Brookfield Properties’ profits fall

By Adam Pincus | July 31, 2008 11:39AM

Brookfield Properties’ earnings, hurt by a decline in home sales, fell in the second quarter by 43 percent, the company said today.

Profits declined to $45 million as of June 30, compared to $79 million in the same period last year. Revenues, however, rose 1.8 percent to $719 million, the company said in a statement.

Net operating income for residential development fell by half to $35 million.

The news was better on the commercial side, as net operating income from commercial properties rose by 7 percent to $353 million.

Brookfield, headquartered in New York City, owns and manages real estate in Canada and the United States. In addition to the four World Financial Center buildings, the company owns or has an interest in nine other office towers in Manhattan.

Occupancy at the World Financial Center rose to 99.2 percent from 97.1 percent. But vacancies increased at 1065 Sixth Avenue, where occupied space fell from 84.3 percent to 74.6 percent.

Company-wide, the rate of occupancy in 109 commercial properties rose to 95.3 percent from 94.6 percent.

Brookfield’s net operating income from its 13 commercial properties in New York, which comprise 37 percent of the company’s total, nudged up to $130.6 million from $130.2 million a year ago.