Brookfield Properties Corp. reported Thursday a 2 percent increase in funds from operations in the fourth quarter on higher average rents and a tax benefit, and offered guidance for 2009 that was slightly above current Wall Street estimates.
The real estate investment trust reported that fourth quarter funds from operations were $190 million, 49 cents per share, after preferred dividends were paid compared to $187 million, or 47 cents per share, in the same period a year ago.
Analysts polled by Thomson Reuters expected funds from operations, or FFO, to be 37 cents per share.
Brookfield said net income for the quarter was $458 million, or $1.16 per share, compared to $105 million or 27 cents per share during the same period in 2007. Included in the results for net income was a gain of $339 million from a revaluation of future tax liability.
For all of 2008, FFO available to common shareholders was $623 million, or $1.59 per share, compared to $626 million, or $1.57 per share, in 2007.
Net income for the year was $700 million, or $1.77 per share, compared to $240 million, or 59 cents per share, the previous year.
Brookfield said it leased 6.4 million square feet of space in 2008, at an average net rent of $25.44 per square foot _ up 43 percent from the average expiring net rent of $17.80 per square foot.
Also Friday, Brookfield said its 2009 FFO _ prior to lease termination income, special fees and gains _ is in the range of $1.42 to $1.49, with a mid-point of $1.45. Analysts predict 2009 FFO to be $1.40 per share.
"Despite a historic period of financial volatility, Brookfield Properties is fairing well as evidenced by solid earnings, strong cash flows and low vacancy," Chief Executive Ric Clark said in a news release announcing the earnings results. "Until the global economic picture becomes more clear, our foremost priority for 2009 is capital preservation and creation."
(This version CORRECTS time element)
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