TORONTO, Aug. 7, 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 signed a renewed Management Services Agreement during the quarter, and today announced that cash flow from operations ("CFFO") for the three and six months ended June 30, 2013 was $6.6 million or $0.51 per Restricted Voting Share ("Share") and $12.1 million or $0.95 per Share, respectively, as compared to $7.4 million or $0.57 per Share and $12.9 million or $1.01 per Share, respectively, for the same period in 2012. Management Services Agreement Since 2003, the Company has been managed pursuant to a ten-year Management Services Agreement (the "MSA") with the Brookfield Real Estate Services Manager Limited (the "Manager"), a subsidiary of Brookfield Asset Management Inc. This agreement had recently been extended to December 31, 2013, allowing a Special Committee of the Board of Directors of the Company along with external advisors to conduct a thorough review and assessment of alternatives in advance the expiry of the term of the current agreement. Entering into a renewed MSA with the Manager was determined to be the best possible option at this time, as it builds upon the strong existing relationship between the Company and Brookfield and maintains consistency in a vital part of the infrastructure to the Company. On June 28, 2013, the Company announced that it will be continuing its relationship with the Manager under an amended and restated MSA effective January 1, 2014. The agreement provides new growth opportunities for the Company and enhances the value of Canada's premier real estate services brands, including Royal LePage, Johnston & Daniel and the Via Capitale Real Estate Network. "The changes to the agreement all provide significant benefit to shareholders," said Spencer Enright, President and Chief Executive Officer of Brookfield Real Estate Services Manager Limited. "With the new MSA in place, we will see a close alignment of the Manager and Company goals, reduced management fees, a new incentive arrangement emphasizing organic agent growth, and the ability to grow market share while safeguarding the existing return on investment." Under the new MSA : (1) the management fee has been standardized to 20% across all brands as compared to 20% for Royal LePage and 30% for Via Capitale under the existing MSA; (2) the Manager can earn a new incentive fee for organic growth which closely aligns the Manager and the Company's goals with growing the underlying network of Agents, with the fee being calculated in accordance with the formula for incremental franchises based on the average annual royalty fees per Agent; (3) the Manager has the ability to sell other branded Canadian franchises to the Company; and (4) the following three changes were made to the manner in which amounts paid to the Manager for incremental franchisee contracts are determined : (i) the discount factor was standardized to 7.5% , (ii) the final purchase price is based on the average annual royalties earned over two years, and (iii) the 20% holdback on the initial purchase price for the incremental franchise contracts is paid over two years.