Record-breaking Brookfield posts $164m net income.

Brookfield Properties Corporation announced net income of $164 million or $0.69 per diluted share and funds from operations of $435 million or $1.85 per diluted share for the year ended December 31, 2005.

After leasing 3.8 million square feet during 2005, approximately three times the amount contractually expiring, Brookfield Properties' portfolio-wide occupancy rate finished the year at 94.6%, a 190 basis point improvement from the end of 2004.

In Brookfield Properties' primary markets of New York, Boston, Washington, D.C., Toronto, Calgary and Ottawa, the occupancy rate at the end of 2005 improved to 95.6%, up from 94.0% at the end of 2004.

"With another solid year behind us, we remain excited about the future," stated Ric Clark, President & CEO of Brookfield Properties Corporation.

"Brookfield Properties will continue to be a very active participant in the next exciting phase of the real estate cycle. Our strong balance sheet, a proven acquisitions strategy and eight million square feet of development capacity put us in a strong position for future growth, particularly against a backdrop of improving market fundamentals." Residential development operations contributed $106 million of net operating income in 2005, a significant increase over the $42 million contributed in 2004.

This operation's best year ever was fueled primarily by a very vibrant Alberta economy buoyed by high energy prices and low interest rates which have driven strong housing demand.

The company expects that these operations will continue to benefit from a large inventory of relatively low-cost land with approximately 37,000 lots held for development and 4,000 lots under development in Alberta, Ontario, Colorado and Texas.

During the fourth quarter of 2005 Brookfield completed one of the biggest real estate deals in Canadian history when it acquired O&Y Properties and O&Y REIT, adding approximately 11.6 million square feet to its office portfolio.

Brookfield also received a $30 million fee from Goldman Sachs in accordance with an agreement signed in December 2005 related to certain rights that Brookfield Properties has at Site 26 in Battery Park City, where Goldman Sachs has commenced construction of a 2.1 million square foot headquarters building expected to b.e fully occupied in 2009.