No. of Recommendations: 3
Excerpts:
As we approach the end of 2023, and with a lot going on, we decided to take the opportunity to reflect on key highlights from the year and provide a summary of some recent notable achievements. We were very active during 2023 amidst a broader market slowdown. In total, we deployed $55 billion of capital into some of the largest and most attractive investment opportunities globally across a variety of sectors. At the same time, monetizations totaled over $30 billion, generating strong returns for investors and underlining the fact that high-quality assets that form the backbone of the global economy remain in strong demand. All told, almost $100 billion of financings were arranged across our businesses and access to capital continues to be very strong.
With all of our flagship funds in the market in 2023, we are set to achieve our goal of almost $150 billion of fundraising, including the close of American Equity Life (AEL) which we expect shortly.
Against the market backdrop in 2023, we have continued to differentiate our business by maintaining our conservatively capitalized balance sheet, high levels of liquidity and by consistently accessing the capital markets to support the financing of ongoing operations and growth. We have maintained nearly $120 billion of deployable capital while investing $55 billion. This allowed our businesses to invest with confidence, and combined with the close to $100 billion of financings, put us in excellent financial shape.
Our Brookfield Corporation (BN) credit rating was upgraded to A by DBRS, and on the back of the upgrade, earlier this month we issued $700 million of 10-year debt at 6.35%. BAM is in the midst of securing an indicative credit rating which is expected to be very strong given its annuity-like cash flows and pristine financial position. In our real estate business, our underlying operations continue to be strong, and we have proven our ability to finance and refinance our debt maturities, with over $30 billion of financings being completed this year. Despite this and the tailwind we expect from lower interest rates, our BPY rating was recently reduced to BB. However, as we look forward, we expect that the continued strong underlying performance of our assets, combined with improving credit markets and lower interest rates, sets us up well to grow cash flows and deal very comfortably with all debt maturities.
Bruce Flatt
Chief Executive Officer
December 22, 2023
Link to full letter
https://bn.brookfield.com/press-releases/brookfiel... 