Partners Value Investments Inc. Announces Q2 2024 Interim Results

In This Article:

Partners Value Investments Inc.
Partners Value Investments Inc.

TORONTO, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Partners Value Investments Inc. (the “Company”, TSX: PVF.WT, PVF.PR.V) announced today its financial results for the six months ended June 30, 2024. All amounts are stated in U.S. dollars.

The Company recorded net income of $94.5 million for the three months ended June 30, 2024, compared to a net loss of $120.4 million in the prior year quarter. The increase in net Income was primarily due to current period remeasurement gains of $94.6 million associated with the retractable shares, compared to remeasurement losses of $118.8 million in the prior year quarter. The Company’s retractable common shares are classified as liabilities due to their cash retraction feature. The remeasurement gains or losses in a given period are driven by the respective appreciation or depreciation of the Partners Value Investments L.P. (the “Partnership”) unit price as the exchangeable shares are recognized at fair value based on the quoted price of the Partnership’s Equity LP units. During the quarter, the Partnership unit price decreased by $1.34 compared to an increase of $1.80 in the prior year quarter.

Excluding retractable share and warrant liability remeasurement gains and dividends paid on retractable shares, Adjusted Earnings for the Company was $28.9 million for the three months ended June 30, 2024, compared to Adjusted Losses of $9.2 million in the prior year quarter. Adjusted Earnings were higher in the current quarter as a result of foreign currency and investment valuation gains.

As at June 30, 2024, the market prices of a Brookfield Corporation (the “Corporation”, NYSE/TSX: BN) and Brookfield Asset Management Ltd. (the “Manager”, NYSE/TSX: BAM) share were $41.54 and $38.05, respectively. As at August 16, 2024, the market prices of a BN and BAM share were $46.57 and $40.90, respectively.

Consolidated Statements of Operations

(Unaudited)
(Thousands, US dollars)
For the periods ended June 30

Three months ended

 

Six months ended

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Investment income

 

 

 

 

 

 

 

 

 

 

 

Dividends

$

26,995

 

 

$

25,469

 

 

$

53,680

 

 

$

47,864

 

Other investment income

 

4,160

 

 

 

2,219

 

 

 

8,195

 

 

 

5,435

 

 

 

31,155

 

 

 

27,688

 

 

 

61,875

 

 

 

53,299

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

(735

)

 

 

(433

)

 

 

(2,885

)

 

 

(842

)

Financing costs

 

(10,191

)

 

 

(8,379

)

 

 

(18,370

)

 

 

(16,713

)

Retractable preferred share dividends

 

(8,562

)

 

 

(8,848

)

 

 

(16,802

)

 

 

(17,640

)

 

 

11,667

 

 

 

10,028

 

 

 

23,818

 

 

 

18,104

 

Other items

 

 

 

 

 

 

 

 

 

 

 

Investment valuation gains (losses)

 

443

 

 

 

(4,228

)

 

 

1,367

 

 

 

(1,986

)

Remeasurement gains (losses) of retractable shares

 

94,590

 

 

 

(118,837

)

 

 

(119,040

)

 

 

107,244

 

Warrant liability remeasurement (losses) gains

 

(21,378

)

 

 

13,692

 

 

 

(11,452

)

 

 

24,579

 

Amortization of deferred financing costs

 

(871

)

 

 

(848

)

 

 

(1,755

)

 

 

(1,690

)

Current taxes (expense) recovery

 

(1,742

)

 

 

(410

)

 

 

6,327

 

 

 

(817

)

Deferred taxes recovery (expense)

 

4,865

 

 

 

(3,235

)

 

 

707

 

 

 

(4,593

)

Foreign currency gains (losses)

 

6,880

 

 

 

(16,575

)

 

 

19,333

 

 

 

(19,154

)

Net income (loss)

$

94,454

 

 

$

(120,413

)

 

$

(80,695

)

 

$

121,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Profile
The Company’s principal investments are its interest in 121 million Class A Limited Voting Shares of the Corporation and approximately 31 million Class A Limited Voting Shares of the Manager. This represents approximately an 8% interest in the Corporation and a 7% interest in the Manager as at June 30, 2024. In addition, the Company owns a diversified investment portfolio of marketable securities and private fund interests.