Conservative brookfield prepares to take advantage of softening market conditions.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 that net income for the three months ended March 31, 2008 was $23 million or $0.06 per 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, compared to $53 million or $0.13 per diluted share during the same period in 2007. The prior period included a net gain of $34 million or $0.08 per diluted share on the sale of three non-core properties in Toronto and Ottawa. Strong commercial property results, largely offsetting slow residential operations, resulted in 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 $126 million or $0.32 per diluted share for the three months ended March 31, 2008 compared with $129 million or $0.32 per diluted share during the same period in 2007. Commercial property net 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. for the first quarter of 2008 was $349 million, up 11.5% from $313 million during the first quarter of 2007. Residential operations contributed $18 million of net operating income, compared with $42 million in the same period in 2007. During the first quarter, Brookfield Properties leased over one million square feet of space at an average net rent of $32.71 per square foot, which represents a 42% improvement versus the average in-place net rent at the beginning of the quarter of $23.11 per square foot. The company's portfolio-wide occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) finished the quarter at 95.4%. The fundamentals of the Western Canadian residential operations remain strong despite a slow quarter as a result of higher-than-normal housing inventory levels. With oil and natural gas prices hitting new highs, Brookfield Properties expects the residential division to continue to increase its sales pace which has improved each month since the beginning of the year. "With a strong tenant base and conservative lease expiry profile, Brookfield Properties is well-positioned in the face of softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. U.S. economic conditions," stated Ric Clark, president & 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 Corp. "For 2008, we are focused on positioning ourselves to take advantage of opportunities which may arise under these economic circumstances, and to advance our development pipeline." |
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