The Company recorded net income of $897 million for the three months ended March 31, 2026, compared to $972 million in the prior year period. The decrease in net income was primarily due to lower remeasurement gains associated with the Company's retractable common shares of $712 million compared to remeasurement gains of $953 million in the prior year period, partially offset by remeasurement gains on warrants of $125 million compared to remeasurement losses of $3 million in the prior year period, and remeasurement gains on exchangeable shares of $36 million compared to $nil in the prior year period. The Company's retractable common shares, exchangeable shares and warrants are classified as liabilities due to their retractable, exchangeable and convertible features, respectively. The remeasurement gains or losses on retractable common shares and exchangeable shares in a given period are driven by the respective depreciation or appreciation of the Partners Value Investments L.P.'s (the "Partnership") Equity LP unit ("Equity LP unit") price. The remeasurement gains or losses on warrants in a given period are driven by the respective depreciation or appreciation of the market price of a warrant.
Adjusted Earnings is a non-IFRS measure that can be used to evaluate the performance of the Company, defined as net income (loss) attributable to the Company, excluding the impact of remeasurement gains (losses) on retractable common shares, exchangeable shares, and warrant liability, as well as dividends paid on retractable common shares. The Company recorded Adjusted Earnings of $32 million for the three months ended March 31, 2026, compared to $30 million in the prior year period. Adjusted Earnings increased due to favorable foreign currency movements as a result of the depreciation of the Canadian dollar against the US dollar and higher investment income, partially offset by valuation losses on our investment portfolio and higher preferred share dividends as a result of net new issuances compared with the prior year period.
As at March 31, 2026, the market prices of a Brookfield Corporation (("BN", TSX:BN) share and a Brookfield Asset Management Ltd. ((", BAM", TSX:BAM) share were $40.47 and $44.45, respectively. As at May 14, 2026, the market prices of a BN share and a BAM share were $47.53 and $49.42, respectively.
Unaudited Interim Condensed Consolidated Statements of Operations
For the three months ended March 31(Thousands, US dollars)
2026
2025
Investment income
Dividends
$
31,048
$
30,125
Other investment income
8,159
7,177
39,207
37,302
Expenses
Operating expenses
(807
)
(1,131
)
Financing costs
(10,033
)
(10,062
)
Preferred share dividends
(11,263
)
(8,380
)
(22,103
)
(19,573
)
Other items
Investment valuation gains (losses)
(2,753
)
7,212
Retractable common share remeasurement gains (losses)
712,004
952,569
Exchangeable share remeasurement gains (losses)
35,709
—
Warrant liability remeasurement gains (losses)
124,564
