Brookfield Asset Management (BAM) 2Q2018 results were on trend as expected.
Total AUM was $287B, Fee Bearing Capital increased 12% to $129B, Fee Related Earnings increased 34% to $1.1B and Annual run rate of Fees plus Target Carry increased 23% to $2.6B.
In the last few months BAM have advanced or completed a number of large transactions – including the acquisition
of the balance of GGP for $15 billion, a large mid-stream natural gas gathering system in western Canada for
$3.3 billion, the closing of the acquisition of Westinghouse Electric Company for a total purchase price of $4 billion,
the commitment to acquire Forest City Realty Trust and Enercare for $6.8 billion and $2.5 billion, respectively,
and the acquisition of a number of solar and wind facilities in Spain for $1.2 billion.
Brookfield is in the market to raise the next Real Estate Fund and Private Equity Fund and plans to start raising the next Infrastructure Fund from 4Q2018.
We believe BAM shares are worth $50 today with $22 attributed to Asset Management Franchise and $28 attributed to Balance Sheet Assets. It is likely that growth over next 4-5 years will lead to $80+ with Asset Management Franchise worth $40 and Balance Sheet Assets worth $40.
Brookfield 2Q2018 Results
No comments:
Post a Comment