An anonymous director reports
PARTNERS VALUE INVESTMENTS INC. ANNOUNCES 2022 ANNUAL RESULTS
Partners Value Investments LP's Partners Value Investments Inc. has released its financial results for the year ended Dec. 31, 2022. All amounts are stated in U.S. dollars.
The company generated net income of $1.9-billion for the year ended Dec. 31, 2022, compared with a net loss of $1.0-billion in the prior year. Net income was higher in the current period primarily due to a special non-cash distribution received from Brookfield Corp.(formerly Brookfield Asset Management Inc.). On Dec. 9, 2022, the corporation completed the distribution of a 25-per-cent interest in its asset management business through Brookfield Asset Management Ltd., which was incorporated and publicly listed for the purpose of holding an interest in this business. As part of this distribution, the company received one share of the manager for every four shares held of the corporation. As a result, the company recognized non-cash dividend income of $1.0-billion from the corporation in its consolidated statements of operations.
The increase in net income further included remeasurement gains of $495-million during the year relating to the company's retractable common shares, compared with remeasurement losses of $402-million in the prior year. The company's retractable common shares are classified as liabilities due to their exchangeable feature equivalent to a Partners Value Investments LP unit; therefore, the remeasurement gains or losses in a given period are driven by the respective depreciation or appreciation of the partnership unit price. During the year, the partnership unit price decreased by $8.09 compared with an increase of $13.70 in the prior year. The partnership unit value is primarily driven by the share prices of the corporation and the manager, which experienced decreases during the year along with the broader market.
Excluding retractable share and warrant liability remeasurement gains and non-recurring transactions, adjusted earnings for the company were $121-million for the year ended Dec. 31, 2022, compared with $6-million in the prior year. Adjusted earnings are higher in the current-year period due to foreign currency gains and tax recoveries as a result of the depreciation of the Canadian dollar, which most of the company's liabilities are denominated in.
As at Dec. 31, 2022, the market prices of a corporation (New York Stock Exchange/Toronto Stock Exchange: BN) and manager (NYSE/TSX: BAM) share were $31.46 and $28.67, respectively. As at March 29, 2023, the market prices of a BN and BAM share were $31.19 and $31.39, respectively.
Effective March 31, 2023, Rachel Powell was replaced by Jason Weckwerth as chief financial officer of the company.
About Partners Value Investments LP
The company's principal investments are its interest in 132 million Class A limited voting shares of the corporation and approximately 33 million Class A limited voting shares of the manager. This represents an 8-per-cent interest as at Dec. 31, 2022, in both entities. In addition, the company owns a diversified investment portfolio of marketable securities.
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