Brookfield Properties sees 2009 FFO topping Street

Real estate investment trust Brookfield Properties Corp. on Thursday provided guidance for 2009 funds from operations of $1.42 to $1.49 per share, topping Wall Street estimates.

The company said the midpoint of the range was $1.45 per share. Analysts predict funds from operations, or FFO, of $1.40 per share.

FFO, which adds such items as amortization and depreciation to net income, is considered a key measure of REIT strength.

The company also said Thursday it saw a 2 percent increase in FFO in the fourth quarter on higher average rents and a tax benefit. Its per share results bested Wall Street's target by 12 cents per share, sending its stock surging. Its shares advanced 88 cents, or 17.1 percent, to $6.03 in morning trading.

"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.

"Until the global economic picture becomes more clear, our foremost priority for 2009 is capital preservation and creation. With high occupancy, low rollover exposure and manageable near-term debt maturities, we are cautiously optimistic about our operating prospects for 2009," Clark said.