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NEW YORK, NY -- (Marketwire) -- 02/01/13 -- Brookfield Office Properties Inc. (NYSE: BPO) (TSX: BPO) today announced its financial results for the quarter and year ended December 31, 2012. The financial results are based on International Financial Reporting Standards ("IFRS") unless otherwise noted.
Three Months Ended Twelve Months Ended(US Millions, except per share amounts) 12/31/12 12/31/11 12/31/12 12/31/11 --------- --------- --------- ---------Funds from operations (1) $ 161 $ 151 $ 650 $ 640Net income attributable to common shareholders 342 338 1,287 1,690Commercial property net operating income (1) 346 305 1,345 1,014Fair value gains 238 302 1,004 957Per common share - diluted Net income $ 0.59 $ 0.58 $ 2.25 $ 2.92 Funds from operations (1) 0.28 0.26 1.14 1.14 --------- --------- --------- ---------
(1) Non-IFRS measure. See definition under "Basis of Presentation"
Funds from operations ("FFO") for the year ended December 31, 2012 increased to $650 million or $1.14 per diluted common share, from $640 million or $1.14 per diluted common share in 2011. FFO, excluding a one-time break fee of $9 million paid to extend the duration and reduce the interest rate on a loan, was $170 million or $0.30 per diluted common share for the quarter ended December 31, 2012, compared with $151 million or $0.26 per diluted common share during the same period in 2011.
Net income attributable to common shareholders for the year ended December 31, 2012 was $1.29 billion or $2.25 per diluted share, compared with $1.69 billion or $2.92 per diluted share in 2011. Net income in the fourth quarter of 2012 was $342 million or $0.59 per diluted share, compared with $338 million or $0.58 per diluted share in the fourth quarter of 2011. Included in the current year net income is $238 million of fair value gains on the company's investment properties.
Commercial property net operating income for the year increased to $1.35 billion, compared with $1.01 billion in 2011. Commercial property net operating income for the fourth quarter of 2012 increased to $346 million, compared with $305 million in the fourth quarter of 2011, largely due to the impact of the newly developed Brookfield Place Perth and acquisition activity, offset by dispositions. Same property net operating income during the fourth quarter of 2012 increased by 5.3% compared with the same period in the prior year.
Value per common share at December 31, 2012 increased to $19.80 compared with $17.90 as at December 31, 2011, and the company's total return of $2.93 per diluted share represents a 16.4% return on opening value per common share.
OUTLOOK
"It was another successful year for Brookfield Office Properties, characterized by solid leasing achievements, expansion into new target markets, and the advancement of several major development projects," stated Dennis Friedrich, chief executive officer of Brookfield Office Properties. "We are poised to reap substantial benefits from these initiatives in 2013 and beyond as the economy continues its gradual improvement."
