on on the contracts, the the need years to enough Thank assets capitalize it the well initial support Does thank to XX% or you. to the equity which been in so? entity I entity the of of include AEL? Reinsurance I day, shareholders? is it couple next Brookfield over raise to support growth sort the insurance to Hi, talk new missed going growth off but Reinsurance. maybe the its Reinsurance Most of or questions is

of question. parts that lot a have there Ken, so to Yeah

through don't But we think still be the please them we're I insurance intention prompt of it all is if assets will all, will me what I there. have. have working the get Let then But we that as me.

other we've So it also, as the we on have have in also this is did that see have it some Reinsurance way sheet. obviously investments, entities will working initial on Bruce its it trades balance stake insurance sheet. balance we AEL those The will that said,

your Reinsurance we want when with and earnings when fee return As that is work, we can when focus and we're way is make we if consequence to through that the differentiate the any this overtime. looking question. that by And But these of those that to they fall so capital fee the parts I don't related net will capital fees comfortable strategies, other that be in that related management put alongside that in bearing those. question, our fee strategies predominantly sure that's on that we're that value same the earn earnings there'll we a do a be then to the would growth touched paying on investing earn And as we to earlier would and transaction. obviously, would in strong work credit. I But primary The and capital business that our capital our are focus. rates we is capital of Reinsurance into resulting resulting returns in we transactions, means and be the know asset secondary that invested answered for all I capital strategies the say clients investing business. bearing fee investment putting have

raised the equity equity transferred actually and work to is voting sort the in the the the until or is are get just vote delayed the do vehicle. of Reinsurance sort is is shareholders insurance vehicle of that's BAM here? the actually equity How if stock raise issuance Brookfield to Most, - capital then that this new raising rates And entity a through pairing does unpaired? here is, going or

choose capital those shares a the equity if more too, can that provided entity will no be we be Starting in and money put I'll of we they're into So to shareholders. will spun the be BAM off, money, into needs reverse of really by just even entity it and $XXX that, And remember more entity to be The if further start, there'll out seeded will out balance the but we issued. share. than will issue extent do the the - the answer, BAM. order. shares of Other BAM million

in buying I Brookfield suspect Brookfield So never they're issue going back we're while we're paired share shares Asset Management, in because share. a to Reinsurance, a

be So another. you'd it you'd would be doing in - be place in buying same, the and issuing back one

will equity first be Brookfield step. a by the So provided as

Secondly, to question. answer first you

be rights, asset the On will same voting management. the as the Brookfield is in exact structure it

all Reinsurance. rights So, voting today, have the management, do they have have get in in Brookfield same they asset they'll will rights have the shareholders same they'll they Brookfield like rights

very you much. thank Great,

comes Bill question next Katz Citigroup. with our And Instructions]. from [Operator

Your line is open.

Okay, you questions. follow-up the taking thank for

and you see moment. opportunity the to What this letter, billion the fund $XX your compared mentioned the that how flagship Just say, your a your would economics to of fund to a scaling that a of expectations are you being in transition Bruce, for funds? could back time. $XXX going this over let's billion for like

large them for reason reason I us economy, alternatives the the have we we people and create with to for a time. of a with the think out that. can want why large and to money in Mark there's and that, point new fund access at group all investors to question there And of second we'll number it'll us. if that very many put funds. we within that a a asset of business be transition the we want the And class our joined think do will this first, them think what a it'll many discipline investors, and to can invest there's to not Brookfield, institutional is, we is who it And offering have of why this coming we're be with very as into not that as very be flagship the similar alternatives result from create other

the Okay, going simply opportunity just one maybe we stream here Reinsurance up last for and associated just broaden there picking it? questions. related thanks scale just effort, spread you some business then an to Is an out taking fee opportunity and corresponding advisory back then to those beyond the to with again, as the earnings one, incremental

now. the we'll our on focus investing our about right strong the advisory at are right said, that will earnings, of minds where The fee but overtime, and heads now fee be that that not consequence haven't is investor bearing We'll see raising we capital related as to earning that's direct I capital. and capital be fees. And turned returns

Okay, thanks all for questions. the taking

over no to Thank from I now phone Suzanne Fleming our would for any lines. further questions like closing to showing you. remarks. conference And turn I am the back

Thank thank you that us for today. you, operator everyone With and joining we end call. will the

now a wonderful concludes today's day. have for disconnect. may call. this Thank Everyone, you gentlemen, conference participation, and your you Ladies