Brookfield Corp (BN) 2024 Q2 法說會逐字稿

Hello, and welcome to the Brookfield Corporation's second quarter 2024 conference call and webcast. (Operator Instructions) I would now like to hand the conference call over to our first speaker, Ms. Angela Yulo, Vice President, Investor Relations. Please go ahead.

您好，歡迎參加 Brookfield Corporation 2024 年第二季電話會議和網路廣播。（操作員指示）我現在想將電話會議交給我們的第一位發言人，投資者關係副總裁 Angela Yulo 女士。請繼續。

Thank you, Operator, and good morning. Welcome to Brookfield Corporation's second quarter 2024 conference call. On the call today are Bruce Flatt, our Chief Executive Officer, and Nick Goodman, President of Brookfield Corporation.

謝謝您，接線員，早安。歡迎參加 Brookfield Corporation 2024 年第二季電話會議。今天參加電話會議的有我們的執行長 Bruce Flatt 和 Brookfield Corporation 總裁 Nick Goodman。

Bruce will start off by giving a business update, followed by Nick, who will discuss our financial and operating results for the quarter. After our formal comments, we'll turn the call over to the Operator and take analyst questions. In order to accommodate all those who want to ask questions, we request that you refrain from asking more than two questions.

布魯斯將首先介紹業務最新情況，然後尼克將討論我們本季的財務和營運業績。在我們提出正式意見後，我們會將電話轉交給營運商並回答分析師的問題。為了方便所有想提問的人，我們要求您不要提出兩個以上的問題。

I would like to remind you that in today's comments, including in responding to questions and in discussing new initiatives in our financial and operating performance, we may make forward-looking statements, including forward-looking statements within the meaning of applicable Canadian and US securities laws. These statements reflect predictions of future events and trends and do not relate to historic events. They are subject to known and unknown risks, and future events and results may differ materially from such statements. For further information on these risks and their potential impacts on our company, please see our filings with the securities regulators in Canada and the US and the information available on our website.

我想提醒您，在今天的評論中，包括在回答問題和討論我們的財務和營運業績的新舉措時，我們可能會做出前瞻性陳述，包括適用的加拿大和美國證券含義內的前瞻性陳述法律。這些陳述反映了對未來事件和趨勢的預測，與歷史事件無關。它們面臨已知和未知的風險，未來的事件和結果可能與此類聲明有重大差異。有關這些風險及其對我們公司的潛在影響的更多信息，請參閱我們向加拿大和美國證券監管機構提交的文件以及我們網站上提供的信息。

With that, I'll turn the call over to Bruce.

這樣，我就把電話轉給布魯斯。

Thank you, Angela, and welcome, everyone, on the call. Results for the second quarter were strong, with each of our businesses performing well and continuing to deliver strong cash flows. Distributable earnings before realization were $1.1 billion for the quarter and $4.4 billion for the last 12 months, representing an increase compared to the prior quarter of 11% on a total per share basis.

謝謝你，安琪拉，歡迎大家來電。第二季的業績強勁，我們的每項業務均表現良好，並繼續提供強勁的現金流。本季實現前可分配收益為 11 億美元，過去 12 個月為 44 億美元，每股總收益較上一季成長 11%。

Total distributable earnings increased by 80% to $2.1 billion for the quarter as transaction activity continues to pick up. With regard to the economy, inflation is cooling down, short-term interest rates are starting to decline in major economies around the world, and risk appetite has been coming back. In just the last six months, we successfully financed approximately $75 billion of debt and realized $15 billion from monetizations across a number of assets globally.

隨著交易活動持續回升，本季可分配總收益成長 80%，達到 21 億美元。經濟方面，通膨降溫，全球主要經濟體短期利率開始下降，風險偏好回升。僅在過去六個月內，我們就成功融資了約 750 億美元的債務，並透過全球多項資產的貨幣化實現了 150 億美元的收益。

With this constructive economic backdrop, albeit volatile over the last week, liquidity continues to return to the private markets, setting us up well to capitalize on attractive growth opportunities, monetize mature assets, and deliver strong returns. As we look forward, we believe this should be a great environment for real assets, and specifically for those investment teams with operational expertise and access to scale capital.

在這種建設性的經濟背景下，儘管上週出現波動，但流動性繼續返回私人市場，使我們能夠充分利用有吸引力的成長機會、將成熟資產貨幣化並帶來強勁回報。展望未來，我們相信這對實體資產來說應該是一個良好的環境，特別是對於那些擁有營運專業知識和獲得規模資本的投資團隊來說。

At the same time, we continue to take the opportunity to repurchase our shares at significantly lower prices compared to our view of intrinsic value. Since the start of this year, we completed over $800 million of share buybacks, which added very meaningfully to the value of our company based on our view of that value. We intend to continue to allocate capital to share repurchases when it makes sense, enhancing the underlying value of the business for each remaining share.

同時，我們繼續利用機會以遠低於我們對內在價值的看法的價格回購我們的股票。自今年年初以來，我們完成了超過 8 億美元的股票回購，根據我們對公司價值的看法，這對我們公司的價值產生了非常有意義的增加。我們打算在合理的情況下繼續分配資本用於股票回購，從而提高每股剩餘股票的業務潛在價值。

As we plan for the future, it is important to reflect on what has been the foundation of our growth and success from the past. Our ability to consistently generate strong investment returns over the long term is certainly one of those. This has contributed to our success in the past and should continue to drive success for years to come.

當我們規劃未來時，重要的是要反思過去我們成長和成功的基礎。我們長期持續產生強勁投資回報的能力無疑就是其中之一。這為我們過去的成功做出了貢獻，並且應該繼續推動未來幾年的成功。

Our investment philosophy has been and continues to be built on our key principles, which have applied while investing our own capital for over 100 years. This has enabled us to compound our own capital, build a large perpetual capital base, and establish ourselves as one of the largest global asset managers with a very strong investment track record.

我們的投資理念一直並將繼續建立在我們的關鍵原則之上，這些原則在我們自有資本投資中已應用了 100 多年。這使我們能夠複合自己的資本，建立龐大的永久資本基礎，並將自己打造成擁有強大投資記錄的全球最大資產管理公司之一。

These same principles, though, should apply as we further scale our wealth solutions business, which after just three years has generated an annual returns compound of 20% and looks to be only getting started. Our strong investment performance has led, therefore, to our clients meeting their financial objectives, our manager further deepening client relationships, our balance sheet continuing to compound at approximately 20% annualized for the past 30 years, and our ability to realize carried interest, which can be reinvested back into the business or return to shareholders.

不過，隨著我們進一步擴大我們的財富解決方案業務，這些相同的原則也應該適用，該業務在短短三年後就產生了 20% 的複合年回報率，而且看起來才剛剛開始。因此，我們強勁的投資業績使我們的客戶實現了他們的財務目標，我們的經理進一步加深了客戶關係，我們的資產負債表在過去30 年中繼續以年化約20% 的複合速度增長，並且我們實現附帶權益的能力，可以再投資回企業或回報股東。

Our differentiated platform, which has evolved with the backbone of the global economy, has enabled us to continue to compound capital and deliver strong returns on a per share base to our shareholders over the longer term.

我們的差異化平台隨著全球經濟的支柱而發展，使我們能夠繼續複合資本，並在較長時期內為股東帶來強勁的每股回報。

Note that we invest into the backbone of the global economy. That economy is always evolving and we must change with it. I would note for you that 50% or more of the assets that we own today did not exist as an asset class 20 years ago. One of the few areas where we are seeing very strong investment opportunities is the AI revolution.

請注意，我們投資於全球經濟的支柱。經濟總是在發展，我們必須隨之改變。我想向您指出的是，我們今天擁有的 50% 或更多的資產在 20 年前並不作為資產類別存在。人工智慧革命是我們看到非常強大的投資機會的少數領域之一。

Fortunately, we are at the center of the backbone of this revolution, and our combined development pipeline of renewable power and data centers is by far the largest of any entity globally. There is an increase in demand for power to run data centers used in computing capacity for AI. As the largest builder of renewables and data centers combined in the world, this is very exciting for us.

幸運的是，我們處於這場革命的支柱中心，我們的再生能源和資料中心的共同開發管道是迄今為止全球任何實體中最大的。運行用於人工智慧運算能力的資料中心的電力需求不斷增加。作為世界上最大的可再生能源和數據中心建設商，這對我們來說非常令人興奮。

However, our scale must increase dramatically to meet the needs of our customers. As a result, we have acquired several renewable operating development platforms as well as data center businesses over the past number of years to scale our capabilities. Our recent agreement with Microsoft and our advancements through our Westinghouse business also give us an enormous lead in pursuing this.

然而，我們的規模必須大幅擴大才能滿足客戶的需求。因此，我們在過去幾年中收購了多個再生能源營運開發平台以及資料中心業務，以擴大我們的能力。我們最近與微軟達成的協議以及我們透過西屋電氣業務的進步也使我們在實現這一目標方面處於巨大領先地位。

Before I pass the floor over to Nick, I will end by saying that we look forward to seeing you at our Investor Day on September 10 in New York. Additional details for that are on our website. As always, thank you for your continued support and interest in Brookfield.

在將發言權交給 Nick 之前，我最後要說的是，我們期待在 9 月 10 日於紐約舉行的投資者日見到您。有關更多詳細信息，請訪問我們的網站。一如既往，感謝您對布魯克菲爾德的持續支持和興趣。

I will now turn the call over to Nick.

我現在將把電話轉給尼克。

Thank you, Bruce, and good morning, everyone. We delivered strong financial results in the second quarter, generating stable and growing cash flows across our business. Distributable earnings or DE before realizations were $1.1 billion or $0.71 per share for the quarter, representing an increase of 11% on a per share basis over the prior period.

謝謝你，布魯斯，大家早安。我們在第二季度取得了強勁的財務業績，整個業務產生了穩定且不斷增長的現金流。本季實現前的可分配收益或 DE 為 11 億美元，即每股 0.71 美元，較上一季每股成長 11%。

Over the last 12 months, DE before realizations were $4.4 billion or $2.77 per share. Total DE was $2.1 billion or $1.35 per share for the quarter and $5.8 billion or $3.67 per share over the last 12 months, with net income of $1.1 billion at our share or $3.4 billion in total over the same period. So focusing first on our operating performance, our asset management business generated distributable earnings of $636 million or $0.40 per share in the quarter and $2.5 billion or $1.61 per share over the last 12 months.

過去 12 個月，變現前的 DE 為 44 億美元，即每股 2.77 美元。本季總 DE 為 21 億美元，即每股 1.35 美元，過去 12 個月為 58 億美元，即每股 3.67 美元，我們分享的淨利潤為 11 億美元，即同期總計 34 億美元。因此，首先關注我們的經營業績，我們的資產管理業務在本季度創造了6.36 億美元或每股0.40 美元的可分配收益，在過去12 個月內創造了25 億美元或每股1.61 美元的可分配收益。

We continue to see strong fundraising across our diversified fund offerings. Assets under management are now approximately $1 trillion, and fee-bearing capital was $514 billion as of June 30, and that's 17% higher than 12 months ago. Inflows during the quarter were $68 billion, backed by the scaling of our credit platform.

我們繼續看到我們的多元化基金產品籌集了強勁的資金。截至 6 月 30 日，管理資產目前約為 1 兆美元，收費資本為 5,140 億美元，比 12 個月前增加 17%。在我們信貸平台規模擴張的支持下，本季的流入量為 680 億美元。

This increase supported the 11% growth in annualized fee-related earnings compared to the prior year quarter. We expect fundraising to ramp up in the back half of the year, with closest anticipated for our latest flagship funds in the market, which should result in further earnings growth.

這一成長支撐了年化費用相關收益與去年同期相比成長 11%。我們預計今年下半年的募款活動將增加，最接近我們市場上最新旗艦基金的預期，這將帶來進一步的獲利成長。

During the quarter, our ownership in BAM decreased by 2% to 73%, as we used approximately $1 billion of BAM shares as part of the consideration for the acquisition of American Equity Life, or AEL. This demonstrates the valuable currency and liquidity that BAM and our other listed securities provide us.

本季度，我們在 BAM 的所有權減少了 2%，降至 73%，因為我們使用了約 10 億美元的 BAM 股票作為收購 American Equity Life（AEL）的對價的一部分。這證明了 BAM 和我們其他上市證券為我們提供的寶貴貨幣和流動性。

Our wealth solutions business had another strong quarter, continuing to deliver growing, long-dated annuity-like cash flows. Distributable operating earnings were $292 million, or $0.19 per share in the quarter, and $1 billion, or $0.63 per share over the last 12 months. We doubled the size of the business in the quarter, taking our insurance assets to over $110 billion on the back of the acquisition of AEL, and the origination of $3.5 billion of new business through our annuity channel.

我們的財富解決方案業務又一個強勁的季度，繼續提供不斷成長的、類似年金的長期現金流。本季可分配營業利潤為 2.92 億美元，即每股 0.19 美元；過去 12 個月的可分配營業利潤為 10 億美元，即每股 0.63 美元。在收購 AEL 以及透過我們的年金管道開展 35 億美元的新業務後，我們本季的業務規模擴大了一倍，使我們的保險資產超過 1,100 億美元。

Excluding AEL, the net investment spread on our assets was consistent with the prior quarter at approximately 2%. As you may recall, when we acquired American National, or ANICO, back in May 2022, the annualized spread earnings of the business were approximately $300 million.

不包括 AEL，我們資產的淨投資利差與上一季一致，約 2%。您可能還記得，當我們在 2022 年 5 月收購美國國民公司 (ANICO) 時，該業務的年化利差收益約為 3 億美元。

Our investment thesis at the time was predicated on being able to leverage the credit origination and investment capabilities of our asset manager to rotate the investment portfolio into higher-yielding assets, with the target of doubling the yield on the investment portfolio and thus the earnings of the business. Within 12 months of taking ownership of ANICO, the annualized spread earnings had indeed doubled to over $600 million.

我們當時的投資理念是能夠利用資產管理公司的信貸發放和投資能力，將投資組合轉向收益更高的資產，目標是使投資組合的收益率翻倍，從而使投資組合的收益翻倍。在收購 ANICO 後的 12 個月內，年化利差收益確實翻了一番，達到 6 億美元以上。

We have a very similar plan with AEL. As we steadily reposition the investment portfolio, we expect the spread earnings of the AEL business to increase from roughly 1.5% today to closer to 2%, and this will have the effect of growing our annualized earnings from $1.4 billion today to $2 billion.

我們與 AEL 有一個非常相似的計劃。隨著我們穩步重新定位投資組合，我們預計 AEL 業務的利差收益將從目前的約 1.5% 增加到接近 2%，這將使我們的年化收益從目前的 14 億美元增加到 20 億美元。

Through our combined wealth solutions platforms, we are raising close to $2 billion of retail capital per month, which now includes approximately $400 million a month from retail products for high net worth clients.

透過我們的綜合財富解決方案平台，我們每月籌集近 20 億美元的零售資本，其中現在包括每月約 4 億美元的高淨值客戶零售產品。

Our operating businesses continue to deliver resilient and growing cash flows, generating distributable earnings of $371 million, or $0.24 per share in the quarter, and $1.5 billion, or $0.93 per share, over the last 12 months. Cash distributions are underpinned by the high-quality earnings of our businesses. Operating funds from operations are operating FFO in our renewable power, transition, and infrastructure businesses increased by 7% over the prior year quarter, while same-store operating FFO in our private equity business grew by 17%.

我們的營運業務繼續提供有彈性且不斷增長的現金流，本季產生可分配收益 3.71 億美元，即每股 0.24 美元，在過去 12 個月內產生了 15 億美元，即每股 0.93 美元。現金分配以我們業務的高品質利潤為基礎。我們的再生能源、轉型和基礎設施業務中的營運 FFO 營運資金比去年同期成長了 7%，而私募股權業務中的同店營運 FFO 成長了 17%。

In our real estate business, our core portfolio delivered 3% growth in same-store net operating income over the last 12 months. In the quarter, we signed nearly 5 million square feet of office and retail leases. And focusing on our core office portfolio, rents on newly signed leases increased by 23% compared to those leases expiring.

在我們的房地產業務中，我們的核心投資組合在過去 12 個月中實現了同店淨營業收入成長 3%。本季度，我們簽署了近 500 萬平方英尺的辦公和零售租賃合約。重點關注我們的核心辦公大樓組合，新簽訂的租約的租金比到期的租約增加了 23%。

A few highlights of our robust office leasing activity include nearly 670,000 square feet leased in South Korea, over 400,000 square feet in Toronto and New York, and over 400,000 square feet in London and Germany. And in our retail portfolio, occupancy levels remain high at 95%.

我們強勁的辦公室租賃活動的一些亮點包括在韓國租賃近 670,000 平方英尺、在多倫多和紐約租賃超過 400,000 平方英尺、在倫敦和德國租賃超過 400,000 平方英尺。在我們的零售投資組合中，入住率仍然高達 95%。

In our renewable power and transition business, we expanded our footprint into a number of key renewables markets. During the quarter, we agreed to acquire a majority stake of Neoen, a leading global renewables platform located in Australia, France, and the Nordics.

在我們的再生能源電力和轉型業務中，我們將業務擴展到了許多關鍵的再生能源市場。本季度，我們同意收購 Neoen 的多數股權，Neoen 是位於澳洲、法國和北歐的全球領先的再生能源平台。

Backed by our expertise and reputation as the largest provider of renewable power and data centers, our combined 230 plus gigawatts is the largest operating and development pipeline behind the AI revolution. And this should be a tremendous tailwind for the earnings of our operating businesses.

憑藉我們作為最大的再生能源和資料中心供應商的專業知識和聲譽，我們的總發電量超過 230 吉瓦，是人工智慧革命背後最大的營運和開發管道。這對於我們經營業務的獲利來說應該是一個巨大的推動力。

Now moving on to monetizations. With transaction activity picking up, we expect an increased level of monetizations going forward. During the quarter, we advanced or completed several sales at strong investment returns, including on a luxury hotel in South Korea, an office asset in Washington, DC, a road fuels operation in Europe, and several renewable assets.

現在轉向貨幣化。隨著交易活動的增加，我們預計未來貨幣化水準將會提高。在本季度，我們以強勁的投資回報推進或完成了多項銷售，包括韓國的豪華酒店、華盛頓特區的辦公資產、歐洲的道路燃料業務以及多項可再生資產。

In addition, we realized a gain of approximately $950 million on the sale of 2% of our BAM shares, and this assists with increased growth in the shares. Over the last 12 months, we generated $2.3 billion of unrealized carried interest, increasing our total accumulated unrealized carried interest to $10.7 billion, of which $9.5 billion is directly owned by the corporation. We also recognized $234 million of net realized carried interest into income to date this year, and we expect to realize additional carried interest through the end of the year.

此外，我們透過出售 2% 的 BAM 股票獲得了約 9.5 億美元的收益，這有助於股票的成長。在過去 12 個月中，我們產生了 23 億美元的未實現附帶權益，使我們的累計未實現附帶權益總額增加到 107 億美元，其中 95 億美元由公司直接擁有。我們還將今年迄今已實現的淨附帶利息確認為 2.34 億美元，並預計到年底將實現額外的附帶利息。

Fundamentals remain strong across our businesses. However, our total consolidated net income was impacted in the quarter, mainly from the accounting treatment of recent acquisitions in our infrastructure business, resulting in higher non-cash depreciation and amortization costs.

我們的業務基本面依然強勁。然而，本季度我們的綜合淨利潤總額受到了影響，主要是由於我們基礎設施業務最近收購的會計處理，導致非現金折舊和攤銷成本增加。

Given the quality of our assets and the continued recovery in transaction activity, we see many tailwinds that will drive further earnings growth in each of our businesses. Outside of our financial results, our conservative balance sheet and strong liquidity position continue to differentiate our franchise. We have approximately $150 billion of deployable capital at quarter end, which includes $62 billion of cash and liquid assets at the corporation, our affiliates, and our wealth solutions business.

鑑於我們的資產品質和交易活動的持續復甦，我們看到許多有利因素將推動我們各項業務的獲利進一步成長。除了我們的財務表現之外，我們保守的資產負債表和強勁的流動性狀況繼續使我們的特許經營業務脫穎而出。截至季末，我們擁有約 1,500 億美元的可動用資本，其中包括公司、附屬公司和財富解決方案業務的 620 億美元現金和流動資產。

With this large-scale capital, we are well positioned to focus on attractive growth opportunities. We continue to capitalize on the narrowing credit spreads and strong demand in the capital markets. We executed on approximately $75 billion of financings across the group to date this year, supporting growth and ongoing operations.

憑藉如此大規模的資本，我們有能力專注於有吸引力的成長機會。我們持續利用信用利差收窄和資本市場強勁需求的機會。今年迄今為止，我們在整個集團內執行了約 750 億美元的融資，以支持成長和持續營運。

Notable highlights include, at the corporation, we issued $650 million of 10 and 30 year bonds, tightening credit spreads by 55 and 10 basis points respectively, relative to the most recent comparable issuances. At Brookfield Renewable Partners, we successfully compressed the credit spreads on a CAD400 million bond issuance by an average of 65 basis points, and we closed approximately $160 million of 60-year subordinated notes at Brookfield Infrastructure Partners. These financings demonstrate the very strong interest in businesses aligned with global secular trends.

值得注意的亮點包括，我們在公司發行了 6.5 億美元的 10 年期和 30 年期債券，相對於最近的可比發行，信用利差分別收緊了 55 個和 10 個基點。在 Brookfield Renewable Partners，我們成功地將 4 億加幣債券發行的信用利差平均壓縮了 65 個基點，並在 Brookfield Infrastructure Partners 發行了約 1.6 億美元的 60 年期次級票據。這些融資顯示了人們對符合全球長期趨勢的企業的濃厚興趣。

In our real estate business, we refinanced an approximately $800 million New York office loan with a new five-year loan at a spread of 225 basis points, a strong signal of the significantly improved financing markets for real estate.

在我們的房地產業務中，我們以利差 225 個基點的新五年期貸款為約 8 億美元的紐約辦公大樓貸款進行了再融資，這是房地產融資市場顯著改善的強烈信號。

And lastly, we repriced approximately $11 billion of financings across six portfolio companies, reducing the credit spreads by 55 basis points on average. Shifting to capital allocation, we reinvested our excess cash flow back into our businesses and returned $408 million to shareholders through regular dividends and share buybacks during the quarter.

最後，我們對六家投資組合公司約 110 億美元的融資進行了重新定價，將信用利差平均降低了 55 個基點。轉向資本配置，我們將多餘的現金流重新投資回我們的業務，並在本季度透過定期股息和股票回購向股東返還 4.08 億美元。

To date this year, we repurchased over $800 million of shares in the open market, adding approximately $0.55 of value to each remaining share, and we expect to continue to further allocate capital to share repurchases over the remainder of 2024.

今年迄今為止，我們在公開市場回購了超過 8 億美元的股票，為剩餘每股增加了約 0.55 美元的價值，我們預計將在 2024 年剩餘時間內繼續進一步分配資本用於股票回購。

In summary, we achieved strong financial performance, and we expect this momentum to continue to build over the balance of the year and beyond. With the improving market conditions, we anticipate transaction activity to pick up over the coming quarters, positioning as well to execute on monetizations and further bolster our earnings.

總而言之，我們取得了強勁的財務業績，我們預計這一勢頭將在今年餘下時間及以後繼續發展。隨著市場狀況的改善，我們預計交易活動將在未來幾季回升，並做好貨幣化的準備並進一步提高我們的收益。

With that, I am pleased to confirm that our Board of Directors has declared a quarterly dividend of $0.8 per share, payable on September 27 to shareholders of record at the close of business on September 12, 2024.

在此，我很高興地確認，我們的董事會已宣布派發每股 0.8 美元的季度股息，將於 9 月 27 日支付給 2024 年 9 月 12 日收盤時在冊的股東。

Thank you for your time, and I will now hand the call back to the operator for questions.

感謝您抽出時間，我現在將把電話轉給接線員詢問問題。

(Operator Instructions) Geoff Kwan, RBC Capital Markets.

（操作員指示）Geoff Kwan，RBC 資本市場。

Hi, good morning. My first question was on the wealth segment. They closed their first SMA for a third-party, I think, insurer, to manage the investments in Q2. I'm just wondering if you can talk about the pipeline and the opportunity to do more of these types of transactions, potential timing, fee structures, and margins.

嗨，早安。我的第一個問題是關於財富領域的。他們為第三方（我認為是保險公司）完成了第一個 SMA，以管理第二季度的投資。我只是想知道您是否可以談談進行更多此類交易的管道和機會、潛在的時間表、費用結構和利潤。

Hi, Jeff, it's Nick. Listen, happy to comment, and I think we're going to see more of these, and I think the scale will continue to build. And there's a couple of driving forces behind it. One, I think as we grow the insurance business on our brooks, the appetite that we have to originate credit is growing significantly, and the capability that we have to originate that is really strong within the asset management business. So we will scale up our capability alongside our capital, and then we can bring our clients alongside us as we scale.

嗨，傑夫，我是尼克。聽著，很高興發表評論，我認為我們會看到更多這樣的內容，而且我認為規模將繼續擴大。背後有幾個驅動力。第一，我認為，隨著我們在河流上發展保險業務，我們對信貸的需求正在顯著增長，而且我們在資產管理業務中的信貸能力也非常強大。因此，我們將隨著資本的增加而擴大我們的能力，然後隨著規模的擴大，我們可以將我們的客戶帶到我們身邊。

And we will build these SMAs, and they can then invest alongside BN REIT. So I think we sign one in the quarter. You continue to see these scale up, because we're able to originate the exact type of credit assets that these clients want to be invested in.

我們將建立這些 SMA，然後他們可以與 BN REIT 一起投資。所以我認為我們會在本季簽署一份合約。你會繼續看到這些規模的擴大，因為我們能夠創造出這些客戶想要投資的確切類型的信貸資產。

The fee structures will evolve over time, but broadly consistent with other credit SMAs. We should have a lot of operating leverage in that business, because we have a lot of the credit sourcing and underwriting capability in place. And I think it should be a strong tailwind of growth for earnings for the asset management business.

費用結構將隨著時間的推移而變化，但與其他信貸 SMA 大致一致。我們應該在該業務中擁有大量的營運槓桿，因為我們擁有大量的信貸來源和承銷能力。我認為這應該成為資產管理業務獲利成長的強勁推動力。

Okay, thank you. And just my other question is, I mean, and you talked about it earlier, it seems like the general consensus is monetization markets are improving. Maybe there's a bit of a quality bias for higher quality business or easier to transact, maybe less so for lower quality businesses.

好的，謝謝。我的另一個問題是，我的意思是，您之前談過，似乎普遍的共識是貨幣化市場正在改善。也許對於較高品質的業務或更容易交易的業務存在一些品質偏差，對於較低品質的業務可能較少。

And really, my question is, I'm wondering how this might play out within the real estate space in particular, when real estate M&A really starts to pick up. Do you think there might be some sort of lag effect on when you might be able to monetize assets within the T&D portfolio?

事實上，我的問題是，我想知道當房地產併購真正開始回升時，這會如何在房地產領域發揮作用。您認為當您能夠將 T&D 投資組合中的資產貨幣化時，是否可能存在某種滯後效應？

Jeff, you're right. The initial transactions have a bias for quality. But I would say that within the T&D, we own high quality assets. They're maybe not the assets we consider core ones we want to own for a long term, but they are high quality. And also remember, they are geographically diverse. So a lot of the transaction activity is returning.

傑夫，你是對的。最初的交易對品質有偏見。但我想說的是，在輸配電領域，我們擁有高品質的資產。它們可能不是我們認為想要長期擁有的核心資產，但它們是高品質的。還要記住，它們在地理上是多樣化的。因此，大量交易活動正在回歸。

We've sold out T&D in Brazil, and we're working on transactions across the globe, and we sold one asset in the US. So I think it will be dependent on the assets. But even within T&D, we have high quality assets. And we expect that A, transaction activity picks up. B, it looks like interest rates are going to be coming down, which will be a positive catalyst for credit capacity and investor appetite and valuations. And that should be a strong tailwind for monetizations.

我們已經出售了巴西的 T&D，並且正在全球範圍內進行交易，並且我們在美國出售了一項資產。所以我認為這將取決於資產。但即使在 T&D 內部，我們也擁有高品質的資產。我們預計 A、交易活動將會回升。B，看來利率將會下降，這將是信貸能力、投資者興趣和估值的積極催化劑。這應該是貨幣化的強勁推動力。

Okay, yeah, no, sorry. I know there's a lot of quality in there. I was just thinking, if I remember correctly, there's like 170-ish assets. And some, obviously, are maybe more opportunistic than some of the others. And that's what I was kind of getting at.

好吧，是的，不，抱歉。我知道裡面有很多品質。我只是在想，如果我沒記錯的話，大約有 170 種左右的資產。顯然，有些人可能比其他人更有機會主義。這就是我的意思。

Yeah, they are. And Jeff, I would also just take the opportunity to comment on if you look at the equity we have in real estate, 5% is in what we would consider regional office in the US. So it's not a significant number, and it's not going to be a major driver of monetization activity, even if we are successful, because that number is relatively small in context of the overall portfolio.

是的，他們是。傑夫，如果你看看我們在房地產領域的股權，我也想藉此機會發表評論，5% 屬於我們認為在美國的區域辦事處。因此，這不是一個重要的數字，即使我們成功了，它也不會成為貨幣化活動的主要驅動力，因為這個數字在整個投資組合中相對較小。

Got it. Thank you.

知道了。謝謝。

Mario Saric, Scotiabank.

馬裡奧·薩里奇，豐業銀行。

Hi, good morning. Thank you for taking the question. Nick, just sticking to real estate, core real estate, it's healthy at 3%, but higher debt costs have impacted the FFO. That said, the core FFO is showing sequential improvement this quarter. As kind of monetary policy, it looks like it's going to ease in the second half of this year. Can you remind us of the FFO kind of sensitivity within BPG to variable debt costs? Something like, for example, if we've come down 25 basis points, it could impact your annualized FFO out of BPG by x percent.

嗨，早安。感謝您提出問題。尼克，只關注房地產，核心房地產，3% 是健康的，但較高的債務成本影響了 FFO。也就是說，核心 FFO 本季呈現季比改善。作為貨幣政策，今年下半年似乎會放鬆。您能否提醒我們 BPG 內部的 FFO 對變動債務成本的敏感度？例如，如果我們下降 25 個基點，可能會對 BPG 中的年化 FFO 產生 x% 的影響。

Yeah. I think Mario, you're right. Interest rates are coming down. On top of interest coming down, credit spreads have compressed significantly. They're in about 150 basis points compared to 12 months ago. They're 25, 50 basis points off historical average, but we still think they have further room to compress.

是的。我認為馬裡奧，你是對的。利率正在下降。除了利息下降之外，信貸利差也大幅壓縮。與 12 個月前相比，價格上漲了約 150 個基點。它們比歷史平均低 25、50 個基點，但我們仍然認為它們還有進一步壓縮的空間。

I think that combined with interest rate cuts with maybe about 30% variable rate debt in the portfolio today will be a positive catalyst as we work through. To give you the exact percentage, it varies because it depends on when we refinance fixed rate debt into low rate market and the impact of floating rate but you are going to see the impact coming through earnings almost immediately as rates start to come down.

我認為，結合降息以及今天投資組合中約 30% 的可變利率債務，將成為我們工作的積極催化劑。為了給您確切的百分比，它會有所不同，因為這取決於我們何時將固定利率債務再融資到低利率市場以及浮動利率的影響，但隨著利率開始下降，您幾乎會立即看到收益的影響。

Okay. My second question, more of a thematic, long-term question. I think Bruce highlighted the need to evolve with time with respect to invested capital as new asset classes emerge. I guess collectively, how do you think about that concept as it pertains to the BN corporate structure? Do you see the present BN corporate structure with respect to investment and owning the real estate and the wealth solution businesses as something you expect to endure over the next one, five, 10, 20 years? Or is the optimal structure still a work in progress? The genesis or the reason behind the question is that despite the pretty strong share price recently, it still materially lags your estimated intrinsic value.

好的。我的第二個問題，更多的是一個主題性的、長期的問題。我認為布魯斯強調了隨著新資產類別的出現，投資資本需要隨著時間的推移而發展。我想總的來說，您如何看待這個與國民陣線公司結構相關的概念？您是否認為目前國民陣線在投資、擁有房地產和財富解決方案業務方面的公司結構是您期望在未來一年、五年、十年、二十年持續下去的？或最優結構仍在進行中？這個問題背後的起源或原因是，儘管最近股價相當強勁，但它仍然大大落後於你估計的內在價值。

That's a good observation, Mario. Listen, our primary focus is on being invested in assets that are going to generate excellent returns. In the real estate that we own, the insurance that we own, they are generating excellent returns and insurance is just getting going and has enormous potential. That's the primary focus.

這是一個很好的觀察，馬裡奧。聽著，我們的主要重點是投資於能夠產生豐厚回報的資產。在我們擁有的房地產、我們擁有的保險中，它們正在產生優異的回報，而保險才剛起步並具有巨大的潛力。這是主要焦點。

As these businesses evolve and as the markets evolve, we do assess the structure real-time. As you saw, as our asset management business grew, great tailwind, a deep public market developed for that business reached a scale where we thought it was better served in the public markets. But as we sit here today, the structure we have is the structure that we're planning on having for some time and that may evolve

隨著這些業務的發展和市場的發展，我們會即時評估其結構。正如您所看到的，隨著我們的資產管理業務的成長，巨大的順風車，為該業務開發的深度公開市場達到了我們認為在公開市場上能得到更好服務的規模。但當我們今天坐在這裡時，我們所擁有的結構是我們計劃在一段時間內擁有的結構，並且可能會演變

But right now, the focus primarily is on compounding value in the business. We may make decisions over time that can improve our access to capital. It's always going to be an evolution and we'll see how it plays out.

但現在，重點主要是業務的複合價值。隨著時間的推移，我們可能會做出可以改善我們獲得資本的機會的決策。它總是會發生演變，我們將看看它會如何發展。

Okay, thank you.

好的，謝謝。

Cherilyn Radbourne, TD Cowen.

謝裡琳·拉德伯恩，TD·考恩。

Thanks very much and good morning. As you're no doubt very aware, there's been concern raised this quarter about the potential for spread compression in insurance. Can you talk about how you see the trade-off between growth versus maintaining a desired spread and or are we in that business going forward?

非常感謝，早安。您無疑非常清楚，本季有人提出了對保險業利差壓縮潛力的擔憂。您能否談談您如何看待成長與維持理想利差之間的權衡，或者我們是否會繼續從事該業務？

Yes, absolutely, Cherilyn. Good morning. I would just tell you the primary focus on our business is return on equity. We will stay incredibly focused and disciplined on that which is why we wanted to draw out for people that the spread of our pre-existing business this quarter was maintained at 2%.

是的，絕對是，謝裡琳。早安.我只想告訴你，我們業務的主要關注點是股本回報率。我們將對此保持難以置信的專注和紀律，這就是為什麼我們想向人們表明本季度我們現有業務的擴展保持在 2%。

Now, AEL comes on at a lower spread but that will gravitate towards to as we reposition the investment portfolio. How we manage that is as the rate environment changes, we are fairly quick to react in changing the rate that we offer annuitants.

現在，AEL 的價差較低，但隨著我們重新定位投資組合，這一點將會趨向於 。我們的管理方式是，隨著利率環境的變化，我們會相當快速地做出反應，改變我們提供年金受益人的利率。

As the economic has changed, we've lowered the rate that we've been offering annuitants by up to 50 basis points in just the last week. We're matching that against the investment opportunity that we see with a primary focus on maintaining those 18% to 20% ROE. Our primary focus is going to be return on equity.

隨著經濟情勢的變化，我們在上週已將年金領取者的利率降低了 50 個基點。我們將其與我們看到的投資機會相匹配，主要關注維持 18% 至 20% 的 ROE。我們的主要關注點是股本回報率。

And then switching gears a little bit here in terms of the deal pipeline. There's been a so called wall of debt maturities that's been talked about for a while, which Ben touched on in part in the context of real estate yesterday. Maybe you want to expand on that. But can you also touch on what Oaktree sees developing in terms of the potential for a distressed credit cycle at some point?

然後在交易管道方面稍微改變一下。所謂的債務到期牆已經討論了一段時間，本昨天在房地產背景下部分提到了這一點。也許您想對此進行擴展。但您能否談談橡樹資本認為在某個時候陷入困境的信貸週期的可能性會發生什麼？

Yeah, we've not seen the distress yet. We've seen opportunities and gaps in the financing market in certain areas which has provided the opportunity for us to make pretty attractive loans but still to good credits, but just for one reason or another they've fallen out of favor with the capital markets. So maybe stress the opportunity to deleverage, provide gap capital where the banks have had to take a step back. So it's maybe being driven by regulatory impacts, market dynamics as opposed to necessarily underlying portfolio stress or distress.

是的，我們還沒有看到痛苦。我們看到了某些領域融資市場的機會和缺口，這為我們提供了提供相當有吸引力的貸款的機會，但仍然具有良好的信用，但由於某種原因，它們已經不受資本市場的青睞。因此，也許可以強調去槓桿化的機會，在銀行不得不退一步的地方提供缺口資本。因此，這可能是由監管影響、市場動​​態驅動的，而不是潛在的投資組合壓力或困境。

But without doubt there was a lot of leverage added when rates were zero and credit spreads were tight. And as those do come up for renewal I think across Oaktree and our credit funds we are going to see the opportunity to provide lending to cover the gaps but still for high quality assets and we have the capital available to participate.

但毫無疑問，當利率為零且信用利差收窄時，就會增加大量槓桿。隨著這些確實需要更新，我認為在橡樹資本和我們的信貸基金中，我們將看到提供貸款來彌補缺口的機會，但仍然是高品質資產，而且我們有資本參與。

Thank you. That's all from me.

謝謝。這就是我的全部。

Sohrab Movahedi, BMO Capital Markets.

Sohrab Movahedi，BMO 資本市場。

Thank you Nick. I just wanted to go back to the answer you gave to the earlier question here on insurance spreads. I mean 1.5 -- or the credit spreads sorry for the insurance 1.5% to 2% spread. What dictates where on that range you operate? How much of it is kind of macro as opposed to I don't know I'll call it a management decision.

謝謝你尼克。我只是想回到您對之前有關保險利差的問題的答案。我的意思是 1.5——或者信用利差，對不起保險 1.5% 到 2% 的利差。是什麼決定了您在該範圍內的操作位置？其中有多少是宏觀決策，而不是我不知道的，我稱之為管理決策。

Yeah a lot of a lot of the plan AEL, Sohrab is just reallocation of the existing investment portfolio. There's no real macro thesis here it's just we look at the portfolio a lot of it is held in short term liquid assets that are lower yielding relative to the credit opportunities that we see. So it's really -- it's really about barbelling the portfolio.

是的，AEL 的許多計劃，Sohrab 只是對現有投資組合的重新分配。這裡沒有真正的宏觀論點，只是我們看看投資組合，其中許多是短期流動資產，相對於我們看到的信貸機會，這些資產的收益率較低。所以這實際上是關於對投資組合進行槓槓的。

They will maintain some liquid but they're over allocated to short term cash and liquid assets. And between that and repositioning similar to the ANICO portfolio we just see an uplift in the spread without really adding that much risk to the portfolio.

他們將保持一定的流動性，但過度分配給短期現金和流動資產。在這與類似於 ANICO 投資組合的重新定位之間，我們只是看到利差有所上升，而沒有真正為投資組合增加那麼多風險。

And I just maybe just for crystal clarity because I think I got a little bit confused from the earlier answer. Like you can't like -- you are probably price takers on the rate at the end of the year. You can't really price up too far off market. Otherwise you won't get any volume.

我可能只是為了清晰起見，因為我認為我對之前的答案有點困惑。就像你不喜歡一樣——你可能是年底利率的價格接受者。你不能把價格定價離市場太遠。否則你將得不到任何音量。

But that's the point. So I think that's exactly the point. We will offer it at a rate that we are comfortable we can earn a spread on it. That means for that quarter then maybe our sales are a little bit lower. Then we are willing to live with that.

但這就是重點。所以我認為這正是重點。我們將以我們認為可以賺取差價的價格提供它。這意味著該季度我們的銷售額可能會稍微低一些。那我們就願意接受這一點。

Now in the current environment we believe at the rate we've been offered we're still running about a $15 billion inflow run rate and we think we can maintain it at these levels. But I think our point is we are a price taker but we're going to set it at a price where we're comfortable we can earn a good return.

現在，在當前環境下，我們相信按照我們提供的速度，我們仍然保持著大約 150 億美元的流入速度，我們認為我們可以將其維持在這些水平。但我認為我們的觀點是，我們是一個價格接受者，但我們會將其設定在一個我們可以輕鬆獲得良好回報的價格。

Okay. I appreciate that. And just on that same topic 18% to 20% type ROE that you're targeting for that for that business is still predicated on around the 10 times leverage.

好的。我很欣賞這一點。就同​​一主題而言，您為該業務設定的 18% 到 20% 類型的 ROE 仍然基於大約 10 倍的槓桿率。

Yes. In that range 8 times to 10 times leverage.

是的。在這個範圍內，槓桿是8倍到10倍。

Appreciate. Thank you.

欣賞。謝謝。

Kenneth Worthington , JP Morgan

肯尼斯‧沃辛頓，摩根大通

Hi it's Alex Bernstein on for Ken. Thanks so much for taking our question. We wanted to double click on the realization pipeline. You made some comments today suggesting that transaction activities do to go up. Those comments were in line with some of what we heard on the BAM call yesterday especially as pertaining to the renewable sector.

大家好，我是亞歷克斯·伯恩斯坦（Alex Bernstein）代表肯。非常感謝您提出我們的問題。我們想雙擊實現管道。您今天發表了一些評論，表明交易活動確實會增加。這些評論與我們昨天在 BAM 電話會議上聽到的一些內容一致，特別是與再生能源產業相關的內容。

With that in mind is this still the case that your guidance for the year holds at the prior 400 to 500 that you mentioned. Or is it possible that we might see some upsides that number. Thank you so much.

考慮到這一點，您今年的指導仍然保持在您提到的之前的 400 到 500 之間。或者我們是否有可能看到這個數字的一些好處。太感謝了。

Yeah listen you're right. The comments are consistent with what was said on the BAM call yesterday. And we are seeing sales activity picking up US Canada and globally. And in the short term those sales activity what it means immediately is it means a return of capital at excellent returns either to be in or are listed affiliates depending on who made the investment. So we have that immediate impact.

是的，聽著，你是對的。這些評論與昨天 BAM 電話會議上的言論一致。我們看到美國、加拿大和全球的銷售活動有所回升。從短期來看，這些銷售活動的直接意義是，它意味著資本回報率很高，無論是在上市附屬公司還是上市附屬公司，這取決於誰進行了投資。所以我們有立竿見影的影響。

And then longer term it turns into carry. But I think I would temper expectations on carry realization because the assets we are monetizing are in later vintages -- later vintage funds where we are working on returning original capital working our way through the preferred return. But what it does is it sets us up really well going into 2025 as we execute on these sales and more to come. Then you'll start to see that carry realization come through our earnings.

然後從長遠來看，它會變成套利。但我認為我會降低對套利實現的期望，因為我們正在貨幣化的資產處於較晚的年份——較晚的年份基金，我們正在努力透過首選回報返還原始資本。但它的作用是讓我們在 2025 年執行這些銷售以及未來更多的銷售時真正做好準備。然後你會開始看到套利變現是透過我們的收入來實現的。

Understood. Thank you so much.

明白了。太感謝了。

Thank you.

謝謝。

As there are no more questions, I will now turn it back to Ms. Angela Yulo for closing remarks.

由於沒有其他問題了，我現在請 Angela Yulo 女士做總結發言。

Thank you, everybody, for joining us today. And with that, we'll end the call.

謝謝大家今天加入我們。這樣，我們就結束通話了。

This concludes today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。