Calgary, Alberta, August 3, 2011 – (BRP: NYSE/TSX) Brookfield Residential Properties Inc. (“Brookfield Residential”) today announced financial results for the quarter ended June 30, 2011:

For the six months ended June 30, 2011, the financial results reflected continued strength in the Canadian markets while challenges remained in the U.S. markets. Land revenues for the six months ended June 30, 2011 increased 56% due to an increase in average lot selling prices and the non-recurring land margins from the change in business practice for lot sales in Alberta. Home closings and housing revenue for the six months ended June 30, 2011 declined by approximately 34% in comparison to the same period last year. The decline in home closings is largely a result of the reduced backlog entering 2011 and the slow U.S. spring selling season.

Operating and Financial Highlights

For the six months ended June 30, 2011, revenue totaled $416 million compared to $415 million for the same period in 2010. For the three months ended June 30, 2011, revenue totaled $236 million, compared to $273 million for the same period of 2010. Fewer home closings resulted in the decrease in revenue during the second quarter of 2011, partially offset by an increase in lot sales.

Included in net income for the six months on an after-tax basis is approximately $30 million and for the three months approximately $11 million, reflecting the change in business practice on lots sales in Alberta, which was offset by a decrease in revenue from home closings.  Title transfers in Alberta are now recorded at the time of sale of a lot, and not on the ultimate sale to a homebuyer. An after-tax non-recurring land margin of approximately $38 million is forecast for the 2011 fiscal year.

Brookfield Residential’s net income for the three months ended June 30, 2011 totaled $19 million or $0.19 per share, compared to net income of $39 million or $0.34 per share for the three months ended June 30, 2010. The decrease is primarily a result of lower gross margin for the quarter and the increase in interest expense with the addition of the notes that were issued in connection with the merger and contribution transaction payable to Brookfield Office Properties.

Net loss for the six months ended June 30, 2011 was $38 million or $0.37 per share, compared to net income of $57 million or $0.46 per share for the six months ended June 30, 2010, primarily reflecting increased interest expense of $14 million, and the income tax valuation allowance of $76 million.

Recent Developments and Outlook

During the quarter, Brookfield Office Properties Inc.’s rights offering closed, which enabled holders of the rights to purchase its shares of Brookfield Residential at a price of US$10 per share. Shareholders other than Brookfield Asset Management Inc. purchased 18,174,728 shares of Brookfield Residential in the rights offering, for total consideration of approximately US$182 million. At June 30, 2011, Brookfield Asset Management Inc. owned 72.5 million shares of Brookfield Residential, or approximately 71%.

“We completed our first quarter operating under the Brookfield Residential Properties’ brand. While the U.S. housing market remains challenging, we continue to perform well in our Canadian operations and are optimistic about our performance for the remainder of 2011,” commented Alan Norris, CEO of Brookfield Residential. “In light of current market conditions, we believe the successful completion of the rights offering and the take-up of $182 million of our shares by shareholders other than Brookfield Asset Management, to be very positive. Our goal is to continue to strengthen our balance sheet, add value to our lot inventory through entitling or advancing entitlements, and increase the lots controlled in certain strategic market areas.”

Additional Information

Brookfield Residential comprises the assets formerly owned by Brookfield Office Properties’ residential land and housing division and Brookfield Homes Corporation. As these entities were deemed to be under common control, the 2010 comparative information has been presented based on the combined financial results of these entities. Brookfield Residential currently sells from 23 active land communities and 35 active housing communities. A summary by region of lots owned or controlled has been included in the Supplemental Information.

The Letter to Shareholders and the company’s Supplemental Information for the quarter ended June 30, 2011 contain further information on the company’s strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company’s website at www.brookfieldrp.com.

The attached financial statements are based primarily on information that has been extracted from our interim financial statements for the three and six months ended June 30, 2011, which have been prepared using the standards and interpretations currently issued under U.S. Generally Accepted Accounting Principles. The amounts have not been audited or subject to review by our external auditor.

Brookfield Residential Properties Inc. is a North American land developer and homebuilder, active in ten principal markets with over 100,000 lots controlled. We entitle and develop land and build homes for our own communities, as well as sell lots to third-party builders.  The company is listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol BRP. For more information, please visit our website at www.brookfieldrp.com.

Please note that Brookfield Residential’s unaudited quarterly report will be filed on EDGAR and SEDAR and can also be found in the investor section of our website at www.brookfieldrp.com. Hard copies of the quarterly report can be obtained free of charge upon request. 

For more information, please visit our website at www.brookfieldrp.com or contact: