Mr. Bruce Flatt reports

BROOKFIELD ASSET MANAGEMENT REPORTS 2015 RESULTS

Brookfield Asset Management Inc. has released its financial results for the quarter and year ended Dec. 31, 2015 (all amounts are in U.S. dollars).

Bruce Flatt, chief executive officer of Brookfield, said: "Our global portfolio of real assets performed well during the year, and we delivered strong results for our clients and shareholders. We deployed $21-billion, announcing or completing several acquisitions, including some signature assets -- Canary Wharf and Center Parcs in the United Kingdom, TDF Communications in France, hydroelectric facilities in the United States and Brazil, and more recently Isagen hydroelectric in Colombia. This year, we intend to launch our new listed partnership, Brookfield Business Partners, and close a number of flagship private funds, enhancing our ability to make value investments in attractive opportunities around the world."

• Net income for 2015 was $4.7-billion, or $2.26 per share. Favourable operating results across most of the company's portfolio and the expansion of its operations contributed a higher level of earnings compared with the prior year. Net income continued to benefit from increases in the value of the company's global commercial property portfolio, which was enhanced by strong leasing activity and strengthening market valuations for high-quality properties, as evidenced by recent transactions.
• Funds from operations for Brookfield shareholders increased 18 per cent over 2014 to $2.6-billion, or $2.49 per share, during the year. FFO prior to realized disposition gains and carried interest increased to $1.7-billion, representing substantial growth in fee-based revenues and solid operating results across most of the company's portfolio, reflecting the accretive contribution from its diversified capital deployment initiatives and operating expertise. The company generated $842-million of disposition gains during the year, compared with $569-million in the previous year, as it continues to monetize assets at excellent valuations.
• Fee-bearing capital increased by more than $10-billion year over year to nearly $100-billion through strong financing and capital deployment initiatives. The company is currently raising six private funds targeting an additional $13-billion of commitments; it anticipates completing its financing for the follow-on real estate and private equity funds in early 2016.
• The company committed or deployed $21-billion of capital to new investments during the year as it continues to leverage its global operating platform to identify and close on investment opportunities. Significant recent investments include hydroelectric facilities in Colombia and the U.S., a toehold position in a leading rail and port logistics business in Australia, toll roads in India, and high-quality office properties and multifamily buildings in the U.S., Europe and Brazil.

                            FINANCIAL HIGHLIGHTS
              (In millions of U.S. dollars, except per share)

                                        Three months ended        Year ended
                                                   Dec. 31,          Dec. 31,
                                             2015     2014     2015     2014

Funds from operations                     $   981  $   535  $ 2,559  $ 2,160
Per Brookfield share                         0.97     0.52     2.49     2.11
Net income                                $ 1,187  $ 1,699  $ 4,669  $ 5,209
Per Brookfield share                         0.66     1.06     2.26     3.11

Operating highlights -- 2015

Operating results were favourable across most of the company's major businesses, despite facing several headwinds, such as lower water levels, energy prices and currency exchange rates. Funds from operations for the year increased by $399-million, of which $97-million reflected the overall improvement in operating results and $302-million reflects a higher level of disposition gains as the company continues to monetize the increasing value of its asset base.

Inflows of capital across all of the company's investment categories over the last year contributed to a 24-per-cent growth in fee revenues to $943-million and a 37-per-cent increase in fee-related earnings to $519-million for the year. Increases in private fund commitments and capital invested over the last year primarily contributed to the increased fee-based earnings. Incentive distributions earned by the company increased 50 per cent as its listed partnerships continue to raise cash distributions to all unitholders. Furthermore, the ability of the company's listed partnerships to recycle capital enables them to both enhance liquidity and finance growth initiatives with internally generated capital, without having to access public markets. The company also realized $32-million of carried interest.

The company's property business generated $1.4-billion of FFO, and benefited from the contribution from new investments and positive same-property growth in office and retail portfolios. The company monetized interests in core office assets during the year, capitalizing on attractive global asset valuations for high-quality properties, which contributed to $785-million of realized disposition gains. The company used the proceeds of these asset sales to repay in full the $1.5-billion facility which partially financed the privatization of its office company, meaningfully decreasing leverage in these operations. Cash flows benefited from the completion of 36 million square feet of leasing activities across the portfolio, capturing market rent uplifts and increasing occupancy, specifically in Lower Manhattan. All of these initiatives enabled the company's listed property partnership to increase its annual distribution to unitholders by 5.7 per cent and obtain an investment grade corporate debt rating.

The company's renewable energy business produced FFO of $233-million. Water levels were well below historic averages and the prior year's, although generation benefited due to production from newly acquired facilities. Subsequent to year-end, the company acquired a controlling interest in 3,032 megawatts of hydroelectric facilities and 3,800 mw of development projects in Colombia for approximately $2.2-billion, along with facilities in the Northeastern U.S. Following these highly accretive acquisitions and completion of internal growth initiatives, the company announced a 7-per-cent distribution increase in its listed renewable energy partnership.

FFO from the infrastructure group increased to $252-million during the year, benefiting from the contribution of the company's newly acquired communications infrastructure assets, in addition to internal growth initiatives across the company's business, which produced a 12-per-cent increase in same-store FFO on a constant-currency basis. The company acquired a minority position in Australia's leading ports and logistics business, and is attempting to acquire the rest of the company for approximately $12-billion (Australian) and is moving forward with its substantial capital investment program. Based on the company's operating performance, significant liquidity and growth prospects, it recently announced a 7.5-per-cent increase in unitholder distributions, consistent with its targeted annualized level.

The company's private equity businesses generated FFO of $446-million, including $171-million from its North American residential development business. The industrial and business services operations generated $242-million of FFO, representing a 14-per-cent increase over the prior year, and the company's directly held industrial business generated $21-million of FFO on higher volumes. The company continues to expand its private equity operations, and invested over $2-billion in the energy, metals and real estate sectors during the past year.

The company continues to expand its listed and private funds.

Fee-bearing capital was approximately $100-billion at year-end; net inflows of $14-billion included $12-billion of new commitments to private funds, and $1-billion of capital in both listed partnerships and public markets accounts. This asset growth was partly offset by a declining global equity market, which reduced the quoted value of the capital the company manages in its listed partnerships and public markets funds. The company returned $3-billion to its listed and private fund partners through dividends and asset sales. The higher level of fee-bearing capital increased the company's annualized fee base and target carried interest to $1.6-billion.

The company has nearly completed financing for the next series of two of its flagship private funds and recently launched its follow-on infrastructure fund. The company expects these three funds to achieve over $20-billion of commitments, of which the company has already invested or committed to invest nearly $6-billion. The company is also moving forward with new specialized private funds, seeking more than $2-billion of commitments.

The company's fourth listed partnership, Brookfield Business Partners, continues to move forward to being listed and it anticipates the successful launch of this public entity in the first half of 2016, further enhancing the listed and private fund strategy, and providing perpetual capital for the expansion of the private equity platform.

The company announced or completed acquisitions over the year that will deploy $21-billion of capital and continued to raise funds by selling mature assets.

During the year, the company expanded its portfolio by acquiring high-quality real assets at attractive valuations, including office buildings in Germany and Brazil, multifamily portfolios in the U.S., hydroelectric facilities in the U.S. and Colombia, an energy business in Australia, and toll roads in India.

Continued strong demand for high-quality cash-flowing assets enabled the company to sell assets at attractive valuations, including office buildings in North America, Australia, Europe and Asia, North American wind farms, and electrical transmission networks in the U.S. The company will continue to recycle capital by selling mature assets at these attractive valuations and redeploying the proceeds in growth initiatives that it sources across its global platform.

The company currently holds approximately $5.7-billion of core liquidity across its business and an additional $9.3-billion of capital to invest for clients, with a further $10-billion to $15-billion to come in the next few quarters.

Dividend declaration

The board declared a quarterly dividend of 13 cents per share (representing 52 cents per annum), payable on March 31, 2016, to shareholders of record as at the close of business on Feb. 29, 2016. This represents an increase of 8 per cent over the current dividend rate. The board also declared all of the regular monthly and quarterly dividends on its preferred shares.

                   CONSOLIDATED STATEMENTS OF OPERATIONS
              (In millions of U.S. dollars, except per share)
                                               
                              Three months ended Dec. 31, Year ended Dec. 31,
                                          2015      2014      2015      2014

Revenues                              $  5,538  $  4,694  $ 19,913  $ 18,364
Direct costs                            (4,092)   (3,432)  (14,433)  (13,118)
                                         1,446     1,262     5,480     5,246
Other income and gains                       -         -       145       190
Equity accounted income                    521       625     1,695     1,594
                                         1,967     1,887     7,320     7,030
Expenses
Interest                                  (703)     (669)   (2,820)   (2,579)
Corporate costs                            (23)      (30)     (106)     (123)
                                         1,241     1,188     4,394     4,328
Fair value changes                         594     1,326     2,166     3,674
Depreciation and amortization             (430)     (370)   (1,695)   (1,470)
Income tax                                (218)     (445)     (196)   (1,323)
Net income                            $  1,187  $  1,699  $  4,669  $  5,209
Net income attributable to
Brookfield shareholders               $    678  $  1,050  $  2,341  $  3,110
Non-controlling interests                  509       649     2,328     2,099
                                      $  1,187  $  1,699  $  4,669  $  5,209
Net income per share
Diluted                               $   0.66  $   1.06  $   2.26  $   3.11
Basic                                     0.67      1.09      2.32      3.20

We seek Safe Harbor.