Partners Value Investments Inc. Announces Q2 2025 Interim Results

Executive Summary

• Partners Value Investments Inc. reported financial results for the six months ended June 30, 2025, highlighting a significant net loss for the most recent quarter driven by mark-to-market accounting adjustments on financial liabilities.
• The Company recorded a net loss of $135 million for the three months ended June 30, 2025, a sharp reversal from the $94 million net income reported in the prior year quarter.
• The primary driver of the decline was a $247 million remeasurement loss on retractable common shares, linked to the appreciation of the underlying Partnership unit price, partially offset by gains on warrant liabilities.

Key Details

• Quarterly Net Loss: $135 million for the three months ended June 30, 2025 (vs. $94 million net income in Q2 2024).
• Six-Month Net Income: $836.7 million for the six months ended June 30, 2025 (vs. $80.7 million net loss in the same period of 2024).
• Remeasurement Losses (Retractable Shares): $247 million loss in Q2 2025, compared to a $95 million gain in Q2 2024. This is attributed to the increase in the Partners Value Investments L.P. unit price by $3.39 during the quarter (vs. a decrease of $1.34 in the prior year).
• Remeasurement Gains (Warrants): $119 million gain in Q2 2025, compared to a $21 million loss in Q2 2024.
• Remeasurement Gains (Exchangeable Shares): $21 million gain recognized in Q2 2025 (not present in prior year).
• Adjusted Losses: $21 million for Q2 2025 (vs. $29 million Adjusted Earnings in Q2 2024). Adjusted figures exclude remeasurement losses/gains on shares and warrants, and dividends paid on retractable shares.
• Investment Income: $36.3 million for Q2 2025 (vs. $31.2 million in Q2 2024), comprising $29.8 million in dividends and $6.5 million in other investment income.
• Operating Expenses: $1.0 million for Q2 2025 (vs. $0.7 million in Q2 2024).
• Financing Costs: $10.2 million for Q2 2025 (vs. $10.2 million in Q2 2024).
• Foreign Currency Loss: $39.7 million loss in Q2 2025 (vs. $6.9 million gain in Q2 2024).
• Principal Holdings:
  • Brookfield Corporation (BN): 121 million Class A Limited Voting Shares (~8% interest). Market value at June 30, 2025: $61.85/share.
  • Brookfield Asset Management Ltd. (BAM): ~31 million Class A Limited Voting Shares (~2% interest). Market value at June 30, 2025: $55.28/share.
  • Brookfield Wealth Solutions Ltd. (BWS): Exchangeable into BN on a one-for-one basis.
• Balance Sheet Highlights (as of June 30, 2025):
  • Total Assets: $10.66 billion.
  • Cash and Cash Equivalents: $200.8 million.
  • Corporate Borrowings: $220.1 million.
  • Retractable Common Shares (Liability): $6.61 billion.
  • Preferred Shares (Liability): $773.6 million.
  • Warrant Liability: $404.5 million.
  • Accumulated Other Comprehensive Income: $8.61 billion.