Brookfield Real Estate Services Inc. reports fourth quarter and 2012 year-end results; monthly dividend

Brookfield Real Estate Services Inc. reports fourth quarter and 2012 year-end 
results; monthly dividend 
TORONTO, March 5, 2013 /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 twelve months ended December 31, 2012 was $5.4 
million or $0.42 per restricted voting share ("Share"), the same level as 2011 
and $25.4 million or $1.98 per Share, up slightly from $25.3 million or $1.97 
per Share for the same period in 2011. 
Royalties for the three and twelve months ended December 31, 2012 were $8.1 
million and $36.5 million, respectively, compared to $8.4 million and $36.7 
million, respectively for the same period in 2011. Net earnings for the three 
and twelve months ended December 31, 2012 was $0.8 million and $3.0 million, 
or $0.08 and $0.31 earnings per Share, respectively, as compared to net loss 
and earnings of $3.2 million and $8.0 million or $0.33 loss and $0.85 earnings 
per Share, respectively, for the same period in 2011. 
OVERVIEW OF FOURTH QUARTER OPERATING RESULTS
During the Quarter the Company generated CFFO of $5.4 million, which was in 
Iine with the same period of 2011. Royalties were down slightly due in part to 
the pushing of market activity to the first half of 2012 as compared to the 
same period in 2011 as a result of the tightening of mortgage-lending rules. 
Offsetting this decrease was a $0.3 million reduction in administration costs 
due primarily to a lower year over year bad debt provision resulting from the 
success of increased collection efforts. 
For the twelve months ended December 31, 2012, the Canadian market 
transactional dollar volume of $165.1 billion decreased by 1% from the same 
period in 2011, driven solely by a decrease in units sold. The average sales 
price of a home remained largely unchanged due primarily to a balanced market 
supported by reduced listings and low interest rates. For the three months 
ended December 31, 2012, the Canadian market transactional dollar volume was 
down 9% over the same period in 2011, also driven solely by a decrease in home 
sale activity. 
"The Canadian real estate market was challenged in 2012 asmore stringent 
mortgage regulations temporarilysqueezed younger buyers out of the market, 
while the overhang of economic malaise across Europe and the US continued to 
unsettle consumer confidence," said Phil Soper,President 
andChiefExecutiveOfficer, Brookfield Residential Real Estate Services 
Inc."Despite these concerns, the slowing of Canadian market activity, which 
began in the second quarter of 2012, has been moderate. We anticipate that the 
industry will strengthen towards the end of 2013." 
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 December 31, 2012 the Company Network was comprised of 15,086 
REALTORS®, operating under 406 franchise agreements providing services from 
656 locations, with an approximate 24% share of the Market based on 2012 
transactional dollar volume. 
Outlook
"Activity in the Canadian residential real estate market is unfolding as 
forecast. Compared to 2012, fewer homes are expected to trade hands in the 
first half of 2013, which should further slow the pace at which home prices 
are rising. By the end of 2013, Management expects the average national home 
price to be one percent higher compared to the same period in 2012. Based on 
early 2013 sales activity, the forecasted market correction has been milder 
than anticipated, as first time buyers adjust to new mortgage regulations and 
the stimulative effect of low mortgage rates continues." 
Monthly Cash Dividend
The Company declared a cash dividend of $0.092 per share for the month of 
March 2013, payable on April 30, 2013, to shareholders of record on March 28, 
2013. 
On February 15(th) the Company declared a dividend of $0.092 per share for the 
month of February 2013, payable on March 29th, 2013 to shareholders of record 
on February 28th, 2013. This dividend will be paid on March 28(th)`, 2013. 
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 Wednesday, 
March 6, 2013 at 10 a.m. ET to discuss its fourth quarter and year-end 
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 March 7, 2013 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 December 31, 2012, 
the Company network consisted of 15,086 REALTORS®. The Company network has an 
approximate 24% 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 73% 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.) 
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/March2013/05/c2527.html 
CO: Brookfield Real Estate Services Inc.
ST: Ontario
NI: REL ERN DIV CONF  
-0- Mar/05/2013 21:49 GMT
 
 
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