Brookfield Investments Corporation
TSX VENTURE : BRN.PR.A

November 29, 2011 16:42 ET

Brookfield Investments Corporation Announces Third Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2011) - Brookfield Investments Corporation ("Brookfield Investments" or the "company") (TSX VENTURE:BRN.PR.A) recorded net income of $37 million or $0.81 per common share for the three months ended September 30, 2011 compared to $24 million or $0.52 per common share for the same period in the prior year. Net income in the current quarter increased primarily as a result a $10 million increase in the fair value of the company's indirect investment in Canary Wharf, which is held through its equity accounted investment in Brookfield Europe L.P., as well as a higher amount of unrealized foreign currency revaluation gains. These amounts were partially offset by a decrease in Canary Wharf's dividend by $3 million to $6 million, when compared to the prior year.

The company reported a comprehensive loss of $319 million for the quarter ended September 30, 2011, which consists of net income and other comprehensive loss, compared to comprehensive income of $128 million for the same period last year. The current period loss was primarily the result of a $348 million unrealized loss on the company's investment securities, which are recorded at fair value.

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 December 31, 2011 to shareholders of record on December 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

Three months ended Nine months ended
(unaudited)
US$ millions, except per share amounts
September 30 2011 September 30 2010 September 30 2011 September 30 2010
Investment income
Equity accounted income from Brookfield Europe L.P. $ 19 $ 13 $ 69 $ 28
Equity accounted income from Norbord Inc. - - - 3
Dividend and interest income 10 9 30 25
29 22 99 56
Expenses
Interest 8 8 23 22
21 14 76 34
Foreign exchange income (loss) 21 10 19 (23 )
Net income before income taxes 42 24 95 11
Income tax expense (5 ) - (9 ) (4 )
Net income $ 37 $ 24 $ 86 $ 7
Net income per common share $ 0.81 $ 0.52 $ 1.87 $ 0.15

Consolidated Statements of Comprehensive (Loss) Income

Three months ended Nine months ended
(unaudited)
US$ millions
September 30
2011
September 30
2010
September 30
2011
September 30
2010
Net income $ 37 $ 24 $ 86 $ 7
Other comprehensive (loss) income
Foreign currency translation (7 ) 16 4 (10 )
Available-for-sale securities (348 ) 92 (239 ) 220
Equity accounted other comprehensive (loss) income (2 ) (1 ) 4 (2 )
Deferred income tax 1 (3 ) (1 ) -
(356 ) 104 (232 ) 208
Comprehensive (loss) income $ (319 ) $ 128 $ (146 ) $ 215

Consolidated Balance Sheets

(unaudited)
US$ millions September 30,
2011
December 31,
2010
January 1,
2010
Assets
Current assets
Deposits receivable $ 9 $ - $ 3
Securities 218 227 190
Non-current assets
Investments - Securities
Brookfield Office Properties Inc. 763 973 672
Brookfield Residential Properties Inc. 37 - -
Investments - Associates
Brookfield Europe L.P. 413 366 332
Norbord Inc. 72 79 79
$ 1,512 $ 1,645 $ 1,276
Liabilities
Current liabilities
Deposits payable $ - $ 27 $ -
Retractable preferred shares 701 708 700
Deferred taxes 52 40 36
Equity 759 870 540
$ 1,512 $ 1,645 $ 1,276

Contact Information

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