Brookfield Reports a 15% Increase in Cashflow From Operations, 54% Including Lease Termination and Other Gains.Business Editors NEW YORK--(BUSINESS WIRE)--April 23, 2001 (NYSE NYSE See: New York Stock Exchange :BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BPO.) Investors, analysts and other interested parties can access Brookfield's Supplementary Information Package and Corporate Profile, which form the basis of this release, on Brookfield's website under Investor Information/Financial Reports at www.brookfieldproperties.com. Brookfield's first quarter investor conference call can be accessed by teleconference on April 23, 2001 at 4:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT at 1-888-799-1277 or by Replay by dialing 1-800-558-5253 with reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 18452951. Alternatively, the conference call can be accessed by Webcast on the Brookfield Brookfield. 1 Village (1990 pop. 18,876), Cook co., NE Ill., a residential suburb of Chicago; inc. 1893. The noted Chicago Zoological Park (Brookfield Zoo) is there. 2 City (1990 pop. 35,184), Waukesha co., SE Wis. website at www.brookfieldproperties.com. Brookfield Properties Brookfield Properties Corporation TSX: BPO NYSE: BPO is a Toronto-based North American commercial real estate company. Brookfield Asset Management owns 50% of its outstanding common shares. Corporation (NYSE:BPO)(TSE:BPO.) today announced record operating results for the first quarter ended March 31, 2001.
---------------------------------------------------------------
For the three months
ended March 31st
(Millions, except per % 2001 2000
share information) Increase
---------------------------------------------------------------
US$ Per US$ Per
Millions Share Millions Share
-----------------------------
Results of Operations
Cashflow from operations,
prior to lease 15% $80 $0.47 $68 $0.41
termination and other gains
Lease termination and
other gains $25 $0.14 -- --
-----------------------------
Total cashflow from
operations 54% $105 $0.61 $68 $0.41
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS For the three months ended March 31, 2001, cashflow from operations, prior to lease termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. and other gains, increased 15% to $0.47 per share compared with $0.41 per share in 2000. After including lease termination and other gains of $25 million, consisting of a $24 million gain on the sale of a half interest in two Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. office properties and $1 million from lease termination income, total cashflow from operations increased 54% to $105 million, compared with $68 million in 2000. Total cashflow per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share increased to $0.61 in the first quarter of 2001, compared with $0.41 during the first quarter of 2000. The Board of Directors of Brookfield also today declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a semi-annual dividend payment of US$0.13 per share on the issued and outstanding common shares of the Corporation, to be paid June June: see month. 30, 2001 to shareholders of record at the close of business on June 1, 2001. Shareholders resident in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. will receive payment in US dollars and shareholders resident in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of will receive their dividends in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents at the exchange rate on the date of record, unless they elect otherwise. "The strength of our performance in the first quarter of 2001 reflects our focussed strategy, as well as a disciplined approach to capital management. Despite unsettled economic conditions, continued supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. for office space and recent operational and capital transactions, provide us with a solid foundation for achieving our targets in 2001," commented Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. Flatt, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Brookfield Properties Corporation. MAJOR INITIATIVES IN THE FIRST QUARTER -- Leased 2.1 million square feet - 6% of the office portfolio - which is greater than 100% of the space contractually due in all of 2001. Brookfield achieved a net rental rate uplift of $3.00 per square foot on the previously occupied space. This follows the leasing of 5.2 million square feet in 2000, bringing leasing completed in the past fifteen months to 7.5 million square feet or over 20% of the space within the company's operating office properties. As a result, occupancy in the portfolio at quarter end was 97%, with only 672,000 square feet of contractual expiries remaining to be leased in 2001. In addition, in the next three years, less than 4% of Brookfield's space is contractually due each year. -- Increased Commercial Operating Income by 13%. During the first quarter of 2001, net operating income from commercial property operations, before lease termination and other gains, increased 13% to $159 million, compared with $141 million in 2000. Internal growth from the same properties owned last year, accounted for 7% of the increase, and operating income from new properties net of dispositions, accounted for 6% of the increase. -- Expanded the financial flexibility of the company by increasing cash on hand and reducing short-term debt by approximately $400 million. This was accomplished by increasing the non-recourse financing on office properties, through the sale of properties and through retained cashflow from operations. -- Continued supply constraints are positive for the premier office property sector. Supply constraints in Brookfield's core New York, Boston and Toronto office portfolios continued to positively impact rental rates, despite an unsettled economic environment, in which companies are expected to be more cautious in their space planning. Vacancies in the downtown cores of these cities remain low with limited new supply. One notable exception to the more cautious demand was Calgary, where demand remains robust, driven by the buoyant energy sector. As a result of significant demand in the Calgary market in the first quarter, the overall vacancy rate in Class AA space in that city declined from 12% to 7%. -- Signed a 1.2 million square foot lease at Brookfield's 300 Madison Avenue development with CIBC World Markets. CIBC World Markets signed a 30-year lease, for 100% of the space in the 1.2 million square foot, 300 Madison Avenue office tower Brookfield is developing in midtown Manhattan. This technologically advanced office tower, when complete in early 2004, will enable CIBC to consolidate 3,000 of its New York-based employees into one building. The conclusion of this leasing transaction paved the way for Brookfield to forward lease close to 500,000 square feet of space occupied by CIBC at One World Financial Center to Lehman Brothers, eliminating downside vacancy risk in 2004, which would otherwise have occurred when CIBC moved to 300 Madison Avenue. This lease is in addition to the nearly 200,000 square feet Lehman Brothers leased from Brookfield in this property in early 2000. -- Re-financed the 1.7 million square foot 245 Park Avenue property in midtown Manhattan for $500 million with investment grade financing. The financing has a term of 10 years and a fixed rate coupon of 6.65%. It was underwritten by JP Morgan Chase, and placed with investors in the single asset CMBS market. This financing followed the signing in December 2000 of JP Morgan Chase and Bear Stearns to approximately 800,000 square feet of new 20-year leases in the property. -- Re-financed the 2.2 million square foot One Liberty Plaza in downtown Manhattan for $432 million with investment grade financing. The financing has a term of 10 years and a fixed rate coupon of 6.75%. It was underwritten by Goldman Sachs and placed in the single market CMBS securitization market. The financing followed the signing in mid 2000 of 750,000 square feet of new leases with Goldman Sachs and NASDAQ Stock Markets, which is relocating its world headquarters from Washington to One Liberty Plaza. -- Leased 600,000 square feet in Brookfield's Calgary office properties. The leasing momentum of 2000 excelerated into the first quarter of 2001, driven by the robust energy sector. During the first quarter, Brookfield leased 10% of its total office space in Calgary, 6% which were new occupancies, and 4% which were transactions opportunistically completed prior to contractual maturity. Significant leasing transactions included the expansion and renewal of 208,000 square feet of space by Canadian Natural Resources at Bankers Hall and a new lease for 114,000 square feet with WestCoast Energy at Fifth Avenue Place. -- Sold a 49% interest in two Boston office properties - 53 and 75 State Street - to Deutsche Grundbsesitz Management GmbH, a 100% indirectly owned subsidiary of Deutsche Bank, A.G. for total proceeds of $337 million. This transaction included $168 million in cash for the equity component and the assumption of $169 million of property level debt. -- Acquired approximately 500,000 common shares of the company during the first quarter of 2001, under the company's normal course issuer bid at an average price of $16.50 per share. -- Completed the distribution by secondary offering of 4,610,773 common shares held by a shareholder. The shares were sold to a syndicate of investment dealers for $16.92 and then placed with institutional investors. -- Acquired a 50% interest in the 1.8 million square foot Bay-Adelaide development site in the heart of Toronto's financial core. The site currently includes a 1,100 car, below grade parking garage, construction completed to grade including all foundation work, and plans and permits for at least a 1 million square foot premier office tower. In addition to the office development, the project also incorporates a significant residential component - to be built on a joint venture basis or sold to a residential developer. -- Entered into a partnership to re-develop the Hudson Bay Centre, a 1 million square foot office-retail project in Toronto. Brookfield acquired a 25% interest in the project, which includes a 35-story, 535,000 square foot office tower atop a retail complex and is connected to Canada's busiest subway intersection. -- Reported $15 million in operating cashflow in the residential development business and to date have sold over 70% of the units planned for closing in 2001. Despite a slowing in the general economy Brookfield's residential development business continued to benefit from strong demand driven by lower interest rates which have contributed to an unprecedented level of affordability for consumers. OUTLOOK "As we look to the balance of the year and beyond, we remain focused on owning, developing and managing premier office properties in select, supply constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. , high growth office markets. Through disciplined asset and capital management, we are committed to increasing our return on capital and maintaining growth in cashflow per share," concluded Bruce Flatt. Brookfield Properties Corporation, with over US$8 billion in assets, owns, develops and manages premier North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. office properties. Brookfield also operates real estate service businesses and develops residential master-planned communities. The Brookfield portfolio spans 60 commercial properties totaling 46 million square feet, including landmark A structure that has significant historical, architectural, or cultural meaning and that has been given legal protection from alteration and destruction. Although landmark preservation laws vary by city and state, they have the same basic purpose: to keep landmarks as close properties such as The World Financial Center in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. Place in Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing . Brookfield is inter-listed on the New York and Toronto Stock Exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol BPO. For more information, visit the Brookfield Properties website at www.brookfieldproperties.com. Note: This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. 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, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, local real estate conditions, timely re-leasing of occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. square footage upon expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created , interest rates, availability of equity and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
BROOKFIELD PROPERTIES CORPORATION
CONSOLIDATED BALANCE SHEET
---------------------------------------------------------------
(US $Millions) Mar. 31 Dec. 31
2001 2000
---------------------------------------------------------------
US$ US$
Assets
Commercial properties $5,975 $6,326
Development properties 692 637
Residential housing inventory 583 559
Receivables and other 965 893
Cash and cash equivalents 226 209
---------------------------------------------------------------
$8,441 $8,624
---------------------------------------------------------------
Liabilities
Commercial debt $4,908 $4,702
Advances and residential construction financing 574 951
Accounts payable 327 368
Capital base
Interests of others in properties 161 159
Preferred shares - corporate and subsidiaries 590 607
Common shares and convertible debentures 1,881 1,837
---------------------------------------------------------------
$8,441 $8,624
---------------------------------------------------------------
BROOKFIELD PROPERTIES CORPORATION
CONSOLIDATED STATEMENT OF INCOME
---------------------------------------------------------------
Three months ended
March 31
---------------------------------------------------------------
(US $Millions, except per share amounts) 2001 2000
---------------------------------------------------------------
US$ US$
Total Revenue $480 $395
---------------------------------------------------------------
Net Operating Income
Commercial office property operations
Operating Income $159 $141
Lease terminations and other gains 25 --
-----------------
184 141
Development and residential income 15 12
Interest and other 12 14
-----------------
211 167
Expenses
Interest expense 86 76
Administrative and development 12 11
Interests of others in properties 8 12
---------------------------------------------------------------
Cashflow from operations 105 68
---------------------------------------------------------------
Depreciation and amortization 18 14
Non-cash taxes and other provisions 27 18
---------------------------------------------------------------
Net income $60 $36
---------------------------------------------------------------
Cashflow per share - fully diluted $0.61 $0.41
---------------------------------------------------------------
Cashflow per share prior to lease
termination and other gains $0.47 $0.41
---------------------------------------------------------------
Net Income per share - fully diluted $0.33 $0.20
---------------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion