Monthly Cash Dividend
The Company declared a cash dividend of
per share for the month of
, payable on
September 28, 2012
, to shareholders of record on
August 31, 2012
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 between the Company and Brookfield Real Estate Services Manager Limited (the "Manager"), a subsidiary of Brookfield Asset Management. The Management Services Agreement would automatically renew for a ten year renewal term on
August 7, 2013
, unless the Company or the Manager gives notice of its intention not to renew the Management Services Agreement not later than
August 6, 2012.
The Company and the Manager have agreed to delay the date for delivery of such notice to on or before
December 31, 2012.
The Management Services Agreement has been in effect since 2003 and was originally designed for an Income Trust structure. The Company intends to ensure that any future ongoing management arrangements are in the best interests of the Company and its shareholders.
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 Corporation's network of 15,295 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 Fund's annual information form, which is filed with securities commissions and posted on SEDAR at
. 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.
Brookfield Real Estate Services Inc. will host a conference call on
Friday, August 3, 2012
10 a.m. ET
to discuss its second 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
August 7, 2012
The Company's Interim Condensed Consolidated Financial Statements, Supplemental Information and IFRS overview for the three and six months ended
June 30, 2012
containing further information on the company's strategy, operations and financial results can be found on our website at
. 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
operating under the Royal LePage, Via Capitale Real Estate Network and Johnston & Daniel brand names. At
June 30, 2012
, the Company network consisted of 15,249 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
REALTOR® is a trademark identifying real estate licensees in Canada who are members of the Canadian Real Estate Association.
SOURCE Brookfield Real Estate Services Inc.