Partners Value Investments LP Reports First Quarter 2021 Results

TORONTO, May 21, 2021 (GLOBE NEWSWIRE) – Partners Value Investments LP (the TSX: PVF.UN TSX: PVF.PR.U “Limited Partnership”) today announced its financial results for the quarter ended March 31, 2021 All amounts are expressed in US dollars. The Partnership generated a net loss of $ 1 million for the quarter ended March 31, 2021, compared to net income of $ 74 million in the prior year quarter. Net income was lower in the current quarter compared to the 2020 quarter, which included the favorable impact of foreign exchange rates of a subsidiary of the preferred shares of the Partnership which are denominated in Canadian dollars. The market price of a Brookfield share was $ 44.50 per share as at March 31, 2021, compared to $ 41.27 as at December 31, 2020. Consolidated Statements of Income (unaudited) For the quarter ended March 31 ( in thousands of US dollars) 2021 2020 Investment income Dividends $ 18,503 $ 20,780 Other investment income 2,009,987 20,512 21,767 Expenses Operating expenses (705) (441) Financing costs (1,284) (17) Dividends on redeemable preferred shares (11,540) (5,408) (13,529) (5,866) Other items Investment valuation gains (losses) 5,284 (15,451) Amortization of deferred financing costs (1,204) (529) Recovery of taxes payable 1980 315 Deferred tax expense (2,627) (866) Foreign exchange gain (loss) (11,592) 74,736 Net profit (loss) (1,176) $ 74,106 Change in net book value The information in the following table shows changes in book value net: For the three months ended March 31 (in thousands, except nts per unit) 2021 2020 Total per unit Total per unit Net book value, beginning of period1 $ 4,777,152 $ 54.20 $ 4 378,324 $ 49.65 Net earnings2 (2,898) (0.03) 71,271 0.81 Other comprehensive income2 383658 4.36 (1,116,521) (12.66) Adjustment for the impact of warrant3 5,155 0.06 (28,019) (0.32) Buyback of LP shares (1,654) (0.02) (109) – Net book value, end of period1.4.5 5,161,413 $ 58.57 $ 3,304,946 $ 37.48 Calculated on a fully diluted basis, net book value is a non-IFRS measure. Attributable to Equity Limited Partners. Base weighted average number of Equity Limited Partnership (“Equity LP”)) outstanding during the period ended March 31, 2021 was 73,331,299. The diluted weighted average number of units of Equity Limited Partnership (“Equity LP” “) Available and outstanding for the period ended March 31, 2021 was 88,039,965; this includes the 14,708,766 Equity LP units issuable upon exercise of all outstanding warrants.At the end of the period, the diluted Equity LP units outstanding were 88,017,497 (December 31, 2020 – 88056097) Net book value is a non-IFRS measure and corresponds to total equity less general partner’s equity and preferred limited partners’ equity, plus the value of the consideration receivable on exercise of the warrants. subscription, which as of March 31, 2021 was $ 380 million (December 31, 2020 – $ 375 million). Financial Profile The Partnership’s primary investment is its interest in approximately 129 million Class A Limited Voting Shares (the “Brookfield Shares”) of Brookfield. This represents a fully diluted 9% interest as at March 31, 2021. In addition, the Company holds a diversified investment portfolio of marketable securities. The information in the following table has been extracted from the Partnership’s statement of financial position: As of (in thousands of US dollars) (unaudited) March 31, 2021 December 31, 2020 Assets Cash and cash equivalents $ 229,777 $ 316,718 Investment in Brookfield Asset Management Inc. 1,5,729,755 5313,865 Other investments carried at fair value 319,016 365,949 Accounts receivable and other assets 43,791 40,109 $ 6,322,339 $ 6,036,641 Accounts receivable and other liabilities $ 15,297 $ 15,604 Corporate loans 118,920 117,286 Preferred shares 1,384,385 4,402,331 General Partner 1 1 Privileged Limited Partners 153,054 153,054 6,322,339 $ 6,036,641 The investment in Brookfield Asset Management Inc. includes approximately 129 million Brookfield with a quoted market value of $ 44.50 per share at March 31, 2021 (December 31, 2020 – $ 41.27). Represents $ 557 million of redeemable preferred shares less $ 11 million of unamortized issue costs as of March 31, 2021 (December 31, 2020 – $ 706 million less $ 12 million). for purposes based on the difference between the carrying amount of the assets and liabilities of the Partnership and their respective tax values, as well as taking into account estimated capital and non-capital losses. For more information, contact Investor Relations at 416-956-5142. Note: This press release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian securities regulations. The words “potential” and “estimated” and other expressions which are predictions or indicate future events, trends or prospects and which do not relate to historical matters, identify forward-looking information. The forward-looking information contained in this press release includes statements regarding the Company’s potential future income taxes. Although the company believes that its anticipated future results, performance or achievements expressed or implied by forward-looking statements and information are based on reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information, as they imply and the risks, uncertainties and other unknown factors, many of which are beyond its control, which may cause the actual results, performance or achievements of the Company to differ materially from the anticipated future results, performance or achievements expressed or implied by these forward-looking statements. and information. Factors that could cause actual results to differ materially from those expected or implied by forward-looking statements and information include, but are not limited to: Brookfield Asset Management Inc.’s financial performance, impact or ‘unforeseen impact of market factors; the behavior of financial markets, including fluctuations in interest rates and exchange rates; global equity and financial markets and the availability of equity and debt financing and refinancing in these markets; strategic actions, including arrangements; changes in accounting policies and methods used to report financial position (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 regulations and legislation; changes in tax laws, catastrophic events, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including terrorist acts; and other risks and factors detailed from time to time in the Company’s documents filed with securities regulators in Canada. The Company cautions that the above list of important factors that could affect future results is not exhaustive. When relying on the Company’s forward-looking statements and information, investors and others should carefully consider the above factors as well as other uncertainties and potential events. Except as required by law, the Company assumes no obligation to publicly update or revise forward-looking statements and information, whether written or oral, which may result from new information, future events or otherwise.