Dundee Corporation Reports 2009 Results
March 29 2010 - 9:01AM
Marketwired
Dundee Corporation (TSX: DC.A)(TSX: DC.PR.A)(TSX: DC.PR.B)
("Dundee" or the "Company") is pleased to announce that it has
posted its financial results and Management's Discussion and
Analysis for the year ended December 31, 2009 on its website
www.dundeecorporation.com and the System for Electronic Document
Analysis and Retrieval ("SEDAR").
Our operating EBITDA in 2009 was $250.4 million, surpassing
operating EBITDA of $235.6 million earned in 2008. Net earnings per
share in 2009 were $0.77 on a fully diluted basis, as compared to a
net loss of $2.62 per share in 2008. Net earnings in the prior year
were adversely impacted by fair value adjustments to the carrying
value of certain corporate investments.
Our business is undergoing a significant change through our
investment in wealth management, real estate and resources. We have
now expanded our focus in order to access a broader range of
investment partners, thereby increasing our access to capital and
to non-retail and institutional clients. Our newly defined mandate
as an asset management business, with expertise in these same core
industries, will be centered through Ned Goodman Investment Counsel
Limited ("NGIC") (formerly Ravensden Asset Management Inc.) and
through Dundee Real Estate Asset Management ("DREAM"). At December
31, 2009, NGIC provided sub-advisory and investment services to
approximately $3.1 billion of assets under management, with DREAM
providing similar services to $3.3 billion of real estate assets.
Our expansion initiatives also include the establishment of
Arabia-Asia Capital Alliance Ltd., our 60% owned subsidiary
incorporated in the Emirate of Dubai, as a registrant in the
Emirate of Dubai to access capital for our current and future
investment products in the Middle East.
NGIC is in the final stages of its plan to raise up to $1
billion for private equity investment in the resource sector
through Dundee Global Resource L.P. We have initiated steps in our
resources segment to eliminate any potential future conflicts as we
prepare for the launch of, and our role as advisors to, Dundee
Global Resource L.P., to which we have committed to provide a $200
million drawdown subscription.
Assets under management and administration in our wealth
management subsidiary, DundeeWealth Inc. were $68.8 billion. In
particular, assets under management ended the year at $36.1
billion, a 42% growth year-over-year and an all time high for
DundeeWealth. The considerable growth in AUM is a result of
industry-leading net asset gathering of $2.6 billion, combined with
market appreciation of $7.5 billion. Our mutual fund market share
increased to 3.76% from 3.03% at the end of 2008 as reported by the
Investment Funds Institute of Canada.
DundeeWealth earned EBITDA of $184.7 million and net earnings of
$51.6 million in 2009. DundeeWealth's results include performance
fee revenues earned during 2009 of $21.7 million, net of third
party allocations and costs. Having repaid all bank debt subsequent
to completion of its $200 million debt issuance, DundeeWealth
enters 2010 with $400 million in cash, cash equivalents and
marketable securities.
The results from our real estate subsidiary, Dundee Realty
Corporation continue to exceed the expectations and budgets
developed at the end of the prior year. Propelled by strong buyer
demand, housing and condominium activities outperformed levels
originally anticipated and land sales in western Canada continue to
show substantial growth. Contributions to earnings generated by our
real estate subsidiary exceeded $60 million in 2009. Dundee Realty
continues to prudently manage its capital, paying down its
operating line debt from its peak of $103.9 million to $75.4
million, along with a further $77.9 million reduction in other debt
at December 31, 2009.
With the successful issuance of $130 million of 6.75% rate reset
preferred shares in the third quarter of 2009, we have fully repaid
amounts owing pursuant to our revolving term credit facility. We
have also renewed our revolving term credit facility, extending the
maturity date to November 9, 2010 and increasing the amount
available to $200 million.
Dundee Corporation is an independent Canadian asset management
company with an established reputation and relationships in those
core sectors of wealth management, real estate and resources that
can provide future inflation protection. We are well positioned to
capitalize on our expertise and achieve success in our asset
gathering activities, thereby creating long term value for our
shareholders.
ABOUT DUNDEE CORPORATION
Dundee Corporation is an asset management company dedicated to
private wealth management, real estate and resources that,
combined, reflect approximately $73 billion under management and
administration. Its domestic wealth management activities are
carried out through its 62% controlled subsidiary, DundeeWealth
Inc. Dundee Corporation's real estate activities are conducted
through its 70% owned subsidiary, Dundee Realty Corporation, which
operates as an asset manager of commercial real estate with
activities in a land and housing business in Canada and the United
States. Resource activities are carried out through its
wholly-owned subsidiary, Dundee Resources Limited. Asset management
activities are carried out through Ned Goodman Investment Counsel
Limited and Dundee Real Estate Asset Management.
Contacts: Dundee Corporation Ned Goodman President and Chief
Executive Officer (416) 365-5665 Dundee Corporation Lucie Presot
Vice President and Chief Financial Officer (416) 365-5157
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