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Brookfield Office Properties profit falls on smaller gains in values

Brookfield Office Properties’ 44 storey Bay Adelaide East tower in Toronto.


Brookfield Office Properties Inc. (TSX:BPO) says its funds from operations and net income were down in the last three months of 2013, compared with the fourth quarter of 2012.

BPO's net income was cut to $152-million or 25 cents per share from $342-million or 59 cents per share under international accounting standards, due to smaller gains in the fair value of its properties.

The companies funds from operations, a performance measure used in the real estate industry, dropped to US$134-million or 22 cents per share in the fourth quarter, from US$161-million or 28 cents per share.

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Brookfield says its operating funds in the fourth quarter included $8-million of transaction costs related to the acquisition of MPG Office Trust, Inc., which expanded the company's holdings in Los Angeles.

Brookfield Office Properties is a New York-headquartered subsidiary of Brookfield Asset Management Inc. (TSX:BAM.A), one of Canada's largest asset managers.

The results announced Friday are consistent with results issued early in the week by Brookfield Canada Office Properties (TSX:BOX.UN), another member of the group with interests in 28 premier Canadian properties.

Brookfield Office Properties, which an indirect stake Brookfield Canada, also has real estate in the United States, Australia and United Kingdom.

For the full year, Brookfield Office Properties had US$1.1-billion of net income, or $1.89 per diluted common share, compared with $1.3-billion or $2.25 per common share in 2012.

Its full-year funds from operations rose to $652-million or $1.12 per diluted common share, from $650-million or $1.14 per share in 2012

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