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$0.29375 per share on its Senior Preferred Shares, Series A payable on September 30, 2011 to shareholders of record on September 20, 2011.
Brookfield Investments Corporation holds investments in the property and forest products sectors, as well as a portfolio of preferred shares issued by companies within the Brookfield Asset Management Inc. group. The common shares of Brookfield Investments Corporation are wholly owned by Brookfield Asset Management Inc., a global asset manager focused on property, power and infrastructure assets.
| Consolidated Statements of Operations | |||||||||||||
| (unaudited) | Three months ended June 30 |
Six months ended June 30 |
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| US$ 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 |
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| 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 |
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| 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:
Derek E. Gorgi
Vice President and Chief Financial Officer
416-363-9491