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  5. BN: Both BN and SYZ reported. [Brookfield Corporation Class A Limited]
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Investment Q&A

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Q: Both BN and SYZ reported. Comments with emphasis on what are impacts going forward. Good, bad or indifferent? Would you buy either of them now?
Asked on May 12, 2023
5i Research Answer:

We have comments posted on SYZ.

BN reported EPS of $0.6836 beating estimates of $0.5886 and revenues of $1.02B matched estimates of $1.02B. Distributable Earnings grew by 24% for the year after adjusting for a special distribution of 25% of its asset management business. Distributions from its asset management business were $678M for the quarter, driven by a 15% increase in distributions from BAM. Its distributions from insurance solutions grew significantly from prior periods, as its investment portfolio showcased a strong yield of 5%. Distributions from its operating businesses demonstrated resilience in the quarter. In the quarter, BN invested $1.2B of capital into its businesses to grow its operations, and returned $404M to shareholders via share repurchases and dividends. 

These were strong results, and BN continues to demonstrate its resilience, diversification of operational businesses, and we continue to like the long-term thesis as a serial compounder.