TORONTO, December 17, 2010 – BAM Split Corp. announced today that net asset value per unit was $104.97 at September 30, 2010, compared to $88.05 in the prior year. The increase in net asset value per unit is primarily the result of an increase in the market value of the Brookfield Asset Management Class A Limited Voting Shares (“Brookfield Shares”) held in the company’s investment portfolio during the year.
Income available for distribution for the year ended September 30, 2010, was $26.7 million, compared to $26.0 million for the same period in the prior year. The company paid dividends of $19.9 million to holders of Preferred Shares Class AA Series 1, Series 3 and Series 4, consistent with the amounts of dividends paid in the prior year. Dividends paid to holders of capital shares for the year ended September 30, 2010 were $8.9 million, compared to $9.8 million paid in the prior year.
Net asset value per unit consists of one preferred share and one capital share. The net asset value per preferred share is posted monthly on www.bamsplit.com.
STATEMENTS OF INVESTMENT OPERATIONS AND RETAINED EARNINGS
For the years ended September 30
$thousands, except per share amounts |
2010
|
2009
|
|
|
|
| Income |
|
|
Investment income
|
$28,861
|
$29,141
|
| |
|
|
Expenses
|
|
|
Operating
|
333 |
248 |
Amortization of share issue costs
|
1,850 |
1,689 |
Class A Preferred Share redemption premium
|
- |
1,200 |
|
2,183
|
3,137
|
Income available for distribution
|
26,678 |
26,004 |
Dividends paid on Senior Preferred shares
|
(19,937) |
(19,898) |
| Income available for distribution on capital and Class A Shares |
6,741 |
6,106 |
| Change in realized and unrealized value of investment |
249,323 |
(171,118) |
| Results of investment operations |
$256,064 |
$(165,012) |
| Opening retained earnings |
$553,622 |
$728,518 |
| Results of investment operations |
256,064 |
(165,012) |
| Dividends paid on capital shares |
(8,919) |
(9,776) |
| Redemption of capital shares |
- |
(108) |
Retained earnings, end of year
|
$800,767 |
$553,622
|
Dividends per Senior Preferred share
|
|
|
– Class A1
|
$-
|
$1.2792 |
– Class AA, Series 1
|
$1.2375 |
$1.2375 |
– Class AA, Series 3
|
$1.0876 |
$1.0876 |
– Class AA, Series 42
|
$1.8125
|
$0.2632
|
1. The Class A Preferred Shares were redeemed on July 27, 2010.
2. The Class AA Series 4 Preferred Shares were issued on July 9, 2010.
BAM Split Corp. owns 53,160,644 Brookfield Shares which generate cash flow through dividend payments that fund quarterly fixed cumulative preferential dividends for the holders of the company's preferred shares, and provide the holders of the company's capital shares the opportunity to participate in any capital appreciation of Brookfield Shares. Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has over U.S.$100 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and BAM.A respectively and Euronext under the symbol BAMA.
* * * *
Derek E. Gorgi, Chief Financial Officer, will be available at (416) 359-8590 to answer any questions on the company’s financial results.
Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and regulations. The words “generate” and “enable” and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking information. Forward-looking information in this news release includes statements with regard to the generation of cumulative preferential dividends for the holders of the company’s preferred shares and potential participation by the holders of the company’s capital shares in the capital appreciation of Brookfield Shares.
Although the company believes that the anticipated future results or achievements expressed or implied by the forward-looking information and statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on the forward-looking information and statements because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking information and statements.
Factors that could cause actual results to differ materially from those contemplated or implied by the forward-looking information and statements include: financial performance of the Brookfield Shares which may result in a decline in value of the investment portfolio and/or in dividend income from the investment, the behavior of financial markets, including fluctuations in interest and exchange rates, availability of equity and debt financing and other risks and factors detailed from time to time in the company’s other documents filed with the Canadian securities regulators.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to the company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as may be required by law, the company undertakes no obligation to publicly update or revise any forward-looking information or statements, whether written or oral, that may be as a result of new information, future events or otherwise. Reference should be made to the company’s most recent Annual Information Form for a description of the major risk factors.