Brookfield Properties Reports Third Quarter 2009 Results
All dollar references are in U.S. dollars unless noted otherwise.

NEW YORK--(BUSINESS WIRE)--Oct. 29, 2009-- Brookfield Properties Corporation (BPO: NYSE, TSX) today announced that net income for the three months ended September 30, 2009 was $38 million or $0.08 per diluted share, compared with $174 million or $0.44 per diluted share during the same period in 2008. Included in net income in 2008 was a net gain of $127 million, or $0.32 per share, on the sale of TD Canada Trust Tower in Toronto.

Funds from operations (“FFO”) was $151 million or $0.34 per diluted share for the three months ended September 30, 2009, compared with $152 million or $0.38 per diluted share during the same period in 2008.

Commercial property net operating income for the third quarter of 2009 was $330 million, compared with $320 million during the third quarter of 2008.

During the third quarter, Brookfield Properties leased 693,000 square feet of space in its managed portfolio at an average net rent of $25 per square foot, which represents a 25% improvement versus the average expiring net rent of $20 on this space in the quarter. Additionally, the company has improved its five-year lease rollover exposure by 330 basis points since the start of the year. Year-to-date leasing totals 3.2 million square feet. Brookfield’s managed portfolio occupancy rate finished the quarter at 95.0%, unchanged from the previous quarter.

HIGHLIGHTS OF THE THIRD QUARTER

Leased 693,000 square feet of space and completed 63,000 square feet of development leasing. Renewals represent 74% of the total with new leases representing the remainder. Third quarter leasing highlights include:

Toronto – 211,000 square feet

•A 144,000-square-foot lease extension with the Department of Justice at Exchange Tower
Washington, DC – 154,000 square feet

•A five-year, 98,000-square-foot lease renewal with the General Services Administration at Two Ballston Plaza
•A new 11-year, 63,000-square-foot lease with LaFarge North America at Two Reston Crescent
•A new five-year, 45,000-square-foot lease with the General Services Administration at 1550 Wilson Blvd
Edmonton – 102,000 square feet

•A five-year, 57,000-square-foot lease renewal with CGI at Canadian Western Bank Place
•A ten-year renewal and expansion for 39,000 square feet with Witten Management at Canadian Western Bank Place
New York – 63,000 square feet

•A new 15-year lease for 31,000 square feet with Advent Software at the Grace building
•A new 14-year lease for 26,000 square feet with Zolfo Cooper at the Grace building
Launched $5 billion real estate turnaround consortium with Brookfield Asset Management. Dedicated to investing in under-performing real estate, the consortium will invest in equity and debt in under-valued real estate companies or real estate portfolios where value can be created in a variety of ways, including financial and operational restructuring, strategic direction or sponsorship, portfolio repositioning, redevelopment or other active asset management. Brookfield Properties has the right, but not the obligation, to participate in investments in the office sector.

Raised $1.3 billion in common share equity offering and preferred share issuance. Gross proceeds from the equity offering totaled $1.0 billion and proceeds from the preferred share issuance totaled $288 million. A portion of the proceeds were used to pay down the committed revolving lines of credit at the company level and within the residential operations. Liquidity currently stands at $1.7 billion including cash, deposits and available credit.



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