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Brookfield Asset profit slumps Add to ...

Brookfield Asset Management Inc. an investment company with holdings in real estate, forestry, power generation and other sectors, reports its profit in the first quarter fell by more than half to $93-million (U.S.) from $197-million in the same year-earlier period.

The Toronto company formerly known as Brascan, said Tuesday it earned 15 cents a share for the three months ended March 31, down from 31 cents a share for the same 2008 period.

The company said the 2008 results included the higher level of disposition gains, while the latest period reflects the impact of the recession on the company's diverse businesses.

Three month revenues less direct operating costs fell to just over $1-billion from $1.3-billion last year.

"The strength and stability of our renewable power and office property businesses are a major contributor to our operating results and asset values," Bruce Flatt, senior managing partner of Brookfield, said ahead of the company's annual meeting in New York on Tuesday.

Brookfield owns major office buildings in Manhattan and trades on the TSX and the New York Stock Exchange.

"This provides us a strong earnings base for the balance of 2009 and through 2010. The high quality of our office property portfolio, which is 96 per cent occupied, allows us to generate stable long-duration contracted rental income streams. In addition, we have contracted more than 75 per cent of our expected renewable generation for the balance of 2009 and 2010."

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