By Robb M. Stewart

Brookfield bumped up its dividend payout after the investment firm's operating earnings in the final quarter of last year topped market expectations, thanks to growth across its businesses.

Distributable earnings, a measure of cash that can be returned to shareholders, rose to $1.61 billion, or $1.01 a share, for the quarter, from $1.31 billion, or 83 cents, a year earlier. That handily beat the 85 cents analysts polled by FactSet were expecting.

Net income, however, fell to $101 million for the fourth quarter from $3.13 billion. And revenue declined 21% to $19.43 billion.

Toronto-based Brookfield said its asset-management business benefited from strong fundraising momentum and the scaling of its credit platform through strategic partnerships, while its wealth solutions earnings for the quarter nearly doubled on the back of the acquisition of American Equity Life and returns on its investment portfolio. The operating businesses were underpinned by strong earnings from renewable power and transition, infrastructure and private equity businesses plus growth in comparable operating income from the core real estate portfolio, it said.

Distributable earnings from Brookfield's asset management arm rose to $694 million from $649 million in the same period last year, while wealth solutions earnings increased 66% on-year to $421 million. The operating businesses' earnings totaled $562 million against $400 million the year before.

"We expect the positive momentum in each of our businesses to continue this year. Our access to scale capital remains very strong and with transaction activity expected to pick up throughout 2025, we are well positioned to continue to generate strong growth in our cash flows and intrinsic value," President Nick Goodman said.

Brookfield said it has record deployable capital of about $160 billion, including $68 billion of cash, financial assets and undrawn credit lines.

The company's board declared a 13% increase in the quarterly dividend to 9 cents a share, payable March 31 to shareholders of record at the close of business March 14. A day earlier, majority-owned Brookfield Asset Management lifted its quarterly dividend 15%.

Brookfield earlier this month finalized an arrangement to simplify its corporate structure. The company now has a direct 73% stake in Brookfield Asset Management where it had previously held an equivalent interest in its asset management operations. The move was aimed at broadening BAM's shareholder ownership and paving the way for its inclusion in the most widely followed U.S. market indexes.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

February 13, 2025 07:19 ET (12:19 GMT)

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