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Brookfield Corporation Reports Record Financial Results

Brookfield Corporation shines with record results in 2024. The investment firm is well-positioned to deliver continued robust returns due to expanding businesses and strong cash flow growth.

Date: 
AI Rating:   8

Financial Performance Overview
Brookfield Corporation (NYSE: BN) has showcased impressive financial growth with record results in 2024, reporting nearly $4.9 billion in distributable earnings (DE), which equates to $3.07 per share. This represents a significant growth rate of 24% on an absolute basis and 15% per share compared to 2023. Moreover, when including realizations, DE reached almost $6.3 billion, or $3.96 per share, marking an increase of over 30%.

Key Contributions to Earnings
The company's substantial growth can be attributed primarily to its wealth solutions business, which saw DE grow nearly 100% year-over-year, contributing $1.4 billion. Additionally, Brookfield Asset Management played a crucial role, contributing $2.6 billion to DE and achieving a 17% increase in fee-related earnings, highlighting its appeal to investors.

Asset Contributions
Brookfield's operating businesses in renewable power, infrastructure, private equity, and real estate also generated steady and growing cash flow, adding $1.6 billion in DE last year. Operating funds from these segments increased by 10%, and the core real estate portfolio demonstrated resilience with a 4% rise in same-store net operating income.

Intrinsic Value Growth
Brookfield's intrinsic value per share is estimated to have increased by $15 in 2024, currently valued at approximately $100 per share, suggesting the stock is trading at a discount, which may positively influence future stock performance. The firm anticipates further growth in intrinsic value, with projections to exceed $175 per share in the coming years, bolstered by multiple growth catalysts.

Investment Outlook
Given the company's robust financial results, growth in intrinsic value, and its strategic position in the market, Brookfield Corporation presents an attractive investment opportunity. The stock remains a strong buy, especially considering its current trading position below intrinsic value.

Stocks:  BN