Brookfield Asset Management .(BAM) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for Q1 2025 reached $1,081 million, a 22% increase from $884 million in Q1 2024[23] - Net income attributable to common stockholders was $581 million in Q1 2025, up 32% from $441 million in Q1 2024[23] - Comprehensive income attributable to common stockholders was $595 million in Q1 2025, compared to $439 million in Q1 2024, indicating a 35.6% increase[26] - Net income for Q1 2025 was $507 million, a 36% increase from $373 million in Q1 2024[30] - The net income for the three months ended March 31, 2025, was $580 million, compared to $440 million for the same period in 2024, resulting in basic and diluted earnings per share of $0.36[142] - Total Segment Revenues for Q1 2025 reached $1,154 million, compared to $999 million in Q1 2024, indicating a year-over-year increase of 15.5%[193] - Segment Earnings for Q1 2025 amounted to $576 million, compared to $474 million in Q1 2024, showing an increase of 21.5%[200] Assets and Liabilities - Total assets as of March 31, 2025, were $14,966 million, up from $14,157 million at the end of 2024, representing a 5.7% increase[22] - Total liabilities increased to $4,073 million as of March 31, 2025, compared to $2,966 million at the end of 2024, marking a 37.4% rise[22] - Cash and cash equivalents decreased to $332 million as of March 31, 2025, down from $404 million at the end of 2024, a decline of 17.8%[22] - The company’s retained deficit increased to $617 million as of March 31, 2025, compared to $488 million at the end of 2024[22] - Non-controlling interest in consolidated entities rose to $467 million as of March 31, 2025, up from $336 million at the end of 2024[22] Revenue Streams - Base management and advisory fees increased to $837 million, compared to $680 million in the same period last year, reflecting a 23% growth[23] - The company reported a carried interest allocation compensation of $146 million in Q1 2025, up from $84 million in Q1 2024[23] - Distributions to common stockholders increased to $707 million in Q1 2025 from $620 million in Q1 2024[30] - Total cash flow from operating activities was $265 million in Q1 2025, compared to $516 million in Q1 2024[30] - Other revenues include performance fees and are recognized on a gross basis as the instruments vest[66] Investments and Acquisitions - The company completed a corporate arrangement with Brookfield Corporation, acquiring a 73% interest in Brookfield Asset Management ULC[35] - The total purchase consideration for the 2025 Arrangement was $33 million, with BAM issuing approximately 1,194 million Class A Shares valued at $57.13 each[106] - BAM recognized a gain of $15 million from the disposal of its interest in Redwood Evergreen Fund LP during Q1 2025[116] - The fair value of intangible assets identified in the 2025 Arrangement was assessed at $215 million, including $57 million of deferred tax amounts[111] - The Company agreed to acquire a 50.1% stake in Angel Oak Companies for $145 million[205] Debt and Financing - The Company established a $750 million five-year revolving credit facility on August 29, 2024, to enhance liquidity[135] - As of March 31, 2025, BAM's total corporate borrowings amounted to $235 million, with revolving credit facilities having a capacity of $750 million and an average interest rate of 5.4%[137] - The Company completed its inaugural debt offering, raising approximately $750 million of 10-year bonds at a fixed rate of 5.795%[206] Market Conditions - U.S. GDP contracted by 0.3% for Q1 2025, down from a 2.4% expansion in Q4 2024, with an estimated slowdown to 1.8% growth for 2025[217] - U.S. inflation rate decreased to 2.4% as of March 31, 2025, compared to 2.9% at the end of 2024[217] - The U.S. unemployment rate remained stable between 4.0% and 4.2% during the first three months of 2025[217] - The U.S. Federal Reserve maintained a benchmark interest rate target range of 4.25% to 4.50% as of Q1 2025[218] - The S&P 500 index decreased by 4.6% during Q1 2025, while the MSCI Europe Index increased by 5.2%[220]