TORONTO - Brookfield Real Estate Services Fund (TSX:BRE.UN) says its net income increased to $1.5 million in the fourth quarter, about seven times higher than it was a year earlier, as the royalties it received from brokerages rose nearly 10 per cent.
The profit amounted to 16 cents per unit in the fourth quarter, up from $200,000 or two cents per unit in the fourth quarter of 2008, Brookfield announced Wednesday.
Royalties received from real-estate brokers using the fund's Royal LePage, La Capitale Real Estate Network and Johnston & Daniel brands increased by 9.8 per cent to $8.5 million in the three months ended Dec. 31.
Distributions to the fund's unitholders increased to just under $5 million, or 39 cents per unit, from $4.6 million or 35 cents per unit in the fourth quarter of 2008.
The per-unit figures were helped by a buyback program that reduced the number of units outstanding.
"The year-over-year increase in royalties and corresponding increase in distributable cash in the fourth quarter reflected the marked activity increase that occurred in the Canadian residential real estate markets during that time period," the fund said.
For fiscal 2009, revenues were $34.4 million, 1.5 per cent lower than the prior year. Net earnings of $5.6 million were 5.9 per cent greater than 2008 as the decrease in royalties was more than offset by the unrealized gain recorded from an interest rate swap and income tax recovery.