Brookfield Asset Management Inc. (BAM, BAM_A.TO) on Friday reported an 84 percent plunge in profit for the second quarter from last year, partly reflecting lower revenues at the company's renewable power unit. Earnings per share missed analysts' estimates.
The Canadian alternative asset manager, focused on property, renewable power and infrastructure assets, said its second-quarter net income fell to $138 million or $0.17 per share from $838 million or $1.26 per share in the year-ago period.
On average, three analysts polled by Thomson Reuters expected earnings per share of $0.37 for the quarter. Analysts' estimates typically exclude one-time items.
According to the company, the year-ago quarter was exceptional in terms of increases in the value of commercial office and retail property asset valuations, particularly in the U.S.
Quarterly funds from operations or FFO declined to $244 million or $0.34 per share from $309 million or $0.45 per share in the prior-year quarter.
FFO for the latest quarter reflected improved performance and economic conditions in most of the company's operations, but these were partially offset by below average generation in the renewable power operations and the unfavourable impact of market volatility on investment securities.
The prior-year quarter reflected slightly below average hydroelectric power generation and a $61 million private equity monetization gain.
Funds from operations is defined as net income prior to fair value changes, depreciation and amortization, and future income taxes. It includes certain disposition gains that are not otherwise included in net income as determined under International Financial Reporting Standards, or IFRS.
Total revenues for the quarter grew 8 percent to $4.29 billion from $3.96 billion in the year-ago period. Analysts had a consensus revenue estimate of $4.72 billion.
Brookfield closed on over $3 billion of capital across its private funds during the quarter, of which $2 billion came from third-party investors.
The company's board declared a quarterly dividend of $0.14 per share, payable on November 30 to shareholders of record as at the close of business on November 1.
The board also declared all of the regular monthly and quarterly dividends on its preferred shares.
In Friday's regular session, BAM is trading at $34.35, down $0.18 or 0.52 percent on a volume of 33,750 shares.
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