Brookfield Corporation Announces Fixed Dividend Rate for Cumulative Class A Preference Shares, Series 38

Brookfield Corporation announced fixed dividend rates for Cumulative Class A Preference Shares and conversion options effective March 31, 2025.

Quiver AI Summary

Brookfield Corporation announced a fixed dividend rate of 5.185% for its Cumulative Class A Preference Shares, Series 38, for the five years starting April 1, 2025. Holders can convert their shares into Series 39 Shares by March 17, 2025, with quarterly dividends to be calculated based on a floating rate starting at 2.55% above the yield on three-month Government of Canada treasury bills. The Series 39 Shares will pay an initial dividend of $0.3358275 per share for the period ending June 30, 2025. Automatic conversions may occur if the outstanding shares fall below 1,000,000 for either series. The Toronto Stock Exchange has conditionally approved the listing of the Series 39 Shares. Brookfield Corporation is a major global investment firm focused on long-term wealth creation with a strong track record of delivering significant returns.

Potential Positives

• Announcement of a fixed dividend rate of 5.185% on Series 38 Shares for the next five years, providing financial stability and predictable income for investors.
• Conversion option for Series 38 Shareholders into Series 39 Shares could offer enhanced dividend rates depending on market conditions, potentially increasing attractiveness to current and prospective investors.
• The conditional approval for listing Series 39 Shares on the Toronto Stock Exchange indicates growth and expansion potential for Brookfield, enhancing its market presence.
• Brookfield's long-term track record of delivering over 15% annualized returns to shareholders underscores its strong investment strategy and operational expertise.

Potential Negatives

• The fixed dividend rate of 5.185% for the Series 38 Shares may be viewed negatively if it does not meet investor expectations for returns, potentially leading to a lack of interest in these shares.
• If the number of outstanding Series 38 Shares falls below 1,000,000, it triggers automatic conversion to Series 39 Shares, which may limit shareholder control and preferences.
• The requirement for TSX approval for the listing of the Series 39 Shares could indicate uncertainty around regulatory compliance and future trading conditions.

FAQ

What is the fixed dividend rate for Brookfield's Series 38 Shares?

The fixed dividend rate for Series 38 Shares is 5.185% annually, equating to $0.3240625 per share per quarter.

When can Series 38 Shareholders convert their shares?

Series 38 shareholders can convert their shares until 5:00 p.m. (Toronto time) on March 17, 2025.

What happens if there are fewer than 1,000,000 Series 38 Shares outstanding?

If fewer than 1,000,000 Series 38 Shares remain, all will be converted into Series 39 Shares automatically.

What is the initial dividend rate for Series 39 Shares?

The initial dividend rate for Series 39 Shares is 2.55% plus the annual yield on three-month Government of Canada treasury bills.

How many Series 38 Shares are currently outstanding?

Currently, there are 7,906,132 Series 38 Shares outstanding.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

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Full Release

All amounts in Canadian dollars unless otherwise stated.

BROOKFIELD, NEWS, March 03, 2025 (GLOBE NEWSWIRE) --

Brookfield Corporation (“Brookfield”) (NYSE: BN, TSX: BN)

today announced that it has determined the fixed dividend rate on its Cumulative Class A Preference Shares, Series 38 (the “Series 38 Shares”) (TSX: BN.PF.E) for the five years commencing April 1, 2025 and ending March 31, 2030.

If declared, the fixed quarterly dividends on the Series 38 Shares during the five years commencing April 1, 2025 will be paid at an annual rate of 5.185% ($0.3240625 per share per quarter).

Holders of Series 38 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on March 17, 2025, to convert all or part of their Series 38 Shares, on a one-for-one basis, into Cumulative Class A Preference Shares, Series 39 (the “Series 39 Shares”), effective March 31, 2025. The quarterly floating rate dividends on the Series 39 Shares will be paid at an annual rate, calculated for each quarter, of 2.55% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the April 1, 2025 to June 30, 2025 dividend period for the Series 39 Shares will be 1.34331% (5.388% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.3358275 per share, payable on June 30, 2025.

Holders of Series 38 Shares are not required to elect to convert all or any part of their Series 38 Shares into Series 39 Shares.

As provided in the share conditions of the Series 38 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 38 Shares outstanding after March 31, 2025, all remaining Series 38 Shares will be automatically converted into Series 39 Shares on a one-for-one basis effective March 31, 2025; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 39 Shares outstanding after March 31, 2025, no Series 38 Shares will be permitted to be converted into Series 39 Shares. There are currently 7,906,132 Series 38 Shares outstanding.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 39 Shares effective upon conversion. Listing of the Series 39 Shares is subject to Brookfield fulfilling all the listing requirements of the TSX.

About Brookfield Corporation

Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.

We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).

For more information, please visit our website at

www.bn.brookfield.com

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.