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.
"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
, President and Chief Executive Officer, Brookfield Real Estate Services, Inc.
"Policy makers in
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
per share for the month of
, payable on
December 31, 2012
, to shareholders of record on
November 30, 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 (the "MSA") between the Company and Brookfield Real Estate Services Manager Limited (the "Manager"), a subsidiary of
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.