Brookfield Investments Corporation
TSX VENTURE : BRN.PR.A

August 29, 2011 18:41 ET

Brookfield Investments Corporation Announces Second Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2011) - Brookfield Investments Corporation (TSX VENTURE:BRN.PR.A) reported net income of $2 million or $0.04 per common share for the three months ended June 30, 2011, compared to $25 million or $0.54 per share for the same period in the prior year. The current quarter includes $2 million of unrealized foreign exchange losses compared to $13 million of unrealized foreign exchange gains for the same period in 2010. Net income in the prior year also included a $10 million mark-to-market gain on the company's European commercial office properties which are held through its investment in Brookfield Europe L.P.

Dividend and interest income increased by $2 million to $10 million for the three months ended June 30, 2011. Dividend payments of $8 million on the company's retractable preferred shares, which are classified as interest expense, were consistent with the prior period. The company's investment in Brookfield Europe L.P. contributed $1 million of net income, whereas in the prior year it contributed $12 million, which included the $10 million unrealized gain noted above. Panelboard investments, held through Norbord Inc., contributed $nil for the second quarter of 2011, compared to a net income of $4 million for the same period in 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 September 30, 2011 to shareholders of record on September 20, 2011.

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 June 30
Six months
ended June 30
US$ millions, except per share amounts 2011 2010 2011 2010
Investment income
Equity accounted income from Brookfield Europe L.P. $ 1 $ 12 $ 50 $ 15
Equity accounted income from Norbord Inc. 4 3
Dividend and interest income 10 8 20 16
Foreign exchange (loss) income (2 ) 13 (2 ) (33 )
9 37 68 1
Expenses
Interest 8 7 15 14
Net income (loss) before income taxes 1 30 53 (13 )
Income tax recovery (expense) 1 (5 ) (4 ) (4 )
Net income (loss) $ 2 $ 25 $ 49 $ (17 )
Net income (loss) per common share $ 0.04 $ 0.54 $ 1.06 $ (0.37 )
Consolidated Statements of Comprehensive Income (Loss)
(unaudited) Three months
ended June 30
Six months
ended June 30
US$ millions 2011 2010 2011 2010
Net income (loss) $ 2 $ 25 $ 49 $ (17 )
Other comprehensive income (loss)
Foreign currency translation 1 (5 ) 11 (26 )
Available-for-sale securities 90 (69 ) 109 128
Equity accounted other comprehensive income (loss) 6 (1 )
Deferred income tax 2 2 (2 ) 3
93 (72 ) 124 104
Comprehensive income (loss) $ 95 $ (47 ) $ 173 $ 87
Consolidated Balance Sheets
(unaudited)
US$ millions
June 30,
2011
December 31,
2010
January 1,
2010
Assets
Current assets
Deposits receivable $ $ $ 3
Securities 241 227 190
Non-current assets
Investments - Securities
Brookfield Office Properties Inc. 1,069 973 672
Brookfield Residential Properties Inc. 56
Investments - Associates
Brookfield Europe L.P. 408 366 332
Norbord Inc. 74 79 79
$ 1,848 $ 1,645 $ 1,276
Liabilities
Current liabilities
Deposits payable $ 3 $ 27 $
Retractable preferred shares 713 708 700
Deferred taxes 54 40 36
Equity 1,078 870 540
$ 1,848 $ 1,645 $ 1,276

Contact Information

  • Brookfield Investments Corporation
    Derek E. Gorgi
    Vice President and Chief Financial Officer
    416-363-9491