BAM 1Q 22 Book Value

Stocks A to Z
1 

Brookfield property group (BPG)                    32,682 
Brookfield renewable energy partners (BEP)          4,702
Brookfield infrastructure partners (BIP)            2,713
Brookfield business partners (BBU)                  2,829
Corporate cash and financial assets                 4,107
Residential development                             2,160
Energy contracts                                      651
Other                                               3,093
Corporate borrowings/Interest expense             -11,154
Net Working Capital                                 1,128
Preferred shares                                   -4,375
Asset Management (fees + carried interest)          4,863
                                                  =======
Common Shareholder's Equity                        43,399 (m)
                                                  =======

Basic shares outstanding at 1Q 22 quarterend      1,566.3 (m)

Book Value at 1Q 22 quarterend = 43399/1566.3 =   **27.71**

Price/Book Value as of 5/13/22 = 47.71/27.71 =    **1.72**

1Q 22 Letter to Shareholders
https://bam.brookfield.com/sites/brookfield-ir/files/2022-03…

1Q 22 Supplemental Information
https://bam.brookfield.com/sites/brookfield-ir/files/2022-03…

1Q 22 Quarterly Report
https://bam.brookfield.com/sites/brookfield-ir/files/brookfi…

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I am trying to figure out the average price management paid for repurchasing shares in 1Q22. Quarterly report says they purchased 3,901,144 shares for 192 million which means the average price per share was 49.21. But how can this be? The price never dipped below 50 in 1Q22. What am I missing? Search “repurchase” in report to find the relevant numbers.

1Q 22 Quarterly Report
https://bam.brookfield.com/sites/brookfield-ir/files/brookfi…

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Quarterly report says they purchased 3,901,144 shares for 192 million which means the average price per share was 49.21. But how can this be? The price never dipped below 50 in 1Q22. What am I missing?

In the statement of cash flows on page 69, it shows the cost of common share repurchases as $213M, which would work out to about $54.60 per. The $192M figure is described as “net of issuances” on page 25, so maybe there’s some accounting arithmetic around issuances (management share option plan, restricted stock plan, dividend reinvestment plan) that affects this figure. Just a guess. In any case, not a big enough number to worry about.

Q2 buybacks might be more interesting. Prices in the mid-40s offer a big discount to their calculation of plan value and give them an opportunity to make good on their pledge to repurchase the roughly 63M shares they issued last year as part of acquisitions. Subtracting the Q1 buybacks leaves about 59M. They can always say they found more compelling opportunities in a falling market, but let’s see if they put their money where their mouth is with respect to the valuation of their own shares.

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