##### 



(BROOKFIELD)
    
    NEWS RELEASE
 BROOKFIELD HOMES REPORTS STRONG GROWTH IN EARNINGS PER SHARE
 Investors, analysts and other interested parties can access Brookfield Homes Supplemental
Information Package on Brookfield Homes website under the Investor Relations/Financial Reports
section at www.brookfieldhomes.com. Brookfield Homes year end investor conference call can be
accessed by teleconference on February 2, 2006 at 11:00 am (Eastern Time) at 1-877-667-7774, toll
free in North America. The archived teleconference may be accessed by dialing 1-888-509-0081, toll
free in North America through February 15, 2006. Alternatively, the conference call can be accessed
by Webcast on Brookfield Homes website at www.brookfieldhomes.com.
 Del Mar, California, February 1, 2006
 
    
    Net income totaled $219 million, an increase of $73 million from the same period in 2004. The 2005 results included $39
million generated from bulk land sales, and an increase in housing margins to 30% from 22% in 2004. Earnings per share
totaled $7.04, compared to $4.64 in 2004.
    
    Housing revenue totaled $1,074 million, compared to $1,169 million in 2004. The decrease in housing revenue is
primarily due to 216 fewer units closed during the year compared to 2004, partially offset by an increase in the
average selling price of the companys homes to $679,000 from $650,000 in 2004.
    
    Cash flow from operating activities was $60 million in 2005, and over the past two years the company generated a total
of $224 million of operating cash flow.
    
    Fourth Quarter and Year Ended 2005 Financial and Operating Highlights
 Results of Operations
    
    Three Months Ended Dec. 31
    
    
    Years Ended Dec. 31(Millions, except per share amounts)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Housing revenue
    
    $
    440
    
    
    $
    510
    
    
    $
    1,074
    
    
    $
    1,169Total revenue
    
    
    559
    
    
    
    547
    
    
    
    1,231
    
    
    
    1,232Gross margin
    
    
    211
    
    
    
    138
    
    
    
    416
    
    
    
    287Contribution from bulk land sales to net income
    
    
    34
    
    
    
    9
    
    
    
    39
    
    
    
    9Net income
    
    
    130
    
    
    
    89
    
    
    
    219
    
    
    
    146Earnings per share  diluted Excluding bulk land sales
    
    $
    3.20
    
    
    $
    2.55
    
    
    $
    5.77
    
    
    $
    4.36 Bulk land sales
    
    
    1.16
    
    
    
    0.28
    
    
    
    1.27
    
    
    
    0.28$
    4.36
    
    
    $
    2.83
    
    
    $
    7.04
    
    
    $
    4.64




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2 Recent Developments and Operating Highlights
 
    
    2005 Home and Lot Closings:In 2005, Brookfield Homes closed 1,582 homes and 1,242 lots for a total of 2,824 home and lot
closings. This compares to a total of 2,198 home and lot closings in 2004. Brookfield Homes backlog as of the end of January 2006
was approximately 35% of the estimated 1,625 home closings for this year. The company has also targeted to close approximately 1,500
bulk lot sales during 2006.
    
    Lots Owned and Controlled:The companys lots owned or controlled at December 31, 2005 total 29,512,
an increase of 6% from inventory levels at the end of 2004. Direct ownership of 12,333 lots provides
strong visibility on Brookfield Homes future cash flows, and the 17,179 lots under option are
controlled with the objective of adding value through land entitlements.
    
    A summary of lots, owned or controlled under option, by region, follows:
 San Francisco
    
    
    Southland /
    
    
    San Diego /
    
    
    
    
    
    
    Washington D.C.Bay Area
    
    
    Los Angeles
    
    
    Riverside
    
    
    Sacramento
    
    
    Area
    
    
    TotalGeographic diversification of lots
    
    
    16
    %
    
    
    10
    %
    
    
    28
    %
    
    
    17
    %
    
    
    29
    %
    
    
    100
    %2005 home closings (units)
    
    
    192
    
    
    
    223
    
    
    
    611
    
    
    
    
    
    
    
    556
    
    
    
    1,5822005 lot closings (units)
    
    
    
    
    
    
    41
    
    
    
    750
    
    
    
    
    
    
    
    451
    
    
    
    1,242Lot supplyOwned
    
    
    1,082
    
    
    
    1,279
    
    
    
    5,949
    
    
    
    310
    
    
    
    3,713
    
    
    
    12,333Optioned
    
    
    3,551
    
    
    
    1,616
    
    
    
    2,300
    
    
    
    4,810
    
    
    
    4,902
    
    
    
    17,179Total
    
    
    4,633
    
    
    
    2,895
    
    
    
    8,249
    
    
    
    5,120
    
    
    
    8,615
    
    
    
    29,512
 
    
    Increased Regular Dividend:On February 1, 2006, the board of
directors approved an increase in its semi-annual dividend to
$0.20 per share. The increased dividend is payable on June
30, 2006 to shareholders of record on June 15, 2006.
    
    Tender Offer and Share Buyback Program:The company
purchased, at a price of $55.00 per share, 10% or 3,000,000
shares of its outstanding common stock through a tender offer
which expired in the fourth quarter of 2005. In addition,
under the share buyback program, Brookfield Homes purchased a
further 707,500 shares or $34 million of its common stock at
an average price of $47.84 during 2005.
    
    2006 Earnings Guidance The company expects earnings per share to grow to between $7.60
and $8.20 in 2006, from $7.04 in 2005, an increase of up to 16%. Contributing factors to the
positive earnings guidance are: the sale to other homebuilders of lots originally held through
options, and then processed through the entitlement and/or development phases; and strong
operating margins as a result of building homes on land the company entitled and developed.
 Outlook




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3 Brookfield Homes Corporation
 Brookfield Homes Corporation is a residential homebuilder and land developer, building homes and
developing land in master-planned communities and infill locations. We design, construct and market
single-family and multi-family homes primarily to move-up and luxury homebuyers. We also entitle
and develop land for our own communities and sell lots to other homebuilders. Our portfolio
includes 30,000 lots owned and controlled in the San Francisco Bay Area; Southland / Los Angeles;
San Diego / Riverside; Sacramento; and Washington D.C. Area markets. For more information, visit
the Brookfield Homes website at www.brookfieldhomes.com.
 Contact Information:
 Linda Northwood
  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, expected
home closings and deliveries (and the timing thereof), expected 2006 earnings guidance, possible
bulk land sales and net income derived therefrom, the companys future outlook and growth plans,
and those statements preceded by, followed by, or that include the words believe, planned,
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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4 Brookfield Homes Corporation
Condensed Balance Sheets
 As at December 31(thousands)
    
    2005
    
    
    2004
    
    
    2003AssetsHousing and land inventory
    
    $
    912,617
    
    
    $
    679,930
    
    
    $
    567,302Investments in housing and land joint ventures
    
    
    53,260
    
    
    
    59,810
    
    
    
    78,198Consolidated land inventory not owned
    
    
    22,100
    
    
    
    47,240
    
    
    
    25,542Receivables and other assets
    
    
    94,081
    
    
    
    73,986
    
    
    
    80,346Cash and cash equivalents
    
    
    198,411
    
    
    
    186,731
    
    
    
    218,606Deferred income taxes
    
    
    49,417
    
    
    
    33,924
    
    
    
    43,446$
    1,329,886
    
    
    $
    1,081,621
    
    
    $
    1,013,440Liabilities and Stockholders EquityProject specific and other financings
    
    $
    691,410
    
    
    $
    512,098
    
    
    $
    426,311Accounts payable and other liabilities
    
    
    320,787
    
    
    
    256,985
    
    
    
    145,090Minority interest
    
    
    53,040
    
    
    
    66,422
    
    
    
    59,781Stockholders equity
    
    
    264,649
    
    
    
    246,116
    
    
    
    382,258$
    1,329,886
    
    
    $
    1,081,621
    
    
    $
    1,013,440




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##### 



5 Brookfield Homes Corporation
Consolidated Statements of Income
 Three Months Ended
    
    
    Years EndedDecember 31
    
    
    December 31(thousands, except per share amounts)
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004RevenueHousing
    
    $
    440,589
    
    
    $
    510,560
    
    
    $
    1,074,155
    
    
    $
    1,169,073Land and other revenues
    
    
    118,169
    
    
    
    36,486
    
    
    
    156,897
    
    
    
    62,677Total revenue
    
    
    558,758
    
    
    
    547,046
    
    
    
    1,231,052
    
    
    
    1,231,750Direct cost of sales
    
    
    (348,569
    )
    
    
    (408,783
    )
    
    
    (815,423
    )
    
    
    (945,387
    )210,189
    
    
    
    138,263
    
    
    
    415,629
    
    
    
    286,363Equity in earnings from housing and land joint ventures
    
    
    39,835
    
    
    
    53,037
    
    
    
    65,084
    
    
    
    61,394Selling, general and administrative expense
    
    
    (19,799
    )
    
    
    (28,460
    )
    
    
    (89,693
    )
    
    
    (79,904
    )Minority interest
    
    
    (20,621
    )
    
    
    (15,160
    )
    
    
    (36,498
    )
    
    
    (28,140
    )Net income before taxes
    
    
    209,604
    
    
    
    147,680
    
    
    
    354,522
    
    
    
    239,713Income tax expense
    
    
    (79,985
    )
    
    
    (58,324
    )
    
    
    (135,782
    )
    
    
    (93,297
    )Net income
    
    $
    129,619
    
    
    $
    89,356
    
    
    $
    218,740
    
    
    $
    146,416Weighted average shares outstandingBasic
    
    
    29,208
    
    
    
    30,891
    
    
    
    30,497
    
    
    
    30,903Diluted
    
    
    29,743
    
    
    
    31,563
    
    
    
    31,071
    
    
    
    31,547Earnings per shareBasic
    
    $
    4.44
    
    
    $
    2.89
    
    
    $
    7.17
    
    
    $
    4.74Diluted
    
    $
    4.36
    
    
    $
    2.83
    
    
    $
    7.04
    
    
    $
    4.64