Brookfield Corporation 1Q26 Results Beat On The Back Of Stronger Contributions From Direct Investments, Other Operating Businesses, And Carry

Research evidence excerpt

Brookfield Corporation 1Q26 Results Beat On The Back Of Stronger Contributions From Direct Investments, Other Operating Businesses, And Carry

c)

asset class that was generally viewed less favorably by the market during the years

Prev Cur Δ

post Covid, but in Brookfield’s view has had strong fundamentals during the period DE per share - 26E ($) 2.88 2.96 2.7%

(in the right sub asset classes). BN argued that sentiment is now catching up with DE per share - 27E ($) 3.75 3.87 3.4%

fundamentals, and pointed to much more amenable financing markets.

Management cited several examples in the firm’s RE portfolio as evidence of Quarterly Forecasts (FYE Dec)

strength, including rents at Manhattan West having 3x-ed since the first signed DE per share ($)

2025A 2026E 2027E

lease and debt at the asset now sitting at construction costs after $400mm of net Q1 0.65 0.66A 0.85

cash was just cashed out at a recent financing. Despite these helpful anecdotes, we Q2 0.59 0.64 0.92

still observe that BPG’s overall FFO flipped back into the red (from $146mm in Q3 0.63 0.76 0.99

4Q25 to -$44mm in 1Q26). While the delta was primarily driven by items we see Q4 0.67 0.90 1.11

FY 2.53 2.96 3.87

as less core indicators of overall asset performance (corporate costs and the N.A.

Resi business which we understand has seasonality), FFO of $97mm from the Style Exposure

SuperCore portfolio did step down QoQ ($102mm) and YoY ($106mm),

suggesting that the positive fundamentals BN is able to cite are still taking time to

flow through the P&L. As has become customary on earnings calls, BN reiterated

the firm’s focus on investing behind its three key themes of Digitalization,

Decarbonization, and Deglobalization. We continue to agree that these are large

and attractive opportunity sets.