What is the tax impact of the 2011 merger of Brookfield Residential and Brookfield Homes?

Brookfield Residential Properties Inc. ("Brookfield Residential") and Brookfield Homes Corporation ("Brookfield Homes") completed the Merger and Contribution as of March 31, 2011. The completion of the transactions resulted in the combination of Brookfield Homes and the North American residential land and housing division of Brookfield Properties Corporation into Brookfield Residential.

Each outstanding share of Brookfield Homes common stock was converted into 0.764900530 of a share of Brookfield Residential common shares, and each outstanding share of Brookfield Homes 8% convertible preferred stock was converted into one share of Brookfield Residential 8% convertible preferred shares.

Additional Information

US $9.40

March 31, 2011

Closing price of Brookfield Homes common stock (BHS) on the New York Stock Exchange

1US$ to C$ = $0.9718

1C$ to US $1.0290

March 31, 2011

The Bank of Canada noon exchange rate

C $11.20

April 1, 2011

Opening price of Brookfield Residential Porperties Inc. common stock (BRP) on the Toronto Stock Exchange.

US $12.15

April 1, 2011

Opening price of Brookfield Residential Properties Inc. common stock (BRP) on the New York Stock Exchange.