Partners Value Investments LP announces third edition of 2021

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TORONTO, Nov. 19, 2021 (GLOBE NEWSWIRE) – Partners Value Investments LP (the “Partnership” TSX: PVF.UN TSX: PVF.PR.U) today announced its financial results for the quarter ended September 30, 2021 All amounts are shown in US dollars.

The limited partnership recorded an increase in net book value during the period from $ 3.78 to $ 80.41 per unit ($ 7.1 billion). The increase is primarily attributable to an increase in the market price of Brookfield Asset Management’s common shares. The Partnership reported net income for the quarter of $ 9.7 million, an increase of $ 8 million from $ 1.7 million in the prior year quarter. The increase in revenues compared to the last fiscal quarter is attributable to foreign exchange gains recorded during the period.

The market price of a Brookfield share was $ 53.51 per share as of September 30, 2021, compared to $ 41.27 as of December 31, 2020.

Consolidated statements of income

(Unaudited)
For the period ended September 30
(In thousands of US dollars)
Three months ended Nine months ended
2021 2020 2021 2020
Investment income
Dividends $ 17,458 $ 17,906 $ 99,350 $ 56 140
Other investment income 1,116 1,061 4 160 2 184
18,574 18 967 103 510 58,324
Expenses
Operating Expenses (448 ) (142 ) (1 983 ) (984 )
Financing costs (2 132 ) (571 ) (6,382 ) (722 )
Dividends on redeemable preferred shares (7,207 ) (6,774 ) (26,425 ) (18,691 )
8 787 11,480 68,720 37 927
Other elements
Investment valuation gains (losses) 2,692 3,746 8 685 (10,298 )
Amortization of deferred financing costs (764 ) (625 ) (3 301 ) (1,748 )
Recovery of current taxes (charges) (618 ) (1820 ) 1,627 (1,946 )
Deferred tax expense (3,310 ) (459 ) (11,481 ) (2.662 )
Foreign exchange gains (losses) 2 960 (10,605 ) (27 186 ) 43 109
Net revenue $ 9,747 $ 1,717 $ 37,064 $ 64,382

Change in net book value

The information in the following table shows the changes in the net book value:

For the period ended September 30
(In thousands, except unit amounts)
Three months ended Nine months ended
Total Per unit Total Per unit
Net book value, start of period1 $ 6,750,387 $ 76.63 $ 4 777 152 $ 54.20
Net revenue2 8,025 0.09 31,898 0.36
Other comprehensive income 2 334 621 3.80 1,612,931 18.34
Adjustment for the impact of warrants3 (8,591 ) (0.10 ) 1,575 0.02
Reorganization4 663 678 7.54
Equity LP buybacks (1,182) (0.01) (3 974) (0.05)
Net book value, end of period1,5.6 $ 7 083 260 $ 80.41 $ 7 083 260 $ 80.41
  1. Calculated on a fully diluted basis, the net book value is a non-IFRS measure.
  2. Attributable to limited partners in shares.
  3. The base weighted average number of units of Equity Limited Partnership (“Equity LP”) outstanding during the period ended September 30, 2021 was 73,303,589. The diluted weighted average number of units of Equity Limited Partnership (“Equity LP”) LP ”) available and in circulation for the period ended September 30, 2021 was 88,012,255; this includes the 14,708,666 Equity LP units issuable upon exercise of all outstanding warrants. The adjustment for warrants is affected by fluctuations in foreign currencies.
  4. Following the reorganization of a subsidiary, the limited partnership recognized a reduction in its deferred tax liability primarily through accumulated other comprehensive income. The subsidiary has the ability to allocate capital gains to unitholders of the partnership.
  5. At the end of the period, the diluted shares of Equity LP outstanding were 87,972,497 (December 31, 2020 – 88,056,097).
  6. Net book value is a non-IFRS measure and is equal to total equity less general partner equity and preferred limited partner equity, plus the value of consideration receivable on exercise of warrants. , which as of September 30, 2021 was $ 376 million (December 31, 2020 – $ 375 million).

Financial profile

The Partnership’s primary investment is its interest in approximately 130 million Class A Limited Voting Shares (the “Brookfield Shares”) of Brookfield Asset Management Inc. This represents a diluted 8% interest at 30 September 2021. In addition, the Company holds a diversified investment portfolio of marketable securities.

The information in the following table has been taken from the statement of financial position of the limited partnership:

Like a
(In thousands of US dollars, except per share amounts)
September 30, 2021 December 31, 2020
Assets
Cash and cash equivalents $ 344,122 $ 316 718
Accounts receivable and other assets 49,900 40 109
Investment in Brookfield Asset Management Inc. 1 6,974,274 5,313,865
Other investments recognized at fair value 356,101 365 949
$ 7 724 397 $ 6 036 641
Liabilities and equity
Trade payables and other liabilities $ 13 878 $ 15,604
Corporate loans 235 669 117,286
Preferred shares2 595,470 694,148
Deferred taxes3 19,461 654,217
864,478 1,481,255
Equity
Common equity 6,706,864 4,402,331
General partner 1 1
Preferred Sponsors 153,054 153,054
$ 7 724 397 $ 6 036 641
  1. The investment in Brookfield Asset Management Inc. consists of 130 million Brookfield shares with a listed market value of $ 53.51 per share as of September 30, 2021 (December 31, 2020 – $ 41.27).
  2. Represents $ 609 million of redeemable preferred shares less $ 14 million of unamortized issue costs as of September 30, 2021 (December 31, 2020 – $ 706 million less $ 12 million).
  3. The deferred tax liability represents the potential future tax liability of the Partnership recognized for accounting purposes based on the difference between the carrying values ​​of the assets and liabilities of the Partnership and their respective tax values, as well. that taking into account the estimated capital and items excluding capital losses.

For more information, contact Investor Relations at 416-956-5142.

Note: This press release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. The words “potential” and “estimated” and other expressions which are predictions or indicate future events, trends or prospects and which do not relate to historical matters, identify forward-looking information. The forward-looking information contained in this press release includes statements regarding potential future income taxes of the Company.

Although the Company believes that its anticipated future results, performance or achievements expressed or implied by forward-looking statements and information are based on reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information as they involve and risks, uncertainties and other unknown factors, many of which are beyond its control, which may cause the actual results, performance or achievements of the Company to differ materially from the anticipated future results, performance or achievements expressed or under- understood by these forward-looking statements and information.

Factors that could cause actual results to differ materially from those expected or implied by forward-looking statements and information include, but are not limited to: Brookfield Asset Management Inc.’s financial performance, impact or unanticipated impact of economic, political and market factors; the behavior of financial markets, including fluctuations in interest rates and exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing in these markets; strategic actions, including provisions; changes in accounting policies and methods used to present the financial position (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulations and legislation; changes in tax laws, catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including terrorist acts; and other risks and factors detailed from time to time in the Company’s documents filed with securities regulators in Canada.

The Company cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the Company’s forward-looking statements and information, investors and others should carefully consider the above factors as well as other uncertainties and potential events. Except as required by law, the Company assumes no obligation to publicly update or revise forward-looking statements and information, whether written or oral, which may result from new information, future events or otherwise. .


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