Brookfield reports 37% increase in FFO.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 announced strong financial results for the first quarter ended March 31, 2004. Funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. increased 37% to $0.70 per share for the three months ended March 31, 2004, over $0.51 per share during the same period in 2003. Net income increased $6 million for the three months ended March 31, 2004 to $56 million or $0.30 per share, compared to $50 million or $0.29 per share for 2003. "Our focused strategy of investing in high-barrier, high-growth markets, pro-actively leasing to solid tenants, along with disciplined asset and capital management programs, has enabled us to produce consistently strong results," said Ric Clark, 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. Major initiatives in the first quarter of 2004 have included the acquisition of Edison Place, 701 9th Street, N.W., in Washington, D.C. for $167.1 million, including the assumption of $151.6 million of long-term mortgage debt. The transaction marks Brookfield's second acquisition of a major Class A office building in Washington, D.C., following the purchase of 1625 Eye St., N.W., in December 2003. Brookfield also refinanced Republic Plaza Republic Plaza can refer to
Canada Square is a public square at Canary Wharf, on the Isle of Dogs in London's Docklands. in Calgary; repurchased 650,400 common shares of the company year-to-date at an average price of $29.59 per share; and sgreed to issue C$200 million of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. with a dividend rate of 5.0% subsequent to quarter-end. The issuance further strengthens the company's balance sheet and reduces its overall cost of capital. Brookfield's markets are beginning to improve, as evidenced by the absorption of sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. space and modestly declining vacancy rates. At quarter-end, the company had an occupancy rate of 96.7% in its core markets of 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 , Boston, Washington, D.C., Toronto and Calgary, and an occupancy rate of 93.9% across the portfolio. The company has increased current commercial property operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. by $37 million. During the first quarter of 2004, net operating income from current commercial property operations was $179 million, compared with $142 million in 2003. The increase includes the contribution from 300 Madison Avenue and 1625 Eye Street, the $16 million net leasing fee realized upon the successful completion of the sublease at 300 Madison Avenue, and an increment of $5 million of straight-line rent due to the change in accounting policy. Brookfield also leased 1.2 million square feet of space during the first quarter of 2004, approximately five times the amount contractually expiring, including a 20-year lease with Cadwalader, Wickersham & Taft for 460,000 s/f in One World Financial Center; a 15-year lease renewal with Dow Jones & Company for 151,000 s/f in One World Financial Center; and a ten-year lease renewal with Fleming, Zulack & Williamson for 44,000 s/f in One Liberty Plaza One Liberty Plaza is a skyscraper in lower Manhattan, New York, which resides at the location of the former Singer Building (in 1968, the second tallest building to be demolished). One Liberty Plaza is currently owned and operated by Brookfield Properties. . "As we look to the balance of the year, we expect our pro-active leasing strategy of reaching out to tenants in advance of maturities wherever possible will continue to strengthen our financial results. In addition, we will strive to continue enhancing value for shareholders through the implementation of our solid growth strategy which includes the acquisition of high-quality properties in stable, high-growth markets," concluded Clark. |
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