TORONTO, March 12, 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 twelve months ended
December 31, 2011 was $5.4 million and $25.3 million, respectively, as
compared to $5.0 million and $25.2 million, respectively, for the same
period in 2010.
CFFO per Restricted Voting Share ("Share") for the three and twelve
months ended December 31, 2011 was $0.42 and $1.97 per Share,
respectively, as compared to $0.39 and $1.97 per Share, respectively,
in the same period of 2010.
Royalties for the three and twelve months ended December 31, 2011 were
$8.4 million and $36.7 million, respectively, compared to $8.2 million
and $36.6 million, respectively for the same period in 2010.
Net earnings (loss) for the three and twelve months ended December 31,
2011 was $3.2 million loss and $8.0 million income, or $0.34 loss per
share and $0.85 basic earnings per Share, respectively, as compared to
a net loss of $29.2 million and $50.7 million.
OVERVIEW OF FOURTH QUARTER OPERATING RESULTS
During the quarter, the Company generated cash flow from operations
("CFFO") of $5.4 million as compared to $5.0 million for the same
period in 2010.
To understand what has transpired in the Market for the 2011 and how it
impacts our outlook for 2012, a review of year-to-date 2011 and 2010
Market activity is required.
On a rolling twelve-month basis, the fourth quarter of 2011 closed out
at a Market transactional dollar volume of $166.1 billion, up 10% from
December 31, 2010, driven by a 7% increase in selling price and a
modest increase in home sale activity of 3%. For the three months ended
December 31, 2011, transactional dollar volume was up 11% over the same
period in 2010, driven by an 4% and a 7% increase in selling price and
home sale activity, respectively. The steady increase in selling price
on a twelve-month rolling and quarterly basis is largely driven by
consistent shortage of listings, resulting in competition among home
buyers, and low interest rates continue to draw homebuyers to the
While the sales activity for the twelve months ended December 31, 2011
as compared to December 31, 2010 increased moderately by 3%, home sale
activity on a quarter-over-same-quarter basis increased by 7% due to an
active 2011 summer Market, the carry-through of second-quarter 2011
home sales and the fall-off of Market activity in 2010.
In 2010, the Market was up significantly for the first two quarters as
consumers sought to complete their home purchases ahead of the
Harmonized Sales Tax ("HST") and tighter mortgage-lending rules, which
reduced home sale activity in the third and fourth quarters. The
fourth of 2011, which is typically the slower season of the
home-purchase cycle, saw a normalization of Market activity to a ten
year National average.
"Brookfield Real Estate Services Inc. is pleased to report with the
fourth quarter financial performance for 2011," said Phil Soper,
President and Chief Executive Officer, Brookfield Real Estate Services,