Net income for the year ended December 31, 2011 was $7 million or $0.07 per share, compared to net income of $132 million or $1.11 per share for the year ended December 31, 2010. The decrease in net income primarily reflected increased interest expense of $37 million, and the write-off of the U.S. deferred tax asset of $71 million. 

For the year ended December 31, 2011, land revenue totalled $524 million, compared to $355 million for the same period of 2010. Approximately $189 million of the increase was due to the change in business practice. Excluding the non-recurring lot closings, land revenue for the year ended December 31, 2011 decreased by $20 million largely due to increased collections in Canada at the end of 2010. Gross margins on lot sales for the year ended December 31, 2011 were 44%, similar to 2010. 

For the year ended December 31, 2011, housing revenue totalled $484 million, compared to $599 million for the same period of 2010, reflecting reduced home closings primarily in the U.S. in comparison to the same period of 2010. Gross margins on home sales for the year ended December 31, 2011 were 15%, compared to 18% for 2010. This decrease was due to reduced volumes and product mix in the U.S. operations. However, net new home orders for the year ended December 31, 2011 were 13% higher compared to the same period in 2010. 

Cash flow from operating activities during the twelve months ended December 31, 2011 totalled $23 million, which included $140 million of acquisitions made during the period. The company works to balance being opportunistic on new acquisitions together with debt reduction. Most of the recent acquisitions are short-term in nature and will offer appropriate returns using today’s metrics and absorptions. 

Outlook

“Our view for 2012 is for similar, but marginally improving markets in North America. We are hopeful that with the opening of several new communities in the U.S., some commercial parcel sales and executing on our excellent sales backlog, our 2012 normal operating income will improve from 2011 and replace some of the non-recurring income of 2011,” commented Alan Norris, President and CEO of Brookfield Residential.

Additional Information

Brookfield Residential comprises the assets formerly owned by Brookfield Office Properties’ residential land and housing division and Brookfield Homes Corporation. As these entities were deemed to be under common control, the 2010 comparative information has been presented based on the combined financial results of these entities. 

The Letter to Shareholders and the company’s Supplemental Information for the quarter ended December 31, 2011 contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website at www.brookfieldrp.com. 

The attached financial statements are based primarily on information that has been extracted from our financial statements for the three and twelve months ended December 31, 2011, which have been prepared using the standards and interpretations currently issued under U.S. Generally Accepted Accounting Principles.

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Note: This news release contains forward-looking information within the meaning of Canadian provincial securities laws and other “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. Certain statements in this press release that are not historical facts, including information concerning possible or assumed future results of operations of the company, the company’s future outlook, and those statements preceded by, followed by, or that include the words “believe,” “planned,” “anticipate,” “should,” “goals,” “expected,” “potential,” “estimate,” “targeted,” “scheduled” or similar expressions, constitute “forward-looking statements.” Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from the anticipated future results 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, but are not limited to: changes in general economic, real estate and other conditions; mortgage rate changes; availability of suitable undeveloped land at acceptable prices; adverse legislation or regulation; ability to obtain necessary permits and approvals for the development of our land; availability of labour or materials or increases in their costs; ability to develop and market our master-planned communities successfully; confidence levels of consumers; ability to raise capital on favourable terms; adverse weather conditions and natural disasters; relations with the residents of our communities; risks associated with increased insurance costs or unavailability of adequate coverage and ability to obtain surety bonds; competitive conditions in the homebuilding industry, including product and pricing pressures; and additional risks and uncertainties referred to in our filings with the security regulators in Canada and the United States, many of which are beyond our control. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.