Brookfield Homes (BHS) 8-K Brookfield Homes Reports 2010 Second Quarter Results

Exhibit 99.1

NEWS RELEASE

BROOKFIELD HOMES REPORTS 2010 SECOND QUARTER RESULTS

Investors, analysts and other interested parties can access Brookfield Homes Corporation’s Supplemental Information Package on the company’s website under the Investor Relations/Financial Reports section at www.brookfieldhomes.com. Brookfield Homes Corporation’s second quarter investor conference call can be accessed by teleconference on Friday, July 30, 2010 at 12:00 noon (Eastern Time) at 1-800-319-4610, toll free in North America or 1-604-638-5340. The archived teleconference may be accessed by dialing 1-800-319-6413 (Pincode: 2818), toll free in North America through August 30, 2010. Alternatively, the conference call can be accessed by Webcast on the company’s website at www.brookfieldhomes.com.

Fairfax, Virginia, July 29, 2010— (BHS: NYSE) Brookfield Homes Corporation (“Brookfield Homes”) today announced net new orders and financial results for the quarter ended June 30, 2010:

	Three Months Ended June 30				Six Months Ended June 30
Unit Activity	2010		2009		2010		2009
Home closings		210		169		291		243
Net new home orders		127		266		285		419
Active selling communities (end of period)		22		30		22		30
Backlog of homes (units at end of period)		181		310		181		310
Average home selling price	$	449,000	$	486,000	$	472,000	$	485,000
Lot sales to homebuilders		17		22		88		179

* Unit information includes unconsolidated entities

• Home closings increased by 24%, during the three months ended June 30, 2010 in comparison to the same period in 2009. The overall average selling price decreased by 8% due to product mix, particularly the significant decrease in the number of higher priced homes closed in Northern California. However, the average selling price of homes delivered increased in each region.

• Net new orders for the six months ended June 30, 2010 decreased by 134 units, down 32% when compared to the six months ended June 30, 2009. This percentage decline is in line with the 27% decline in active selling communities as at June 30, 2010 compared to June 30, 2009.

Results of Operations	Three Months Ended June 30						Six Months Ended June 30
(Millions, except per share amounts)	2010			2009			2010			2009
Housing revenue	$	94		$	82		$	136		$	117
Total revenue		95			95			141			132
Impairments and write-offs		—			4			—			20
Gross margin		17			5			24			5
Net income/(loss) attributable to Brookfield Homes Corporation		3			—			—			(10	)
Loss per share — diluted*	$	(0.08	)	$	(0.12	)	$	(0.35	)	$	(0.51	)

* Diluted loss per share is after preferred dividends

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• Housing revenue for the three months ended June 30, 2010 totaled $94 million, an increase of 15% when compared to the three months ended June 30, 2009. For the six months ended June 30, 2010, housing revenue increased 16% when compared to the six months ended June 30, 2009.

• The company did not record any impairments during the three months ended June 30, 2010, compared to $4 million for the same period in 2009.

• Net income attributable to Brookfield Homes for the three months ended June 30, 2010 was $3 million or a loss of $0.08 per share, compared to nil or a loss of $0.12 per share for the three months ended June 30, 2009.

Operating Highlights and Recent Developments

• For the three months ended June 30, 2010, the company continued with its goal to entitle a total of 1,500 lots in 2009 and 2010 having entitled 1,061 lots in 2009 and 376 lots during the first half of 2010.

• Brookfield Homes currently sells from 22 active communities compared to 30 at June 30, 2009.

• At June 30, 2010, the company owned or controlled 26,169 lots, an increase of 1,924 lots from December 31, 2009.

• A summary of lots owned or controlled under option, by region, follows:

	Housing & Land				Unconsolidated Entities				Total Lots		Total Lots
(Lots)	Owned*		Options		Owned		Options		6/30/2010		12/31/2009
Northern California		3,233		5,044		—		—		8,277		6,951
Southland/Los Angeles		962		320		404		1,987		3,673		3,262
San Diego/Riverside		8,696		200		52		—		8,948		8,853
Washington D.C. Area		2,752		1,066		1,199		—		5,017		4,916
Corporate and Other		196		—		58		—		254		263
Total June 30, 2010		15,839		6,630		1,713		1,987		26,169
Entitled Lots June 30, 2010		11,289		1,266		1,659		623		14,837
Unentitled Lots June 30, 2010		4,550		5,364		54		1,364		11,332
		15,839		6,630		1,713		1,987		26,169
Total December 31, 2009		14,233		6,279		1,746		1,987				24,245

*	Includes consolidated options
**	For financial and other related lot information, please refer to the Supplemental Information for the Six Months Ended June 30, 2010, posted on www.brookfieldhomes.com/financial_reports_presentations.html

Outlook

Brookfield Homes was encouraged by the improvement in first quarter sales and closings. However, since then, selling communities have seen a drop in the number of visits from potential homebuyers, which we believe is a result of expired government stimulus programs, together with continued uncertain economic conditions, which have negatively impacted homebuyer confidence.

On the other hand, the company’s strong financial position and the decreasing supply of finished lots in our markets, places Brookfield Homes in a solid position as the markets improve.

The company’s goals for 2010 remain:

• Continue to monetize the company’s inventory, targeting $90 million of net cash from operating activities. Net cash flow from operating activities for the six months ended June 30, 2010 was $42 million.

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• Increase lots controlled in certain strategic market areas. During the six months ended June 30, 2010, the company increased the lots controlled by 1,924 lots, principally in Northern California and the Southland/Los Angeles area.

• Continue to improve overall gross margins as capital is invested in new homebuilding communities. Housing gross margins for the six months ended June 30, 2010 were 17% compared to 9% for the six months ended June 30, 2009.

• Continue to meet the challenges presented in the market and position Brookfield Homes to return to profitability. For the three months ended June 20, 2010, net income was $3 million.

* * * * * * * * * * * * *

Brookfield Homes Corporation

Brookfield Homes Corporation is a land developer and homebuilder. We entitle and develop land for our own communities and sell lots to third parties. We also design, construct and market single-family and multi-family homes primarily to move-up homebuyers. Our portfolio includes over 26,000 lots owned and controlled in the Northern California; Southland / Los Angeles; San Diego / Riverside; and Washington D.C. Area markets.

Contact Information:
Linda Northwood
Director, Investor Relations
Tel: 858-481-2567
Email: lnorthwood@brookfieldhomes.com

* * * * * * * * * * * * *

Note: Certain statements in this press release that are not historical facts, including information concerning possible or assumed future results of operations of the company, the company’s 2010 outlook, the company’s 2010 goals, value creation, targeted 2010 operating cash flow, the entitlement and monetization of lots (and the timing thereof), the company’s future outlook and growth plans including acquisitions and lots controlled, and those statements preceded by, followed by, or that include the words “believe”, “planned”, “anticipate”, “should”, “goals”, “expected”, “potential,” “estimate,” “targeted,” “scheduled” or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Undue reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from the anticipated future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward-looking statements include, but are not limited to: changes in general economic, real estate and other conditions; mortgage rate changes; availability of suitable undeveloped land at acceptable prices; adverse legislation or regulation; ability to obtain necessary permits and approvals for the development of our land; availability of labor or materials or increases in their costs; ability to develop and market our master-planned communities successfully; confidence levels of consumers; ability to raise capital on favorable terms; adverse weather conditions and natural disasters; relations with the residents of our communities; risks associated with increased insurance costs or unavailability of adequate coverage and ability to obtain surety bonds; competitive conditions in the homebuilding industry, including product and pricing pressures; and additional risks and uncertainties referred to in our Form 10-K and other SEC filings, many of which are beyond our control. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

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Brookfield Homes Corporation
Consolidated Statements of Operations

	Three Months Ended						Six Months Ended
	June 30						June 30
(thousands, except per share amounts) (unaudited)	2010			2009			2010			2009
Revenue
Housing	$	94,231		$	82,051		$	135,996		$	117,412
Land		1,680			13,050			5,346			14,868
Total revenue		95,911			95,101			141,342			132,280
Direct cost of sales
Housing		(77,204	)		(75,250	)		(113,023	)		(106,890	)
Land		(1,267	)		(10,570	)		(4,154	)		(12,222	)
Impairment of housing and land inventory and write-off of option deposits		—			(4,258	)		—			(8,158	)
		17,440			5,023			24,165			5,010
Selling, general and administrative expense		(13,632	)		(13,545	)		(26,133	)		(25,274	)
(Loss) / equity in earnings from unconsolidated entities		(743	)		(231	)		(57	)		2,128
Impairment of investments in unconsolidated entities		—			—			—			(11,618	)
Other income		1,787			8,505			1,568			10,950
Income / (loss) before income taxes		4,852			(248	)		(457	)		(18,804	)
Income tax (expense) / recovery		(1,795	)		(115	)		(77	)		6,204
Net income / (loss)	$	3,057		$	(363	)	$	(534	)	$	(12,600	)
Less net (income) / loss attributable to noncontrolling interest & other interests in consolidated subsidiaries		(130	)		550			658			2,478
Net income / (loss) attributable to Brookfield Homes Corporation	$	2,927		$	187		$	124		$	(10,122	)
Loss per share
Basic and diluted	$	(0.08	)	$	(0.12	)	$	(0.35	)	$	(0.51	)
Weighted average common shares outstanding
Basic and diluted		28,621			26,769			28,513			26,769

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Brookfield Homes Corporation
Condensed Consolidated Balance Sheets

	As at
	June 30,			December 31,
(thousands, except per share amounts) (unaudited)	2010			2009
Assets
Housing and land inventory	$	845,087		$	835,263
Investments in unconsolidated entities		101,758			92,477
Receivables and other assets		18,578			61,744
Restricted cash		7,485			7,485
Deferred income taxes		37,232			40,112
	$	1,010,140		$	1,037,081
Liabilities and Equity
Project specific and other financings	$	353,282		$	381,567
Accounts payable and other liabilities		128,165			122,190
Total liabilities		481,447			503,757
Other interests in consolidated subsidiaries		42,638			47,011
Total equity		486,055			486,313
	$	1,010,140		$	1,037,081
Debt to equity capitalization		40	%		42	%
Book value per share, as converted and diluted	$	7.44		$	7.58

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Brookfield Homes Corporation
Consolidated Statements of Cash Flow

	Three Months Ended						Six Months Ended
	June 30						June 30
(thousands) (unaudited)	2010			2009			2010			2009
Cash flows from / (used in) operating activities
Net income / (loss)	$	3,057		$	(363	)	$	(534	)	$	(12,600	)
Adjustments to reconcile net income / (loss) to net cash from operating activities:
Distributed / (undistributed) income from unconsolidated entities		745			129			52			(2,221	)
Deferred income taxes		1,795			(77	)		2,800			(6,396	)
Impairment of housing and land inventory and write-off of option deposits		—			4,258			—			8,158
Impairment of investments in unconsolidated entities		—			—			—			11,618
Stock option compensation costs		315			201			428			392
Other charges in operating assets and liabilities:
Decrease in receivables and other assets		8,031			505			43,166			63,298
(Increase) / decrease in housing and land inventory		(3,225	)		11,431			(11,763	)		32
Increase / (decrease) in accounts payable and other liabilities		10,408			(99	)		8,301			(21,620	)
Net cash provided by operating activities		21,126			15,985			42,530			40,661
Cash flows from / (used in) investing activities
Net investments in unconsolidated entities		(8,441	)		(236	)		(12,574	)		(1,155	)
Net cash used in investing activities		(8,441	)		(236	)		(12,574	)		(1,155	)
Cash flows (used in) / from financing activities
Net repayments under project specific and other financings		(12,164	)		(261,876	)		(28,285	)		(285,908	)
Net contributions from noncontrolling interest and other interests in consolidated subsidiaries		(563	)		403			(1,764	)		678
Preferred stock issuance, net of issuance costs		—			249,688			—			249,688
Preferred stock dividends paid in cash		—			(3,500	)		—			(3,500	)
Exercise of stock options		42			—			93			—
Net cash used in financing activities		(12,685	)		(15,285	)		(29,956	)		(39,042	)
Increase in cash and cash equivalents		—			464			—			464
Cash and cash equivalents at beginning of period		—			—			—			—
Cash and cash equivalents at end of period	$	—		$	464		$	—		$	464
Supplemental cash flow information
Interest paid	$	7,438		$	8,995		$	15,740		$	18,984
Income taxes recovered		3,320			1,883			42,766			60,700