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