Brookfield Corporation(BN) - 2023 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended December 31, 2022, was $44 million, a significant decrease from $3,461 million in the same period of 2021[2] - Funds from Operations (FFO) for the year ended December 31, 2022, was $6,294 million, compared to $7,558 million in 2021, reflecting a decline of approximately 16.7%[11] - Revenues for the three months ended December 31, 2022, increased to $24,213 million, up from $21,787 million in the same period of 2021, representing a growth of about 11.1%[9] - Operating Funds from Operations for the three months ended December 31, 2022, was $1,135 million, down from $1,237 million in the same period of 2021[11] - Net (loss) income attributable to Brookfield shareholders for the three months ended December 31, 2022, was $(316) million, compared to $1,118 million in the same period of 2021[2] - The company reported equity accounted income of $273 million for the three months ended December 31, 2022, down from $633 million in the same period of 2021[9] - Distributable earnings for 2022 were $5.2 billion, with net income also at $5.2 billion, reflecting strong financial performance driven by asset management growth and insurance solutions[29] - Operating funds from operations (Operating FFO) reached $4.6 billion for the year, representing a 23% increase compared to the prior year[32] - Total DE for the quarter was $1.5 billion and $5.2 billion for the year[49] Assets and Liabilities - Total liabilities and equity as of December 31, 2022, amounted to $441,284 million, an increase from $391,003 million in 2021[8] - Total assets increased to $441.3 billion in 2022, up from $391.0 billion in 2021[41] - Approximately $37 billion of cash, financial assets, and undrawn credit lines are available, along with $87 billion of uncalled fund commitments[51] Growth and Investments - The company is well positioned to pursue significant opportunities for growth, supported by a conservatively capitalized balance sheet[4] - The asset management business generated fee-related earnings of $2.1 billion for the year, with inflows of $93 billion, contributing to a 26% increase in fee-related earnings excluding performance fees[36] - The company ended the year with approximately $125 billion of deployable capital for new investments[40] - The company successfully completed a distribution to shareholders and listed a 25% interest in its asset management business, adding approximately $40 billion of liquid assets[29] - The company acquired high-quality businesses and assets, including a $2.5 billion acquisition in audience measurement and a $3.1 billion portfolio of luxury hotels[39] - The acquisition of American National in May contributed to the growth in DE before realizations[47] - The company invested and/or committed $81 billion of capital to new investments during the year[58] Distributions and Shareholder Returns - Preferred share dividends for the year ended December 31, 2022, totaled $150 million, slightly up from $148 million in 2021[2] - Distributions from operating businesses totaled $2.6 billion for the year, marking a 20% increase compared to the previous year[38] - The company returned approximately $15 billion of capital to shareholders, including $686 million in open market share repurchases[52] Debt and Financing - A C$1 billion issuance of 10-year bonds at 5.43% was completed in December, along with a credit rating upgrade to A3 from Moody's[59] - The company maintains a conservatively capitalized balance sheet with no maturities until 2024[52] Other Financial Metrics - Direct costs for the three months ended December 31, 2022, were $18,218 million, compared to $16,631 million in 2021, indicating an increase of approximately 9.5%[9] - Realized carried interest for the year was $555 million, up from $715 million in the previous year[28] - Distributable Earnings ("DE") before realizations were $1.1 billion for the quarter and $4.3 billion for the year, representing a 24% increase compared to the prior year[47] - The asset management franchise delivered growth of 26% compared to the prior year, while distributions from operating businesses grew by 20%[47] - The company generated disposition gains of $360 million from the sale of principal investments during the year[50]