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Real estate industry

Dundee Corporation Reports Financial Results for Q2 2011

Strategic Insights

— 2 min read

Dundee Corporation, an independent publicly traded Canadian asset management company, has released its financial results for the second quarter of 2011. The Company's unaudited interim consolidated financial statements and management's discussion and analysis were filed on SEDAR and are available on the Company's website. During the quarter, the real estate segment generated net earnings before income taxes of $12.9 million, compared to $14.1 million in the same period of the prior year. Decreases in real estate contribution margins were offset by the Company's share of improved earnings from Dundee REIT, which increased to $6.1 million in the current quarter compared to $2.6 million in the second quarter of the prior year. Earnings from the resource segment include a full quarter of operations from oil and gas assets acquired in southern Ontario in June 2010, resulting in operating losses of $0.3 million compared to operating losses of $4.1 million in the same period of the prior year.

Key Takeaways:

  • The real estate segment generated net earnings before income taxes of $12.9 million during the second quarter of 2011, a decrease from $14.1 million in the same period of the prior year.
  • The Company's share of improved earnings from Dundee REIT increased to $6.1 million in the current quarter compared to $2.6 million in the second quarter of the prior year.
  • Earnings from the resource segment include a full quarter of operations from oil and gas assets acquired in southern Ontario in June 2010, resulting in operating losses of $0.3 million compared to operating losses of $4.1 million in the same period of the prior year.
  • The Company's asset management business continues to expand, with management fees earned on asset management activities increasing to $6.0 million in the second quarter of 2011 compared to $5.5 million earned in the same period of 2010.
  • NGIC earned management fees of $1.4 million in the second quarter of the current year, compared to $0.9 million in the same period of the prior year.
  • Dundee International REIT completed its initial public offering on August 3, 2011, issuing 27 million trust units at $10.00 per unit and $140 million 5.5% convertible unsecured subordinate debentures due July 31, 2018.

Statistics:

  • Net earnings before income taxes from the real estate segment: $12.9 million (Q2 2011), $14.1 million (Q2 2010)
  • Dundee REIT's share of improved earnings: $6.1 million (Q2 2011), $2.6 million (Q2 2010)
  • Operating losses from the resource segment: $0.3 million (Q2 2011), $4.1 million (Q2 2010)
  • Management fees earned on asset management activities: $6.0 million (Q2 2011), $5.5 million (Q2 2010)
  • NGIC management fees: $1.4 million (Q2 2011), $0.9 million (Q2 2010)
  • Dundee International REIT's initial public offering: 27 million trust units, $10.00 per unit, $140 million 5.5% convertible unsecured subordinate debentures due July 31, 2018

Sources:

  • Marketwire, Inc. via COMTEX
  • Dundee Corporation Copyright 2011 Marketwire, Inc., All rights reserved.

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