Brookfield Properties' 2Q results rise 63 percent

NEW YORK

Brookfield Properties' second-quarter results improved by 63 percent as leasing rebounded, especially in New York and Washington, the company said Friday.

The real estate investment trust said its funds from operations, or FFO, rose to $201 million, or 40 cents a share, in the three months ended June 30, from $123 million, or 32 cents a share, in the year-ago period.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.

Net income totaled $154 million, compared with a loss of $396 million in the prior year.

Quarterly revenue climbed 29 percent to $446 million from $347 million.

The company also said Friday it will buy an interest in 16 Australian offices for $1.4 billion from Brookfield Asset Management Inc. It is also changing its name to Brookfield Office Properties, effective immediately, and selling its North American residential and housing division, called Carma Developers LP, to Brookfield Homes Corp.

The acquisition is part of a repositioning strategy to focus on owning and managing office properties only.

Shares of Brookfield Properties Corp. rose 7 cents to $15.62 in midday trading.