Brookfield Corporation (NYSE: BN) is coming off another excellent year. The leading global investment firm delivered record financial results. That helped catapult its stock, which generated a market-crushing 55% return — more than double the S&P 500’s (SNPINDEX: ^GSPC) 26% total return. That continued the company’s multi-decade record of outperformance (it has generated a 19% annualized return over the last 30 years, compared to 11% for the S&P 500).
The company is in an excellent position to continue delivering robust returns for shareholders. Its businesses are growing briskly, and it trades at a wide discount compared to its intrinsic value. Because of that, it’s a great stock to buy and hold.
“We delivered record financial results in 2024, with strong contributions from each of our businesses,” stated president Nick Goodman in Brookfield Corporation’s fourth-quarter earnings press release. The company reported nearly $4.9 billion, or $3.07 per share, of distributable earnings (DE) before realizations. That implied 24% growth on an absolute basis and 15% per share compared to 2023’s level. Its DE was even higher when factoring in realizations (earnings from monetizing mature assets) at almost $6.3 billion, or $3.96 per share, an increase of more than 30%.
The biggest contributor was its wealth solutions business, which produced $1.4 billion of DE, a nearly 100% increase compared to the prior year. That business has been scaling rapidly, driven by a string of acquisitions in recent years. These deals have positioned Brookfield as the top-tier writer of retail annuities in the U.S., with a growing pension business. It has also expanded its business overseas by reinsuring $1.3 billion of U.K. pension liabilities last year.
The company’s asset management business, Brookfield Asset Management, also had a strong year, contributing $2.6 billion to its DE. That business generates strong and growing fee-related earnings (17% growth last year) as investors continue to pour capital into the funds it manages. Brookfield Asset Management raised $135 billion from investors last year, including $40 billion across its latest round of flagship funds (second global transition fund strategy, fifth opportunistic real estate fund strategy, and flagship opportunistic credit fund strategy.)
Meanwhile, the company’s operating businesses in renewable power (Brookfield Renewable), infrastructure (Brookfield Infrastructure), private equity (Brookfield Business), and real estate delivered steady and growing cash flow. They combined to contribute $1.6 billion in DE last year. Operating funds from operations across its renewable power, transition, and infrastructure businesses were up 10% last year. Meanwhile, its core real estate portfolio (offices and malls) delivered a 4% increase in same-store net operating income last year.
