News

Brookfield Office reports stable funds from operations, operating income

NEW YORK, N.Y. – Brookfield Office Properties Inc. (TSX:BPO) says it expects to report about six cents per share of one-time items this year, including costs related to a major acquisition in downtown Los Angeles.

It says a onetime item related to its acquisition of MPG Office Trust Inc. will be included in the fourth-quarter results, but didn’t specify how much it would be.

Instead it included the MPG deal, which closed this month, with a tally of other items for the full year when it released third-quarter results on Friday.

The third quarter included a $7-million break fee related to the early refinancing of Suncor Energy Centre in Calgary. The second quarter included an increased provision for litigation expenses.

The New York-based company, which has a portfolio of prime office towers in major cities around the world including in Calgary and Toronto, also suggested its 2013 guidance is largely on target.

Brookfield said, excluding the one-time items, it expects to report full-year 2013 results within its original guidance range of US$1.16 to $1.20 per share, with a mid-point of US$1.18.

The company is part of the Brookfield group of companies based in Toronto.

Brookfield Office Properties also reported Friday that its funds from operations was $167 million or 29 cents per diluted share and net operating income from commercial properties was $223 million, both virtually the same as a year earlier.

Its net income attributable to common shareholders fell to US$223 million, down from $376 million a year earlier, due to a smaller increase in the fair value of its properties under international accounting rules.