Partners Value Investments Inc. Announces Q3 2025 Interim Results

Executive Summary

• Partners Value Investments Inc. reported financial results for the nine months ended September 30, 2025, posting a significant net loss driven by mark-to-market remeasurement losses on financial liabilities.
• For the three months ended September 30, 2025, the Company recorded a net loss of $2.2 billion, a substantial increase from the $1.2 billion loss in the prior year quarter, primarily due to remeasurement losses on retractable common shares, warrants, and exchangeable shares.
• Adjusted Earnings (a non-IFRS measure excluding remeasurement impacts) rose to $46 million for the three-month period, up from $17 million in the prior year, supported by higher investment valuation gains and favorable foreign currency movements.

Key Details

• Net Loss (Three Months Ended Sept 30, 2025): $2.2 billion (compared to $1.2 billion in Q3 2024).
• Net Loss (Nine Months Ended Sept 30, 2025): $1.35 billion (compared to $1.27 billion in the same period of 2024).
• Adjusted Earnings (Three Months Ended Sept 30, 2025): $46 million (up from $17 million in Q3 2024).
• Adjusted Earnings (Nine Months Ended Sept 30, 2025): $55.3 million (down from $80.2 million in the same period of 2024).
• Primary Drivers of Net Loss:
  • Remeasurement loss on retractable common shares: $1.9 billion (current quarter) vs. $1.1 billion (prior year quarter).
  • Remeasurement loss on warrants: $252 million (current quarter) vs. $114 million (prior year quarter).
  • Remeasurement loss on exchangeable shares: $76 million (current quarter) vs. $nil (prior year quarter).
• Investment Portfolio Holdings (as of Sept 30, 2025):
  • Brookfield Corporation (BN): 121 million Class A Limited Voting Shares (approx. 8% interest). Market price at Sept 30, 2025: $68.58.
  • Brookfield Asset Management Ltd. (BAM): 26 million Class A Limited Voting Shares (approx. 2% interest). Market price at Sept 30, 2025: $56.94.
  • Brookfield Wealth Solutions Ltd. (BWS): Investment valued at $482.5 million.
• Corporate Actions:
  • On October 9, 2025, BN completed a three-for-two stock split, increasing the Company's BN shareholding to 181 million shares.
• Balance Sheet Highlights (Sept 30, 2025):
  • Total Assets: $11.6 billion.
  • Cash and Cash Equivalents: $349.4 million.
  • Corporate Borrowings: $215.2 million.
  • Preferred Shares: $856.1 million.
  • Retractable Common Shares (Liability): $8.3 billion.
  • Warrant Liability: $640.3 million.
• Investment Income (Nine Months Ended Sept 30, 2025):
  • Dividends: $90.1 million.
  • Other Investment Income: $18.7 million.
  • Total Investment Income: $108.8 million.