Partners Value Investments Inc Announces Q1 2023 Interim Results.

TORONTO: Partners Value Investments Inc. (the "Company", TSX: PVF.WT) announced today its financial results for the three months ended March 31, 2023. All amounts are stated in US dollars.

The Company generated net income of $242 million for the three months ended March 31, 2023 compared to $31 million in the prior year period. Net income was higher in the current period primarily due to significant remeasurement gains associated with the retractable shares of $226 million, compared to remeasurement losses of $17 million in the prior year period. The Company's retractable common shares are classified as liabilities due to their cash retraction feature. The remeasurement gains or losses in a given period are driven by the respective depreciation or appreciation of the Partnership unit price as the exchangeable shares are recognized at fair value based on the quoted price of the Partnership's Equity LP units. During the quarter, the Partnership unit price decreased by $3.40 compared to a $0.66 increase in the prior year quarter.

Excluding retractable share and warrant liability remeasurement gains and dividends paid on retractable shares, Adjusted Earnings for the Company was $11 million for the three months ended March 31, 2023, compared to $9 million in the prior year period. Adjusted Earnings was higher in the current period as a result of higher other investment income driven by increased interest earned on loan assets and cash on deposit and lower tax expenses offset by lower investment valuation gains.

As at March 31, 2023, the market prices of a Brookfield Corporation (the "Corporation", NYSE/TSX: BN) and Brookfield Asset Management Ltd. (the "Manager", NYSE/TSX: BAM) share were $32.59 and $32.72, respectively. As at May 23, 2023, the market prices of a BN and BAM share were $31.41 and $31.63, respectively.

Consolidated Statements of Operations

For the three months ended March 31, Unaudited

(Thousands, US dollars)

2023

2022

Investment income

Dividends

$

22,395

$

21,933

Other investment income

3,216

896

25,611

22,829

Expenses

Operating expenses

(409)

(615)

Financing costs

(8,334)

(6,978)

Retractable preferred share dividends

(8,792)

(7,612)

8,076

7,624

Other items

Investment valuation gains

2,242

16,683

Retractable share remeasurement gains (losses)

226,081

(16,676)

Warrant liability remeasurement gains

10,887

43,548

Amortization of deferred financing costs

(842)

(766)

Current tax expense

(407 )

(20,290)

Deferred tax (expense) recovery

...