Our financial results reflect substantial increases in asset management fees as a result of higher capital under management; improved hydrology levels and higher spot market power pricing in our renewable power operations; and higher prices and volumes related to operations with exposure to the continuing U.S. housing recovery.
FFO for Brookfield shareholders increased to $464 million. Disposition gains included in FFO were $58 million in the current quarter compared to disposition losses of $87 million in the comparable 2012 quarter. This excludes gains which will be booked on a number of realizations which were closed after quarter end and therefore will be recorded in the third quarter.
FFO and net income for the six months ended June 30, 2013 were $1,153 million and $1,499 million, both of which increased substantially over the same period in the prior year.
We expanded our asset management franchise.
Our fee-bearing capital under management increased to approximately $78 billion, up 30% from year end. We held a final close on our $4.4 billion global opportunistic property fund and have already invested $1.1 billion of this capital in European, Australian and North American commercial properties. We continue to move forward with fundraising initiatives for other real asset strategies, marketing five private funds. We hold nearly $10 billion of committed client capital that can be invested across our platforms.
Our flagship listed entities expanded their operations and are well positioned for future growth in cash distributions and net asset value, which will increase our performance fee income.
We generated additional liquidity through asset sales, equity issuance, fund formations and debt financings.
We sold investments in timberlands, a utility and a paper and packaging company at attractive valuations. This generated $4.2 billion in gross proceeds, and increases liquidity by approximately $2.0 billion after repayment of project debt and distributions to private fund clients. Our retail property operations raised a total of $1.6 billion through asset sales including a 50% interest in two Las Vegas shopping malls and, subsequent to quarter end, a minority interest in a Brazilian shopping center company.
We continue to refinance debt at attractive long term rates. We refinanced $1.9 billion within our retail property portfolio, generating proceeds of $300 million, and $1.1 billion of refinancings in our commercial property portfolio, resulting in $500 million of proceeds.
We increased cash flow with operational improvements in all of our major businesses.
Our infrastructure business recorded a significant increase in traffic on its Australian railway, where cash flow doubled year-over-year after an expansion of the network. Our renewable power business achieved higher prices on sales of uncontracted spot power and experienced significant cash contributions from U.S. hydroelectric and wind assets acquired in the past nine months.
The continued recovery in U.S. housing markets resulted in strong performance from a number of our private equity investments. We continued to renew the mix of stores in our retail portfolio, and signed new leases at rates that were 7% higher than expiring leases. We signed 2.0 million square feet of new leases in our office property business at rates that were 8% higher than the previous rents.
We invested in growth opportunities in all our major operating businesses, increasing the capital deployed by both our listed entities and private funds.
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