TORONTO, May 21, 2021 (GLOBE NEWSWIRE) — Partners Value Investments LP (the “Partnership” TSX: PVF.UN TSX: PVF.PR.U) today announced its financial results for the three months ended March 31, 2021. All amounts are in US dollars.
The partnership generated a net loss of $1 million for the quarter ended March 31, 2021 compared to a net income of $74 million for the same quarter last year. Net income for the current quarter was lower than the 2020 quarter, which included a favorable impact from exchange rates for Canadian dollar preferred stock of a subsidiary of the partnership.
The market price of Brookfield shares on March 31, 2021 was $44.50 per share compared to $41.27 on December 31, 2020.
Consolidated Income Statement
For the three months ended March 31
(thousands, US dollars)
|Other Investment Income||2.009||987|
|Retractable Preferred Stock Dividends||(11,540||)||(5.408||)|
|Gains (losses) from asset valuation||5,284||(15.451||)|
|Amortization of deferred financing costs||(1.204||)||(529||)|
|Ongoing tax refund||1,980||315|
|Deferred tax expense||(2.627||)||(866||)|
|Foreign currency (loss) profit||(11,592||)||74,736|
|net (loss) income||$||(1.176||)||$||74.106|
Change in Net Book Value
The information in the following table shows the changes in the net book value:
|For the three months ended March 31
(in thousands, except per unit amounts)
|total||Per unit||total||Per unit|
|Net book value, beginning of period1||$||4,777,152||$||54.20||$||4,378,324||$||49.65|
|Adjustment for the effects of the warrant3||5.155||0.06||(28.019||)||(0.32||)|
|Share LP Buyback||(1,654||)||(0.02||)||(109||)||—|
|Net book value, period end1,4.5||$||5,161,413||$||58.57||$||3,304,946||$||37.48|
- Calculated on a fully diluted basis, net book value is a non-IFRS measure.
- Attributable to Equity Limited Partners.
- The fundamental weighted average number of units outstanding of Equity Limited Partnership (“Equity LP”) during the period ended March 31, 2021 was 73,331,299. The diluted weighted average number of available and outstanding units of Equity Limited Partnership (“Equity LP”) for the period ended March 31, 2021 was 88,039,965; this includes the 14,708,766 Equity LP units issuable upon the exercise of all outstanding warrants.
- At the end of the period, outstanding diluted equity LP units were 88,017,497 (December 31, 2020 – 88,056,097).
- Net book value is a non-IFRS measure and is equal to total equity less the equity of the general partners and the preferred limited partner plus the value of the consideration to be received upon the exercise of warrants, which as of March 31, 2021 was $380 million. dollars was (December 31, 2020 – $375 million).
The Partnership’s principal investment is its interest in approximately 129 million shares of Brookfield’s Class A Limited Voting Shares (“Brookfield Shares”). This represents a fully diluted ownership interest of 9% as of March 31, 2021. The Company also owns a diversified investment portfolio of marketable securities.
The information in the table below was extracted from the partnership’s balance sheet:
(thousands, US dollars)
March 31, 2021
|December 31, 2020|
|Cash and cash equivalents||$||229,777||$||316,718|
|Investment in Brookfield Asset Management Inc. 1||5,729,755||5,313,865|
|Other investments measured at fair value||319.016||365,949|
|Receivables and Other Assets||43,791||40.109|
|Liabilities and Equity|
|Trade accounts payable and other liabilities||$||15,297||$||15,604|
|General market value||4,781,437||4,402,331|
|Preferred limited partners||153,054||153,054|
- Investment in Brookfield Asset Management Inc. consists of approximately 129 million Brookfield with a listed market value of $44.50 per share as of March 31, 2021 (December 31, 2020 – $41.27).
- Represents $557 million of redeemable preferred stock less $11 million of unamortized issue costs as of March 31, 2021 (December 31, 2020 – $706 million less $12 million).
- Deferred tax liability represents the partnership’s potential future income tax liability, recognized for accounting purposes based on the difference between the carrying amounts of the partnership’s assets and liabilities and their respective tax bases, and affects estimated capital and non-capital losses.
For more information, contact Investor Relations at 416-956-5142.
Note: This press release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. The words “potential” and “estimated” and other expressions that are or indicate predictions of future events, trends or prospects and which are not related to historical matters, identify forward-looking information. Forward-looking information in this press release includes statements regarding the Company’s potential future income taxes.
Although the Company believes that its anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based on reasonable assumptions and expectations, the reader should not place undue reliance on any forward-looking statements and information, as these are known and unknown risks, uncertainties and other factors, many of which are beyond its control, which could cause the company’s actual results, performance or achievements to differ materially from anticipated future results, performance or achievements contained in such forward-looking statements are expressed or implied and information.
Factors that could cause actual results to differ materially from those anticipated or implied by the forward-looking statements and information include, among others: the financial performance of Brookfield Asset Management Inc., the effect or unexpected effects of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest rates and exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within those markets; strategic measures including orders; changes in accounting policies and methods used in reporting financial condition (including uncertainties related to critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws, catastrophic events such as earthquakes and hurricanes; the potential impact of international conflicts and other developments, including terrorist attacks; and other risks and factors set forth in the Company’s filings with securities regulators in Canada from time to time.
The company cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on the Company’s forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements and information, whether written or oral, whether as a result of new information, future events or otherwise.