BROOKFIELD Corp /ON/ — Call Transcript 2025

Hello, and welcome to the Brookfield Corporation third quarter 2025 conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. I would now like to hand the conference call over to your first speaker, Ms. Katie Battaglia, Vice President, Investor Relations. Please go ahead. Thank you, Operator, and good morning. Welcome to Brookfield Corporation's third quarter 2025 conference call. On the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation. Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. As a reminder, we completed a three-for-two stock split on October 9th, 2025. Accordingly, all per-share amounts that are discussed during the conference call are on a post-split basis. After our formal comments, we'll turn the call over to the Operator and take analyst questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions. I would like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. security laws. These statements reflect predictions of future events and trends and do not relate to historic events. They are subject to known and unknown risks, and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. In addition, when we speak about our Wealth Solutions business, or Brookfield Wealth Solutions, we are referring to Brookfield's investments in this business that supported the acquisition of its underlying operating subsidiaries. With that, I'll turn the call over to Bruce. Thank you, and welcome everyone on the call. We delivered another strong quarter of financial results. Distributed earnings before realizations were $1.3 billion for the quarter, or $0.56 per share, and $5.4 billion over the last 12 months. That was $2.27 per share. That was an 18% increase over the same period last year. Our outlook remains strong, with each of our underlying businesses continuing to execute their strategic plans, driving strong organic earnings growth. Turning first to markets, economic activity and corporate earnings remain healthy. Capital markets are open, and transaction activity is picking up across most asset classes. For our business, that backdrop is constructive and highly supportive of real assets. Far this year, we financed $140 billion of debt across our operations and closed $75 billion of asset sales at attractive values, including over $35 billion in just the past few months. At the same time, the direction of monetary policy is turning. After an extended period of elevated interest rates, some softness in the labor markets has started to prompt policy easing from the Federal Reserve to support growth and maintain balance across the economy. While the current environment is influencing policy decisions today, it is important to consider the structural forces that shape where policy goes from here. Over the past 15 years, governments have relied on fiscal stimulus to offset slowdowns, leading to a build-up of public debt that is difficult to sustain in a higher interest rate environment. Policymakers around the world are now evaluating the tools available to stabilize these debt burdens. The most constructive outcome of that, and the one that we hope for, is faster economic growth that outpaces debt, which can be helped by AI and innovation. Second, austerity is always possible, but not too many governments have shown the desire to push that. And third, if growth stays modest, policymakers may instead quietly manage rates below inflation to ease debt burdens, lowering short rates and guiding long rates down. If this path is pursued, it would likely lead to a period of declining real yields and low nominal rates. This environment will provide the optimal conditions for real assets we invest into. Our portfolio is built around inflation-linked durable cash flows backed by hard assets that protect real returns. The benefits of real assets are always evident, but in this evolving environment, they are becoming an essential investment product for every portfolio. A suppression of real yields will amplify these benefits and enhance long-term value across the franchise. Turning to the business, we are entering the final quarter of 2025 with strong momentum and a record almost $180 billion of deployable capital, positioning our business to invest for value in the powerful secular trends that define the next chapter of growth in Brookfield, but also the global economy. First, AI innovation is fueling unprecedented demand for large-scale infrastructure. Second, aging populations are reshaping global savings and driving demand for new wealth and retirement products, which is going to last for decades. And third, the real estate recovery is well underway, Nick will cover that, and gaining momentum. Each of these trends represents a multi-decade opportunity to invest where our scale and expertise give us a major advantage. To that end, we advanced a number of strategic transactions during the quarter. In our Wealth Solutions business, we received shareholder approval for our acquisition of Just Group in the U.K., a region where the growing retirement market is creating significant opportunities for long-term investment. We also announced a reinsurance agreement with a leading Japanese insurance company, marking our entry into Japan's insurance market the first of many expected opportunities in the region. We agreed to acquire the remaining 26% of Oaktree that we don't own already, which will bring our ownership to 100% upon completion of the transaction. From the outset, our partnership with Oaktree has been grounded on shared principles, including a value-oriented approach to disciplined investing with a focus on compounding capital over time. Our scale and real asset expertise, combined with Oaktree's deep credit experience, has created one of the most comprehensive and diversified credit platforms globally. Third, we continue to partner with leading institutions, corporates, and governments around the world, and this is what makes our business different, combining capital expertise and our global reach to capture opportunities for all. We have several initiatives underway to deliver the next generation of energy transition and AI infrastructure globally, and I'll just mention a few. Through Westinghouse, during the quarter, we partnered with the U.S. government to deliver $80 billion of nuclear reactors. For context, that is the equivalent of eight large-scale nuclear plants, enough, for example, to power the entire state of Utah. These projects will help rebuild critical supply chains in the U.S., revitalize the domestic nuclear industry, and mark an inflection point for the growth of nuclear energy in North America. With Bloom Energy, we are developing 1 GW of behind-the-meter power generation from fuel cells to meet the growing demand from AI data centers and other energy-intensive applications, and we think this is just the beginning. And through our strategic partnership with Figure, recently announced a leading developer of humanoid robotics, we are providing access to our portfolio of real assets to create the real-world environments needed to develop, train, and deploy this technology safely and effectively, positioning us, most importantly, at the forefront of one of the most significant technological advances of the coming decades. Looking ahead, despite our size and scale today, our growth potential is greater than it has ever been. Our investment discipline, operating expertise, and access to large-scale capital positions us to deliver another strong phase of growth for shareholders in years to come. As always, thank you for your support. We appreciate your continued interest in Brookfield, and over to Nick. Thank you, Bruce, and good morning, everyone. We delivered strong financial results for the quarter, supported by continued momentum across our core businesses. Distributed earnings, or DE, before realizations were $1.3 billion for the quarter, or $0.56 per share, and $5.4 billion over the last 12 months, or $2.27 per share, representing an 18% increase over the prior year period. Total DE, including realizations, was $1.5 billion, or $0.63 per share for the quarter, and $6 billion, or $2.54 per share over the last 12 months, with total net income of $1.7 billion over the same period. Starting with our operating performance, each of our businesses continues to perform well. Our asset management business generated distributed earnings of $687 million, or $0.29 per share in the quarter, and $2.7 billion, or $1.14 per share over the last 12 months. Strong fundraising momentum led to $30 billion of inflows during the quarter and included over $6 billion from our retail and wealth clients. Fee-related earnings increased by 17% to a record $754 million as fee-bearing capital grew to $581 billion. During the quarter, we held the final institutional close of our second vintage flagship global transition strategy with total commitments of $20 billion, exceeding our target and marking the largest private fund globally dedicated to energy transition. We also launched our seventh vintage flagship private equity fund focused on essential services and industrial businesses and are preparing to launch our inaugural AI infrastructure fund, which together will drive strong fundraising momentum going into 2026. Finally, jointly with Brookfield Asset Management, we announced the acquisition of the remaining interest in Oaktree, of which $1.4 billion will be funded by the corporation. The transaction expands our ownership in Oaktree's carried interest, fee-related earnings, and balance sheet investments, and further strengthens our global credit platform. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. Turning to our Wealth Solutions business, we delivered another quarter of strong growth with distributed earnings of $420 million, or $0.18 per share in the quarter, and $1.7 billion, or $0.70 per share over the last 12 months. This represents organic growth of over 15% year-over-year, supported by strong investment performance, robust underwriting across property and casualty lines, and disciplined capital deployment. During the quarter, we originated $5 billion of retail and institutional annuities, bringing our total insurance assets to $139 billion. Importantly, we continue to focus on raising long-duration liabilities, with approximately 80% of new retail annuities written during the quarter having durations of five years or longer. Our investment portfolio generated an average yield of 5.7%, contributing to spread-related earnings that were 1.7% above our average cost of funds. As we continue to reposition the portfolio into higher-yielding real asset investments sourced within Brookfield, we are well-positioned to sustain strong spread-related earnings. During the quarter, we deployed $4 billion into Brookfield-managed strategies at an average net yield of 9%, which helped support a 15% return on equity consistent with our long-term target. We also made meaningful progress internationally, expanding across the fast-growing retirement markets in the U.K. and Japan. In the U.K., we received shareholder approval for the acquisition of Just Group, which remains on track to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. Upon closing, our insurance assets are expected to grow by approximately $40 billion-$180 billion. In Japan, we announced our first reinsurance agreement in the region with a leading Japanese insurance company to reinsure annuity policies on a flow basis. These initiatives strengthen our position in key international markets and position us to capture the growing global demand for retirement solutions. Our operating businesses continue to deliver growing and resilient cash flows, generating distributed earnings of $336 million, or $0.15 per share in the quarter, and $1.7 billion, or $0.72 per share over the last 12 months. These results underscore the strength of our operating performance and the continued momentum across each of the businesses. Our infrastructure and renewable power and transition businesses remain at the forefront of secular trends reshaping global investment opportunities. Recently, we announced new initiatives to advance next-generation power and AI infrastructure, including our partnership with the U.S. government through Westinghouse to deliver $80 billion of new nuclear plants in the United States. In our publicly listed private equity business, we announced plans to simplify its structure into a single listed corporate entity aimed at broadening the investor base and improving trading liquidity. Our real estate business continues to perform well, supported by improving market conditions and strong fundamentals. Leasing activity remains concentrated in high-quality, well-located assets, driving strong operating performance across the portfolio. Our Super Core portfolio continues to outperform with 96% occupancy at the end of the quarter, and our Core Plus portfolio, which shares similar high-quality characteristics, ended the quarter with 95% occupancy. During the quarter, we signed 3 million sq ft of office leases, with rents on newly signed leases averaging 15% above those expiring. Notably, at Canary Wharf, leasing activity remains very strong, with over 450,000 sq ft leased year to date, putting 2025 on track to be its best leasing year in the past decade. The leasing pipeline is also the strongest it has been in years, underscoring the depth of demand for high-quality space and Canary Wharf's position as one of the world's leading business destinations. Turning to monetizations, market conditions remain highly favorable for high-quality assets and businesses like the ones we own. To date this year, we advanced $75 billion of monetizations across our franchise, including $22 billion of real estate assets, $14 billion of infrastructure assets, nearly $11 billion of renewable assets, $7 billion from private equity, and $21 billion from credit and other diversified assets. Two recent highlights to note are as follows. In our infrastructure business, we completed the IPO of Rockpoint Gas Storage, one of the largest independent natural gas storage operators in North America. The offering was well received and oversubscribed, raising $810 million Canadian, the largest IPO on the Toronto Stock Exchange since May 2022. Following the IPO, we have now realized a multiple of capital over 3x, while retaining significant ownership interest in the business. And in our real estate business, we advanced the sale of the remaining assets in our U.S. manufactured housing portfolio for $2.5 billion, resulting in a total investment IRR of 25% and a 3.5 multiple on invested capital. Substantially, all sales completed this year were at or above carrying values and have crystallized significant value for our clients at attractive returns. Through these monetizations, we realized $154 million of carried interest into income during this quarter. Importantly, because our earnings recognition follows a European waterfall model, where carried interest is recognized only after we have returned to funds, invested the capital, and achieved a preferred return, a number of the realizations have advanced our mature funds closer to that carried interest realization. Shifting to capital allocation, during the quarter, we reinvested excess cash flow back into the business and returned to the $180 million to shareholders through regular dividends and share buybacks. To date this year, we have repurchased over $950 million of shares in the open market at a roughly 50% discount to our view of intrinsic value. Moving on to our balance sheet and liquidity, we continue to maintain a conservatively capitalized balance sheet and high levels of liquidity, with record deployable capital of $178 billion at the end of the quarter. We also maintain strong access to the capital markets, executing $140 billion of financing so far this year, including the issuance of $650 million of 10-year senior notes at the corporation during the quarter. Other notable financings include the successful refinancing of a $1.9 billion five-year loan at a luxury resort in the Bahamas and two five-year CMBS issuances at New York Trophy office buildings, each over $1.25 billion, reinforcing that capital continues to flow to high-quality assets at attractive returns. Bringing it all together, our financial results continue to be very strong, and we expect continued growth in our results over the remainder of the year and into 2026. I am pleased to confirm that our board of directors has declared a quarterly dividend of $0.06 per share, payable at the end of December to shareholders of record at the close of business on December 16th, 2025. On a post-split basis, the quarterly dividend is consistent with the previous quarter's dividend. Thank you for your time, and I will now hand the call back to the operator for questions. Operator. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, press star 11 again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. And our first question will come from the line of Michael Cyprys with Morgan Stanley. Your line is open. Great. Thank you. Good morning. If we think about the pillars of your success over the years, I think it's been your ability to adapt the business and innovate in recent years. You've added Wealth Solutions, continue to grow that. But recently, you've made some partnerships around AI, humanoids, partnership with Figure as one example. So I was hoping you could talk about how you see humanoids and AI broadly potentially creating another leg of the stool for Brookfield over time. I remember at your investor day, I think embedded in your 2030 DE guide was about $2.6 billion of DE from capital allocation. Maybe you could help unpack the components there and how you think about other different contributors over time. Thank you. Good morning, Mike, and thanks for the question. I would break the answer into two parts. I'd say most of the capital deployment and the focus that we have today is around building the backbone infrastructure to support the build-out of AI. The growing demands, the secular trend of the growth of AI, the need for compute capacity, and also the need for the power to drive that and be able to supply the electricity for the compute capacity is where we are investing most of our time and our dollars right now. And we have a very unique position around that, given our capability and our global reach and our operating expertise around renewable energy, nuclear, and other energy sources, and then our data center and AI fund that we're launching soon. So I'd say that that offers great growth potential for the franchise, and we're very well positioned to participate in that and are investing in a disciplined way to drive really, really impressive results so far. I'd say the second component and the Figure transaction that you talked about, at Brookfield Corporation, what we're doing is looking to stay ahead of the curve and deploy capital for the benefit of the rest of the organization and for the benefit of our operations. And what we see with the developments in AI and humanoid robotics, we believe that over time, they will have a material impact on the way that businesses are run and even broader society. And so I think this is about investing as a defensive investment and an opportunity to make money, but to really learn and be at the forefront for the benefit of the broader organization. And we would look to do that, I'd say over time, we'd look to do that selectively as we see good opportunities to do so. So I don't think of this as necessarily the next leg. I think it's a force and a trend that's driving broad growth across the organization, and we're well positioned to participate in it. Okay. Thanks. And then just a follow-up question on Wealth Solutions. I saw you signed the first reinsurance agreement in Japan, expanding your global footprint. I was hoping you could talk about that arrangement, how you see that contributing, what's the scope for others in Japan, as well as elsewhere around the world. Maybe you could just update us on your global ambitions. Clearly, you have the transaction underway in the U.K. Yes. Thanks, Mike. Yes, as you mentioned, we've made the transaction well, we've agreed to transaction in the U.K., and we're working towards closing that transaction in the early part of next year. That's a significant step for us, scaling PRT and giving us access to a long-duration low-pool of low-risk liability, sorry, long-duration pool of low-risk liabilities. And so we're excited to close that. That really sets us up well in the U.K. market. And we identified Asia and Japan as the next market that we've looked to grow into and doing that in partnership with local players. This reinsurance, it's a flow agreement, so it's really a transaction that will build over time, month to month, quarter to quarter, as we participate in the business that they're writing. So it has the potential to scale, and then we also have the potential to partner with other local players. So very much about continued growth in both markets. And those are the two markets we're predominantly focused on outside of North America today. Great. Thank you. Thank you. One moment for our next question. And that will come from the line of Mario Saric with Scotiabank. Your line is open. Hi. Good morning, and thank you for taking the questions. Coming back to the Wealth Solutions business, Nick, I was wondering how long do you think it may take to get to your approximate 200 basis point target net investment yield spread? And then secondly, how should we think about the evolution of gross versus net insurance flows? I think in this quarter, the net was about 40% of gross. So just curious on what your thoughts are on those two items. Yeah. I mean, listen, the 200 basis points is a long-term, medium to long-term target, so it will take time to grow into it. And as you know, as cash comes in, we're very disciplined on the deployment, and we're looking at a sort of barbell approach on deployment, sitting in significant short-term liquidity and balancing that with investment into real assets or in credit and equity. So it just takes time for the deployment. But as we work through the plan, we do expect that spread to start to broaden out and work towards it. Importantly, we think about ROE, Mario, as opposed to just spread. And the return on equity that we're generating and the capital is compounding at 15%+. And that is in line with our long-term targets. We're very happy with the performance there. On the gross to net flows, it should stabilize out to about a third outflows versus inflows in a quarter as we move forward. Got it. Okay. And then my follow-up just with respect to the recently announced Oaktree acquisition. Has the composition of the $3 billion purchase price between BAM, BN shares, and cash, has that been settled? And how do you see the transaction impacting the velocity of BN share repurchases going forward, if at all? So yeah, Mario, we do have the elections finalized. And the end result, I'd say roughly, was $250 million of BN shares elected. The balance will be in cash, and almost 100% of the BAM consideration will be in cash. And it will have zero impact on our buyback. We will buy back the 250 million of shares that we issue, but it won't have impact on our broader buyback strategy. Okay. Those are my two. Thank you. Thank you. One moment for our next question. And that will come from the line of Alex Blostein with Goldman Sachs. Your line is open. Hey, Nick. Good morning, everybody. Just maybe zoning back to trajectory of the insurance business. So really good growth. So the sales are coming through nicely. On the spread, though, and I hear your comment around the ROE, but the spread, I think in annuities, was 165 basis points this quarter. So maybe hel us think through kind of the near-term dynamics over the last maybe 12-24 months on the trajectory of that spread as you kind of start to earn your way back towards the targets. Yeah. So first, Alex, welcome to the call. I know it's your first one. It's great to have you. I just say that the spread is, yeah, right, 165, and it's really because we're being disciplined in deployment. And you know the way we think about the business. We run it for the long term. And so we're being patient in the deployment. We are sourcing very attractive real asset investment opportunities in the credit and equity side, as I just said. And so as we look forward, we do expect it to work its way back up. But we're not running, as you know, the business quarter to quarter. We're running it long term. So we're going to be patient and wait for the right investment opportunities. And as they come in, you'll start to see that spread widen out. But again, what it all comes back to is the ROE. And so we're happy with the performance. Gotcha. Thanks for that. And then for my follow-up, we'll just maybe stay with insurance. Can you spend a couple of minutes maybe on how you're progressing towards closing the just acquisition? I know there's probably a lot of limitations to what you could say publicly, but as you were to sort of frame the spread-related earnings contribution and then strategically how you think this could accelerate growth of your presence outside the US and PRT markets in U.K. and Europe broadly, would just be helpful to understand what this deal could mean financially for the business over kind of medium term. Yeah. So I do apologize because we are limited in what we can say, and we haven't really talked to date about what the pro forma looks like as we work our way through the regulatory approvals. I would just tell you that we're working through it. We have the shareholder vote. We're working with the regulator. As you know, we previously were licensed under Blue Mont in the U.K., so we have a good relationship with the PRI, but we're working through that process. I'd say that Just has got a good track record of issuing PRT on a consistent basis in the U.K., I think, in the year before we acquired them, about GBP 5 billion of origination. So we would expect to hopefully be able to continue that and scale it with our capital. But as for pro formas, it will have to wait until we're further along in the process. Okay. Fair enough. Thanks. Thank you. Thank you. One moment for our next question. And that will come from the line of Cherilyn Radbourne with TD Cowen. Your line is open. Thanks very much and good morning. Ever since the framework agreement to build new nuclear capacity in the U.S. was announced, the biggest question we've been getting from clients is, to the extent that Brookfield, alongside LPs, will invest capital in nuclear project development, what kind of downside protections would you be seeking? And is that investment likely to occur in a discrete nuclear strategy or in the BGTF strategy? Hi, Cherilyn. Thanks for the question. So I'd say, first of all, I'd say that it's being bought within Westinghouse. So the transaction that is being done is being done between Westinghouse and the U.S. government. And the U.S. government is buying, as the equity investor, $80 billion of nuclear facilities. Our role within that is to help deliver the facilities and then provide, as you know, the services that we provide, which is the fuel rods, the fuel, and then the servicing of the facilities going forward. So the end result will look very much like the Westinghouse business that we have today, which is to service and provide the fuel to the nuclear reactors. And it's really scaling Westinghouse as a global nuclear champion, but it'll be done through Westinghouse, which is owned by BGTF One. And maybe just extending that to the plans that are being evaluated in South Carolina, maybe you can elaborate on how that might be structured. Yeah. So again, we're in a process there, and it's very early days. But what I can tell you is, as we think about the growth in the space, we are focused on downside protection. So anything that we would do in the space where we're looking to get involved in either bringing Westinghouse services or Brookfield Capital, it would be structured in a way to provide strong downside protection. That's all for me. Thank you. Thank you. One moment for our next question. And that will come from the line of Kenneth Worthington with JPMorgan. Your line is open. Hi. Good morning, and thanks for taking the question. You've talked in the past about 2025 being a transition year for Carry. You've talked about the improved outlook going through 2030. Given what continues to look like a better M&A environment and a better realization environment with better valuations, can you talk about how Carry Generation is shaping up for 2026? And then maybe wrapping the follow-up in the same question, as we think about realizations, how is the outlook developing for realizations on balance sheet versus realization in the Brookfield funds as you think about the intermediate-term outlook? I guess I'll be vague like that. Thanks, Ken. So I'd just say that the outlook for Carry hasn't changed. So this year, as we said, would be a bit of a bridge year, and it's played out in that direction, largely consistent with last year. And with the monetizations that we have in the pipeline, either those that are progressed or that we plan on launching through the end of this year or into the early part of next year, therefore, which should close in 2026, we do still see the potential for a step-up in carried interest in 2026. So that is still continuing, a step-up in 2026, and then again into 2027, and a strong year in 2028. So that's the outlook. The expectation of what we can achieve in the next three years really hasn't changed from what we presented at Investor Day. And we're still optimistic, and we still believe that it is a very healthy transaction market and the strong capital markets are supporting that activity. As it relates to the split between the balance sheet and what's being done in the funds, as you know, they operate completely independently of each other. So we continue to advance the monetizations in the fund. It's a globally diversified portfolio of many assets in many geographies. So it has the ability to be a bit nimble around where assets are ready to trade and where the capital is there and the appetite is strong. On the balance sheet, we're talking about the office and retail assets in the U.S. And I can tell you that the capital markets are stronger now even than when we had our last call when we talked about the strength of the markets. We had very successful financings in the quarter at spreads and all-in rates we couldn't have achieved even a month ago. And that all lends itself very favorably towards increasing transaction activity. We've been able to dispose of a few smaller assets, which don't make a dent in the numbers, but they do show that appetite for acquisition activity is returning. So as that picks up, we expect to see continued activity into next year. Okay. Great. Thank you. Thanks, Ken. One moment for our next question. And that will come from the line of Bart Dziarski with RBC Capital Markets. Your line is open. Great. Thanks. And good morning. Just wanted to ask on real estate. So within the LP, the NOI really ticked up this quarter, so 465 million versus, I think, last year's about 80 million. So apologies if I missed this in the prepared remarks, but anything to call out there in terms of the drivers of that step-up? Yeah. Hey, Bart. Yeah. So listen, the performance of the LP portfolio is the running returns that we earn, plus it's the disposition gains that we earn. So during the quarter, we benefited from disposition gains from monetizations, and that's what's driving the increase, sorry, in the FFO during the quarter. Okay. Got it. And then just to follow up on Carry, with regards to the Target Carry Framework that you have, could you help us kind of understand if there's a pickup that will—will the Target Carry increase once your Oaktree pickup deal closes? And if so, maybe a rough frame as to how much that could increase? So we will own more of Oaktree. Target Carry represents the kind of the annualized carry that's compounding for us on the carry eligible capital that we manage. So yes, when we do acquire Oaktree and we have more carry eligible capital, it will pick up, but it won't be material. It won't be a significant adjustment to the numbers that we have today. Okay. Thanks, Nick. That's it for me. Thanks, Bart. One moment for our next question. And that will come from the line of Sohrab Movahedi with BMO. Your line is open. Okay. Thank you. I just wanted to go back to the earlier remarks about, broadly speaking, the three types of economic environments that could play out. I think Bruce was talking to that. And I understand the implications of those from an investing perspective. Is any one environment of those three better than the others from a fundraising perspective? Listen, I think, Sohrab, we've been through a pretty severe cycle in just the last five years and maybe experienced a few environments in a very short period of time. And I think through all of that, demand for alternatives has stayed strong. And I mean specifically real asset alternatives and essential service investing. So I think as it plays out, the ones that we've framed for you should still attract strong demand from the clients into the assets that we have. They've proven their durability. They've found their place in investment portfolios, and investors now appreciate and like the characteristics of the income and the returns that they generate. And so I think that irrespective of where we end up, demand for real assets will stay strong. Okay. I appreciate that, Nick. I just wanted to see if there's a likelihood in a scenario some of the targets that would have been discussed, let's say at the investor day, could actually get upgraded. But you're saying that's necessary. Yeah. I mean, listen. Sure. Sure. I mean, listen, if you go into the environment of sort of lower nominal yields, then I do think real assets have the potential maybe to become even more attractive in that scenario. So maybe it could be an upside, but not to the extent that we've changed our plans today. We continue to drive the business and think that the growth outlook is incredibly strong already. Yeah. Thank you very much for taking the question. Thank you. One moment for our next question. That will come from the line of Dean Wilkinson with CIBC World Markets. Your line is open. Thanks. Morning, guys. Nick, I guess when you look at growth of the business over time, do you hit a point where you start to worry about the law of large numbers? I mean, the ability for you to put out capital has seeming to exceed the rapid rate that you're growing BN and BAM and everything together. Is there a point where that sort of flattens out, or do you think that those opportunity sets are going to continue to grow quicker than you can actually grow the underlying business? I think it's exactly that. When we look today at the trends going on in the market and the amount of capital that is needed to deliver in the areas of AI infrastructure, renewable power, we see that being a significant growth. I think today, the scale of the opportunities are significant. I say the quality of the opportunities are probably the best we've ever seen. So the ability to earn returns while deploying large amounts of capital is a great place to be. I don't think we foresee in the short term any shortage of opportunities to deploy, and probably even in the medium and long term. Oh, that's great. Thanks. Thank you. One moment for our next question. And that will come from the line of Jaeme Gloyn with National Bank. Your line is open. Yeah. Thanks. And sorry, I jumped on late, so I apologize if this was addressed. But in the wealth solutions business, just looking at the annuities, distributable earnings from annuities stepped down a little bit quarter-over-quarter, year-over-year. Hoping you can kind of talk through a little bit of the moving parts there. And as well as the looks like a 10 basis point step down in the yield on investments in that portfolio. Yeah. I would say there's nothing significant. The year-over-year performance we continue to drive strong earnings. We may have had some one-off small movements in the portfolio of the earnings, but nothing significant. The portfolio continues to perform incredibly well. The dropdown in the spread, which we touched on briefly earlier, is really just a product of capital coming in, inflows coming, really being parked in cash until we invest them. And the point I made earlier was that we're being very patient and waiting for the right real asset investment opportunities and getting the right time to put the capital to work. And it will come. And as we put that capital to work, you'll start to see the spread increase again back towards long-term targets. Okay. Thank you. Oh, and the yield, sorry. It's just cash as well. Yeah. That's right. Yeah. Okay. Got it. Thank you. Thank you. That is all the time we have for question and answer today. I would now like to turn the call over to Ms. Katie Battaglia for closing remarks. Thank you, everybody, for joining us today. And with that, we'll end the call. This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker 10: Hello, and welcome to the Brookfield Corporation third quarter 2025 conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. I would now like to hand the conference call over to your first speaker, Ms. Katie Battaglia, Vice President, Investor Relations. Please go ahead. Hello, and welcome to the Brookfield Corporation third quarter 2025 conference call and webcast. hello and welcome to the brookfield corporation third quarter 2025 conference call and webcast At this time, all participants are in a listen-only mode. at this time all participants are in a listen-only mode After the speaker presentation, there will be a question-and-answer session. after the speaker presentation there will be a question-and-answer session To ask a question during the session, you will need to press star one one on your telephone. to ask a question during the session you will need to press star one one on your telephone I would now like to hand the conference call over to your first speaker, Ms. Katie Battaglia, Vice President, Investor Relations. i would now like to hand the conference call over to your first speaker ms katie battaglia vice president investor relations Please go ahead. please go ahead

Speaker 1: Thank you, Operator, and good morning. Welcome to Brookfield Corporation's third quarter 2025 conference call. On the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation. Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. As a reminder, we completed a three-for-two stock split on October 9th, 2025. Accordingly, all per-share amounts that are discussed during the conference call are on a post-split basis. After our formal comments, we'll turn the call over to the Operator and take analyst questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions. Thank you, Operator, and good morning. thank you operator and good morning Welcome to Brookfield Corporation's third quarter 2025 conference call. welcome to brookfield corporation's third quarter 2025 conference call On the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation. on the call today are bruce flatt our chief executive officer and nick goodman president of brookfield corporation Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. bruce will start off by giving a business update followed by nick who will discuss our financial and operating results for the quarter As a reminder, we completed a three-for-two stock split on October 9th, 2025. as a reminder we completed a three-for-two stock split on october 9th 2025 Accordingly, all per-share amounts that are discussed during the conference call are on a post-split basis. accordingly all per-share amounts that are discussed during the conference call are on a post-split basis After our formal comments, we'll turn the call over to the Operator and take analyst questions. after our formal comments we'll turn the call over to the operator and take analyst questions In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions. in order to accommodate all those who want to ask questions we request that you refrain from asking more than two questions I would like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. security laws. These statements reflect predictions of future events and trends and do not relate to historic events. They are subject to known and unknown risks, and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. In addition, when we speak about our Wealth Solutions business, or Brookfield Wealth Solutions, we are referring to Brookfield's investments in this business that supported the acquisition of its underlying operating subsidiaries. With that, I'll turn the call over to Bruce. I would like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and U.S. security laws. i would like to remind you that in today's comments including in responding to questions and in discussing new initiatives in our financial and operating performance we may make forward-looking statements including forward-looking statements within the meaning of applicable canadian and u.s security laws These statements reflect predictions of future events and trends and do not relate to historic events. these statements reflect predictions of future events and trends and do not relate to historic events They are subject to known and unknown risks, and future events and results may differ materially from such statements. they are subject to known and unknown risks and future events and results may differ materially from such statements For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the U.S. and the information available on our website. for further information on these risks and their potential impacts on our company please see our filings with the securities regulators in canada and the u.s and the information available on our website In addition, when we speak about our Wealth Solutions business, or Brookfield Wealth Solutions, we are referring to Brookfield's investments in this business that supported the acquisition of its underlying operating subsidiaries. in addition when we speak about our wealth solutions business or brookfield wealth solutions we are referring to brookfield's investments in this business that supported the acquisition of its underlying operating subsidiaries With that, I'll turn the call over to Bruce. with that i'll turn the call over to bruce

Speaker 5: Thank you, and welcome everyone on the call. We delivered another strong quarter of financial results. Distributed earnings before realizations were $1.3 billion for the quarter, or $0.56 per share, and $5.4 billion over the last 12 months. That was $2.27 per share. That was an 18% increase over the same period last year. Our outlook remains strong, with each of our underlying businesses continuing to execute their strategic plans, driving strong organic earnings growth. Turning first to markets, economic activity and corporate earnings remain healthy. Capital markets are open, and transaction activity is picking up across most asset classes. For our business, that backdrop is constructive and highly supportive of real assets. Far this year, we financed $140 billion of debt across our operations and closed $75 billion of asset sales at attractive values, including over $35 billion in just the past few months. Thank you, and welcome everyone on the call. thank you and welcome everyone on the call We delivered another strong quarter of financial results. we delivered another strong quarter of financial results Distributed earnings before realizations were $1.3 billion for the quarter, or $0.56 per share, and $5.4 billion over the last 12 months. distributed earnings before realizations were $1.3 billion for the quarter or $0.56 per share and $5.4 billion over the last 12 months That was $2.27 per share. that was $2.27 per share That was an 18% increase over the same period last year. that was an 18% increase over the same period last year Our outlook remains strong, with each of our underlying businesses continuing to execute their strategic plans, driving strong organic earnings growth. our outlook remains strong with each of our underlying businesses continuing to execute their strategic plans driving strong organic earnings growth Turning first to markets, economic activity and corporate earnings remain healthy. turning first to markets economic activity and corporate earnings remain healthy Capital markets are open, and transaction activity is picking up across most asset classes. capital markets are open and transaction activity is picking up across most asset classes For our business, that backdrop is constructive and highly supportive of real assets. for our business that backdrop is constructive and highly supportive of real assets Far this year, we financed $140 billion of debt across our operations and closed $75 billion of asset sales at attractive values, including over $35 billion in just the past few months. far this year we financed $140 billion of debt across our operations and closed $75 billion of asset sales at attractive values including over $35 billion in just the past few months At the same time, the direction of monetary policy is turning. After an extended period of elevated interest rates, some softness in the labor markets has started to prompt policy easing from the Federal Reserve to support growth and maintain balance across the economy. While the current environment is influencing policy decisions today, it is important to consider the structural forces that shape where policy goes from here. Over the past 15 years, governments have relied on fiscal stimulus to offset slowdowns, leading to a build-up of public debt that is difficult to sustain in a higher interest rate environment. Policymakers around the world are now evaluating the tools available to stabilize these debt burdens. The most constructive outcome of that, and the one that we hope for, is faster economic growth that outpaces debt, which can be helped by AI and innovation. At the same time, the direction of monetary policy is turning. at the same time the direction of monetary policy is turning After an extended period of elevated interest rates, some softness in the labor markets has started to prompt policy easing from the Federal Reserve to support growth and maintain balance across the economy. after an extended period of elevated interest rates some softness in the labor markets has started to prompt policy easing from the federal reserve to support growth and maintain balance across the economy While the current environment is influencing policy decisions today, it is important to consider the structural forces that shape where policy goes from here. while the current environment is influencing policy decisions today it is important to consider the structural forces that shape where policy goes from here Over the past 15 years, governments have relied on fiscal stimulus to offset slowdowns, leading to a build-up of public debt that is difficult to sustain in a higher interest rate environment. over the past 15 years governments have relied on fiscal stimulus to offset slowdowns leading to a build-up of public debt that is difficult to sustain in a higher interest rate environment Policymakers around the world are now evaluating the tools available to stabilize these debt burdens. policymakers around the world are now evaluating the tools available to stabilize these debt burdens The most constructive outcome of that, and the one that we hope for, is faster economic growth that outpaces debt, which can be helped by AI and innovation. the most constructive outcome of that and the one that we hope for is faster economic growth that outpaces debt which can be helped by ai and innovation Second, austerity is always possible, but not too many governments have shown the desire to push that. And third, if growth stays modest, policymakers may instead quietly manage rates below inflation to ease debt burdens, lowering short rates and guiding long rates down. If this path is pursued, it would likely lead to a period of declining real yields and low nominal rates. This environment will provide the optimal conditions for real assets we invest into. Our portfolio is built around inflation-linked durable cash flows backed by hard assets that protect real returns. The benefits of real assets are always evident, but in this evolving environment, they are becoming an essential investment product for every portfolio. A suppression of real yields will amplify these benefits and enhance long-term value across the franchise. Second, austerity is always possible, but not too many governments have shown the desire to push that. second austerity is always possible but not too many governments have shown the desire to push that And third, if growth stays modest, policymakers may instead quietly manage rates below inflation to ease debt burdens, lowering short rates and guiding long rates down. and third if growth stays modest policymakers may instead quietly manage rates below inflation to ease debt burdens lowering short rates and guiding long rates down If this path is pursued, it would likely lead to a period of declining real yields and low nominal rates. if this path is pursued it would likely lead to a period of declining real yields and low nominal rates This environment will provide the optimal conditions for real assets we invest into. this environment will provide the optimal conditions for real assets we invest into Our portfolio is built around inflation-linked durable cash flows backed by hard assets that protect real returns. our portfolio is built around inflation-linked durable cash flows backed by hard assets that protect real returns The benefits of real assets are always evident, but in this evolving environment, they are becoming an essential investment product for every portfolio. the benefits of real assets are always evident but in this evolving environment they are becoming an essential investment product for every portfolio A suppression of real yields will amplify these benefits and enhance long-term value across the franchise. a suppression of real yields will amplify these benefits and enhance long-term value across the franchise Turning to the business, we are entering the final quarter of 2025 with strong momentum and a record almost $180 billion of deployable capital, positioning our business to invest for value in the powerful secular trends that define the next chapter of growth in Brookfield, but also the global economy. First, AI innovation is fueling unprecedented demand for large-scale infrastructure. Second, aging populations are reshaping global savings and driving demand for new wealth and retirement products, which is going to last for decades. And third, the real estate recovery is well underway, Nick will cover that, and gaining momentum. Each of these trends represents a multi-decade opportunity to invest where our scale and expertise give us a major advantage. To that end, we advanced a number of strategic transactions during the quarter. Turning to the business, we are entering the final quarter of 2025 with strong momentum and a record almost $180 billion of deployable capital, positioning our business to invest for value in the powerful secular trends that define the next chapter of growth in Brookfield, but also the global economy. turning to the business we are entering the final quarter of 2025 with strong momentum and a record almost $180 billion of deployable capital positioning our business to invest for value in the powerful secular trends that define the next chapter of growth in brookfield but also the global economy First, AI innovation is fueling unprecedented demand for large-scale infrastructure. first ai innovation is fueling unprecedented demand for large-scale infrastructure Second, aging populations are reshaping global savings and driving demand for new wealth and retirement products, which is going to last for decades. second aging populations are reshaping global savings and driving demand for new wealth and retirement products which is going to last for decades And third, the real estate recovery is well underway, Nick will cover that, and gaining momentum. and third the real estate recovery is well underway nick will cover that and gaining momentum Each of these trends represents a multi-decade opportunity to invest where our scale and expertise give us a major advantage. each of these trends represents a multi-decade opportunity to invest where our scale and expertise give us a major advantage To that end, we advanced a number of strategic transactions during the quarter. to that end we advanced a number of strategic transactions during the quarter In our Wealth Solutions business, we received shareholder approval for our acquisition of Just Group in the U.K., a region where the growing retirement market is creating significant opportunities for long-term investment. We also announced a reinsurance agreement with a leading Japanese insurance company, marking our entry into Japan's insurance market the first of many expected opportunities in the region. We agreed to acquire the remaining 26% of Oaktree that we don't own already, which will bring our ownership to 100% upon completion of the transaction. From the outset, our partnership with Oaktree has been grounded on shared principles, including a value-oriented approach to disciplined investing with a focus on compounding capital over time. Our scale and real asset expertise, combined with Oaktree's deep credit experience, has created one of the most comprehensive and diversified credit platforms globally. In our Wealth Solutions business, we received shareholder approval for our acquisition of Just Group in the U.K., a region where the growing retirement market is creating significant opportunities for long-term investment. in our wealth solutions business we received shareholder approval for our acquisition of just group in the u.k a region where the growing retirement market is creating significant opportunities for long-term investment We also announced a reinsurance agreement with a leading Japanese insurance company, marking our entry into Japan's insurance market the first of many expected opportunities in the region. we also announced a reinsurance agreement with a leading japanese insurance company marking our entry into japan's insurance market the first of many expected opportunities in the region We agreed to acquire the remaining 26% of Oaktree that we don't own already, which will bring our ownership to 100% upon completion of the transaction. we agreed to acquire the remaining 26% of oaktree that we don't own already which will bring our ownership to 100% upon completion of the transaction From the outset, our partnership with Oaktree has been grounded on shared principles, including a value-oriented approach to disciplined investing with a focus on compounding capital over time. from the outset our partnership with oaktree has been grounded on shared principles including a value-oriented approach to disciplined investing with a focus on compounding capital over time Our scale and real asset expertise, combined with Oaktree's deep credit experience, has created one of the most comprehensive and diversified credit platforms globally. our scale and real asset expertise combined with oaktree's deep credit experience has created one of the most comprehensive and diversified credit platforms globally Third, we continue to partner with leading institutions, corporates, and governments around the world, and this is what makes our business different, combining capital expertise and our global reach to capture opportunities for all. We have several initiatives underway to deliver the next generation of energy transition and AI infrastructure globally, and I'll just mention a few. Through Westinghouse, during the quarter, we partnered with the U.S. government to deliver $80 billion of nuclear reactors. For context, that is the equivalent of eight large-scale nuclear plants, enough, for example, to power the entire state of Utah. These projects will help rebuild critical supply chains in the U.S., revitalize the domestic nuclear industry, and mark an inflection point for the growth of nuclear energy in North America. Third, we continue to partner with leading institutions, corporates, and governments around the world, and this is what makes our business different, combining capital expertise and our global reach to capture opportunities for all. third we continue to partner with leading institutions corporates and governments around the world and this is what makes our business different combining capital expertise and our global reach to capture opportunities for all We have several initiatives underway to deliver the next generation of energy transition and AI infrastructure globally, and I'll just mention a few. we have several initiatives underway to deliver the next generation of energy transition and ai infrastructure globally and i'll just mention a few Through Westinghouse, during the quarter, we partnered with the U.S. government to deliver $80 billion of nuclear reactors. through westinghouse during the quarter we partnered with the u.s government to deliver $80 billion of nuclear reactors For context, that is the equivalent of eight large-scale nuclear plants, enough, for example, to power the entire state of Utah. for context that is the equivalent of eight large-scale nuclear plants enough for example to power the entire state of utah These projects will help rebuild critical supply chains in the U.S., revitalize the domestic nuclear industry, and mark an inflection point for the growth of nuclear energy in North America. these projects will help rebuild critical supply chains in the u.s revitalize the domestic nuclear industry and mark an inflection point for the growth of nuclear energy in north america With Bloom Energy, we are developing 1 GW of behind-the-meter power generation from fuel cells to meet the growing demand from AI data centers and other energy-intensive applications, and we think this is just the beginning. And through our strategic partnership with Figure, recently announced a leading developer of humanoid robotics, we are providing access to our portfolio of real assets to create the real-world environments needed to develop, train, and deploy this technology safely and effectively, positioning us, most importantly, at the forefront of one of the most significant technological advances of the coming decades. Looking ahead, despite our size and scale today, our growth potential is greater than it has ever been. Our investment discipline, operating expertise, and access to large-scale capital positions us to deliver another strong phase of growth for shareholders in years to come. As always, thank you for your support. With Bloom Energy, we are developing 1 GW of behind-the-meter power generation from fuel cells to meet the growing demand from AI data centers and other energy-intensive applications, and we think this is just the beginning. with bloom energy we are developing 1 gw of behind-the-meter power generation from fuel cells to meet the growing demand from ai data centers and other energy-intensive applications and we think this is just the beginning And through our strategic partnership with Figure, recently announced a leading developer of humanoid robotics, we are providing access to our portfolio of real assets to create the real-world environments needed to develop, train, and deploy this technology safely and effectively, positioning us, most importantly, at the forefront of one of the most significant technological advances of the coming decades. and through our strategic partnership with figure recently announced a leading developer of humanoid robotics we are providing access to our portfolio of real assets to create the real-world environments needed to develop train and deploy this technology safely and effectively positioning us most importantly at the forefront of one of the most significant technological advances of the coming decades Looking ahead, despite our size and scale today, our growth potential is greater than it has ever been. looking ahead despite our size and scale today our growth potential is greater than it has ever been Our investment discipline, operating expertise, and access to large-scale capital positions us to deliver another strong phase of growth for shareholders in years to come. our investment discipline operating expertise and access to large-scale capital positions us to deliver another strong phase of growth for shareholders in years to come As always, thank you for your support. as always thank you for your support We appreciate your continued interest in Brookfield, and over to Nick. We appreciate your continued interest in Brookfield, and over to Nick. we appreciate your continued interest in brookfield and over to nick

Speaker 7: Thank you, Bruce, and good morning, everyone. We delivered strong financial results for the quarter, supported by continued momentum across our core businesses. Distributed earnings, or DE, before realizations were $1.3 billion for the quarter, or $0.56 per share, and $5.4 billion over the last 12 months, or $2.27 per share, representing an 18% increase over the prior year period. Total DE, including realizations, was $1.5 billion, or $0.63 per share for the quarter, and $6 billion, or $2.54 per share over the last 12 months, with total net income of $1.7 billion over the same period. Starting with our operating performance, each of our businesses continues to perform well. Our asset management business generated distributed earnings of $687 million, or $0.29 per share in the quarter, and $2.7 billion, or $1.14 per share over the last 12 months. Thank you, Bruce, and good morning, everyone. thank you bruce and good morning everyone We delivered strong financial results for the quarter, supported by continued momentum across our core businesses. we delivered strong financial results for the quarter supported by continued momentum across our core businesses Distributed earnings, or DE, before realizations were $1.3 billion for the quarter, or $0.56 per share, and $5.4 billion over the last 12 months, or $2.27 per share, representing an 18% increase over the prior year period. distributed earnings or de before realizations were $1.3 billion for the quarter or $0.56 per share and $5.4 billion over the last 12 months or $2.27 per share representing an 18% increase over the prior year period Total DE, including realizations, was $1.5 billion, or $0.63 per share for the quarter, and $6 billion, or $2.54 per share over the last 12 months, with total net income of $1.7 billion over the same period. total de including realizations was $1.5 billion or $0.63 per share for the quarter and $6 billion or $2.54 per share over the last 12 months with total net income of $1.7 billion over the same period Starting with our operating performance, each of our businesses continues to perform well. starting with our operating performance each of our businesses continues to perform well Our asset management business generated distributed earnings of $687 million, or $0.29 per share in the quarter, and $2.7 billion, or $1.14 per share over the last 12 months. our asset management business generated distributed earnings of $687 million or $0.29 per share in the quarter and $2.7 billion or $1.14 per share over the last 12 months Strong fundraising momentum led to $30 billion of inflows during the quarter and included over $6 billion from our retail and wealth clients. Fee-related earnings increased by 17% to a record $754 million as fee-bearing capital grew to $581 billion. During the quarter, we held the final institutional close of our second vintage flagship global transition strategy with total commitments of $20 billion, exceeding our target and marking the largest private fund globally dedicated to energy transition. We also launched our seventh vintage flagship private equity fund focused on essential services and industrial businesses and are preparing to launch our inaugural AI infrastructure fund, which together will drive strong fundraising momentum going into 2026. Finally, jointly with Brookfield Asset Management, we announced the acquisition of the remaining interest in Oaktree, of which $1.4 billion will be funded by the corporation. Strong fundraising momentum led to $30 billion of inflows during the quarter and included over $6 billion from our retail and wealth clients. strong fundraising momentum led to $30 billion of inflows during the quarter and included over $6 billion from our retail and wealth clients Fee-related earnings increased by 17% to a record $754 million as fee-bearing capital grew to $581 billion. fee-related earnings increased by 17% to a record $754 million as fee-bearing capital grew to $581 billion During the quarter, we held the final institutional close of our second vintage flagship global transition strategy with total commitments of $20 billion, exceeding our target and marking the largest private fund globally dedicated to energy transition. during the quarter we held the final institutional close of our second vintage flagship global transition strategy with total commitments of $20 billion exceeding our target and marking the largest private fund globally dedicated to energy transition We also launched our seventh vintage flagship private equity fund focused on essential services and industrial businesses and are preparing to launch our inaugural AI infrastructure fund, which together will drive strong fundraising momentum going into 2026. we also launched our seventh vintage flagship private equity fund focused on essential services and industrial businesses and are preparing to launch our inaugural ai infrastructure fund which together will drive strong fundraising momentum going into 2026 Finally, jointly with Brookfield Asset Management, we announced the acquisition of the remaining interest in Oaktree, of which $1.4 billion will be funded by the corporation. finally jointly with brookfield asset management we announced the acquisition of the remaining interest in oaktree of which $1.4 billion will be funded by the corporation The transaction expands our ownership in Oaktree's carried interest, fee-related earnings, and balance sheet investments, and further strengthens our global credit platform. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. Turning to our Wealth Solutions business, we delivered another quarter of strong growth with distributed earnings of $420 million, or $0.18 per share in the quarter, and $1.7 billion, or $0.70 per share over the last 12 months. This represents organic growth of over 15% year-over-year, supported by strong investment performance, robust underwriting across property and casualty lines, and disciplined capital deployment. During the quarter, we originated $5 billion of retail and institutional annuities, bringing our total insurance assets to $139 billion. The transaction expands our ownership in Oaktree's carried interest, fee-related earnings, and balance sheet investments, and further strengthens our global credit platform. the transaction expands our ownership in oaktree's carried interest fee-related earnings and balance sheet investments and further strengthens our global credit platform The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. the transaction is expected to close in the first half of 2026 subject to customary closing conditions and regulatory approvals Turning to our Wealth Solutions business, we delivered another quarter of strong growth with distributed earnings of $420 million, or $0.18 per share in the quarter, and $1.7 billion, or $0.70 per share over the last 12 months. turning to our wealth solutions business we delivered another quarter of strong growth with distributed earnings of $420 million or $0.18 per share in the quarter and $1.7 billion or $0.70 per share over the last 12 months This represents organic growth of over 15% year- over- year, supported by strong investment performance, robust underwriting across property and casualty lines, and disciplined capital deployment. this represents organic growth of over 15% year- over- year supported by strong investment performance robust underwriting across property and casualty lines and disciplined capital deployment During the quarter, we originated $5 billion of retail and institutional annuities, bringing our total insurance assets to $139 billion. during the quarter we originated $5 billion of retail and institutional annuities bringing our total insurance assets to $139 billion Importantly, we continue to focus on raising long-duration liabilities, with approximately 80% of new retail annuities written during the quarter having durations of five years or longer. Our investment portfolio generated an average yield of 5.7%, contributing to spread-related earnings that were 1.7% above our average cost of funds. As we continue to reposition the portfolio into higher-yielding real asset investments sourced within Brookfield, we are well-positioned to sustain strong spread-related earnings. During the quarter, we deployed $4 billion into Brookfield-managed strategies at an average net yield of 9%, which helped support a 15% return on equity consistent with our long-term target. We also made meaningful progress internationally, expanding across the fast-growing retirement markets in the U.K. and Japan. Importantly, we continue to focus on raising long-duration liabilities, with approximately 80% of new retail annuities written during the quarter having durations of five years or longer. importantly we continue to focus on raising long-duration liabilities with approximately 80% of new retail annuities written during the quarter having durations of five years or longer Our investment portfolio generated an average yield of 5.7%, contributing to spread-related earnings that were 1.7% above our average cost of funds. our investment portfolio generated an average yield of 5.7% contributing to spread-related earnings that were 1.7% above our average cost of funds As we continue to reposition the portfolio into higher-yielding real asset investments sourced within Brookfield, we are well-positioned to sustain strong spread-related earnings. as we continue to reposition the portfolio into higher-yielding real asset investments sourced within brookfield we are well-positioned to sustain strong spread-related earnings During the quarter, we deployed $4 billion into Brookfield-managed strategies at an average net yield of 9%, which helped support a 15% return on equity consistent with our long-term target. during the quarter we deployed $4 billion into brookfield-managed strategies at an average net yield of 9% which helped support a 15% return on equity consistent with our long-term target We also made meaningful progress internationally, expanding across the fast-growing retirement markets in the U.K. and Japan. we also made meaningful progress internationally expanding across the fast-growing retirement markets in the u.k and japan In the U.K., we received shareholder approval for the acquisition of Just Group, which remains on track to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. Upon closing, our insurance assets are expected to grow by approximately $40 billion-$180 billion. In Japan, we announced our first reinsurance agreement in the region with a leading Japanese insurance company to reinsure annuity policies on a flow basis. These initiatives strengthen our position in key international markets and position us to capture the growing global demand for retirement solutions. Our operating businesses continue to deliver growing and resilient cash flows, generating distributed earnings of $336 million, or $0.15 per share in the quarter, and $1.7 billion, or $0.72 per share over the last 12 months. These results underscore the strength of our operating performance and the continued momentum across each of the businesses. In the U.K., we received shareholder approval for the acquisition of Just Group, which remains on track to close in the first half of 2026, subject to customary closing conditions and regulatory approvals. in the u.k we received shareholder approval for the acquisition of just group which remains on track to close in the first half of 2026 subject to customary closing conditions and regulatory approvals Upon closing, our insurance assets are expected to grow by approximately $40 billion- $180 billion. upon closing our insurance assets are expected to grow by approximately $40 billion- $180 billion In Japan, we announced our first reinsurance agreement in the region with a leading Japanese insurance company to reinsure annuity policies on a flow basis. in japan we announced our first reinsurance agreement in the region with a leading japanese insurance company to reinsure annuity policies on a flow basis These initiatives strengthen our position in key international markets and position us to capture the growing global demand for retirement solutions. these initiatives strengthen our position in key international markets and position us to capture the growing global demand for retirement solutions Our operating businesses continue to deliver growing and resilient cash flows, generating distributed earnings of $336 million, or $0.15 per share in the quarter, and $1.7 billion, or $0.72 per share over the last 12 months. our operating businesses continue to deliver growing and resilient cash flows generating distributed earnings of $336 million or $0.15 per share in the quarter and $1.7 billion or $0.72 per share over the last 12 months These results underscore the strength of our operating performance and the continued momentum across each of the businesses. these results underscore the strength of our operating performance and the continued momentum across each of the businesses Our infrastructure and renewable power and transition businesses remain at the forefront of secular trends reshaping global investment opportunities. Recently, we announced new initiatives to advance next-generation power and AI infrastructure, including our partnership with the U.S. government through Westinghouse to deliver $80 billion of new nuclear plants in the United States. In our publicly listed private equity business, we announced plans to simplify its structure into a single listed corporate entity aimed at broadening the investor base and improving trading liquidity. Our real estate business continues to perform well, supported by improving market conditions and strong fundamentals. Leasing activity remains concentrated in high-quality, well-located assets, driving strong operating performance across the portfolio. Our Super Core portfolio continues to outperform with 96% occupancy at the end of the quarter, and our Core Plus portfolio, which shares similar high-quality characteristics, ended the quarter with 95% occupancy. Our infrastructure and renewable power and transition businesses remain at the forefront of secular trends reshaping global investment opportunities. our infrastructure and renewable power and transition businesses remain at the forefront of secular trends reshaping global investment opportunities Recently, we announced new initiatives to advance next-generation power and AI infrastructure, including our partnership with the U.S. government through Westinghouse to deliver $80 billion of new nuclear plants in the United States. recently we announced new initiatives to advance next-generation power and ai infrastructure including our partnership with the u.s government through westinghouse to deliver $80 billion of new nuclear plants in the united states In our publicly listed private equity business, we announced plans to simplify its structure into a single listed corporate entity aimed at broadening the investor base and improving trading liquidity. in our publicly listed private equity business we announced plans to simplify its structure into a single listed corporate entity aimed at broadening the investor base and improving trading liquidity Our real estate business continues to perform well, supported by improving market conditions and strong fundamentals. our real estate business continues to perform well supported by improving market conditions and strong fundamentals Leasing activity remains concentrated in high-quality, well-located assets, driving strong operating performance across the portfolio. leasing activity remains concentrated in high-quality well-located assets driving strong operating performance across the portfolio Our Super Core portfolio continues to outperform with 96% occupancy at the end of the quarter, and our Core Plus portfolio, which shares similar high-quality characteristics, ended the quarter with 95% occupancy. our super core portfolio continues to outperform with 96% occupancy at the end of the quarter and our core plus portfolio which shares similar high-quality characteristics ended the quarter with 95% occupancy During the quarter, we signed 3 million sq ft of office leases, with rents on newly signed leases averaging 15% above those expiring. Notably, at Canary Wharf, leasing activity remains very strong, with over 450,000 sq ft leased year to date, putting 2025 on track to be its best leasing year in the past decade. The leasing pipeline is also the strongest it has been in years, underscoring the depth of demand for high-quality space and Canary Wharf's position as one of the world's leading business destinations. Turning to monetizations, market conditions remain highly favorable for high-quality assets and businesses like the ones we own. To date this year, we advanced $75 billion of monetizations across our franchise, including $22 billion of real estate assets, $14 billion of infrastructure assets, nearly $11 billion of renewable assets, $7 billion from private equity, and $21 billion from credit and other diversified assets. During the quarter, we signed 3 million sq ft of office leases, with rents on newly signed leases averaging 15% above those expiring. during the quarter we signed 3 million sq ft of office leases with rents on newly signed leases averaging 15% above those expiring Notably, at Canary Wharf, leasing activity remains very strong, with over 450,000 sq ft leased year to date, putting 2025 on track to be its best leasing year in the past decade. notably at canary wharf leasing activity remains very strong with over 450,000 sq ft leased year to date putting 2025 on track to be its best leasing year in the past decade The leasing pipeline is also the strongest it has been in years, underscoring the depth of demand for high-quality space and Canary Wharf's position as one of the world's leading business destinations. the leasing pipeline is also the strongest it has been in years underscoring the depth of demand for high-quality space and canary wharf's position as one of the world's leading business destinations Turning to monetizations, market conditions remain highly favorable for high-quality assets and businesses like the ones we own. turning to monetizations market conditions remain highly favorable for high-quality assets and businesses like the ones we own To date this year, we advanced $75 billion of monetizations across our franchise, including $22 billion of real estate assets, $14 billion of infrastructure assets, nearly $11 billion of renewable assets, $7 billion from private equity, and $21 billion from credit and other diversified assets. to date this year we advanced $75 billion of monetizations across our franchise including $22 billion of real estate assets $14 billion of infrastructure assets nearly $11 billion of renewable assets $7 billion from private equity and $21 billion from credit and other diversified assets Two recent highlights to note are as follows. In our infrastructure business, we completed the IPO of Rockpoint Gas Storage, one of the largest independent natural gas storage operators in North America. The offering was well received and oversubscribed, raising $810 million Canadian, the largest IPO on the Toronto Stock Exchange since May 2022. Following the IPO, we have now realized a multiple of capital over 3x, while retaining significant ownership interest in the business. And in our real estate business, we advanced the sale of the remaining assets in our U.S. manufactured housing portfolio for $2.5 billion, resulting in a total investment IRR of 25% and a 3.5 multiple on invested capital. Substantially, all sales completed this year were at or above carrying values and have crystallized significant value for our clients at attractive returns. Two recent highlights to note are as follows. two recent highlights to note are as follows In our infrastructure business, we completed the IPO of Rockpoint Gas Storage, one of the largest independent natural gas storage operators in North America. in our infrastructure business we completed the ipo of rockpoint gas storage one of the largest independent natural gas storage operators in north america The offering was well received and oversubscribed, raising $810 million Canadian, the largest IPO on the Toronto Stock Exchange since May 2022. the offering was well received and oversubscribed raising $810 million canadian the largest ipo on the toronto stock exchange since may 2022 Following the IPO, we have now realized a multiple of capital over 3x , while retaining significant ownership interest in the business. following the ipo we have now realized a multiple of capital over 3x while retaining significant ownership interest in the business And in our real estate business, we advanced the sale of the remaining assets in our U.S. manufactured housing portfolio for $2.5 billion, resulting in a total investment IRR of 25% and a 3.5 multiple on invested capital. and in our real estate business we advanced the sale of the remaining assets in our u.s manufactured housing portfolio for $2.5 billion resulting in a total investment irr of 25% and a 3.5 multiple on invested capital Substantially, all sales completed this year were at or above carrying values and have crystallized significant value for our clients at attractive returns. substantially all sales completed this year were at or above carrying values and have crystallized significant value for our clients at attractive returns Through these monetizations, we realized $154 million of carried interest into income during this quarter. Importantly, because our earnings recognition follows a European waterfall model, where carried interest is recognized only after we have returned to funds, invested the capital, and achieved a preferred return, a number of the realizations have advanced our mature funds closer to that carried interest realization. Shifting to capital allocation, during the quarter, we reinvested excess cash flow back into the business and returned to the $180 million to shareholders through regular dividends and share buybacks. To date this year, we have repurchased over $950 million of shares in the open market at a roughly 50% discount to our view of intrinsic value. Through these monetizations, we realized $154 million of carried interest into income during this quarter. through these monetizations we realized $154 million of carried interest into income during this quarter Importantly, because our earnings recognition follows a European waterfall model, where carried interest is recognized only after we have returned to funds, invested the capital, and achieved a preferred return, a number of the realizations have advanced our mature funds closer to that carried interest realization. importantly because our earnings recognition follows a european waterfall model where carried interest is recognized only after we have returned to funds invested the capital and achieved a preferred return a number of the realizations have advanced our mature funds closer to that carried interest realization Shifting to capital allocation, during the quarter, we reinvested excess cash flow back into the business and returned to the $180 million to shareholders through regular dividends and share buybacks. shifting to capital allocation during the quarter we reinvested excess cash flow back into the business and returned to the $180 million to shareholders through regular dividends and share buybacks To date this year, we have repurchased over $950 million of shares in the open market at a roughly 50% discount to our view of intrinsic value. to date this year we have repurchased over $950 million of shares in the open market at a roughly 50% discount to our view of intrinsic value Moving on to our balance sheet and liquidity, we continue to maintain a conservatively capitalized balance sheet and high levels of liquidity, with record deployable capital of $178 billion at the end of the quarter. We also maintain strong access to the capital markets, executing $140 billion of financing so far this year, including the issuance of $650 million of 10-year senior notes at the corporation during the quarter. Other notable financings include the successful refinancing of a $1.9 billion five-year loan at a luxury resort in the Bahamas and two five-year CMBS issuances at New York Trophy office buildings, each over $1.25 billion, reinforcing that capital continues to flow to high-quality assets at attractive returns. Bringing it all together, our financial results continue to be very strong, and we expect continued growth in our results over the remainder of the year and into 2026. Moving on to our balance sheet and liquidity, we continue to maintain a conservatively capitalized balance sheet and high levels of liquidity, with record deployable capital of $178 billion at the end of the quarter. moving on to our balance sheet and liquidity we continue to maintain a conservatively capitalized balance sheet and high levels of liquidity with record deployable capital of $178 billion at the end of the quarter We also maintain strong access to the capital markets, executing $140 billion of financing so far this year, including the issuance of $650 million of 10-year senior notes at the corporation during the quarter. we also maintain strong access to the capital markets executing $140 billion of financing so far this year including the issuance of $650 million of 10-year senior notes at the corporation during the quarter Other notable financings include the successful refinancing of a $1.9 billion five-year loan at a luxury resort in the Bahamas and two five-year CMBS issuances at New York Trophy office buildings, each over $1.25 billion, reinforcing that capital continues to flow to high-quality assets at attractive returns. other notable financings include the successful refinancing of a $1.9 billion five-year loan at a luxury resort in the bahamas and two five-year cmbs issuances at new york trophy office buildings each over $1.25 billion reinforcing that capital continues to flow to high-quality assets at attractive returns Bringing it all together, our financial results continue to be very strong, and we expect continued growth in our results over the remainder of the year and into 2026. bringing it all together our financial results continue to be very strong and we expect continued growth in our results over the remainder of the year and into 2026 I am pleased to confirm that our board of directors has declared a quarterly dividend of $0.06 per share, payable at the end of December to shareholders of record at the close of business on December 16th, 2025. On a post-split basis, the quarterly dividend is consistent with the previous quarter's dividend. Thank you for your time, and I will now hand the call back to the operator for questions. Operator. I am pleased to confirm that our board of directors has declared a quarterly dividend of $0.06 per share, payable at the end of December to shareholders of record at the close of business on December 16th, 2025. i am pleased to confirm that our board of directors has declared a quarterly dividend of $0.06 per share payable at the end of december to shareholders of record at the close of business on december 16th 2025 On a post-split basis, the quarterly dividend is consistent with the previous quarter's dividend. on a post-split basis the quarterly dividend is consistent with the previous quarter's dividend Thank you for your time, and I will now hand the call back to the operator for questions. thank you for your time and i will now hand the call back to the operator for questions Operator. operator

Speaker 10: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, press star 11 again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. And our first question will come from the line of Michael Cyprys with Morgan Stanley. Your line is open. Thank you. thank you As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. as a reminder to ask a question please press star one one on your telephone and wait for your name to be announced To withdraw your question, press star 11 again. to withdraw your question press star 11 again Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. due to time restraints we ask that you please limit yourself to one question and one follow-up question Please stand by while we compile the Q&A roster. please stand by while we compile the q&a roster And our first question will come from the line of Michael Cyprys with Morgan Stanley. and our first question will come from the line of michael cyprys with morgan stanley Your line is open. your line is open

Speaker 3: Great. Thank you. Good morning. If we think about the pillars of your success over the years, I think it's been your ability to adapt the business and innovate in recent years. You've added Wealth Solutions, continue to grow that. But recently, you've made some partnerships around AI, humanoids, partnership with Figure as one example. So I was hoping you could talk about how you see humanoids and AI broadly potentially creating another leg of the stool for Brookfield over time. I remember at your investor day, I think embedded in your 2030 DE guide was about $2.6 billion of DE from capital allocation. Maybe you could help unpack the components there and how you think about other different contributors over time. Thank you. Great. great Thank you. thank you Good morning. good morning If we think about the pillars of your success over the years, I think it's been your ability to adapt the business and innovate in recent years. if we think about the pillars of your success over the years i think it's been your ability to adapt the business and innovate in recent years You've added Wealth Solutions, continue to grow that. you've added wealth solutions continue to grow that But recently, you've made some partnerships around AI, humanoids, partnership with Figure as one example. but recently you've made some partnerships around ai humanoids partnership with figure as one example So I was hoping you could talk about how you see humanoids and AI broadly potentially creating another leg of the stool for Brookfield over time. so i was hoping you could talk about how you see humanoids and ai broadly potentially creating another leg of the stool for brookfield over time I remember at your investor day, I think embedded in your 2030 DE guide was about $2.6 billion of DE from capital allocation. i remember at your investor day i think embedded in your 2030 de guide was about $2.6 billion of de from capital allocation Maybe you could help unpack the components there and how you think about other different contributors over time. maybe you could help unpack the components there and how you think about other different contributors over time Thank you. thank you

Speaker 7: Good morning, Mike, and thanks for the question. I would break the answer into two parts. I'd say most of the capital deployment and the focus that we have today is around building the backbone infrastructure to support the build-out of AI. The growing demands, the secular trend of the growth of AI, the need for compute capacity, and also the need for the power to drive that and be able to supply the electricity for the compute capacity is where we are investing most of our time and our dollars right now. And we have a very unique position around that, given our capability and our global reach and our operating expertise around renewable energy, nuclear, and other energy sources, and then our data center and AI fund that we're launching soon. Good morning, Mike, and thanks for the question. good morning mike and thanks for the question I would break the answer into two parts. i would break the answer into two parts I'd say most of the capital deployment and the focus that we have today is around building the backbone infrastructure to support the build-out of AI. i'd say most of the capital deployment and the focus that we have today is around building the backbone infrastructure to support the build-out of ai The growing demands, the secular trend of the growth of AI, the need for compute capacity, and also the need for the power to drive that and be able to supply the electricity for the compute capacity is where we are investing most of our time and our dollars right now. the growing demands the secular trend of the growth of ai the need for compute capacity and also the need for the power to drive that and be able to supply the electricity for the compute capacity is where we are investing most of our time and our dollars right now And we have a very unique position around that, given our capability and our global reach and our operating expertise around renewable energy, nuclear, and other energy sources, and then our data center and AI fund that we're launching soon. and we have a very unique position around that given our capability and our global reach and our operating expertise around renewable energy nuclear and other energy sources and then our data center and ai fund that we're launching soon So I'd say that that offers great growth potential for the franchise, and we're very well positioned to participate in that and are investing in a disciplined way to drive really, really impressive results so far. I'd say the second component and the Figure transaction that you talked about, at Brookfield Corporation, what we're doing is looking to stay ahead of the curve and deploy capital for the benefit of the rest of the organization and for the benefit of our operations. And what we see with the developments in AI and humanoid robotics, we believe that over time, they will have a material impact on the way that businesses are run and even broader society. And so I think this is about investing as a defensive investment and an opportunity to make money, but to really learn and be at the forefront for the benefit of the broader organization. So I'd say that that offers great growth potential for the franchise, and we're very well positioned to participate in that and are investing in a disciplined way to drive really, really impressive results so far. so i'd say that that offers great growth potential for the franchise and we're very well positioned to participate in that and are investing in a disciplined way to drive really really impressive results so far I'd say the second component and the Figure transaction that you talked about, at Brookfield Corporation, what we're doing is looking to stay ahead of the curve and deploy capital for the benefit of the rest of the organization and for the benefit of our operations. i'd say the second component and the figure transaction that you talked about at brookfield corporation what we're doing is looking to stay ahead of the curve and deploy capital for the benefit of the rest of the organization and for the benefit of our operations And what we see with the developments in AI and humanoid robotics, we believe that over time, they will have a material impact on the way that businesses are run and even broader society. and what we see with the developments in ai and humanoid robotics we believe that over time they will have a material impact on the way that businesses are run and even broader society And so I think this is about investing as a defensive investment and an opportunity to make money, but to really learn and be at the forefront for the benefit of the broader organization. and so i think this is about investing as a defensive investment and an opportunity to make money but to really learn and be at the forefront for the benefit of the broader organization And we would look to do that, I'd say over time, we'd look to do that selectively as we see good opportunities to do so. So I don't think of this as necessarily the next leg. I think it's a force and a trend that's driving broad growth across the organization, and we're well positioned to participate in it. And we would look to do that, I'd say over time, we'd look to do that selectively as we see good opportunities to do so. and we would look to do that i'd say over time we'd look to do that selectively as we see good opportunities to do so So I don't think of this as necessarily the next leg. so i don't think of this as necessarily the next leg I think it's a force and a trend that's driving broad growth across the organization, and we're well positioned to participate in it. i think it's a force and a trend that's driving broad growth across the organization and we're well positioned to participate in it

Speaker 3: Okay. Thanks. And then just a follow-up question on Wealth Solutions. I saw you signed the first reinsurance agreement in Japan, expanding your global footprint. I was hoping you could talk about that arrangement, how you see that contributing, what's the scope for others in Japan, as well as elsewhere around the world. Maybe you could just update us on your global ambitions. Clearly, you have the transaction underway in the U.K. Okay. okay Thanks. thanks And then just a follow-up question on Wealth Solutions. and then just a follow-up question on wealth solutions I saw you signed the first reinsurance agreement in Japan, expanding your global footprint. i saw you signed the first reinsurance agreement in japan expanding your global footprint I was hoping you could talk about that arrangement, how you see that contributing, what's the scope for others in Japan, as well as elsewhere around the world. i was hoping you could talk about that arrangement how you see that contributing what's the scope for others in japan as well as elsewhere around the world Maybe you could just update us on your global ambitions. maybe you could just update us on your global ambitions Clearly, you have the transaction underway in the U.K. clearly you have the transaction underway in the u.k

Speaker 7: Yes. Thanks, Mike. Yes, as you mentioned, we've made the transaction well, we've agreed to transaction in the U.K., and we're working towards closing that transaction in the early part of next year. That's a significant step for us, scaling PRT and giving us access to a long-duration low-pool of low-risk liability, sorry, long-duration pool of low-risk liabilities. And so we're excited to close that. That really sets us up well in the U.K. market. And we identified Asia and Japan as the next market that we've looked to grow into and doing that in partnership with local players. This reinsurance, it's a flow agreement, so it's really a transaction that will build over time, month to month, quarter to quarter, as we participate in the business that they're writing. So it has the potential to scale, and then we also have the potential to partner with other local players. Yes. yes Thanks, Mike. thanks mike Yes, as you mentioned, we've made the transaction well, we've agreed to transaction in the U.K., and we're working towards closing that transaction in the early part of next year. yes as you mentioned we've made the transaction well we've agreed to transaction in the u.k and we're working towards closing that transaction in the early part of next year That's a significant step for us, scaling PRT and giving us access to a long-duration low-pool of low-risk liability, sorry, long-duration pool of low-risk liabilities. that's a significant step for us scaling prt and giving us access to a long-duration low-pool of low-risk liability sorry long-duration pool of low-risk liabilities And so we're excited to close that. and so we're excited to close that That really sets us up well in the U.K. market. that really sets us up well in the u.k market And we identified Asia and Japan as the next market that we've looked to grow into and doing that in partnership with local players. and we identified asia and japan as the next market that we've looked to grow into and doing that in partnership with local players This reinsurance, it's a flow agreement, so it's really a transaction that will build over time, month to month, quarter to quarter, as we participate in the business that they're writing. this reinsurance it's a flow agreement so it's really a transaction that will build over time month to month quarter to quarter as we participate in the business that they're writing So it has the potential to scale, and then we also have the potential to partner with other local players. so it has the potential to scale and then we also have the potential to partner with other local players So very much about continued growth in both markets. And those are the two markets we're predominantly focused on outside of North America today. So very much about continued growth in both markets. so very much about continued growth in both markets And those are the two markets we're predominantly focused on outside of North America today. and those are the two markets we're predominantly focused on outside of north america today

Speaker 3: Great. Thank you. Great. great Thank you. thank you

Speaker 10: Thank you. One moment for our next question. And that will come from the line of Mario Saric with Scotiabank. Your line is open. Thank you. thank you One moment for our next question. one moment for our next question And that will come from the line of Mario Saric with Scotiabank . and that will come from the line of mario saric with scotiabank Your line is open. your line is open

Speaker 2: Hi. Good morning, and thank you for taking the questions. Coming back to the Wealth Solutions business, Nick, I was wondering how long do you think it may take to get to your approximate 200 basis point target net investment yield spread? And then secondly, how should we think about the evolution of gross versus net insurance flows? I think in this quarter, the net was about 40% of gross. So just curious on what your thoughts are on those two items. Hi. hi good Good morning, and thank you for taking the questions. good morning and thank you for taking the questions Coming back to the Wealth Solutions business, Nick, I was wondering how long do you think it may take to get to your approximate 200 basis point target net investment yield spread? coming back to the wealth solutions business nick i was wondering how long do you think it may take to get to your approximate 200 basis point target net investment yield spread And then secondly, how should we think about the evolution of gross versus net insurance flows? and then secondly how should we think about the evolution of gross versus net insurance flows I think in this quarter, the net was about 40% of gross. i think in this quarter the net was about 40% of gross So just curious on what your thoughts are on those two items. so just curious on what your thoughts are on those two items

Speaker 7: Yeah. I mean, listen, the 200 basis points is a long-term, medium to long-term target, so it will take time to grow into it. And as you know, as cash comes in, we're very disciplined on the deployment, and we're looking at a sort of barbell approach on deployment, sitting in significant short-term liquidity and balancing that with investment into real assets or in credit and equity. So it just takes time for the deployment. But as we work through the plan, we do expect that spread to start to broaden out and work towards it. Importantly, we think about ROE, Mario, as opposed to just spread. And the return on equity that we're generating and the capital is compounding at 15%+. And that is in line with our long-term targets. We're very happy with the performance there. Yeah. yeah I mean, listen, the 200 basis points is a long-term, medium to long-term target, so it will take time to grow into it. i mean listen the 200 basis points is a long-term medium to long-term target so it will take time to grow into it And as you know, as cash comes in, we're very disciplined on the deployment, and we're looking at a sort of barbell approach on deployment, sitting in significant short-term liquidity and balancing that with investment into real assets or in credit and equity. and as you know as cash comes in we're very disciplined on the deployment and we're looking at a sort of barbell approach on deployment sitting in significant short-term liquidity and balancing that with investment into real assets or in credit and equity So it just takes time for the deployment. so it just takes time for the deployment But as we work through the plan, we do expect that spread to start to broaden out and work towards it. but as we work through the plan we do expect that spread to start to broaden out and work towards it Importantly, we think about ROE, Mario, as opposed to just spread. importantly we think about roe mario as opposed to just spread And the return on equity that we're generating and the capital is compounding at 15%+ . and the return on equity that we're generating and the capital is compounding at 15%+ And that is in line with our long-term targets. and that is in line with our long-term targets We're very happy with the performance there. we're very happy with the performance there On the gross to net flows, it should stabilize out to about a third outflows versus inflows in a quarter as we move forward. On the gross to net flows, it should stabilize out to about a third outflows versus inflows in a quarter as we move forward. on the gross to net flows it should stabilize out to about a third outflows versus inflows in a quarter as we move forward

Speaker 2: Got it. Okay. And then my follow-up just with respect to the recently announced Oaktree acquisition. Has the composition of the $3 billion purchase price between BAM, BN shares, and cash, has that been settled? And how do you see the transaction impacting the velocity of BN share repurchases going forward, if at all? Got it. got it Okay. okay And then my follow-up just with respect to the recently announced Oaktree acquisition. and then my follow-up just with respect to the recently announced oaktree acquisition Has the composition of the $3 billion purchase price between BAM, BN shares, and cash, has that been settled? has the composition of the $3 billion purchase price between bam bn shares and cash has that been settled And how do you see the transaction impacting the velocity of BN share repurchases going forward, if at all? and how do you see the transaction impacting the velocity of bn share repurchases going forward if at all

Speaker 7: So yeah, Mario, we do have the elections finalized. And the end result, I'd say roughly, was $250 million of BN shares elected. The balance will be in cash, and almost 100% of the BAM consideration will be in cash. And it will have zero impact on our buyback. We will buy back the 250 million of shares that we issue, but it won't have impact on our broader buyback strategy. So yeah, Mario, we do have the elections finalized. so yeah mario we do have the elections finalized And the end result, I'd say roughly, was $250 million of BN shares elected. and the end result i'd say roughly was $250 million of bn shares elected The balance will be in cash, and almost 100% of the BAM consideration will be in cash. the balance will be in cash and almost 100% of the bam consideration will be in cash And it will have zero impact on our buyback. and it will have zero impact on our buyback We will buy back the 250 million of shares that we issue, but it won't have impact on our broader buyback strategy. we will buy back the 250 million of shares that we issue but it won't have impact on our broader buyback strategy

Speaker 2: Okay. Those are my two. Thank you. Okay. okay Those are my two. those are my two Thank you. thank you

Speaker 10: Thank you. One moment for our next question. And that will come from the line of Alex Blostein with Goldman Sachs. Your line is open. Thank you. thank you One moment for our next question. one moment for our next question And that will come from the line of Alex Blostein with Goldman Sachs. and that will come from the line of alex blostein with goldman sachs Your line is open. your line is open

Speaker 8: Hey, Nick. Good morning, everybody. Just maybe zoning back to trajectory of the insurance business. So really good growth. So the sales are coming through nicely. On the spread, though, and I hear your comment around the ROE, but the spread, I think in annuities, was 165 basis points this quarter. So maybe hel us think through kind of the near-term dynamics over the last maybe 12-24 months on the trajectory of that spread as you kind of start to earn your way back towards the targets. Hey, Nick. hey nick Good morning, everybody. good morning everybody Just maybe zoning back to trajectory of the insurance business. just maybe zoning back to trajectory of the insurance business So really good growth. so really good growth So the sales are coming through nicely. so the sales are coming through nicely On the spread, though, and I hear your comment around the ROE, but the spread, I think in annuities, was 165 basis points this quarter. on the spread though and i hear your comment around the roe but the spread i think in annuities was 165 basis points this quarter So maybe hel us think through kind of the near-term dynamics over the last maybe 12- 24 months on the trajectory of that spread as you kind of start to earn your way back towards the targets. so maybe hel us think through kind of the near-term dynamics over the last maybe 12- 24 months on the trajectory of that spread as you kind of start to earn your way back towards the targets

Speaker 7: Yeah. So first, Alex, welcome to the call. I know it's your first one. It's great to have you. I just say that the spread is, yeah, right, 165, and it's really because we're being disciplined in deployment. And you know the way we think about the business. We run it for the long term. And so we're being patient in the deployment. We are sourcing very attractive real asset investment opportunities in the credit and equity side, as I just said. And so as we look forward, we do expect it to work its way back up. But we're not running, as you know, the business quarter to quarter. We're running it long term. So we're going to be patient and wait for the right investment opportunities. And as they come in, you'll start to see that spread widen out. Yeah. yeah So first, Alex, welcome to the call. so first alex welcome to the call I know it's your first one. i know it's your first one It's great to have you. it's great to have you I just say that the spread is, yeah, right, 165, and it's really because we're being disciplined in deployment. i just say that the spread is yeah right 165 and it's really because we're being disciplined in deployment And you know the way we think about the business. and you know the way we think about the business We run it for the long term. we run it for the long term And so we're being patient in the deployment. and so we're being patient in the deployment We are sourcing very attractive real asset investment opportunities in the credit and equity side, as I just said. we are sourcing very attractive real asset investment opportunities in the credit and equity side as i just said And so as we look forward, we do expect it to work its way back up. and so as we look forward we do expect it to work its way back up But we're not running, as you know, the business quarter to quarter. but we're not running as you know the business quarter to quarter We're running it long term. we're running it long term So we're going to be patient and wait for the right investment opportunities. so we're going to be patient and wait for the right investment opportunities And as they come in, you'll start to see that spread widen out. and as they come in you'll start to see that spread widen out But again, what it all comes back to is the ROE. And so we're happy with the performance. But again, what it all comes back to is the ROE. but again what it all comes back to is the roe And so we're happy with the performance. and so we're happy with the performance

Speaker 8: Gotcha. Thanks for that. And then for my follow-up, we'll just maybe stay with insurance. Can you spend a couple of minutes maybe on how you're progressing towards closing the just acquisition? I know there's probably a lot of limitations to what you could say publicly, but as you were to sort of frame the spread-related earnings contribution and then strategically how you think this could accelerate growth of your presence outside the US and PRT markets in U.K. and Europe broadly, would just be helpful to understand what this deal could mean financially for the business over kind of medium term. Gotcha. gotcha Thanks for that. thanks for that And then for my follow-up, we'll just maybe stay with insurance. and then for my follow-up we'll just maybe stay with insurance Can you spend a couple of minutes maybe on how you're progressing towards closing the just acquisition? can you spend a couple of minutes maybe on how you're progressing towards closing the just acquisition I know there's probably a lot of limitations to what you could say publicly, but as you were to sort of frame the spread-related earnings contribution and then strategically how you think this could accelerate growth of your presence outside the US and PRT markets in U.K. and Europe broadly, would just be helpful to understand what this deal could mean financially for the business over kind of medium term. i know there's probably a lot of limitations to what you could say publicly but as you were to sort of frame the spread-related earnings contribution and then strategically how you think this could accelerate growth of your presence outside the us and prt markets in u.k and europe broadly would just be helpful to understand what this deal could mean financially for the business over kind of medium term

Speaker 7: Yeah. So I do apologize because we are limited in what we can say, and we haven't really talked to date about what the pro forma looks like as we work our way through the regulatory approvals. I would just tell you that we're working through it. We have the shareholder vote. We're working with the regulator. As you know, we previously were licensed under Blue Mont in the U.K., so we have a good relationship with the PRI, but we're working through that process. I'd say that Just has got a good track record of issuing PRT on a consistent basis in the U.K., I think, in the year before we acquired them, about GBP 5 billion of origination. So we would expect to hopefully be able to continue that and scale it with our capital. But as for pro formas, it will have to wait until we're further along in the process. Yeah. yeah So I do apologize because we are limited in what we can say, and we haven't really talked to date about what the pro forma looks like as we work our way through the regulatory approvals. so i do apologize because we are limited in what we can say and we haven't really talked to date about what the pro forma looks like as we work our way through the regulatory approvals I would just tell you that we're working through it. i would just tell you that we're working through it We have the shareholder vote. we have the shareholder vote We're working with the regulator. we're working with the regulator As you know, we previously were licensed under Blue Mont in the U.K., so we have a good relationship with the PRI, but we're working through that process. as you know we previously were licensed under blue mont in the u.k so we have a good relationship with the pri but we're working through that process I'd say that Just has got a good track record of issuing PRT on a consistent basis in the U.K., I think, in the year before we acquired them, about GBP 5 billion of origination. i'd say that just has got a good track record of issuing prt on a consistent basis in the u.k i think in the year before we acquired them about gbp 5 billion of origination So we would expect to hopefully be able to continue that and scale it with our capital. so we would expect to hopefully be able to continue that and scale it with our capital But as for pro formas, it will have to wait until we're further along in the process. but as for pro formas it will have to wait until we're further along in the process

Speaker 8: Okay. Fair enough. Thanks. Okay. okay Fair enough. fair enough Thanks. thanks

Speaker 7: Thank you. Thank you. thank you

Speaker 10: Thank you. One moment for our next question. And that will come from the line of Cherilyn Radbourne with TD Cowen. Your line is open. Thank you. thank you One moment for our next question. one moment for our next question And that will come from the line of Cherilyn Radbourne with TD Cowen . and that will come from the line of cherilyn radbourne with td cowen Your line is open. your line is open

Speaker 9: Thanks very much and good morning. Ever since the framework agreement to build new nuclear capacity in the U.S. was announced, the biggest question we've been getting from clients is, to the extent that Brookfield, alongside LPs, will invest capital in nuclear project development, what kind of downside protections would you be seeking? And is that investment likely to occur in a discrete nuclear strategy or in the BGTF strategy? Thanks very much and good morning. thanks very much and good morning Ever since the framework agreement to build new nuclear capacity in the U.S. was announced, the biggest question we've been getting from clients is, to the extent that Brookfield, alongside LPs, will invest capital in nuclear project development, what kind of downside protections would you be seeking? ever since the framework agreement to build new nuclear capacity in the u.s was announced the biggest question we've been getting from clients is to the extent that brookfield alongside lps will invest capital in nuclear project development what kind of downside protections would you be seeking And is that investment likely to occur in a discrete nuclear strategy or in the BGTF strategy? and is that investment likely to occur in a discrete nuclear strategy or in the bgtf strategy

Speaker 7: Hi, Cherilyn. Thanks for the question. So I'd say, first of all, I'd say that it's being bought within Westinghouse. So the transaction that is being done is being done between Westinghouse and the U.S. government. And the U.S. government is buying, as the equity investor, $80 billion of nuclear facilities. Our role within that is to help deliver the facilities and then provide, as you know, the services that we provide, which is the fuel rods, the fuel, and then the servicing of the facilities going forward. So the end result will look very much like the Westinghouse business that we have today, which is to service and provide the fuel to the nuclear reactors. And it's really scaling Westinghouse as a global nuclear champion, but it'll be done through Westinghouse, which is owned by BGTF One. Hi, Cherilyn. hi cherilyn Thanks for the question. thanks for the question So I'd say, first of all, I'd say that it's being bought within Westinghouse. so i'd say first of all i'd say that it's being bought within westinghouse So the transaction that is being done is being done between Westinghouse and the U.S. government. so the transaction that is being done is being done between westinghouse and the u.s government And the U.S. government is buying, as the equity investor, $80 billion of nuclear facilities. and the u.s government is buying as the equity investor $80 billion of nuclear facilities Our role within that is to help deliver the facilities and then provide, as you know, the services that we provide, which is the fuel rods, the fuel, and then the servicing of the facilities going forward. our role within that is to help deliver the facilities and then provide as you know the services that we provide which is the fuel rods the fuel and then the servicing of the facilities going forward So the end result will look very much like the Westinghouse business that we have today, which is to service and provide the fuel to the nuclear reactors. so the end result will look very much like the westinghouse business that we have today which is to service and provide the fuel to the nuclear reactors And it's really scaling Westinghouse as a global nuclear champion, but it'll be done through Westinghouse, which is owned by BGTF One. and it's really scaling westinghouse as a global nuclear champion but it'll be done through westinghouse which is owned by bgtf one

Speaker 9: And maybe just extending that to the plans that are being evaluated in South Carolina, maybe you can elaborate on how that might be structured. And maybe just extending that to the plans that are being evaluated in South Carolina, maybe you can elaborate on how that might be structured. and maybe just extending that to the plans that are being evaluated in south carolina maybe you can elaborate on how that might be structured

Speaker 7: Yeah. So again, we're in a process there, and it's very early days. But what I can tell you is, as we think about the growth in the space, we are focused on downside protection. So anything that we would do in the space where we're looking to get involved in either bringing Westinghouse services or Brookfield Capital, it would be structured in a way to provide strong downside protection. Yeah. yeah So again, we're in a process there, and it's very early days. so again we're in a process there and it's very early days But what I can tell you is, as we think about the growth in the space, we are focused on downside protection. but what i can tell you is as we think about the growth in the space we are focused on downside protection So anything that we would do in the space where we're looking to get involved in either bringing Westinghouse services or Brookfield Capital, it would be structured in a way to provide strong downside protection. so anything that we would do in the space where we're looking to get involved in either bringing westinghouse services or brookfield capital it would be structured in a way to provide strong downside protection

Speaker 9: That's all for me. Thank you. That's all for me. that's all for me Thank you. thank you

Speaker 7: Thank you. Thank you. thank you

Speaker 10: One moment for our next question. And that will come from the line of Kenneth Worthington with JPMorgan. Your line is open. One moment for our next question. one moment for our next question And that will come from the line of Kenneth Worthington with JPMorgan. and that will come from the line of kenneth worthington with jpmorgan Your line is open. your line is open

Speaker 11: Hi. Good morning, and thanks for taking the question. You've talked in the past about 2025 being a transition year for Carry. You've talked about the improved outlook going through 2030. Given what continues to look like a better M&A environment and a better realization environment with better valuations, can you talk about how Carry Generation is shaping up for 2026? And then maybe wrapping the follow-up in the same question, as we think about realizations, how is the outlook developing for realizations on balance sheet versus realization in the Brookfield funds as you think about the intermediate-term outlook? I guess I'll be vague like that. Hi. hi Good morning, and thanks for taking the question. good morning and thanks for taking the question You've talked in the past about 2025 being a transition year for Carry. you've talked in the past about 2025 being a transition year for carry You've talked about the improved outlook going through 2030. you've talked about the improved outlook going through 2030 Given what continues to look like a better M&A environment and a better realization environment with better valuations, can you talk about how Carry Generation is shaping up for 2026? given what continues to look like a better m&a environment and a better realization environment with better valuations can you talk about how carry generation is shaping up for 2026 And then maybe wrapping the follow-up in the same question, as we think about realizations, how is the outlook developing for realizations on balance sheet versus realization in the Brookfield funds as you think about the intermediate-term outlook? and then maybe wrapping the follow-up in the same question as we think about realizations how is the outlook developing for realizations on balance sheet versus realization in the brookfield funds as you think about the intermediate-term outlook I guess I'll be vague like that. i guess i'll be vague like that

Speaker 7: Thanks, Ken. So I'd just say that the outlook for Carry hasn't changed. So this year, as we said, would be a bit of a bridge year, and it's played out in that direction, largely consistent with last year. And with the monetizations that we have in the pipeline, either those that are progressed or that we plan on launching through the end of this year or into the early part of next year, therefore, which should close in 2026, we do still see the potential for a step-up in carried interest in 2026. So that is still continuing, a step-up in 2026, and then again into 2027, and a strong year in 2028. So that's the outlook. The expectation of what we can achieve in the next three years really hasn't changed from what we presented at Investor Day. Thanks, Ken. thanks ken So I'd just say that the outlook for Carry hasn't changed. so i'd just say that the outlook for carry hasn't changed So this year, as we said, would be a bit of a bridge year, and it's played out in that direction, largely consistent with last year. so this year as we said would be a bit of a bridge year and it's played out in that direction largely consistent with last year And with the monetizations that we have in the pipeline, either those that are progressed or that we plan on launching through the end of this year or into the early part of next year, therefore, which should close in 2026, we do still see the potential for a step-up in carried interest in 2026. and with the monetizations that we have in the pipeline either those that are progressed or that we plan on launching through the end of this year or into the early part of next year therefore which should close in 2026 we do still see the potential for a step-up in carried interest in 2026 So that is still continuing, a step-up in 2026, and then again into 2027, and a strong year in 2028. so that is still continuing a step-up in 2026 and then again into 2027 and a strong year in 2028 So that's the outlook. so that's the outlook The expectation of what we can achieve in the next three years really hasn't changed from what we presented at Investor Day. the expectation of what we can achieve in the next three years really hasn't changed from what we presented at investor day And we're still optimistic, and we still believe that it is a very healthy transaction market and the strong capital markets are supporting that activity. As it relates to the split between the balance sheet and what's being done in the funds, as you know, they operate completely independently of each other. So we continue to advance the monetizations in the fund. It's a globally diversified portfolio of many assets in many geographies. So it has the ability to be a bit nimble around where assets are ready to trade and where the capital is there and the appetite is strong. On the balance sheet, we're talking about the office and retail assets in the U.S. And I can tell you that the capital markets are stronger now even than when we had our last call when we talked about the strength of the markets. And we're still optimistic, and we still believe that it is a very healthy transaction market and the strong capital markets are supporting that activity. and we're still optimistic and we still believe that it is a very healthy transaction market and the strong capital markets are supporting that activity As it relates to the split between the balance sheet and what's being done in the funds, as you know, they operate completely independently of each other. as it relates to the split between the balance sheet and what's being done in the funds as you know they operate completely independently of each other So we continue to advance the monetizations in the fund. so we continue to advance the monetizations in the fund It's a globally diversified portfolio of many assets in many geographies. it's a globally diversified portfolio of many assets in many geographies So it has the ability to be a bit nimble around where assets are ready to trade and where the capital is there and the appetite is strong. so it has the ability to be a bit nimble around where assets are ready to trade and where the capital is there and the appetite is strong On the balance sheet, we're talking about the office and retail assets in the U.S. on the balance sheet we're talking about the office and retail assets in the u.s And I can tell you that the capital markets are stronger now even than when we had our last call when we talked about the strength of the markets. and i can tell you that the capital markets are stronger now even than when we had our last call when we talked about the strength of the markets We had very successful financings in the quarter at spreads and all-in rates we couldn't have achieved even a month ago. And that all lends itself very favorably towards increasing transaction activity. We've been able to dispose of a few smaller assets, which don't make a dent in the numbers, but they do show that appetite for acquisition activity is returning. So as that picks up, we expect to see continued activity into next year. We had very successful financings in the quarter at spreads and all-in rates we couldn't have achieved even a month ago. we had very successful financings in the quarter at spreads and all-in rates we couldn't have achieved even a month ago And that all lends itself very favorably towards increasing transaction activity. and that all lends itself very favorably towards increasing transaction activity We've been able to dispose of a few smaller assets, which don't make a dent in the numbers, but they do show that appetite for acquisition activity is returning. we've been able to dispose of a few smaller assets which don't make a dent in the numbers but they do show that appetite for acquisition activity is returning So as that picks up, we expect to see continued activity into next year. so as that picks up we expect to see continued activity into next year

Speaker 11: Okay. Great. Thank you. Okay. okay Great. great Thank you. thank you

Speaker 7: Thanks, Ken. Thanks, Ken. thanks ken

Speaker 10: One moment for our next question. And that will come from the line of Bart Dziarski with RBC Capital Markets. Your line is open. One moment for our next question. one moment for our next question And that will come from the line of Bart Dziarski with RBC Capital Markets. and that will come from the line of bart dziarski with rbc capital markets Your line is open. your line is open

Speaker 12: Great. Thanks. And good morning. Just wanted to ask on real estate. So within the LP, the NOI really ticked up this quarter, so 465 million versus, I think, last year's about 80 million. So apologies if I missed this in the prepared remarks, but anything to call out there in terms of the drivers of that step-up? Great. great Thanks. thanks And good morning. and good morning Just wanted to ask on real estate. just wanted to ask on real estate So within the LP, the NOI really ticked up this quarter, so 465 million versus, I think, last year's about 80 million. so within the lp the noi really ticked up this quarter so 465 million versus i think last year's about 80 million So apologies if I missed this in the prepared remarks, but anything to call out there in terms of the drivers of that step-up? so apologies if i missed this in the prepared remarks but anything to call out there in terms of the drivers of that step-up

Speaker 7: Yeah. Hey, Bart. Yeah. So listen, the performance of the LP portfolio is the running returns that we earn, plus it's the disposition gains that we earn. So during the quarter, we benefited from disposition gains from monetizations, and that's what's driving the increase, sorry, in the FFO during the quarter. Yeah. yeah Hey, Bart. hey bart Yeah. yeah So listen, the performance of the LP portfolio is the running returns that we earn, plus it's the disposition gains that we earn. so listen the performance of the lp portfolio is the running returns that we earn plus it's the disposition gains that we earn So during the quarter, we benefited from disposition gains from monetizations, and that's what's driving the increase, sorry, in the FFO during the quarter. so during the quarter we benefited from disposition gains from monetizations and that's what's driving the increase sorry in the ffo during the quarter

Speaker 12: Okay. Got it. And then just to follow up on Carry, with regards to the Target Carry Framework that you have, could you help us kind of understand if there's a pickup that will—will the Target Carry increase once your Oaktree pickup deal closes? And if so, maybe a rough frame as to how much that could increase? Okay. okay Got it. got it And then just to follow up on Carry, with regards to the Target Carry Framework that you have, could you help us kind of understand if there's a pickup that will—will the Target Carry increase once your Oaktree pickup deal closes? and then just to follow up on carry with regards to the target carry framework that you have could you help us kind of understand if there's a pickup that will—will the target carry increase once your oaktree pickup deal closes And if so, maybe a rough frame as to how much that could increase? and if so maybe a rough frame as to how much that could increase

Speaker 7: So we will own more of Oaktree. Target Carry represents the kind of the annualized carry that's compounding for us on the carry eligible capital that we manage. So yes, when we do acquire Oaktree and we have more carry eligible capital, it will pick up, but it won't be material. It won't be a significant adjustment to the numbers that we have today. So we will own more of Oaktree. so we will own more of oaktree Target Carry represents the kind of the annualized carry that's compounding for us on the carry eligible capital that we manage. target carry represents the kind of the annualized carry that's compounding for us on the carry eligible capital that we manage So yes, when we do acquire Oaktree and we have more carry eligible capital, it will pick up, but it won't be material. so yes when we do acquire oaktree and we have more carry eligible capital it will pick up but it won't be material It won't be a significant adjustment to the numbers that we have today. it won't be a significant adjustment to the numbers that we have today

Speaker 12: Okay. Thanks, Nick. That's it for me. Okay. okay Thanks, Nick. thanks nick That's it for me. that's it for me

Speaker 7: Thanks, Bart. Thanks, Bart. thanks bart

Speaker 10: One moment for our next question. And that will come from the line of Sohrab Movahedi with BMO. Your line is open. One moment for our next question. one moment for our next question And that will come from the line of Sohrab Movahedi with BMO. and that will come from the line of sohrab movahedi with bmo Your line is open. your line is open

Speaker 4: Okay. Thank you. I just wanted to go back to the earlier remarks about, broadly speaking, the three types of economic environments that could play out. I think Bruce was talking to that. And I understand the implications of those from an investing perspective. Is any one environment of those three better than the others from a fundraising perspective? Okay. okay Thank you. thank you I just wanted to go back to the earlier remarks about, broadly speaking, the three types of economic environments that could play out. i just wanted to go back to the earlier remarks about broadly speaking the three types of economic environments that could play out I think Bruce was talking to that. i think bruce was talking to that And I understand the implications of those from an investing perspective. and i understand the implications of those from an investing perspective Is any one environment of those three better than the others from a fundraising perspective? is any one environment of those three better than the others from a fundraising perspective

Speaker 7: Listen, I think, Sohrab, we've been through a pretty severe cycle in just the last five years and maybe experienced a few environments in a very short period of time. And I think through all of that, demand for alternatives has stayed strong. And I mean specifically real asset alternatives and essential service investing. So I think as it plays out, the ones that we've framed for you should still attract strong demand from the clients into the assets that we have. They've proven their durability. They've found their place in investment portfolios, and investors now appreciate and like the characteristics of the income and the returns that they generate. And so I think that irrespective of where we end up, demand for real assets will stay strong. Listen, I think, Sohrab, we've been through a pretty severe cycle in just the last five years and maybe experienced a few environments in a very short period of time. listen i think sohrab we've been through a pretty severe cycle in just the last five years and maybe experienced a few environments in a very short period of time And I think through all of that, demand for alternatives has stayed strong. and i think through all of that demand for alternatives has stayed strong And I mean specifically real asset alternatives and essential service investing. and i mean specifically real asset alternatives and essential service investing So I think as it plays out, the ones that we've framed for you should still attract strong demand from the clients into the assets that we have. so i think as it plays out the ones that we've framed for you should still attract strong demand from the clients into the assets that we have They've proven their durability. they've proven their durability They've found their place in investment portfolios, and investors now appreciate and like the characteristics of the income and the returns that they generate. they've found their place in investment portfolios and investors now appreciate and like the characteristics of the income and the returns that they generate And so I think that irrespective of where we end up, demand for real assets will stay strong. and so i think that irrespective of where we end up demand for real assets will stay strong Okay. I appreciate that, Nick. I just wanted to see if there's a likelihood in a scenario some of the targets that would have been discussed, let's say at the investor day, could actually get upgraded. But you're saying that's necessary. Okay. okay I appreciate that, Nick. i appreciate that nick I just wanted to see if there's a likelihood in a scenario some of the targets that would have been discussed, let's say at the investor day, could actually get upgraded. i just wanted to see if there's a likelihood in a scenario some of the targets that would have been discussed let's say at the investor day could actually get upgraded But you're saying that's necessary. but you're saying that's necessary Yeah. I mean, listen. Sure. Sure. I mean, listen, if you go into the environment of sort of lower nominal yields, then I do think real assets have the potential maybe to become even more attractive in that scenario. So maybe it could be an upside, but not to the extent that we've changed our plans today. We continue to drive the business and think that the growth outlook is incredibly strong already. Yeah. yeah i mean I mean, listen. i mean listen Sure. sure Sure. sure I mean, listen, if you go into the environment of sort of lower nominal yields, then I do think real assets have the potential maybe to become even more attractive in that scenario. i mean listen if you go into the environment of sort of lower nominal yields then i do think real assets have the potential maybe to become even more attractive in that scenario So maybe it could be an upside, but not to the extent that we've changed our plans today. so maybe it could be an upside but not to the extent that we've changed our plans today We continue to drive the business and think that the growth outlook is incredibly strong already. we continue to drive the business and think that the growth outlook is incredibly strong already

Speaker 4: Yeah. Thank you very much for taking the question. Yeah. yeah Thank you very much for taking the question. thank you very much for taking the question

Speaker 7: Thank you. Thank you. thank you

Speaker 10: One moment for our next question. That will come from the line of Dean Wilkinson with CIBC World Markets. Your line is open. One moment for our next question. one moment for our next question That will come from the line of Dean Wilkinson with CIBC World Markets. that will come from the line of dean wilkinson with cibc world markets Your line is open. your line is open

Speaker 6: Thanks. Morning, guys. Nick, I guess when you look at growth of the business over time, do you hit a point where you start to worry about the law of large numbers? I mean, the ability for you to put out capital has seeming to exceed the rapid rate that you're growing BN and BAM and everything together. Is there a point where that sort of flattens out, or do you think that those opportunity sets are going to continue to grow quicker than you can actually grow the underlying business? Thanks. thanks Morning, guys. morning guys Nick, I guess when you look at growth of the business over time, do you hit a point where you start to worry about the law of large numbers? nick i guess when you look at growth of the business over time do you hit a point where you start to worry about the law of large numbers I mean, the ability for you to put out capital has seeming to exceed the rapid rate that you're growing BN and BAM and everything together. i mean the ability for you to put out capital has seeming to exceed the rapid rate that you're growing bn and bam and everything together Is there a point where that sort of flattens out, or do you think that those opportunity sets are going to continue to grow quicker than you can actually grow the underlying business? is there a point where that sort of flattens out or do you think that those opportunity sets are going to continue to grow quicker than you can actually grow the underlying business

Speaker 7: I think it's exactly that. When we look today at the trends going on in the market and the amount of capital that is needed to deliver in the areas of AI infrastructure, renewable power, we see that being a significant growth. I think today, the scale of the opportunities are significant. I say the quality of the opportunities are probably the best we've ever seen. So the ability to earn returns while deploying large amounts of capital is a great place to be. I don't think we foresee in the short term any shortage of opportunities to deploy, and probably even in the medium and long term. I think it's exactly that. i think it's exactly that When we look today at the trends going on in the market and the amount of capital that is needed to deliver in the areas of AI infrastructure, renewable power, we see that being a significant growth. when we look today at the trends going on in the market and the amount of capital that is needed to deliver in the areas of ai infrastructure renewable power we see that being a significant growth I think today, the scale of the opportunities are significant. i think today the scale of the opportunities are significant I say the quality of the opportunities are probably the best we've ever seen. i say the quality of the opportunities are probably the best we've ever seen So the ability to earn returns while deploying large amounts of capital is a great place to be. so the ability to earn returns while deploying large amounts of capital is a great place to be I don't think we foresee in the short term any shortage of opportunities to deploy, and probably even in the medium and long term. i don't think we foresee in the short term any shortage of opportunities to deploy and probably even in the medium and long term

Speaker 6: Oh, that's great. Thanks. Oh, that's great. oh that's great Thanks. thanks

Speaker 7: Thank you. Thank you. thank you

Speaker 10: One moment for our next question. And that will come from the line of Jaeme Gloyn with National Bank. Your line is open. One moment for our next question. one moment for our next question And that will come from the line of Jaeme Gloyn with National Bank. and that will come from the line of jaeme gloyn with national bank Your line is open. your line is open

Speaker 13: Yeah. Thanks. And sorry, I jumped on late, so I apologize if this was addressed. But in the wealth solutions business, just looking at the annuities, distributable earnings from annuities stepped down a little bit quarter-over-quarter, year-over-year. Hoping you can kind of talk through a little bit of the moving parts there. And as well as the looks like a 10 basis point step down in the yield on investments in that portfolio. Yeah. yeah Thanks. thanks And sorry, I jumped on late, so I apologize if this was addressed. and sorry i jumped on late so i apologize if this was addressed But in the wealth solutions business, just looking at the annuities, distributable earnings from annuities stepped down a little bit quarter- over- quarter, year- over- year. but in the wealth solutions business just looking at the annuities distributable earnings from annuities stepped down a little bit quarter- over- quarter year- over- year Hoping you can kind of talk through a little bit of the moving parts there. hoping you can kind of talk through a little bit of the moving parts there And as well as the looks like a 10 basis point step down in the yield on investments in that portfolio. and as well as the looks like a 10 basis point step down in the yield on investments in that portfolio

Speaker 7: Yeah. I would say there's nothing significant. The year-over-year performance we continue to drive strong earnings. We may have had some one-off small movements in the portfolio of the earnings, but nothing significant. The portfolio continues to perform incredibly well. The dropdown in the spread, which we touched on briefly earlier, is really just a product of capital coming in, inflows coming, really being parked in cash until we invest them. And the point I made earlier was that we're being very patient and waiting for the right real asset investment opportunities and getting the right time to put the capital to work. And it will come. And as we put that capital to work, you'll start to see the spread increase again back towards long-term targets. Yeah. yeah I would say there's nothing significant. i would say there's nothing significant The year-over-year performance we continue to drive strong earnings. the year-over-year performance we continue to drive strong earnings We may have had some one-off small movements in the portfolio of the earnings, but nothing significant. we may have had some one-off small movements in the portfolio of the earnings but nothing significant The portfolio continues to perform incredibly well. the portfolio continues to perform incredibly well The dropdown in the spread, which we touched on briefly earlier, is really just a product of capital coming in, inflows coming, really being parked in cash until we invest them. the dropdown in the spread which we touched on briefly earlier is really just a product of capital coming in inflows coming really being parked in cash until we invest them And the point I made earlier was that we're being very patient and waiting for the right real asset investment opportunities and getting the right time to put the capital to work. and the point i made earlier was that we're being very patient and waiting for the right real asset investment opportunities and getting the right time to put the capital to work And it will come. and it will come And as we put that capital to work, you'll start to see the spread increase again back towards long-term targets. and as we put that capital to work you'll start to see the spread increase again back towards long-term targets

Speaker 13: Okay. Thank you. Oh, and the yield, sorry. It's just cash as well. Yeah. Okay. okay Thank you. thank you Oh, and the yield, sorry. oh and the yield sorry It's just cash as well. it's just cash as well Yeah. yeah

Speaker 7: That's right. That's right. that's right

Speaker 13: Yeah. Okay. Got it. Thank you. Yeah. yeah Okay. okay Got it. got it Thank you. thank you

Speaker 10: Thank you. That is all the time we have for question and answer today. I would now like to turn the call over to Ms. Katie Battaglia for closing remarks. Thank you. thank you That is all the time we have for question and answer today. that is all the time we have for question and answer today I would now like to turn the call over to Ms. Katie Battaglia for closing remarks. i would now like to turn the call over to ms katie battaglia for closing remarks

Speaker 1: Thank you, everybody, for joining us today. And with that, we'll end the call. Thank you, everybody, for joining us today. thank you everybody for joining us today And with that, we'll end the call. and with that we'll end the call

Speaker 10: This concludes today's conference call. Thank you for participating. You may now disconnect. This concludes today's conference call. this concludes today's conference call Thank you for participating. thank you for participating You may now disconnect. you may now disconnect