Mr. Bill Powell reports

VALLEY NATIONAL BANK CLOSES ON THE SALE OF NEARLY $1 BILLION OF COMMERCIAL REAL ESTATE LOANS TO BROOKFIELD ASSET MANAGEMENT

Valley National Bancorp, the holding company for Valley National Bank, has closed the sale of a diverse pool of performing commercial real estate mortgage loans to Brookfield Asset Management Ltd. The final loan pool sold had contractual balances totalling approximately $925-million, of which approximately $823-million had been previously identified and transferred to held for sale as of Sept. 30, 2024. The loan pool was sold at a discount of approximately 1 per cent to par value, and Valley will retain customer-facing servicing responsibilities.

Ira Robbins, chairman and chief executive officer of Valley, commented: "The sale of this performing commercial real estate loan pool has helped to accelerate progress towards our strategic balance sheet goals. Throughout the year, we have patiently monitored loan sale opportunities in the context of our deep understanding of the intrinsic value of our assets, and the unique dynamics of the markets that we serve. This deliberate approach resulted in only a modest transaction discount to par, exclusive of other selling costs, which further reflects the strength and desirability of our diverse commercial real estate portfolio. Brookfield is one of the leading asset managers in the global markets, and we are excited to have partnered together on this mutually beneficial transaction."

Bill Powell, Brookfield managing partner, credit, said: "Brookfield's acquisition of Valley's portfolio of high-quality, performing loans is strategic for both parties and demonstrates our ability to step in as an alternative lender to provide creative, flexible capital solutions. We're thrilled to partner with Valley on the first part of what we expect will be a long-term partnership."

In the fourth quarter 2024, Valley expects to recognize an incremental immaterial net loss related to the approximate 1-per-cent discount on loans that had not been previously moved to held for sale as of Sept. 30, 2024, and traditional transaction-related expenses. Morgan Stanley & Co. LLC served as sole adviser to the bank on the transaction.

About Brookfield Asset Management Ltd.

Brookfield Asset is a leading global alternative asset manager with approximately $1-trillion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. It invests client capital for the long term with a focus on real assets and essential service businesses that form the backbone of the global economy. It offers a range of alternative investment products to investors around the world -- including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies, and private wealth investors. It draws on Brookfield's heritage as an owner and operator to invest for value and generate strong returns for its clients across economic cycles.

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