Brookfield Office Properties Inc. (BPO: NYSE, TSX) today announced that net income attributable to common shareholders for the quarter ended June 30, 2011 was $631 million or $1.11 per diluted share, compared with $172 million or $0.31 per diluted share in the second quarter of 2010.
Funds from operations (“FFO”) for the quarter ended June 30, 2011 was $166 million or $0.30 per diluted common share, compared with $156 million or $0.30 per diluted common share on a comparable basis during the same period in 2010. FFO in the prior period with an investment gain was $209 million or $0.40 per diluted common share.
Commercial property net operating income for the second quarter of 2011 increased to $217 million, compared with $180 million in the second quarter of 2010, largely as a result of the contribution from the Australian portfolio acquired in September 2010.
OUTLOOK“As we witness an improvement in vacancy rates, steady demand and controlled supply within our primary markets, we remain optimistic about our performance over the balance of the year and the next few years to come,” stated Ric Clark, chief executive officer of Brookfield Office Properties. “Our high-quality portfolio of commercial properties located in the world’s most dynamic commercial centers allows us to build deep, long-term ties to corporate tenants around the globe.” HIGHLIGHTS OF THE SECOND QUARTER Leased 1.6 million square feet of space during the quarter at an average net rent of $26.74 per square foot. The portfolio occupancy rate finished the quarter at 93.3%. Highlights from the quarter include: Houston – 454,000 square feet
- A seven-year renewal with Chevron for 311,000 square feet at Continental Center I
- An 11-year lease with Forrest Oil for 43,000 square feet at One Allen Center
- A 10-year renewal and expansion with Citco Inc. for 116,000 square feet at Hudson’s Bay Centre
- A 10-year renewal and expansion with the McGraw-Hill Companies for 37,000 square feet at Exchange Tower
- An 11-year expansion with Royal Bank of Canada for 112,000 square feet at Three World Financial Center
- A 12-year lease with Kilpatrick Townsend & Stockton for 45,000 square feet at the Grace Building
- A 10-year renewal with Bank of America for 173,000 square feet at Bank of America Plaza
- A 12-year lease with LPL Holdings for 69,000 square feet at 75 State Street, subsequent to quarter-end
- A 10-year lease with L.E.K. Consulting for 61,000 square feet at 75 State Street
- A pool of eight U.S. Office Fund assets for $650 million at an interest rate of LIBOR + 3.25% for a three-year term plus two one-year extensions
- Two Allen Center, Houston, for $200 million at an interest rate of 6.45% for a seven-year term
- Three Allen Center, Houston, for $165 million at an interest rate of 6.12% for a five-year term
- RBC Plaza, Minneapolis, for $66 million at an interest rate of LIBOR + 2.0% for a two-year extension
- 2401 Pennsylvania Ave., Washington, DC for $30 million at an interest rate of LIBOR + 2.20% for a three-year term plus two one-year extensions
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