Brookfield Properties Corp. (BPO), Friday reported a fourth quarter profit that plunged from last year, absent a substantial gain recorded in the prior-year quarter related to the conversion of U.S. properties held outside the U.S. Fund to a real estate investment trust. Revenue, however, rose helped by robust sales from both its residential and commercial property segments.
Funds from operations was US $222 million, compared to US $191 million in the year-earlier quarter. On a per share basis, FFO dropped to US $0.43 from US $0.49 in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.32 per share for the quarter. Analysts' estimate typically excludes one-time items.
Net income plunged to US $181 million or US $0.35 per share, down from US $458 million or US $1.16 per share in the prior-year quarter.
Results for the quarter included one-time gain of US $50 million on asset sales and joint ventures in Washington, D.C, as compared to a substantial one-time gain amounting to US $479 million in the prior year quarter. The year-ago gain was related to revaluing the company's future tax liability for converting its U.S. properties held outside of the U.S. Fund into an internal real estate investment trust structure.
Prior period also included a net impairment loss of US $140 million taken on the company's assets in Minneapolis.
Net income from continuing operations was US $129 million or US $0.25 per share, compared to US $597 million or US $1.50 per share in the year-ago quarter.
Brookfield's total revenue increased to US $816 million from US $715 million in the year-ago quarter.
Sequentially, in the third quarter, Brookfield reported a lower profit hurt by a decline in residential revenues. FFO declined to US$151 million from US$152 million, while revenues dropped to US$657 million from US$707 million in the year-ago quarter.
For the quarter under review, revenue from commercial property increased 2.72% to US $565 million, residential development revenue rose 59.5% to US $244 million from the comparable quarter last year.
Net operating income for the quarter was US $422 million, up from US $386 million recorded in the comparable quarter last year.
Commenting on the results, Ric Clark, CEO said, "Aided by a strategy anchored in a strong respect for the cyclical nature of financial and real estate markets, 2009 was another solid year for Brookfield Properties both financially and operationally," stated
The company declared a quarterly common share dividend of US $0.14 per share payable on March 31, 2010 to shareholders of record at the close of business on March 1, 2010.
"We are beginning to see positive signs within the office industry, and given our high-quality tenant base, our 95% occupancy rate and our low near-term lease rollover exposure, we are well positioned to benefit as the economic recovery takes hold," added Clark.
Amongst others in the industry, American Realty Investors, Inc. (ARL) reported a third quarter net loss of $10.20 million or $0.92 per share, compared to a loss of $8.45 million or $0.80 per share in the same period last year. Rental and other property revenues for the quarter was $46.94 million, compared to $46.37 million in the comparable period last year.
For full-year 2009, net income slumped to US $317 million or US $0.72 per share from US $700 million or US $1.77 per share in the prior year. Funds from operations was US $648 million or US $1.48 per share, compared to US $626 million or US $1.59 per share in 2008. Revenue dropped to US $2.68 billion from US $2.77 billion in the prior-year. The Street expected earnings of US $1.36 per share on revenues of US $2.46 billion for the year.
BPO is currently trading at $12.74, up $0.53 or 4.34%, on a volume of 4.46 million shares. In the last 52-week period, the stock traded in a range of $4.11 to $13.02, with a three-month average volume of 2.88 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.