Brookfield Asset Management (BAM) 4Q2018 Results Analysis
BAM reported 4Q and Full Year 2018 results that showed continuous value creation and growth of the operating earnings, asset value per share, assets under management and plan value. Dividend was also increased by 7% to $0.64 per year at a 15% payout ratio.FFO per share for 2018 was $4.35. Mritik Capital estimates 2020 end FFO per share to be $6 per share.
Assets Under Management (AUM) increased to $355B and Fee Paying AUM (FPAUM) increased to $138B with significant growth in Private Funds AUM and reduction in Listed Entities AUM. Fee related Earnings increased 31% to $1.1B, Annual run rate of Fees and Target Carry increased 25% to $3B. Free Cash Flow per year increased to 24% to $2.4B.
Mritik Capital estimates Total AUM to trend to $400B+ by 2020 end and FPAUM to rend towards $175B+. Mritik Capital estimated Annual run rate of Fees and Target Carry by 2020 end to be $4B and Free Cash Flow is projected to be $3.5B which would be $3.5 per share.
BAM share price return on a year year basis was flat but long term return over 10 years and 20 years has been 17% per year.
BAM performance highlights over the last years shows continued progress as below.
BAM fair value as of 2018 end Mritik Capital projects to be $50+. Mritik Capital projects $60+ per share value for BAM by 2020 end.
BAM 4Q2018 Letter To Shareholders
BAM 4Q2018 Results Presentation
No comments:
Post a Comment