NEW YORK, NY -- (Marketwired) -- 04/26/13 -- Brookfield Office Properties Inc. (NYSE: BPO) (TSX: BPO) today announced its financial results for the quarter ended March 31, 2013. The financial results are based on International Financial Reporting Standards ("IFRS") unless otherwise noted.
Three Months Ended(US Millions, except per share amounts) 3/31/13 3/31/12 --------- ----------Funds from operations (1) $ 189 $ 154Net income attributable to common shareholders 275 352Commercial property net operating income (1) 349 312Fair value gains 171 293Per common share - diluted Net income $ 0.48 $ 0.62 Funds from operations (1) 0.33 0.27 --------- ----------
(1) Non-IFRS measure. See definition under "Basis of Presentation"
Funds from operations ("FFO") was $189 million or $0.33 per diluted common share for the quarter ended March 31, 2013, compared with $154 million or $0.27 per diluted common share during the same period in 2012. The current quarter FFO includes an investment gain of $22 million or $0.04 per diluted common share.
Net income attributable to common shareholders in the first quarter of 2013 was $275 million or $0.48 per diluted share, compared with $352 million or $0.62 per diluted share in the first quarter of 2012.
Commercial property net operating income for the first quarter of 2013 increased to $349 million, compared with $312 million in the first quarter of 2012. Same property net operating income during the first quarter of 2013 increased by 2.0% compared with the same period in the prior year.
Common equity per share at March 31, 2013 increased to $20.08 from $19.80 as at December 31, 2012, and total return of $0.62 per diluted share represented a 3% return on opening common equity per share.
"The first quarter of 2013 marked a new phase of growth for Brookfield Office Properties as we advanced two major developments in our largest markets: Manhattan West in New York and the second phase of Bay Adelaide Centre in Toronto," stated Dennis Friedrich, chief executive officer of Brookfield Office Properties. "The quarter also saw tenants beginning to transact with more confidence, which is exemplified by our strong leasing results."
HIGHLIGHTS OF THE FIRST QUARTER
Leased 1.3 million square feet of space during the quarter at an average net rent of $33.43 per square foot, representing a 17% increase over expiring net rents in the period. The portfolio occupancy rate finished the quarter at 92.1%.
Leasing highlights from the first quarter include:
Calgary - 282,000 square feet
•A 12-year new lease with Canadian Natural Resources for 181,000 square feet at Bankers Hall •A four-year renewal with PwC Management Services for 95,000 square feet at Suncor Energy Centre