(RTTNews) - Thursday, real estate investment firm Brookfield Properties Corp. (BPO: News ), reported lower profit for the third quarter, as results for the period were hurt by the decline in residential revenues. However, funds from operations were inline with market consensus for the quarter.

The Toronto, Canada-based company said its third-quarter funds from operations or FFO declined to US$151 million from US$152 million during the same period in 2008. On a per share basis, the real estate metric suffered a bigger decline to US$0.34 per share from US$0.38 per share, due to equity offerings which increased share count. On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of US$0.34 per share for the quarter. Analysts estimates' typically exclude one-time items.

Net income for the quarter plunged to US$38 million or US$0.08 per share from US$174 million or $0.44 per share in the previous quarter. The year-ago period included a net gain of US$127 million or US$0.32 per share on the sale of one of its properties in Toronto.

Net income from continuing operations were lower at US$34 million than US$45 million last year.

Third quarter total revenue decreased to US$657 million from US$707 million in the comparable period of 2008, however, it came in above market consensus of US$580.35 million.
Commercial property revenues increased to US$559 million from US$555 million a year-ago. Residential operations contributed lesser at US$96 million to the top-line, compared with US$138 million last year.

For the nine months, FFO was US$426 million or US$1.04 per share, compared with US$435 million or US$1.10 per share last year. Net income slumped to US$136 million or US$0.33 per share from US$242 million or US$0.61 per share in the same period last year. Total revenue also declined to US$1.86 billion from US$2.06 billion a year back.

BPO is currently trading up 2.39% or US$0.26 at US$10.30, on the New York Stock Exchange.

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by RTT Staff Writer

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