TORONTO, May 30, 2008 – BAM Split Corp. announced today that income available for distribution for the six months ended March 31, 2008, was $46.6 million, an increase from $9.7 million for the same period in the prior year. The increase in income available for distribution is the result of receiving Brookfield Infrastructure Partners limited partnership units valued at $37.1 million as a special dividend on the Brookfield Class A shares. Operating expenses increased in the quarter to $1.0 million, compared to $0.7 million in the first half of 2007, and reflects an increase in the amortization of transaction costs from the January 10, 2007 issuance of the Class AA Series III Preferred shares. The fair value of the company’s investment portfolio decreased by $476.6 million during the six months ended March 31, 2008 compared to an increase of $309.2 million in the same period in 2007, as a result of a change in the market price of the Brookfield shares.
AA Series I and Class AA Series III shareholders, compared to $7.1 million for the same period in the prior year. Dividends paid to Capital shareholders for the six months ended March 31, 2008 were $37.1 million, compared to $2.3 million paid in the six months ended March 31, 2007. The increase in dividends paid is due to the issue of additional Preferred shares during the six months ended March 31, 2007 and the distribution of the special dividend received on the Brookfield Class A shares to the Capital shareholders.
The net asset value per unit, consisting of one Preferred share and one Capital share, was $67.02 based on a Brookfield share price of $27.61 as at March 31, 2008. The net asset value per Preferred share is posted monthly on www.bamsplit.com.
STATEMENTS OF INVESTMENT OPERATIONS AND RETAINED EARNINGS
|
Six months ended March 31
|
(unaudited)
$thousands |
2008
|
2007
|
|
|
|
| Income |
|
|
Investment income
|
$10,508
|
$10,447
|
Special Dividend
|
37,087
|
-
|
|
47,595
|
10,447
|
|
|
|
| Expenses |
|
|
Operating
|
1,031
|
740
|
Income available for distribution
|
46,564 |
9,707 |
Dividends paid on Senior Preferred shares
|
(10,237) |
(7,055) |
| Income available for distribution on Capital and Class A shares |
36,327 |
2,652 |
| Change in unrealized (depreciation) appreciation of investment |
(476,646) |
309,178 |
| Results of investment operations |
(440,319) |
311,830 |
| |
|
|
| Retained earnings, beginning of period |
1,157,793 |
945,835 |
| Results of investment operations |
(440,319) |
311,830 |
| Dividends paid on Capital shares |
(37,087) |
(2,339) |
| Financial instruments transition adjustment |
- |
1,532 |
| Retained earnings, end of period |
$680,387 |
$1,256,858
|
| Dividends per Senior Preferred share – Class A |
$0.7813 |
$0.7813 |
| Dividends per Senior Preferred share |
|
|
– Class AA, Series I
|
$0.6188 |
$0.6188 |
– Class AA, Series III
|
$0.5438
|
$0.2719
|
BAM Split Corp. owns a portfolio consisting of 46,160,644 Class A Limited Voting shares of Brookfield Asset Management Inc. in order to generate quarterly fixed cumulative preferential dividends for the holders of the company's Preferred shares and to enable the holders of the company's Capital shares to participate in any capital appreciation of Brookfield Shares. Brookfield Asset Management Inc., focused on property, power and infrastructure assets, has over US$95 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on 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.
This news release contains forward-looking statements concerning the company’s business and operations. The company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the company’s actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.