TORONTO, Aug. 9, 2022 /CNW/ – Bridgemarq Actual Property Companies Inc. (“Bridgemarq” or the “Firm”) (TSX: BRE) as we speak introduced its second quarter consolidated monetary outcomes and the approval of a month-to-month dividend to holders of the Firm’s restricted voting shares.
HIGHLIGHTS
- Income for the primary half of 2022 is $27.2 million in comparison with $27.1 million final 12 months. Second quarter income was $13.8 million, down barely from $14.0 million in Q2 final 12 months.
- Internet earnings for the quarter have been $11.3 million or $0.36 per share, on a fully-diluted foundation in comparison with $0.9 million or $0.10 per share within the second quarter of 2021 with non-cash valuation changes accounting for a lot of the improve.
- Distributable Money Circulation decreased to $5.9 million in comparison with $6.4 million within the second quarter of 2021.
- The Board of Administrators accredited a dividend to shareholders of $0.1125 per restricted voting share payable September 30, 2022, to shareholders of file on August 31, 2022.
SECOND QUARTER OPERATING RESULTS
Revenues throughout the second quarter have been $13.8 million, in comparison with $14.0 million in the identical interval in 2021. The lower in revenues is primarily resulting from a decline in transaction exercise within the Canadian actual property market partly offset by a rise within the variety of REALTORS® within the Firm community over the previous twelve months. Within the first half of 2022, revenues elevated to $27.2 million from $27.1 million the 12 months prior because of community progress.
The Firm generated internet earnings of $11.3 million, or $0.36 per share, on a fully-diluted foundation within the second quarter, in comparison with $0.9 million, or $0.10 per share, in Q2 2021. The rise in internet earnings was primarily resulting from a achieve on the truthful worth of Exchangeable Items of $8.1 million, in comparison with a lack of $2.5 million within the second quarter of 2021. The truthful valuation adjustment on the Exchangeable Items is immediately associated to adjustments available in the market worth of the Company’s Restricted Voting Shares.
Distributable Money Circulation for the twelve month interval ending June 30, 2022, amounted to $20.9 million, or $1.63 per share, as in comparison with $18.4 million, or $1.43 per share, generated for the twelve month interval ended June 30, 2021. The rise of $2.5 million is pushed by robust actual property markets within the final half of 2021 and the primary quarter of 2022. Distributable Money Circulation for the second quarter of 2022 amounted to $5.9 million, in comparison with $6.4 million generated throughout the second quarter of 2021, primarily resulting from decrease revenues from a decline in market exercise and better revenue tax expense.
“The hyper-focus on one’s dwelling that arose throughout the pandemic induced demand to surge to ranges that far exceeded our provide of properties on the market. In consequence, markets set new information for each dwelling costs and gross sales volumes. Exercise within the trade is now moderating with considerably fewer homes buying and selling arms. As with earlier market downturns, the Firm is well-positioned to climate the slowdown with our fixed-revenue targeted enterprise mannequin,” mentioned Phil Soper, President and Chief Govt Officer, Bridgemarq Actual Property Companies Inc. “Additional, we’re more than happy with the agent progress that now we have skilled over the previous 12 months, which has allowed us to proceed to ship wholesome income streams. Our manufacturers’ full-service choices boast best-in-class know-how, coaching and advertising, that are enticing when housing markets soften and broader help is required for fulfillment.”
MARKET UPDATE
The market softening that started on the finish of the primary quarter of 2022 continued by means of the second quarter as gross sales decreased nationally by 22% year-over-year. Dwelling costs stay considerably greater than pre-pandemic ranges, nevertheless dwelling worth positive factors created initially of the 12 months have eroded, most notably in Ontario’s golden horseshoe and a few areas of British Columbia. Weakening demand could also be attributed to potential consumers transferring to the sidelines to find out how rising rates of interest and inflation fears will have an effect on the market. On July 13, the Financial institution of Canada elevated its goal for the in a single day fee to 2.5%, citing extra demand within the economic system, excessive and broadening inflation, and extra companies and shoppers anticipating excessive inflation to persist for longer.1
There are a variety of things which proceed to help prospects for long-term market progress together with wholesome sources of demand from the present pipeline of consumers who haven’t been in a position to transact over current months resulting from restricted provide, new family formation and anticipated file ranges of immigration. In 2021, Canada welcomed greater than 400,000 immigrants, which represents probably the most immigrants to reach in Canada ever in a single 12 months. Based on a Leger survey commissioned by Royal LePage, the typical length of time earlier than newcomers buy a house is three years after arriving in Canada. This demand helps the resale market in addition to the make investments or market resulting from rental demand.
1 |
Financial institution of Canada, July 13, 2022, https://www.bankofcanada.ca/2022/07/fad-press-release-2022-07-13/ |
CASH DIVIDEND
The Firm declared a money dividend of $0.1125 per restricted voting share payable on September 30, 2022, to shareholders of file on August 31, 2022. The dividend distribution represents a goal annual dividend of $1.35 per restricted voting share, which is per 2021.
THE COMPANY NETWORK
As at June 30, 2022, the Community was comprised of 20,538 REALTORS®, working beneath 283 franchise agreements offering providers from 730 places. Throughout 2021, REALTORS® within the Firm Community participated in roughly 26% of all dwelling resales in Canada.
CONFERENCE CALL
Bridgemarq Actual Property Companies Inc. will host a convention name on Tuesday, August 9, 2022, at 10 a.m. ET to debate its second quarter monetary outcomes.
To entry the decision by phone, please dial 1-888-220-8451 or 647-484-0475 and enter affirmation quantity 7006753.
To entry the decision on-line, please go to https://app.webinar.internet/64LNRVqO75z
Please join roughly ten minutes previous to the start of the decision to make sure participation.
A recording of the convention name will probably be accessible within the Investor Centre part of the Firm’s web site by Friday, August 19, 2022.
DISTRIBUTABLE CASH FLOW AND DISTRIBUTABLE CASH FLOW PER SHARE
This information launch and accompanying monetary statements makes reference to Distributable Money Circulation and Distributable Money Circulation per Share, that are non-GAAP monetary measures and don’t have any standardized that means beneath Worldwide Monetary Reporting Requirements and, accordingly, might not be corresponding to comparable measures utilized by different firms. Distributable Money Circulation represents working revenue earlier than deducting amortization and internet impairment of intangible belongings, minus present revenue tax expense, minus money utilized in investing actions. Distributable Money Circulation per Share is calculated by dividing the Distributable Money Circulation by the entire variety of Restricted Voting Shares excellent, on a diluted foundation. Administration believes that Distributable Money Circulation and Distributable Money Circulation per Share are helpful supplemental measures of efficiency as they supply buyers with a sign of the amount of money movement generated after investing actions which is obtainable to holders of Restricted Voting Shares and Exchangeable Unitholders, topic to working capital and different funding necessities.
FORWARD-LOOKING STATEMENTS
This information launch comprises forward-looking info and different “forward-looking statements”. Phrases equivalent to, “broadening”, “proceed”, “demand”, “anticipated”, “anticipating”, “progress”, “transferring”, “new”, “persist”, “rising”, “helps”, “makes use of”, “will”, and different expressions which are predictions of or might point out future occasions and tendencies and that don’t relate to historic issues establish forward-looking statements. Reliance shouldn’t be positioned on forward-looking statements as a result of they contain recognized and unknown dangers, uncertainties and different components which will trigger the precise outcomes, efficiency or achievements of the Firm to vary materially from anticipated future outcomes, efficiency or achievement expressed or implied by such forward-looking statements. Components that might trigger precise outcomes to vary materially from these indicated within the forward-looking statements embody: the length and results of the COVID-19 pandemic, together with the affect of COVID-19 on the economic system and the Firm’s enterprise, adjustments within the provide or demand of homes on the market in Canada or in any specific area inside Canada, adjustments within the promoting worth for homes in Canada or any specific area inside Canada, adjustments within the Firm’s money movement, adjustments within the Firm’s technique with respect to and/or potential to pay dividends, adjustments within the productiveness of the Firm’s REALTORS® or the commissions they cost their prospects, adjustments in authorities coverage, legal guidelines or laws which might fairly have an effect on the housing markets in Canada or the economic system typically (together with initiatives to deal with the affect of the unfold of COVID 19), shopper response to any adjustments within the housing markets in Canada or any adjustments in authorities coverage, legal guidelines or laws, adjustments typically financial circumstances (together with rates of interest, shopper confidence and different common financial components or indicators), adjustments in world and regional financial progress, adjustments within the demand for and costs of pure assets on native and worldwide markets, the extent of residential actual property transactions, competitors from different actual property brokers or from low cost and/or Web-based actual property alternate options, the closing of present actual property brokerage places of work, different developments within the residential actual property brokerage trade or the Firm that cut back the variety of REALTORS® within the Firm’s Community or income from the Firm’s Community, our potential to keep up model fairness by means of the usage of logos, the strategies utilized by shareholders or analysts to judge the worth of the Firm and its publicly traded securities, adjustments in tax legal guidelines or laws, and different dangers detailed within the Firm’s annual info kind, which is filed with securities commissions and posted on SEDAR at www.sedar.com. Ahead-looking info relies on varied materials components or assumptions, that are based mostly on info at the moment accessible to administration. Materials components or assumptions that have been utilized in drawing conclusions or making estimates set out within the forward-looking statements embody, however will not be restricted to: anticipated financial circumstances, anticipated affect of presidency insurance policies, anticipated monetary efficiency, anticipated market circumstances, enterprise prospects, the profitable execution of the Firm’s enterprise methods and up to date regulatory developments, together with because the foregoing relate to COVID-19. The components underlying present expectations are dynamic and topic to vary. Though the forward-looking statements contained on this press launch are based mostly upon what administration believes are affordable assumptions, the Firm can not guarantee readers that precise outcomes will probably be per these forward-looking statements. The Firm undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as required by regulation.
About Bridgemarq Actual Property Companies
Bridgemarq is a number one supplier of providers to residential actual property brokers and a community of roughly 20,000 REALTORS®. We function in Canada beneath the Royal LePage, Through Capitale and Johnston & Daniel manufacturers. For extra info, go to bridgemarq.com.
Bridgemarq is an affiliate of Brookfield Enterprise Companions, a enterprise providers and industrials firm targeted on proudly owning and working high-quality companies that profit from boundaries to entry and/or low manufacturing prices. Brookfield Enterprise Companions is listed on the New York and Toronto inventory exchanges. Additional info is obtainable at bbu.brookfield.com.
Bridgemarq Actual Property Companies Inc. |
|||||
June 30, |
December 31, |
||||
Stability Sheet Highlights |
2022 |
2021 |
|||
Money |
$ 6,536 |
$ 6,217 |
|||
Different present belongings |
5,157 |
3,917 |
|||
Complete present belongings |
11,693 |
10,134 |
|||
Non-current belongings |
65,304 |
68,462 |
|||
Complete belongings |
$ 76,997 |
$ 78,596 |
|||
Accounts payable and accrued liabilities |
$ 1,701 |
$ 1,107 |
|||
Curiosity payable on Exchangeable Items |
484 |
484 |
|||
Dividends payable to shareholders |
1,067 |
1,067 |
|||
Contract switch obligation |
588 |
573 |
|||
Complete present liabilities |
3,840 |
3,231 |
|||
Debt services |
66,939 |
68,419 |
|||
Different non-current liabilities |
8,152 |
9,152 |
|||
Exchangeable Items |
44,890 |
54,274 |
|||
Complete Liabilities |
1,23,821 |
1,35,076 |
|||
Shareholders’ deficit |
(46,824) |
(56,480) |
|||
Complete Liabilities and Shareholders’ deficit |
$ 76,997 |
$ 78,596 |
|||
Three months |
Three months |
Six months |
Six months |
||
ended |
ended |
ended |
ended |
||
June 30, |
June 30, |
June 30, |
June 30, |
||
Interim Earnings Highlights |
2022 |
2021 |
2022 |
2021 |
|
Fastened franchise charges |
$ 8,258 |
$ 7,665 |
$ 16,253 |
$ 15,249 |
|
Variable franchise charges |
4,332 |
4,806 |
8,484 |
8,551 |
|
Different income |
1,206 |
1,481 |
2,485 |
3,251 |
|
Revenues |
13,796 |
13,952 |
27,222 |
27,051 |
|
Value of different income |
(288) |
(294) |
(539) |
(567) |
|
Administration bills |
(307) |
(90) |
(575) |
(142) |
|
Administration charges |
(5,276) |
(5,364) |
(10,492) |
(10,541) |
|
Curiosity expense |
(743) |
(745) |
(1,457) |
(1,485) |
|
7,182 |
7,459 |
14,159 |
14,316 |
||
Amortization of intangible belongings |
(1,817) |
(1,913) |
(3,636) |
(3,864) |
|
Curiosity on Exchangeable Items |
(1,452) |
(1,452) |
(2,904) |
(2,904) |
|
Acquire (loss) on truthful worth of Exchangeable Items |
8,119 |
(2,529) |
9,384 |
(7,887) |
|
Acquire on rate of interest swap |
651 |
380 |
1,787 |
945 |
|
Revenue tax expense |
(1,222) |
(1,008) |
(2,369) |
(2,116) |
|
Deferred revenue tax expense |
(122) |
(23) |
(363) |
(112) |
|
Internet and complete earnings (loss) |
$ 11,339 |
$ 914 |
$ 16,058 |
$ (1,622) |
|
Primary earnings (loss) per Restricted Voting Share |
$ 1.20 |
$ 0.10 |
$ 1.69 |
$ (0.17) |
|
Diluted earnings (loss) per Share |
$ 0.36 |
$ 0.10 |
$ 0.75 |
$ (0.17) |
|
Money Circulation Highlights |
|||||
Money offered by working actions: |
$ 4,887 |
$ 5,291 |
$ 8,394 |
$ 8,511 |
|
Money used for investing actions: |
(107) |
(47) |
(173) |
(157) |
|
Money used for financing actions: |
(4,701) |
(5,701) |
(7,902) |
(8,902) |
|
Change in money for the interval |
79 |
(457) |
319 |
(548) |
|
Money, starting of the interval |
6,457 |
9,065 |
6,217 |
9,156 |
|
Money, finish of the interval |
$ 6,536 |
$ 8,608 |
$ 6,536 |
$ 8,608 |
|
Distributable Money Circulation Highlights |
|||||
Distributable Money Circulation |
$ 5,853 |
$ 6,404 |
$ 11,617 |
$ 12,043 |
|
Distributable Money Circulation per Share |
$ 0.46 |
$ 0.50 |
$ 0.91 |
$ 0.94 |
|
Twelve months |
Twelve months |
||||
ended |
ended |
||||
June 30, 2022 |
June 30, 2021 |
||||
Distributable Money Circulation |
$ 20,884 |
$ 18,384 |
|||
Distributable Money Circulation per Share |
$ 1.63 |
$ 1.43 |
|||
SOURCE Bridgemarq Actual Property Companies Inc.
For additional info: Anne-Elise Cugliari Allegritti, Director of Investor Relations, Bridgemarq Actual Property Companies, [email protected], Tel: 416-510-5783