Mr. Bruce Flatt reports

BROOKFIELD ASSET MANAGEMENT REPORTS FIRST QUARTER 2017 RESULTS

Brookfield Asset Management Inc. has released its financial results for the quarter ended March 31, 2017 (all amounts are in U.S. dollars).

Bruce Flatt, chief executive officer of Brookfield, stated: "Our scale and global reach have enabled us to deploy $17-billion of capital into attractive investments over the last 12 months, and we continue to see opportunities to put capital to work in high-quality businesses across our real asset strategies. With our flagship funds moving closer to being fully invested, we are preparing for our next major round of fundraising in response to strong investor demand."

                                 OPERATING RESULTS
                          (in millions, except per share)

                                    Three months ended   Last 12 months ended
                                              March 31,              March 31,
                                      2017        2016       2017        2016

Net income                            $518        $636     $3,220      $3,867
Per Brookfield share                 (0.08)       0.23       1.25        1.77
Funds from operations                  674         703      3,208       2,705
Per Brookfield share                  0.65        0.69       3.15        2.64

During the first quarter the company achieved same-store growth across most of its operations and benefited from a positive contribution from recent acquisitions. This was offset in net income by fair value changes in the quarter arising from the impact of lower stock market prices on market-valued investments. The aggregate value of the company's $57-billion real estate portfolio was largely unchanged. The per share number is after the allocation of net income to non-controlling interests and preferred share dividends.

Funds from operations grew 3 per cent on a comparative basis as 2016 included catch-up and transaction fees of $49-million. FFO benefited from an increase in base fees on the higher level of fee-bearing capital and growth in incentive distributions. FFO includes realized disposition gains of $214-million, which were consistent quarter over quarter.

Annualized fees increased to $1.2-billion, up 24 per cent from the prior year, while target carried interest increased by 43 per cent to $860-million. The growth results from a 14-per-cent increase over the last 12 months in fee-bearing capital, which now stands at $113-billion. The company benefited from strong capital inflows to its private funds, including the closing of three flagship funds in 2016 and new product offerings, as well as growth in the market capitalization and unitholder distributions of its listed issuers.

Dividend declaration

The board declared a quarterly dividend of 14 cents per share (representing 56 cents per annum), payable on June 30, 2017, to shareholders of record as at the close of business on May 31, 2017. The board also declared all of the regular monthly and quarterly dividends on its preferred shares.

Highlights

The company announced or completed acquisitions that deployed $17-billion of capital over the last 12 months, including $3-billion in the current quarter.

The company completed the acquisition of a U.S. manufactured housing portfolio, added to its portfolio of student housing assets in the United Kingdom, acquired a portfolio of U.S. office properties and a preferred equity investment in a public, non-traded hospitality real estate investment trust. The company also completed two investments in its new open-ended core-plus fund -- an office building in downtown San Francisco and a portfolio of logistics assets.

The company's renewable power business announced the acquisition of a 51-per-cent controlling interest in TerraForm Power and 100 per cent of TerraForm Global. These businesses collectively own and operate a 3,600-megawatt global wind and solar portfolio. This transaction marks the company's first major investment in solar and establishes a platform for further growth in the sector.

In April, the company's infrastructure group closed the purchase of a 90-per-cent interest in a natural gas pipeline business in Brazil for $5-billion. This is a fully contracted and highly cash generative business that will significantly expand the company's utilities operations in a sector and geography that it knows well.

In its private equity business, the company recently closed the acquisition of an 85-per-cent interest in a leading road fuels provider in the U.K. and its previously announced 70-per-cent stake in Brazil's largest private water distribution, collection and treatment business. The company also announced an agreement to acquire one of the largest gas station networks in Canada from a major national retailer.

The company's flagship funds are significantly invested, positioning it well for future financing.

The company's second flagship real estate opportunity fund, BSREP II, is now approximately 80 per cent committed or invested. This enables the company to launch a successor fund in the second quarter. The company's flagship funds in infrastructure (BIF III) and private equity (BCP IV) closed in 2016 with a solid pipeline of investment opportunities and are now over 45 per cent and 55 per cent invested or committed, respectively. The company expects to begin financing for its next infrastructure and private equity flagship funds in 2018.

The company continues to maintain high levels of liquidity in order to pursue further transactions.

The company finished the quarter with core liquidity of $9-billion and dry powder in its private funds of $20-billion. In addition, the company continues to recycle capital as a key source of liquidity, particularly within its real estate group which has raised $3-billion over the last 12 months through property sales. The company recently sold its 51-per-cent interest in 245 Park Ave., a New York office tower, for equity proceeds of $650-million.

The company is broadening its product offering to provide additional options for its investors.

In addition to its traditional funds, the company has been deploying capital in several new entities across asset classes and geographies. The company continues to raise capital and invest it for its open-ended private real estate fund. Another particular area of focus has been credit strategies: the company has built dedicated private credit programs within each business group, including an infrastructure debt fund where it will provide loans against high-quality core infrastructure assets, a real estate debt fund in North America and a credit fund in its private equity operations.

Special dividend of Trisura Group Ltd. shares declared

The company has now received the necessary approvals to complete the previously announced distribution of all of the common shares of Trisura Group to holders of Brookfield's Class A and B limited voting shares. Trisura Group is an international specialty insurance provider operating in the surety, risk solutions, corporate insurance and reinsurance niche segments of the market.

On June 22, 2017, shareholders of record as of June 1, 2017, will receive one Trisura Group common share for every 170 shares of Brookfield. The dividend is currently estimated to be valued at approximately 11 U.S. cents per Brookfield share, or approximately $110-million (U.S.) in the aggregate. Trisura Group has received conditional approval to list its common shares on the Toronto Stock Exchange under the symbol TSU.

Shareholders will receive a cash payment in lieu of any fractional interests in the Trisura Group common shares. Brookfield will use the volume-weighted average trading price of the Trisura Group common shares for the five trading days immediately following the spinoff to determine the value of the Trisura Group common shares for the purpose of calculating the cash payable in lieu of any fractional interests.

Only holders of Brookfield shares as of close of business on June 1, 2017, will be entitled to receive the distribution of the common shares of Trisura Group. Holders of Brookfield Asset who sell their shares before June 1, 2017, and whose sales of such securities settle before the close of business on the New York Stock Exchange or the Toronto Stock Exchange on such date, will not be entitled to receive the distribution of the common shares of Trisura Group. Similarly, investors who purchase shares before June 1, 2017, and whose purchases of such securities settle after the close of business in New York (if listed on the New York Stock Exchange) or Toronto (if listed on the Toronto Stock Exchange) on such date, will not be entitled to receive the distribution of the common shares of Trisura Group.

Brookfield expects common shares of Trisura Group to begin trading on a when-issued basis on the TSX on May 30, 2017. Trisura Group is expected to begin regular-way trading on the TSX on June 22, 2017, under the symbol TSU.

Quarterly earnings call details

Investors, analysts and other interested parties can access Brookfield Asset Management's 2017 first quarter results as well as the shareholders letter and supplemental information on Brookfield's website under the reports and filings section at the company's website.

The conference call can be accessed via webcast on May 11, 2017, at 11 a.m. ET at the company's website or via teleconference at 1-800-319-4610 toll-free in North America. For overseas calls please dial 1-604-638-5340, at approximately 10:50 a.m. ET. A recording of the teleconference can be accessed at 1-800-319-6413 or 1-604-638-9010 (password: 1254 followed by the pound key).

Brookfield Asset Management is a leading global alternative asset manager with approximately $250-billion in assets under management. The company has more than a 100-year history of owning and operating assets with a focus on real estate, renewable power, infrastructure and private equity.

            CONSOLIDATED STATEMENTS OF OPERATIONS                       
               (in millions, except per share)                                                     
                                                  
                                 Three months ended March 31,
                                             2017       2016

Revenues                                  $ 6,001    $ 5,218
Direct costs                               (4,387)    (3,648)
Other income and gains                        265         35
Equity accounted income                       335        152
Expenses
Interest                                     (843)      (767)
Corporate costs                               (25)       (23)
                                            1,346        967
Fair value changes                           (204)       352
Depreciation and amortization                (499)      (481)
Income tax                                   (125)      (202)
Net income                                    518        636
Net income (loss) attributable to
Brookfield shareholders                       (37)       257
Non-controlling interests                     555        379
                                              518        636
Net income (loss) per share
Diluted                                     (0.08)      0.23
Basic                                       (0.08)      0.23

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