Brookfield Asset Management Q2 FFO Climbs; Declares Dividend

(RTTNews) - Brookfield Asset Management Inc. (BAM, BAM_A.TO) reported Friday a surge in second-quarter funds from operations, benefited by higher revenues.

For the second quarter, funds from operations surged 192 percent to $464 million from last year's $159 million, with funds from operations per share improving to $0.68 from $0.20 in the same quarter last year.

FFO results included disposition gains of $58 million in the latest-quarter, compared to disposition losses of $87 million a year ago. This excluded gains which will be booked on a number of realizations which were closed after quarter end and therefore will be recorded in the third quarter.

Net income climbed 112 percent to $802 million from last year's $379 million. Net income attributable to shareholders for the quarter grew 67 percent to $230 million or $0.31 per share from $138 million or $0.17 per share a year ago.

The company said financial results reflected substantial increases in asset management fees as a result of higher capital under management, improved hydrology levels and higher spot market power pricing in our renewable power operations as well as higher prices and volumes related to operations with exposure to the continuing U.S. housing recovery.

Revenues for the quarter rose to $5.17 billion from $4.42 billion in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report revenues of $4.66 billion for the quarter. Analysts' estimates typically exclude special items.

The company's annualized fee base increased 21 percent over March 31 to $932 million. This included $557 million of annualized base management fees and incentive distributions, and $375 million of annualized carried interests, based on targeted fund returns.

Bruce Flatt, CEO of Brookfield, said, "Asset management fees increased 72 percent during the quarter and virtually all of our operating groups are performing well and positioned for growth. We closed a number of realizations and raised over $14 billion of fund commitments for new investments. We are also seeing attractive opportunities to put money to work in all of our businesses."

Further, the company said its Board of Directors declared a quarterly dividend of $0.15 per share, representing $0.60 per annum, payable on November 30, to shareholders of record as at the close of business on November 1.

The Board also declared all of the regular monthly and quarterly dividends on its preferred shares.

Brookfield shares closed Thursday's trading at $37.36.