3rd QtrHIGHLIGHTS
-- Cash Flow from Operations ("CFFO") on a rolling twelve-month basis
increased by 5.4% compared to the same period in 2016 to $2.55 per Share,
driven by an increase in royalties due to a higher number of REALTORS(R)
in the Company Network.
-- The Company's network of REALTORS(R) (the "Network") increased to 18,117,
up from 17,580 as at December 31, 2016.
"Despite modest quarter-over-quarter home price appreciation in the Greater Toronto Area, a significant decrease in the region's sales volume weakened the Canadian Market resulting in a slight decrease in royalty revenue this quarter," said Phil Soper, President and Chief Executive Officer, Brookfield Real Estate Services Inc. "The market impact on our revenues was limited to 3% as the majority of our fees are fixed in nature."
The increased royalties and improvement in CFFO for the nine months ended September 30, 2017 were driven primarily by an increase in the number of REALTORS(R) in the Network and a strong Canadian Market in the first six months of the year.
Net earnings for the three months ended September 30, 2017 were $5.0 million, or $0.52 per Share, compared to a net loss of $1.0 million or $0.11 per Share, for the same period in 2016. For the nine months ended September 30, 2017, net earnings were $9.6 million, or $1.01 per Share, compared to net earnings of $1.1 million or $0.11 per Share, for the same period in 2016.
I'm not sure what's not to like about this company. The dividend appears safe as the CFFO increased 5.4% so they are only currently paying out 52.9% trailing. As it sits virtually a guaranteed 8.5% annual return just on the dividend. Add over the long haul a small cap gain each year and you are comfortably into double digit returns. I keep adding a little every year.
Cheers.