The operator of real estate brokerages Royal LePage and Via Capitale has reported a rise in net income for 2018.
Brookfield Real Estate Services Inc. (dba Bridgemarq Real Estate Services) generated net earnings of $17.4 million, or $1.30 per restricted voting share on a diluted basis ("Share"), as compared to $12.4 million, or $1.31 per Share in 2017.
The firm grew its brokerage network by 6% last year, adding more than 1,000 brokers across its brands, bringing the total to 19,220 as of January 3, 2019.
Those brokers were spread across 673 locations and operating under 291 franchise agreements. The firm’s figures show it has an approximately 20% share of the Canadian residential real estate market based on 2018 transactional volume.
"Bridgemarq's ability to grow the number of REALTORS® in our network through all market cycles shows the strength of the company's underlying business model. Our structure is well suited for an income focused investment that offers strong, stable dividends," said Phil Soper, President and Chief Executive Officer, Bridgemarq Real Estate Services.
Although cash flow from operations of $30.5 million was down compared to $32.7 million in 2017, this was mainly driven by the decrease in premium fees and higher administrative expenses due to one-time costs associated with the review and negotiation of amendments to the Management Services Agreement.
And Soper is confident that new revenue streams will add to the company’s fortunes.
"While we remain focused on driving core network growth, the newly amended management services agreement opens the door to developing new, diversified revenue streams," he said.
The Company declared a cash dividend of $0.1125 per restricted voting share payable on April 30, 2019, to shareholders of record on March 29, 2019. This represents a targeted annual dividend of $1.35 per restricted voting share.
