Brookfield Properties Announced Impoved Results

Another REIT with improving results

Brookfield Properties Corporation (BPO) today announced that net income for the three months ended September 30, 2008 was $174 million or $0.44 per diluted share, compared to $3 million or nil per diluted share during the same period in 2007. The current period includes a $127 million net gain or $0.32 per share on the sale of a 50% interest in one property in Toronto, while the prior period included a $5 million net gain or $0.01 per share on the sale of two properties.

The current period also includes a one-time net cost of $8 million or $0.02 per share as a result of the impact of the damage caused by Hurricane Ike. The prior period also included one-time transaction costs of $35 million or $0.09 per diluted share. Funds from operations (“FFO”) was $152 million or $0.38 per diluted share for the three months ended September 30, 2008 compared with $146 million or $0.36 per diluted share during the same period in 2007.

Excluding the impact of Hurricane Ike, FFO was $160 million or $0.40 per share. Comparable commercial property net operating income for the third quarter of 2008 was $341 million, compared to $324 million during the third quarter of 2007. This excludes the impact of damage from Hurricane Ike which otherwise reduced commercial property net operating income to $328 million. Residential operations were stable and contributed $45 million of net operating income, compared with $43 million during the same period in 2007.

During the third quarter, Brookfield Properties leased 1.9 million square feet of space in its managed portfolio at an average net rent of $28.42 per square foot, which represents a 22% improvement over the average in-place net rent at the beginning of the quarter.

The company’s managed-portfolio occupancy rate finished the quarter at 96.0%.

Brookfield Properties is 50% owned by Brookfield Asset Management (BAM), called by many a "mini Berkshire Hathaway" (BRK.A).