The company recorded net income of $2.3 million for the three months ended September 30, 2009 compared to net income of $3.0 million in the same period last year. The decrease in net income primarily relates to a $1.2 million redemption premium which was paid in connection with the early redemption of the Class A Preferred Shares. Net income per common share was $0.03 for the three month period, compared with $0.04 for the same period in 2008.

On July 9, 2009, BAM Split issued $125.0 million Class AA, Series IV Preferred Shares and used the proceeds to fund the early redemption of the $125.0 million Class A Preferred Shares. The Class A Preferred Shares were otherwise scheduled to be redeemed no later than September 30, 2010. Accordingly, this transaction successfully extended the maturity profile of the company's financial obligations. The Class AA, Series IV Preferred Shares have an annual yield of 7.25% and mature on July 9, 2014.

In the first quarter of 2009, the company redeemed all of the exchangeable debentures that it had previously issued, by delivering 5.3 million Class A Limited Voting Shares ("Class A Shares") of Brookfield Asset Management Inc. ("Brookfield") and 0.2 million Limited Partnership Units of Brookfield Infrastructure Partners LP ("Brookfield Infrastructure"). As a result, the company no longer bears interest expense on the exchangeable debentures, whereas the comparable period in 2008 included $1.4 million of interest expense on the exchangeable debentures, which exceeded the investment income on the securities delivered in settlement.

The company's principal investment is a direct interest in 55.5 million Class A Shares of Brookfield.

Consolidated Statements of Operations
                                            Three months         Nine months
                                          ended Sept. 30      ended Sept.