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Partners Value Investments Inc. (the "Company", TSX: PVF.WT, PVF.PR.V, PVF.A) announced today its financial results for the nine months ended September 30, 2025. All amounts are stated in U.S. dollars.
The Company recorded a net loss of $2.2 billion for the three months ended September 30, 2025, compared to a net loss of $1.2 billion in the prior year quarter. The increase in net loss was primarily due to current period remeasurement losses associated with the Company's retractable common shares of $1.9 billion in the current quarter compared to remeasurement losses of $1.1 billion in the prior year quarter, remeasurement losses on warrants of $252 million in the current quarter compared to remeasurement losses of $114 million in the prior year quarter, and remeasurement losses on exchangeable shares of $76 million compared to $nil in the prior year quarter. The Company's retractable common shares, exchangeable shares and warrants are classified as liabilities due to their retractable, exchangeable and convertible features, respectively, and the remeasurement gains or losses in a given period are driven by the respective depreciation or appreciation of the Partnership Equity LP unit price.
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 shares, exchangeable shares, and warrant liability, as well as dividends paid on retractable shares. Adjusted Earnings for the Company were $46 million for the three months ended September 30, 2025, compared to $17 million in the prior year quarter. Adjusted Earnings were higher in the current quarter due to higher investment valuation gains, favorable foreign currency movements as a result of the depreciation of the Canadian dollar against the U.S. dollar and lower tax expense as compared to the prior year quarter.
As at September 30, 2025, the market prices of a Brookfield Corporation ("BN", NYSE/TSX: BN) and Brookfield Asset Management Ltd. ("BAM", NYSE/TSX: BAM) share were $68.58 and $56.94, respectively. As at November 13, 2025, the market prices of a BN and BAM share were $43.78 and $51.87, respectively. On October 9, 2025, BN completed a three-for-two stock split. The BN share price as at September 30, 2025 adjusted for the stock split would be $45.72.
Consolidated Statements of Operations
| (Unaudited) For the periods ended September 30 (Thousands, US dollars) | Three months ended | Nine months ended | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Investment income | |||||||||||||||
| Dividends | $ | 30,197 | $ | 27,627 | $ | 90,130 | $ | 81,307 | |||||||
| Other investment income | 5,051 | 4,645 | 18,679 | 12,840 | |||||||||||
| 35,248 | 32,272 | 108,809 | 94,147 | ||||||||||||
| Expenses | |||||||||||||||
| Operating expenses | (832 | ) | (1,162 | ) | (2,980 | ) | (4,047 | ) | |||||||
| Financing costs | (10,203 | ) | (10,236 | ) | (30,416 | ) | (28,606 | ) | |||||||
| Retractable preferred share dividends | (9,277 | ) | (8,446 | ) | (27,563 | ) | (25,248 | ) | |||||||
| 14,936 | 12,428 | 47,850 | 36,246 | ||||||||||||
| Other items | |||||||||||||||
| Investment valuation gain | 10,223 | 9,469 | 16,217 | 10,836 | |||||||||||
| Retractable share remeasurement loss | (1,898,035 | ) | (1,079,255 | ) | (1,191,968 | ) | (1,198,295 | ) | |||||||
| Exchangeable share remeasurement loss | (76,293 | ) | — | (55,531 | ) | — | |||||||||
| Warrant liability remeasurement loss | (251,520 | ) | (114,498 | ) | (135,822 | ) | (125,950 | ) | |||||||
| Amortization of deferred financing costs | (958 | ) | (873 | ) | (3,116 | ) | (2,628 | ) | |||||||
| Foreign currency gain (loss) | 15,197 | (7,809 | ) | (24,357 | ) | 11,524 | |||||||||
| Current tax recovery (expense) | 735 | (421 | ) | (1,812 | ) | 5,906 | |||||||||
| Deferred tax expense | (2,014 | ) | (3,349 | ) | (2,466 | ) | (2,642 | ) | |||||||
| Net loss | $ | (2,187,729 | ) | $ | (1,184,308 | ) | $ | (1,351,005 | ) | $ | (1,265,003 | ) | |||
Financial Profile
The Company's principal investments are its interest in 121 million Class A Limited Voting Shares of BN and 26 million Class A Limited Voting Shares of BAM. This represents approximately an 8% interest in BN and a 2% interest in BAM as at September 30, 2025. In addition, the Company owns a diversified investment portfolio of marketable securities and private fund interests.
On October 9, 2025, BN completed a three-for-two stock split, increasing the number of Class A Limited Voting Shares of BN held by the Company to 181 million shares with no impact on the value of BN shares held by the Company.
The information in the following table has been extracted from the Company's Consolidated Statements of Financial Position:
Consolidated Statements of Financial Position
| (Unaudited) As at (Thousands, US dollars) | September 30, 2025 | December 31, 2024 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 349,367 | $ | 156,952 | |||
| Accounts receivable and other assets | 83,245 | 69,776 | |||||
| Investment in Brookfield Corporation 1 | 8,296,073 | 6,949,656 | |||||
| Investment in Brookfield Asset Management Ltd. 2 | 1,469,493 | 1,669,488 | |||||
| Investment in Brookfield Wealth Solutions Ltd. 3 | 482,451 | 471,651 | |||||
| Other investments | 929,505 | 669,397 | |||||
| $ | 11,610,134 | $ | 9,986,920 | ||||
| Liabilities and Equity | |||||||
| Accounts payable and other liabilities | $ | 42,290 | $ | 42,824 | |||
| Corporate borrowings | 215,169 | 208,168 | |||||
| Preferred shares 4 | 856,059 | 703,044 | |||||
| Retractable common shares | 8,276,638 | 7,312,467 | |||||
| Exchangeable shares | 337,717 | — | |||||
| Warrant liability | 640,341 | 494,710 | |||||
| Deferred tax liabilities | 15,408 | 7,933 | |||||
| 10,383,622 | 8,769,146 | ||||||
| Equity | |||||||
| Accumulated deficit | (8,453,065 | ) | (6,821,786 | ) | |||
| Accumulated other comprehensive income | 9,669,518 | 8,027,580 | |||||
| Non-controlling interests | 10,059 | 11,980 | |||||
| $ | 11,610,134 | $ | 9,986,920 | ||||
- The investment in Brookfield Corporation consists of 121 million BN shares with a quoted market value of $68.58 per share as at September 30, 2025 ( December 31, 2024 – $57.45).
- The investment in Brookfield Asset Management Ltd. consists of 26 million BAM shares with a quoted market value of $56.94 per share as at September 30, 2025 ( December 31, 2024 – $54.19).
- Brookfield Wealth Solutions Ltd. ("BWS") Class A shares are exchangeable into BN Class A shares on a one-for-one basis.
- Represents $869 million of retractable preferred shares less $13 million of unamortized issue costs as at September 30, 2025 ( December 31, 2024 – $712 million less $9 million).
Reconciliation of Non-IFRS Measure
The following table reconciles Adjusted Earnings to net loss attributable to the Company for the periods ended September 30, 2025, and 2024:
| For the periods ended September 30 (Thousands, US dollars) | Three months ended | Nine months ended | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss attributable to the Company | $ | (2,187,729 | ) | $ | (1,184,308 | ) | $ | (1,351,005 | ) | $ | (1,265,003 | ) | |||
| Add back or deduct: | |||||||||||||||
| Retractable share remeasurement loss | 1,898,035 | 1,079,255 | 1,191,968 | 1,198,295 | |||||||||||
| Exchangeable share remeasurement loss | 76,293 | — | 55,531 | — | |||||||||||
| Warrant liability remeasurement loss | 251,520 | 114,498 | 135,822 | 125,950 | |||||||||||
| Dividends paid on retractable common shares 1 | 7,645 | 7,646 | 22,940 | 20,990 | |||||||||||
| Adjusted Earnings | $ | 45,764 | $ | 17,091 | $ | 55,256 | $ | 80,232 | |||||||
- Dividends paid on retractable common shares are included within financing cost in the consolidated statements of operations. See Note 7 of the consolidated financial statements for additional information.
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 exchanges 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; 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 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).
