Partners Value Investments L.P. Announces Q2 2025 Interim Results

TORONTO, Aug. 15, 2025 (GLOBE NEWSWIRE) -- Partners Value Investments L.P. (the “Partnership”, TSX: PVF.UN TSX: PVF.PR.U) announced today its financial results for the six months ended June 30, 2025. All amounts are stated in U.S. dollars. The Partnership recorded a net loss of $6.2 million for the quarter ended June 30, 2025, compared to net income of $21.6 million in the prior year quarter. The decrease in income was primarily due to unfavorable foreign currency movements as a result of the appreciation of the Canadian dollar against the U.S. dollar and higher tax recoveries recorded in the prior year quarter, partially offset by higher dividend and investment income compared to the prior year quarter. A loss of $8.6 million was attributable to the Equity Limited Partners, and income of $2.4 million was attributable to Preferred Limited Partners. On August 8, 2025, the Partnership completed a ten-for-one unit split of the outstanding equity units of the Partnership (“Unit Split”). All unit count and per-unit disclosures are presented on a post-split basis. As at June 30, 2025, the market prices of a Brookfield Corporation (“BN”, NYSE/TSX: BN) and Brookfield Asset Management Ltd. (“BAM”, NYSE/TSX: BAM) share were $61.85 and $55.28, respectively. As at August 14, 2025, the market prices of a BN and BAM share were $65.60 and $62.11, respectively. Consolidated Statements of Operations For the period ended June 30, Unaudited (Thousands, US dollars) Three months ended   Six months ended 2025   2024   2025   2024 Investment income               Dividends $ 26,241     $ 23,429     $ 52,800     $ 47,456   Other investment income   6,450       4,160       13,629       8,195       32,691       27,589       66,429       55,651   Expenses               Operating expenses   (1,048 )     (1,301 )     (2,400 )     (3,738 ) Financing costs   (2,501 )     (2,545 )     (4,918 )     (5,026 ) Retractable preferred share dividends   (11,567 )     (10,223 )     (21,608 )     (19,959 )     17,575       13,520       37,503       26,928                   Other items               Investment valuation (loss) gain   (1,218 )     443       5,994       1,367   Amortization of deferred financing costs   (1,246 )     (871 )     (2,158 )     (1,755 ) Foreign currency (loss) gain   (19,757 )     5,398       (19,881 )     14,297   Current tax (expense) recovery   (2,186 )     (1,742 )     (2,547 )     6,327   Deferred tax recovery (expense)   650       4,865       (452 )     707   Net (loss) income $ (6,182 )   $ 21,613     $ 18,459     $ 47,871                                   The information in the following table shows the changes in net book value: For the period ended June 30 (Thousands, except per unit amounts) Three months ended   Six months ended Total     Per Unit1     Total     Per Unit1   Net book value, beginning of period2 $ 7,566,844     $ 9.63     $ 8,375,682     $ 10.28   Net (loss) income3   (8,599 )         13,621       Other comprehensive income3   1,433,827           605,380       Adjustment for impact of warrants2   19,208           19,035       Equity LP repurchases   (911 )         (3,349 )     Net book value, end of period4 $ 9,010,369     $ 11.47     $ 9,010,369     $ 11.47                                   Adjusted to reflect the ten-for-one unit split effective August 8, 2025. Calculated on a fully diluted basis. Net book value is a non‐IFRS measure used by management to measure the value of an Equity LP unit on a fully diluted basis. It is equal to total equity less General Partner equity, Preferred Limited Partners’ equity, non-controlling interests’ equity plus the value of consideration to be received on exercising of warrants, which as at June 30, 2025, was $133 million (December 31, 2024 – $114 million), and includes the impact of foreign currency movements. Attributable to Equity Limited Partners. At the end of the period, the diluted Equity LP units outstanding were 785,500,170 (December 31, 2024 – 814,746,100); this includes 25,873,510 (December 31, 2024 – 56,406,000) Equity LP units exchangeable on a one-for-one basis with shares of a non-wholly owned subsidiary, and units issued through the exercise of all outstanding warrants; including 585,938 (December 31, 2024 – 585,938) warrants held by partially-owned subsidiaries of the Partnership. Financial Profile The Partnership’s principal investments are its interest in approximately 121 million Class A Limited Voting Shares of BN and approximately 31 million Class A Limited Voting Shares of BAM. This represents approximately an 8% interest in BN and a 2% interest in BAM as at June 30, 2025. In addition, the Partnership owns a diversified investment portfolio of marketable securities and private fund interests. The information in the following table has been extracted from the Partnership’s Consolidated Statements of Financial Position: Consolidated Statements of Financial Position (Unaudited) As at (Thousands, US dollars)   June 30, 2025     December 31, 2024   Assets           Cash and cash equivalents   $ 200,841     $ 156,977   Accounts receivable and other assets     56,005       48,924   Investment in Brookfield Corporation1     7,482,044       6,949,656   Investment in Brookfield Asset Management Ltd.2     1,703,095       1,669,488   Investment in Brookfield Wealth Solutions Ltd.3     507,435       471,787   Other investments carried at fair value     379,591       343,090       $ 10,329,011     $ 9,639,922   Liabilities and equity           Accounts payable and other liabilities   $ 29,264     $ 42,055   Corporate borrowings     220,076       208,168   Preferred shares4     1,009,633       939,057   Deferred tax liabilities     11,715       7,933       $ 1,270,688     $ 1,197,213   Equity           Equity Limited Partners     8,877,291       8,261,639   Preferred Limited Partners     152,002       152,040   Non-controlling interests     29,030       29,030         9,058,323       8,442,709       $ 10,329,011     $ 9,639,922                     The investment in Brookfield Corporation consists of 121 million BN shares with a quoted market value of $61.85 per share as at June 30, 2025 (December 31, 2024 – $57.45). The investment in Brookfield Asset Management Ltd. consists of 31 million BAM shares with a quoted market value of $55.28 per share as at June 30, 2025 (December 31, 2024 – $54.19). Brookfield Wealth Solutions Ltd. (“BWS”) Class A shares are exchangeable into BN Class A shares on a one-for-one basis. Represents $786 million of retractable preferred shares less $12 million of unamortized issue costs as at June 30, 2025 (December 31, 2024 – $712 million less $9 million) and $236 million of three series of preferred shares (December 31, 2024 – $236 million). For further information, contact Investor Relations at [email protected]. Notice to Readers The Partnership is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement. This news release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian provincial securities laws and any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of the Partnership, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which are in turn based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of the Partnership are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. Although the Partnership believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward‐looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation, the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchanges rates and heightened inflationary pressures; limitations on the liquidity of our investments; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including acquisitions and dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws; risks associated with the use of financial leverage; catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; and other risks and factors detailed from time to time in the Partnership’s documents filed with the securities regulators in Canada. We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release and such other date specified herein. Except as required by law, the Partnership undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise. Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, or growth objectives will be met or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).