Brookfield Asset Management Inc. says its third-quarter profit has rebounded compared to a year ago when it booked a huge writedown under new reporting standards.
The Toronto-based asset management company - which reports in U.S. dollars and now uses the International Financial Reporting Standard - says it earned $342-million (U.S.), or 16 cents per share in the quarter ended Sept. 30.
That was up from a loss of $572-million, or 75 cents per share in the year earlier when it booked a $873-million charge due to a writedown on its office properties.
Brookfield's revenue was $3.8-billion, up from $2.8-billion a year ago.
Net income prior to other items, which include depreciation charges, fair value changes and future income taxes, was $625-million compared to $285-million in the year earlier.
Brookfield says its stronger results were driven by high occupancy rates at its commercial office properties and improved leasing markets.
"Recent investments and several major initiatives combined with organic growth in our existing operations have set the stage for Brookfield to build on our franchise and continue to create significant shareholder value," said Bruce Flatt, CEO of Brookfield.
"We believe that as the global economy continues to recover, the company is well positioned for long-term, sustainable growth across all of our sectors."
Brookfield has said that it is thriving in an uncertain economic environment and will continue to use its financial heft as a competitive advantage to close major deals with long-term investment potential.
It has been able to capitalize on companies in distress, including a significant investment in an office property in Washington, D.C., and its investment in General Growth Properties, a U.S. mall owner that is expected to come out of bankruptcy court with 180 properties.
Brookfield said Friday that it will own a 30-per-cent stake in General Growth when it emerges from bankruptcy.
The Toronto-based conglomerate, which has a number of publicly traded subsidiaries, announced in August that it would divest some of its commercial properties to publicly traded subsidiary Brookfield Office Properties .
Other companies within the Brookfield group include: Brookfield Homes Corp., Brookfield Renewable Power Inc., Fraser Papers Inc., wood panel producer Norbord Inc., and Great Lakes Hydro Income Fund, Brookfield Asset Management has over $100-billion of assets under management and over 15,000 employees through a number of subsidiaries, many of them publicly traded in their own right.Report Typo/Error
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