Brookfield Asset Management
Brookfield Asset Management (BAM) is a global alternative asset manager with over $515 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit. BAM manages a range of public and private investment products and services for institutional and retail clients for which they earn asset management income.
BAM reported a second-quarter loss of $656 million or 43 cents per share, compared with a profit of nearly $399 million (24 cents per share) in the same quarter last year. The loss was largely attributable to sharp decline in profits from its 53% stake in Brookfield Property Partners, which was severely impacted by the coronavirus pandemic.
Revenues for the quarter declined to $12.83 billion from $16.9 billion in the same period last year. Funds from operations, a measure of cash flow, were flat at $1,16 billion, or 73 cents a share with the board declaring a 12 cents per share dividend for the quarter. Fee-related earnings before performance fees increased by 23% on a quarter-on-quarter basis to $324 million.
BAM said it raised a record $23 billion during the second quarter and expects to accelerate the pace of investments after the disruption caused by Covid-19. Chief Executive Officer Bruce Flatt stated while they do not expect a full recovery of the global economy until well into 2021, they are of the view that the worst is over, with BAM’s businesses segments recovering slowly. "We have been keeping our powder dry, waiting for opportunities we believe will come.", Flatt noted.
BAM under the leadership of Flatt has a long-term history of generating excellent returns for shareholders (see below). A significant portion of these returns have been generated by taking advantage of distressed asset prices in challenging economic situations.