Brookfield Properties 3Q funds from operations $169 million, 32 cents a share
Brookfield Properties (BPO) third-quarter earnings rose as income from both commercial real estate and residential property increased. The office property developer and manager reported funds from operations of $169 million, or 32 cents a share, up from $123 million, or 28 cents a share, a year ago. Revenue for the three months ended Sept. 30 fell to $458 million from $657 million a year earlier. Net income for the quarter rose to $156 million, or 28 cents a share, from $38 million a year earlier, which excludes items. The company said its occupancy rate at the end of the quarter was 95.1%, which is 30 basis points higher than the second quarter. During the third quarter, Brookfield sold its residential land unit for about $1.2 billion to its parent company, Brookfield Homes Corp. (BHS), and acquired a 16-property Australian office portfolio for $1.4 billion. "Having completed the first step in our strategic repositioning with the expansion into Australia, we look forward to successfully concluding the next step, divesting our residential land business," said Ric Clark, president and chief executive of Brookfield. "Our transformation into a pure-play global office company should result in more transparent performance and growth creating meaningful value for our shareholders." For the nine months, Brookfield's funds from operations rose to $484 million, or 97 cents a share, from $346 million, or 86 cents a share, a year ago. Revenue for the period fell to nearly $1.3 billion from $1.86 billion a year earlier. Brookfield Office Properties has a portfolio of more than 100 properties, including the World Financial Center in lower Manhattan and Bank of America Plaza in Los Angeles. Write to Jason Philyaw.