Partners Value Investments Inc. Announces 2024 Annual Results: A Wild Ride!

Ladies and gentlemen, buckle up! We've got a rollercoaster of financial results to dive into today. Partners Value Investments Inc. just dropped their 2024 annual results, and let me tell you, it's a doozy! The company recorded a net loss of $3.8 billion for the year ended December 31, 2024, compared to a net loss of $333 million in the prior year. That's a massive drop, folks! But before you hit the panic button, let's break down what's really going on here.

First things first, the decrease in income was primarily attributable to the current year remeasurement losses associated with the retractable shares and warrant liabilities. These remeasurement losses were driven by the appreciation or depreciation of the Partners Value Investments L.P. (the “Partnership”) unit price, as the exchangeable shares are recognized at fair value based on the quoted price of the Partnership’s Equity LP units. During the year, the Partnership unit price increased by $51.79 compared to $4.96 in the prior year. That's a huge jump, and it's got the market in a frenzy!

But here's the thing, folks: this decrease was partially offset by higher investment income and valuation gains as well as foreign currency gains compared to the prior year. Excluding retractable share and warrant liability remeasurement gains and dividends paid on retractable shares, Adjusted Earnings for the Company was $122 million for the year ended December 31, 2024, compared to $27 million in the prior year. That's right, $122 million! So, while the net loss is eye-popping, there's still some serious money being made here.

Now, let's talk about the market price fluctuations of Brookfield Corporation (BN) and Brookfield Asset Management Ltd. (BAM) shares between December 31, 2024, and March 28, 2025. On December 31, 2024, the market prices of BN and BAM shares were $57.45 and $54.19, respectively. However, by March 28, 2025, these prices had decreased to $51.85 and $48.50, respectively. That's a decline of $5.60 (9.73%) for BN shares and $5.69 (10.39%) for BAM shares. Ouch!



These price fluctuations have several implications for the Partnership's investment strategy. The Partnership holds a significant number of shares in both BN and BAM. As of December 31, 2024, the Partnership's investment in BN consisted of 121 million shares with a quoted market value of $57.45 per share, and its investment in BAM consisted of 31 million shares with a quoted market value of $54.19 per share. The decrease in share prices would result in a decrease in the market value of these investments. For example, the market value of the Partnership's investment in BN would decrease by approximately $678.8 million (121 million shares * $5.60 decrease per share).

The decrease in share prices could also impact the Partnership's net income. The Partnership recorded net income of $74 million for the year ended December 31, 2024, which was primarily driven by higher investment income and valuation gains. A decrease in the market value of the Partnership's investments could lead to valuation losses, which would negatively impact net income in future periods.

The price fluctuations could influence the Partnership's investment strategy. For example, the Partnership may choose to sell some of its shares in BN or BAM if it believes that the shares are overvalued or if it needs to raise capital. Alternatively, the Partnership may choose to buy more shares if it believes that the shares are undervalued. The Partnership's investment strategy is also influenced by its principal investments in BN and BAM, which represent approximately an 8% interest in the Corporation and a 7% interest in the Manager as at December 31, 2024.

So, what's the bottom line, folks? Partners Value Investments Inc. had a wild ride in 2024, with some serious ups and downs. But with higher investment income and valuation gains, there's still plenty of opportunity here. Keep your eyes on the market price fluctuations of BN and BAM shares, and stay tuned for more updates on this exciting company!