Brookfield Investments Corporation
TSX VENTURE : BRN.PR.A

April 27, 2012 17:59 ET

Brookfield Investments Corporation Announces 2011 Financial Results

TORONTO, ONTARIO--(Marketwire - April 27, 2012) - Brookfield Investments Corporation (TSX VENTURE:BRN.PR.A) reported net income of $70 million or $1.52 per common share for the year ended December 31, 2011 compared with $4 million or $0.09 per common share in 2010. The increase in net income compared to the prior year is primarily the result of a higher amount of investment income earned from the company's investment portfolio. Investment income increased by $27 million to $107 million, compared to $80 million in the prior year, as a result of greater earnings from the company's indirect investment in Canary Wharf. In addition, the prior year included $41 million of foreign exchange losses whereas the current year benefited from $3 million of foreign exchange gains, as a result of a larger fluctuation in foreign currencies relative to the U.S. dollar and a larger foreign currency notional exposure in the prior year.

The company acquired a 49% economic interest in Western Forest Products Inc. in the fourth quarter of 2011. As consideration for the acquisition, Brookfield Investments issued 5,200,000 Class 1 Junior Preferred Shares, Series B and 3,807,573 common shares for total proceeds of C$168 million. Western is an integrated Canadian forest products company, managing timberlands and producing lumber in coastal British Columbia.

Brookfield Investments Corporation holds investments in the property and forest products sectors, as well as a portfolio of preferred shares issued by companies within the Brookfield group. The common shares of Brookfield Investments Corporation are wholly owned by Brookfield Asset Management Inc., a global asset manager focused on property, power and infrastructure assets.

CONSOLIDATED BALANCE SHEETS
December 31 December 31
(US$ millions) 2011 2010
Assets
Current assets
Deposits receivable $ 243 $ -
Securities 217 227
Non-current assets
Investments - Securities
Brookfield Office Properties Inc. 866 973
Brookfield Residential Properties Inc. 44 -
Investments - Associates
Brookfield Europe L.P. 467 366
Norbord Inc. 70 79
Western Forest Products Inc. 165 -
$ 2,072 $ 1,645
Liabilities
Current liabilities
Deposits payable $ - $ 27
Accounts payable 2 -
Retractable preferred shares 1,125 708
Deferred taxes 55 40
Equity 890 870
$ 2,072 $ 1,645
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended December 31 Twelve months ended December 31
(US$ millions, except per share amounts) 2011 2010 2011 2010
Investment Income
Equity accounted (loss) income from Brookfield Europe L.P. $ (2 ) $ 17 $ 67 $ 45
Equity accounted (loss) income from Norbord Inc. (1 ) (1 ) (1 ) 2
Equity accounted income from Western Forest Products Inc. 1 - 1 -
Dividend and interest income 10 8 40 33
8 24 107 80
Expenses
Interest 7 7 30 29
1 17 77 51
Foreign exchange (loss) income (16 ) (18 ) 3 (41 )
Net (loss) income before income taxes (15 ) (1 ) 80 10
Income tax expense (1 ) (2 ) (10 ) (6 )
Net (loss) income $ (16 ) $ (3 ) $ 70 $ 4
Net (loss) income per common share $ (0.35 ) $ (0.07 ) $ 1.52 $ 0.09
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three months ended December 31 Twelve months ended December 31
(US$ millions, except per share amounts) 2011 2010 2011 2010
Net income $ (16 ) $ (3 ) $ 70 $ 4
Other comprehensive income (loss)
Foreign currency translation - (1 ) 4 (11 )
Available-for-sale securities - fair value changes 110 118 (129 ) 338
Equity accounted other comprehensive income (loss) (1 ) 1 3 (1 )
Deferred income tax 1 - - -
$ 110 $ 118 $ (122 ) $ 326
Comprehensive income (loss) $ 94 $ 115 $ (52 ) $ 330

Contact Information

  • Derek Gorgi, Vice President and Chief Financial Officer,
    will be available at 416-363-9491 to answer any
    questions on the company's financial results.