Brookfield strategy pays off with $501M 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 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. of $501 million or $2.93 per share for the year ended December 31, 2004 compared to $460 million or $2.78 per share for 2003. "Our strategy of investing in premier properties in high-growth markets and leasing on a long-term basis to high-quality tenants continues to drive consistent, growing cash flow," 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. "Our strong balance sheet and pro-active approach to asset management position us well to continue delivering solid financial results in a recovering office market." Funds from operations excluding accounting policy changes and lease termination income and gains for the year ended December 31, 2004 increased 12% to $420 million or $2.41 per share compared to $361 million or $2.15 per share for 2003. Net income excluding accounting policy changes and lease termination income and gains was $1.20 per share for the year ended December 31, 2004, up from $1.19 per share in 2003. During 2004, Brookfield undertook a number of initiatives to expand its portfolio, strengthen its balance sheet and generate additional liquidity to position the company for continued growth. The company assembled 1.6 million square feet of high-quality Washington, D.C. properties, successfully redeploying the proceeds from the sale of other property interests. The three properties include Potomac Tower, which was acquired in September 2004 for $106 million. The second property, 701 9th St., N.W., was purchased in March of 2004 for $167 million. This 10-story office building was completed in 2001 and is fully occupied by the Potomac Electric Potomac Electric corporation is a US manufacturer and repair provider of servo motors and servo drives. Potomac Electric was founded in 1992 by design and manufacturing engineers from Westamp, Baldor, EG&G Tourque Systems. Power Company. The third property, 1625 Eye St., N.W., was purchased in December 2003 with 50% vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. and has been successfully leased to 83% occupancy as of December 31, 2004. Brookfield also acquired a $27 million, seven-year, 11.2% fixed rate mezzanine mez·za·nine n. 1. A partial story between two main stories of a building. 2. The lowest balcony in a theater or the first few rows of that balcony. debt investment on the Bank of America Center There are two Bank of America Centers
During 2004, the company repurchased 1.4 million common shares of the company at an average price of $30.54 per share, bringing the total number of shares repurchased since the inception of the company's normal course issuer bid in 1999 to 12.2 million at an average price of $19.69 per share. It also issued C$350 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. through two offerings with dividend rates averaging 5.1%, further strengthening the balance sheet and reducing the company's cost of capital. During 2004, Brookfield benefited from an increase in leasing demand and a decrease in vacancy rates in most of its markets. "As we look to 2005, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the economy will continue to strengthen and businesses will continue to expand, resulting in increased demand for office space. Backed by a strong balance sheet, significant financial flexibility, premier quality assets and a long-term, low-risk lease profile, we are well-positioned to grow internally as well as through selective development and acquisition opportunities," concluded Clark. |
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