Core Insights - AI stocks are currently perceived to be trading in bubble territory, with many companies exhibiting extremely high valuations, a sentiment echoed by OpenAI CEO Sam Altman [2] Group 1: Investment Focus - iREIT+HOYA Capital emphasizes income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging opportunities [1] Group 2: Market Sentiment - The acknowledgment of inflated valuations in AI stocks indicates a cautious market sentiment, suggesting a potential reevaluation of investment strategies in this sector [2]

Core Viewpoint - Brookfield Corporation has received approval from the Toronto Stock Exchange for the renewal of its normal course issuer bid to repurchase up to 10% of the public float of its outstanding Class A Preference Shares, with the bid period extending from August 22, 2025, to August 21, 2026 [1][3]. Summary by Relevant Sections Normal Course Issuer Bid - The renewed normal course issuer bid allows Brookfield to purchase Preferred Shares on the open market, with all acquired shares to be cancelled [1][3]. - The company has not made any purchases under the current issuer bid that commenced on August 22, 2024, which will expire on August 21, 2025 [3]. Series and Trading Information - The company has various series of Preferred Shares, with the maximum number of shares subject to purchase varying by series. For example, Series 2 has a maximum of 1,717 shares, while Series 24 has a maximum of 2,966 shares [2][14]. - The average daily trading volume for these shares ranges from 1,000 to 11,864, depending on the series [2]. Automatic Share Purchase Plan - Brookfield plans to implement an automatic share purchase plan around the week of September 22, 2025, allowing for purchases during internal trading black-out periods [4]. Company Overview - Brookfield Corporation is a leading global investment firm focused on long-term wealth creation across three core businesses: Alternative Asset Management, Wealth Solutions, and Operating Businesses in renewable power, infrastructure, and real estate [6][7]. - The company has a history of delivering over 15% annualized returns to shareholders for more than 30 years, supported by its investment and operational expertise [7].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The market fluctuates between exuberance and pessimism, creating opportunities for value investors to identify attractive dividend stocks [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing personal conclusions before making investment decisions [4][5]

Core Insights - The article expresses a personal opinion regarding investment positions in BNJ and BEPI, indicating a beneficial long position in these shares [1] Group 1 - The information provided is intended solely for informational purposes and should not be construed as a solicitation for buying or selling securities [2] - It emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [2] - The article clarifies that past performance does not guarantee future results, and no specific investment recommendations are made [3]

Group 1 - Brookfield Asset Management (NYSE: BAM) is viewed as a valuable investment despite trading at a premium compared to peers, indicating strong underlying rationale for this premium [1] - The company is recognized for its focus on equity valuation, market trends, and portfolio optimization, which are essential for uncovering high-growth investment opportunities [1] - The investment approach combines rigorous risk management with a long-term perspective on value creation, emphasizing macroeconomic trends and corporate earnings [1]

Core Viewpoint - Partners Value Split Corp. reported a net asset value per unit of $157.55 as of June 30, 2025, reflecting a strong financial position and growth in income and comprehensive income compared to the previous year [1][2]. Financial Performance - Income available for distribution for the six months ended June 30, 2025, was $48 million, an increase from $42 million in the prior year, primarily due to higher dividend rates from Brookfield Corporation and Brookfield Asset Management Ltd. [2][4] - Net comprehensive income reached $533 million, significantly up from $159.77 million in the prior period, driven by higher unrealized mark-to-market gains on shares of Brookfield Corporation and Brookfield Asset Management [2][4]. - The fair value of Brookfield Corporation shares was $61.85 as of June 30, 2025, up from $57.45 at the end of 2024, while Brookfield Asset Management shares had a fair value of $55.28, compared to $54.19 at the end of 2024 [2][4]. Investment Holdings - As of June 30, 2025, the Company owned 120 million Class A Limited Voting shares of Brookfield Corporation and 30 million Class A Limited Voting shares of Brookfield Asset Management, which generate cash flow through dividend payments [4][5][6]. - The Company's investment in Brookfield Corporation represents approximately an 8% interest, while the investment in Brookfield Asset Management represents about a 2% interest [5][6]. Dividend Information - The Company reported distributions paid on senior preferred shares and debentures amounting to $16.87 million for the six months ended June 30, 2025, compared to $15.83 million in the prior year [4]. - Income available for distribution to junior preferred and capital shares was $31.39 million, up from $26.55 million in the previous year [4]. Asset Management Overview - Brookfield Corporation is recognized as a leading global investment firm focused on long-term wealth creation across three core businesses: asset management, wealth solutions, and operating businesses [5]. - Brookfield Asset Management Ltd. is noted for managing over $1 trillion in assets across various sectors, including real estate, infrastructure, and private equity [6].

Financial Performance - The Partnership reported a net loss of $6.2 million for the quarter ended June 30, 2025, a significant decrease from a net income of $21.6 million in the same quarter of the previous year, primarily due to unfavorable foreign currency movements and higher tax recoveries in the prior year [2][4] - Investment income for the quarter included $26.241 million in dividends and $6.450 million in other investment income, totaling $32.691 million, compared to $27.589 million in the prior year quarter [4] - Operating expenses decreased to $1.048 million from $1.301 million year-over-year, while financing costs remained relatively stable at $2.501 million compared to $2.545 million in the previous year [4] Investment Portfolio - The Partnership holds approximately 121 million Class A Limited Voting Shares of Brookfield Corporation (BN) and approximately 31 million Class A Limited Voting Shares of Brookfield Asset Management Ltd. (BAM), representing about 8% and 2% interests in BN and BAM, respectively, as of June 30, 2025 [5] - The market prices for BN and BAM shares as of June 30, 2025, were $61.85 and $55.28, respectively, with prices increasing to $65.60 and $62.11 by August 14, 2025 [3] Financial Position - As of June 30, 2025, total assets amounted to $10.329 billion, an increase from $9.640 billion at the end of 2024, with significant investments in Brookfield Corporation and Brookfield Asset Management [6] - The Partnership's liabilities included $1.271 billion, with preferred shares totaling $1.010 billion, reflecting an increase from $939 million at the end of 2024 [6] - The net book value at the end of the period was $9.010 billion, with a per unit value of $11.47, adjusted for a ten-for-one unit split effective August 8, 2025 [4][6]

Core Points - Brookfield Corporation announced a public offering of $650 million principal amount of senior notes due 2036 with an interest rate of 5.330% per annum [1][2] - The offering is expected to close on August 20, 2025, subject to customary closing conditions [1] - The net proceeds from the sale of the notes will be used for general corporate purposes [2] Company Overview - Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals [5] - The company operates three core businesses: Alternative Asset Management, Wealth Solutions, and Operating Businesses in renewable power, infrastructure, business and industrial services, and real estate [5] - Brookfield has a track record of delivering over 15% annualized returns to shareholders for over 30 years [6]

Group 1 - Investors in Brookfield Business Partners L.P. (BBU) should monitor the stock due to significant implied volatility in the options market, particularly the Sept. 19, 2025 $30.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that a major event may be anticipated that could lead to a significant price change [2] - Currently, Brookfield Business Partners holds a Zacks Rank 4 (Sell) in the Business - Services industry, which is in the bottom 39% of the Zacks Industry Rank, with no analysts increasing earnings estimates and two revising them downward, resulting in a consensus estimate drop from $1.17 to $1.00 per share [3] Group 2 - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the underlying stock does not move as much as expected by expiration [4]

Financial Data and Key Metrics Changes - Distributable earnings before realizations increased 13% year over year to $1,300,000,000, equating to $0.80 per share for the quarter and $5,300,000,000 or $3.36 per share for the last twelve months [5][15] - Total distributable earnings including realizations were $1,400,000,000 or $0.88 per share for the quarter and $5,900,000,000 or $3.71 per share over the last twelve months, with total net income of $2,900,000,000 [15] Business Line Data and Key Metrics Changes - The asset management business generated distributable earnings of $650,000,000 or $0.41 per share in the quarter, and $2,700,000,000 or $1.72 per share over the last twelve months, with inflows during the quarter of $22,000,000,000 [16] - The Wealth Solutions business reported distributable operating earnings of $391,000,000 or $0.25 per share in the quarter and $1,600,000,000 or $1.02 per share over the last twelve months [17] - The operating businesses generated distributable earnings of $350,000,000 or $0.22 per share in the quarter and $1,700,000,000 or $1.07 per share over the last twelve months [18] Market Data and Key Metrics Changes - Global equities hit all-time highs, credit spreads tightened dramatically, and interest rates remained largely unchanged, with expectations of potential cuts on the short end of the curve [6][7] - The company completed GBP55 billion of asset sales this year, including GBP35 billion in the quarter, generating excellent returns [8][21] Company Strategy and Development Direction - The company is focusing on digitalization, deglobalization, and decarbonization as key themes for capital deployment, with a record $177,000,000,000 of deployable capital [8][10] - The launch of an AI infrastructure strategy is underway, aimed at developing AI factories to meet the growing demand for compute capacity [9][10] - The company plans to enhance the efficiency of its capital structure while maintaining a focus on low-risk, long-duration insurance [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is becoming increasingly constructive, supporting increased monetizations and cash flow growth [6][8] - The company anticipates continued growth in results over the remainder of the year, with strong underlying fundamentals driving performance [25] Other Important Information - The Board of Directors declared a quarterly dividend of $0.09 per share and approved a three-for-two stock split of the outstanding Class A limited voting shares [25] - The company announced an agreement to acquire Just Group for $3,200,000,000, expected to significantly accelerate growth in insurance assets [18] Q&A Session Summary Question: Growth in P&C business and scaling plans - Management indicated that the focus is on low-risk liabilities, particularly in the annuity business, with potential for organic growth in P&C if competitive advantages are identified [27][28] Question: Market conditions and carried interest timing - Management stated that while market conditions are improving, the expected timing for carried interest remains broadly in line with previous plans, with significant contributions expected next year [34][36] Question: Just Group acquisition financing details - Management noted that the acquisition is subject to strict UK takeover rules, limiting the details that can be shared at this stage [40] Question: Evolution of corporate structure with insurance operations - Management emphasized that the insurance business will remain integrated into Brookfield, enhancing returns on capital and providing growth opportunities [44][46] Question: AI infrastructure strategy and investor support - Management confirmed engagement with large clients for potential cornerstone investments in the AI infrastructure strategy, aiming to mitigate technological obsolescence risk through structured investments [49][50]