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Partners Value Investments Inc. Announces Q3 2026 Interim Results

News originally published by

GlobeNewswire

TORONTO, Nov. 13, 2026 (GLOBE NEWSWIRE) -- Partners Value Investments Inc. (the “Company”, TSXV: PVF.PR.V, PVF.A) announced today its financial results for the three and nine months ended September 30, 2026. All amounts are stated in United States dollars ("US dollars").

For the three months ended September 30, 2026, the Company recorded net income of $564 million, compared to a net loss of $2,188 million in the prior year period. The increase in net income was primarily due to remeasurement gains of $476 million associated with the Company's retractable common shares, remeasurement gains of $70 million associated with the Company's exchangeable shares and nil warrant liability remeasurement gains (losses) in the current period, compared to remeasurement losses of $1,898 million, $76 million and $252 million associated with the Company's retractable common shares, exchangeable shares and warrants, respectively, in the prior year period. The increase was partially offset by foreign currency translation losses of $1 million compared to foreign currency translation gains of $15 million in the prior year period.

For the nine months ended September 30, 2026, the Company recorded net income of $1,316 million, compared to a net loss of $1,351 million in the prior year period. The increase in net income was primarily due to remeasurement gains of $1,062 million, $71 million and $109 million associated with the Company's retractable common shares, exchangeable shares and warrants, respectively, and foreign currency translation gains of $32 million in the current period, compared to remeasurement losses of $1,192 million, $56 million and $136 million associated with the Company's retractable common shares, exchangeable shares and warrants, respectively, and foreign currency translation losses of $24 million 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 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. The Company's outstanding warrants expired on June 30, 2026, in accordance with the warrant terms.

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.

Adjusted Earnings for the three months ended September 30, 2026 was $25 million, compared to Adjusted Earnings of $46 million in the prior year period. The decrease in Adjusted Earnings was primarily due to foreign currency translation losses, lower valuation gains on our investment portfolio, higher preferred share dividends and higher current tax expense, partially offset by higher investment income and deferred tax recovery.

Adjusted Earnings for the nine months ended September 30, 2026 was $96 million, compared to Adjusted Earnings of $55 million in the prior year period. The increase in Adjusted Earnings was primarily due to higher investment income, foreign currency translation gains, and deferred tax recovery, partially offset by net investment valuation losses, higher preferred share dividends, and higher current tax expense.

As at September 30, 2026, the market prices of a Brookfield Corporation (“BN”, NYSE/TSX: BN) share and a Brookfield Asset Management Ltd. (“BAM”, NYSE/TSX: BAM) share were $36.46 and $44.58, respectively. As at November 13, 2026, the market prices of a BN share and a BAM share were $40.97 and $51.53, respectively.

Unaudited Interim Condensed Consolidated Statements of Operations

For the periods ended September 30
(Thousands, US dollars)
  Three months ended   Nine months ended
    2026       2025       2026       2025  
Investment income                
Dividends   $ 30,767     $ 30,197     $ 92,620     $ 90,130  
Other investment income     8,174       5,051       23,132       18,679  
      38,941       35,248       115,752       108,809  
Expenses                
Operating expenses     (727 )     (832 )     (2,252 )     (2,980 )
Financing costs     (9,246 )     (10,203 )     (29,339 )     (30,416 )
Preferred share dividends     (10,817 )     (9,277 )     (32,969 )     (27,563 )
      (20,790 )     (20,312 )     (64,560 )     (60,959 )
Other items                
Investment valuation gains (losses)     6,098       10,223       (391 )     16,217  
Retractable common share remeasurement gains (losses)     475,595       (1,898,035 )     1,061,742       (1,191,968 )
Exchangeable share remeasurement gains (losses)     70,276       (76,293 )     71,011       (55,531 )
Warrant liability remeasurement gains (losses)     —       (251,520 )     108,707       (135,822 )
Amortization of deferred financing costs     (1,006 )     (958 )     (3,037 )     (3,116 )
Foreign currency gains (losses)     (915 )     15,197       31,560       (24,357 )
Current taxes (expense) recovery     (4,314 )     735       (5,411 )     (1,812 )
Deferred taxes (expense) recovery     134       (2,014 )     407       (2,466 )
Net income (loss)   $ 564,019     $ (2,187,729 )   $ 1,315,780     $ (1,351,005 )
                                 

Financial Profile

The Company’s principal investments are its interest in 181 million Class A Limited Voting Shares of BN and approximately 26 million Class A Limited Voting Shares of BAM, which it received pursuant to the spin-off of Brookfield Asset Management Ltd. from Brookfield Corporation in 2022 (collectively, the "Brookfield Shares"). This represents approximately an 8% interest in BN and a 2% interest in BAM as at September 30, 2026. In addition, the Company owns a diversified investment portfolio of marketable securities and private fund interests.

The information in the following table has been extracted from the Company’s Unaudited Interim Condensed Consolidated Statements of Financial Position:

Unaudited Interim Condensed Consolidated Statements of Financial Position

As at
(Thousands, US dollars)
    September 30,
2026
    December 31,
2025
 
Assets          
Cash and cash equivalents     $ 462,021     $ 376,523  
Accounts receivable and other assets       248,377       86,861  
Investment in Brookfield Corporation1       6,615,827       8,326,947  
Investment in Brookfield Asset Management Ltd.2       1,149,935       1,352,078  
Investment in Brookfield Wealth Solutions Ltd.3       385,877       485,516  
Other investments       659,158       894,406  
      $ 9,521,195     $ 11,522,331  
Liabilities and Equity          
Accounts payable and other liabilities     $ 114,406     $ 19,372  
Corporate borrowings       210,571       218,259  
Preferred shares4       860,469       878,865  
Retractable common shares       7,212,026       8,329,436  
Exchangeable shares       874,260       342,712  
Warrant liability5       —       657,774  
Deferred tax liabilities       14,021       17,445  
        9,285,753       10,463,863  
Equity          
Accumulated deficit       (7,205,070 )     (8,520,850 )
Accumulated other comprehensive income       7,430,454       9,569,260  
Non-controlling interests       10,058       10,058  
      $ 9,521,195     $ 11,522,331  
                   
  1. The investment in Brookfield Corporation consists of 181 million BN shares with a quoted market value of $36.46 per share as at September 30, 2026 (December 31, 2025 – $45.89).
  2. The investment in Brookfield Asset Management Ltd. consists of 26 million BAM shares with a quoted market value of $44.58 per share as at September 30, 2026 (December 31, 2025 – $52.39).
  3. Brookfield Wealth Solutions Ltd. Class A shares are exchangeable into BN Class A shares on a one-for-one basis.
  4. Comprises $873 million of retractable preferred shares less $13 million of deferred financing costs as at September 30, 2026 (December 31, 2025 – $895 million and $16 million, respectively).
  5. The Company's outstanding warrants expired on June 30, 2026, in accordance with the warrant terms.

Reconciliation of Non-IFRS Measure

The following table reconciles Adjusted Earnings to net income (loss) attributable to the Company for the three and nine months ended September 30, 2026 and 2025:

For the periods ended September 30
(Thousands, US dollars)
Three months ended   Nine months ended
  2026       2025       2026       2025  
Net income (loss) attributable to the Company $ 564,019     $ (2,187,729 )   $ 1,315,780     $ (1,351,005 )
Add back or deduct:              
Retractable common share remeasurement (gains) losses   (475,595 )     1,898,035       (1,061,742 )     1,191,968  
Exchangeable share remeasurement (gains) losses   (70,276 )     76,293       (71,011 )     55,531  
Warrant liability remeasurement (gains) losses   —       251,520       (108,707 )     135,822  
Dividends paid on retractable common shares   6,860       7,645       22,150       22,940  
Adjusted Earnings $ 25,008     $ 45,764     $ 96,470     $ 55,256  
                               

For further information, contact Investor Relations at ir@pvii.ca.

Notice to Readers

The Company is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement.

This news release contains “forward-looking information” and “forward-looking statements” within the meaning of Canadian provincial securities laws and any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of the Company, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which are in turn based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of the Company are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions.

Although the Company believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward‐looking statements and information include, but are not limited to: the financial performance of Brookfield Corporation, the impact or unanticipated impact of general economic, political and market factors; the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; limitations on the liquidity of our investments; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including acquisitions and dispositions; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation; changes in tax laws; risks associated with the use of financial leverage; catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; failure of our information and technology systems; developments in artificial intelligence; and other risks and factors detailed from time to time in the Company’s documents filed with the securities regulators in Canada.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release and such other date specified herein. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.

Past performance is not indicative of, nor a guarantee of, future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, or growth objectives will be met or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise).


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