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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) | Three months ended |
| Six months ended | ||||||||||||
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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| Investment income |
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| Dividends | $ | 26,995 |
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| $ | 25,469 |
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| $ | 53,680 |
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| $ | 47,864 |
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| Other investment income |
| 4,160 |
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| 2,219 |
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| 8,195 |
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| 5,435 |
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| 31,155 |
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| 27,688 |
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| 61,875 |
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| 53,299 |
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| Expenses |
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| Operating expenses |
| (735 | ) |
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| (433 | ) |
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| (2,885 | ) |
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| (842 | ) |
| Financing costs |
| (10,191 | ) |
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| (8,379 | ) |
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| (18,370 | ) |
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| (16,713 | ) |
| Retractable preferred share dividends |
| (8,562 | ) |
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| (8,848 | ) |
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| (16,802 | ) |
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| (17,640 | ) |
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| 11,667 |
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| 10,028 |
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| 23,818 |
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| 18,104 |
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| Other items |
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| Investment valuation gains (losses) |
| 443 |
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| (4,228 | ) |
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| 1,367 |
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| (1,986 | ) |
| Remeasurement gains (losses) of retractable shares |
| 94,590 |
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| (118,837 | ) |
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| (119,040 | ) |
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| 107,244 |
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| Warrant liability remeasurement (losses) gains |
| (21,378 | ) |
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| 13,692 |
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| (11,452 | ) |
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| 24,579 |
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| Amortization of deferred financing costs |
| (871 | ) |
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| (848 | ) |
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| (1,755 | ) |
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| (1,690 | ) |
| Current taxes (expense) recovery |
| (1,742 | ) |
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| (410 | ) |
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| 6,327 |
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| (817 | ) |
| Deferred taxes recovery (expense) |
| 4,865 |
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| (3,235 | ) |
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| 707 |
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| (4,593 | ) |
| Foreign currency gains (losses) |
| 6,880 |
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| (16,575 | ) |
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| 19,333 |
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| (19,154 | ) |
| Net income (loss) | $ | 94,454 |
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| $ | (120,413 | ) |
| $ | (80,695 | ) |
| $ | 121,687 |
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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.