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Brookfield Real Estate Services Inc. reports third quarter 2012 results and monthly dividend

Brookfield Real Estate Services Inc. reports third quarter 2012 results and 
monthly dividend 
TORONTO, Nov. 9, 2012 /CNW/ - Brookfield Real Estate Services Inc. (the 
Company) (TSX: BRE), a leading provider of services to residential real estate 
brokers and their REALTORS®¹, today announced that cash flow from operations 
("CFFO") for the three and nine months ended September 30, 2012 was $7.1 
million or $0.55 per restricted voting share ("Share") and $20.0 million or 
$1.56 per Share, respectively, as compared to $7.3 million or $0.57 per Share 
and $19.9 million or $1.55 per Share, respectively, for the same period in 
2011. 
CFFO for the rolling 12 month period ended September 30, 2012 was $1.98 per 
Share as compared to $1.97 for the 12 months ended December 31, 2011. 
Royalties for the three and nine months ended September 30, 2012 were $10.2 
million and $28.4 million, respectively, compared to $10.3 million and $28.3 
million, respectively for the same period in 2011. Net loss and net earnings 
for the three and nine months ended September 30, 2012 was $2.5 million and 
$2.1 million, or $0.26 loss and $0.22 earnings per Share, respectively, as 
compared to net income of $8.1 million and $11.2 million or $0.85 and $1.18 
per Share, respectively, for the same period in 2011. 
OVERVIEW OF THIRD QUARTER OPERATING RESULTS
During the Quarter the Company generated CFFO of $7.1 million as compared to 
$7.3 million for the same period in 2011 due primarily to a $0.3 million bad 
debt provision associated with the writedown of the remaining receivable 
balance of a distressed franchisee. Management continues to work with this 
franchisee and will record the associated royalties and receivable recoveries 
as received. 
On a rolling twelve-month basis, the Canadian market transactional dollar 
volume of $168.0 billion increased by 3% from September 30, 2011, driven by a 
1% and 2% increase in selling price and home sale activity, respectively. For 
the three months ended September 30, 2012, the Canadian market transactional 
dollar volume was down 7% over the same period in 2011, driven solely by a 
decrease in home sale activity. 
"Early in the year, we had forecast a cyclical slowing in transaction volumes, 
a natural market reaction after a period of strong home price appreciation, 
which saw affordability eroded," said Phil Soper, President and Chief 
Executive Officer. "Changes to mortgage regulations, which took effect on July 
9(th), accelerated the correction." 
On a rolling twelve-month basis, the GTA Market increased by 7% from September 
30, 2011, driven solely by an increase in selling price. For the three months 
ended September 30, 2012, the GTA Market experienced a 10% decrease on a 5% 
increase in selling price and 15% decrease in home sale activity, respectively 
over the same period in 2011. 
The Company's revenue is primarily fixed in nature, based on the number of 
REALTORS® in the network. This structure provides revenue protection from the 
impact of revenue declines when the market cools, but also reduces the degree 
to which the Company participates in periods of rapid market expansion. 
The Company Network
As at September 30, 2012 the Company Network was comprised of 15,238 
REALTORS®, operating under 412 franchise agreements providing services from 
662 locations, with an approximate 22% share of the Market based on 2011 
transactional dollar volume. 
Outlook
"Canadian consumers were bombarded with upsetting economic news from around 
the globe during the period, particularly in the early weeks of the third 
quarter. While this has been a drag on the country's housing market and 
contributed to a slowing in home sale transactions, consumer confidence 
appeared to rebound in September, which should support activity in the 
important fall market," said Phil Soper, President and Chief Executive 
Officer, Brookfield Real Estate Services, Inc. 
"Policy makers in Canada and the United States have stated that the current 
period of very low interest rates will continue through at least 2013. This is 
supportive of housing market activity hence downward pressure on home prices 
will likely be minimal," said Soper. "And for the first time in six years, 
sustained positive news from the American housing market should support a 
more positive outlook on overall economic prosperity." 
Monthly Cash Dividend
The Company declared a cash dividend of $0.092 per share for the month of 
November 2012, payable on December 31, 2012, to shareholders of record on 
November 30, 2012. 
CFFO
This news release and accompanying financial statements make reference to cash 
flow from operations ("CFFO") on a total and per restricted voting share 
basis. CFFO is defined as net income prior to fair value changes, 
amortization, interest on exchangeable units, income taxes, items related to 
other income and interests of exchangeable unitholders. CFFO is used by the 
Company to measure the amount of cash generated from operations which is 
available to the Company's shareholders on a diluted basis where such dilution 
represents the total number of shares of the Company that would be outstanding 
if exchangeable unitholders converted Class B LP units into shares of the 
Company. The Company uses CFFO to assess its operating results, the value of 
its business and believes that many of its shareholders and analysts also find 
this measure of value to them. CFFO does not have any standard meaning pre- 
scribed by IFRS and therefore may not be comparable to similar measures 
presented by other companies. 
Management Services Agreement
The Company is managed pursuant to a Management Services Agreement (the "MSA") 
between the Company and Brookfield Real Estate Services Manager Limited (the 
"Manager"), a subsidiary of Brookfield Asset Management Inc. The MSA has 
been in effect since 2003 and was originally designed for an income trust 
structure. The Company and the Manager have agreed to extend the termination 
date of the MSA to December 31, 2013 and the date for delivery of such notice 
to on or before June 30, 2013. 
The Board of Directors of the Company have convened a Special Committee to 
evaluate various alternatives associated with the renewal of the MSA and have 
engaged an external advisor. 
Forward-Looking Statements
This news release contains forward-looking information and other 
"forward-looking statements". The words such as "should", "will", "continue", 
"plan", "believe", "expect", "anticipate", "intend", "estimate", 
"approximate", "expected" and other expressions that are predictions of or 
indicate future events and trends and that do not relate to historical matters 
identify forward-looking statements. Reliance should not be placed on 
forward-looking statements because they involve known and unknown risks, 
uncertainties and other factors that may cause the actual results, performance 
or achievements of the Corporation to differ materially from anticipated 
future results, performance or achievement expressed or implied by such 
forward-looking statements. Factors that could cause actual results to differ 
materially from those set forward in the forward looking statements include a 
change in general economic conditions, interest rates, consumer confidence, 
the level of residential real estate resale transactions, the average rate of 
commissions charged, competition from other traditional real estate brokers or 
from discount and/or Internet-based real estate alternatives, the availability 
of acquisition opportunities and/or the closing of existing real estate 
brokerage offices, other developments in the residential real estate brokerage 
industry or the Corporation that reduce the number of and/or royalty revenue 
from the Company's network of 15,238 REALTORS®, our ability to maintain brand 
equity through the use of trademarks, the availability of equity and debt 
financing, a change in tax provisions, and other risks detailed in the 
Company's annual information form, which is filed with securities commissions 
and posted on SEDAR at www.sedar.com. The Corporation undertakes no obligation 
to publicly update or revise any forward-looking statements, whether as a 
result of new information, future events or otherwise, except as required by 
law. 
Conference Call
Brookfield Real Estate Services Inc. will host a conference call on Friday, 
November 9, 2012 at 10 a.m. ET to discuss its third quarter financial results. 
To access the call by telephone, please dial (888) 231-8191 or (647) 427-7450. 
Please connect approximately ten minutes prior to the beginning of the call to 
ensure participation. A recording of the conference call will be available on 
the Company's website by November 12, 2012 at 
http://www.brookfieldresinc.com/content/investor_centre-25063.html. 
Supplemental Information
The Company's Interim Condensed Consolidated Financial Statements, 
Supplemental Information and IFRS overview for the three and nine months ended 
September 30, 2012 containing further information on the company's strategy, 
operations and financial results can be found on our website at 
www.brookfieldresinc.com. The Company's Management Discussion and Analysis, 
Financial Statements and associated regulatory filings will follow within 
prescribed timelines. Shareholders are encouraged to read these documents. 
Brookfield Real Estate Services Inc. Profile
The Company is a leading provider of services to residential real estate 
brokers and their REALTORS®¹. The Company generates cash flow from franchise 
royalties and service fees derived from a national network of real estate 
brokers and agents in Canada operating under the Royal LePage, Via Capitale 
Real Estate Network and Johnston & Daniel brand names. At September 30, 2012, 
the Company network consisted of 15,238 REALTORS®. The Company network has an 
approximate 22% share of the Canadian residential resale real estate market 
based on transactional dollar volume. The Company generates both fixed and 
variable fee components. Variable fees are primarily driven by the total 
transactional dollar volume from the sales commissions of REALTORS®, while 
fixed fees are based on the number of agents and sales representatives in the 
network. Approximately 68% of the Company's revenue is based on fees that are 
fixed in nature; this provides revenue stability and helps insulate the 
Company's cash flows from market fluctuations. The Company is listed on the 
TSX and trades under the symbol "BRE". For further information about the 
Company, please visit www.brookfieldresinc.com. 
(1)(REALTOR® is a trademark identifying real estate licensees 
inCanadawho are members of the Canadian Real Estate Association.) 
Contact Tammy Gilmer Director, Public Relations & National Communications 
Brookfield Real Estate Services Inc. tgilmer@brookfieldres.com Tel: 
416.510.5783 
SOURCE: Brookfield Real Estate Services Inc. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/09/c6551.html 
CO: Brookfield Real Estate Services Inc.
ST: Ontario
NI: REL ERN DIV CONF  
-0- Nov/09/2012 11:12 GMT