Record Leasing Volume Buoys Brookfield’s Q1 Numbers

NEW YORK CITY-Citing an uptick in leasing activity that surpassed its five-year average for the first quarter, Brookfield Office Properties on Thursday reported funds from operations of $155 million and net income of $306 million for Q1. Both represented double-digit increases on comparable figures for the same period in 2010.

“We are encouraged by the record leasing activity accomplished during the quarter as we witnessed accelerated recovery in our primary markets,” Ric Clark, president and CEO of BOP, Lower Manhattan’s largest office landlord, says in a statement. “With a solid backlog of advanced leasing discussions, developments positioned to commence in our primary markets, and progress toward our strategic goals, we remain positive about our 2011 performance.”

The new name of what formerly was known by the more general moniker of Brookfield Properties is now official, as BOP’s shareholders voted to approve it at Wednesday’s annual general meeting. The name change, which reflects the pure-play office strategy the REIT now follows, ties in with its exit from the residential property business that was formalized during Q1.

Another office REIT with millions of square feet in Manhattan reported strong Q1 results earlier this week. Boston Properties said Monday its FFO rose to $160 million during the quarter, compared to $149.6 million the year prior. Net income declined from $52.7 million in Q1 ’10 to $40.8 million for the most recent quarter.

GlobeSt.com previously reported that Vornado Realty Trust’s Q1 performance surpassed last year’s, with its FFO of $2.64 per diluted share beating estimates that averaged $2.03 per share among 12 analysts polled by Bloomberg. Vornado’s Q1 net income of $399.2 million, or $2.12 per diluted share, nearly doubled the $200.3 million net income recorded for the same period last year.