TORONTO, ONTARIO--(Marketwire - June 22, 2011) - Brookfield Investments Corporation (TSX VENTURE:BRN.PR.A) reported net income of $47 million for the three months ended March 31, 2011 compared with a net loss of $42 million in the same period in the prior year. Net income per common share was $1.02 compared to a loss of $0.91 in the prior year. The current quarter includes a $49 million gain on the company's indirect investment in Canary Wharf Group plc, which is held through its investment in Brookfield Europe L.P. The prior period includes $46 million of non-cash foreign exchange losses.
Dividend and interest income for the first three months of 2011 was $10 million, compared to $8 million for the same period in 2010. Dividend payments, classified as interest expense, totalled $7 million for the first three months of 2011, consistent with the payment in 2010. Panelboard investments, held through Norbord Inc., contributed $nil for the first three months of 2011, compared to a net loss of $1 million for the same period in 2010. The company's investment in Brookfield Europe L.P. contributed $3 million of income in the first quarter of 2010.
The company's Board of Directors declared the regular quarterly dividend of C$0.29375 per share on its Senior Preferred Shares, Series A payable on June 30, 2010 to shareholders of record on June 20, 2010.
Brookfield Investments Corporation holds investments in the property and forest products sectors, as well as a portfolio of preferred shares issued by companies within the Brookfield Asset Management Inc. group. The common shares of Brookfield Investments Corporation are wholly owned by Brookfield Asset Management Inc., a global asset manager focused on property, power and infrastructure assets.
| Consolidated Statements of Operations | |||||||
| (unaudited) | Three months ended March 31 | ||||||
| US$ millions, except per share amounts | 2011 | 2010 | |||||
| Investment income | |||||||
| Equity accounted income from Brookfield Europe L.P. | $ | 49 | $ | 3 | |||
| Equity accounted loss from Norbord Inc. | — | (1 | ) | ||||
| Dividend and interest income | 10 | 8 | |||||
| Foreign exchange loss | — | (46 | ) | ||||
| 59 | (36 | ) | |||||
| Expenses | |||||||
| Interest | 7 | 7 | |||||
| Net income (loss) before income taxes | 52 | (43 | ) | ||||
| Income tax (expense) recovery | (5 | ) | 1 | ||||
| Net income (loss) | $ | 47 | $ | (42 | ) | ||
| Net income (loss) per common share | $ | 1.02 | $ | (0.91 | ) | ||
| Consolidated Statements of Comprehensive Income | |||||||
| (unaudited) | Three months ended March 31 | ||||||
| US$ millions | 2011 | 2010 | |||||
| Net income (loss) | $ | 47 | $ | (42 | ) | ||
| Other comprehensive income | |||||||
| Foreign currency translation | 10 | (21 | ) | ||||
| Available-for-sale securities | 19 | 197 | |||||
| Equity accounted other comprehensive income (loss) | 6 | (1 | ) | ||||
| Deferred income tax | (4 | ) | 1 | ||||
| 31 | 176 | ||||||
| Comprehensive income | $ | 78 | $ | 134 | |||
| Consolidated Balance Sheets | ||||||
| (unaudited) | ||||||
| US$ millions | March 31, 2011 | December 31, 2010 | ||||
| Assets | ||||||
| Current assets | ||||||
| Deposits receivable | $ | 45 | $ | — | ||
| Securities | 243 | 227 | ||||
| Non-current assets | ||||||
| Investments - Securities | ||||||
| Brookfield Office Properties Inc. | 976 | 973 | ||||
| Investments - Associates | ||||||
| Brookfield Europe L.P. | 405 | 366 | ||||
| Norbord Inc. | 80 | 79 | ||||
| $ | 1,749 | $ | 1,645 | |||
| Liabilities | ||||||
| Current liabilities | ||||||
| Deposits payable | $ | — | $ | 27 | ||
| Retractable preferred shares | 712 | 708 | ||||
| Deferred taxes | 54 | 40 | ||||
| Equity | 983 | 870 | ||||
| $ | 1,749 | $ | 1,645 | |||
Contact Information:
Derek E. Gorgi
Vice President and Chief Financial Officer
416-363-9491