Brookfield Asset Management Inc (BAM)

[Investorman]

Brookfield to Sell Stock, Boosts Outlook
Monday December 11, 7:53 am ET
Brookfield Properties Raises 2007 Guidance, Plans to Sell 30 Million Shares

NEW YORK (AP) -- Commercial real estate company Brookfield Properties Corp. on Monday said it plans to sell about 30 million shares to pay down debt, and raised its earnings outlook for 2007.
Brookfield Asset Management, which currently owns about 51 percent of Brookfield Properties' outstanding shares, intends to buy about 11.3 million shares in the offering, according to the company.

Brookfield Properties said it will use proceeds from the offering to repay outstanding debt from the acquisition of Trizec Properties Inc., a real estate company, and its Canadian arm, Trizec Canada Inc. The company created the U.S. Office Fund to invest in the acquisition of Trizec, and said it will also use proceeds from the offering to pay down debt used to finance an additional investment in the fund. Brookfield will also use proceeds for general corporate purposes, including repaying lines of credit.

Brookfield said it expects 2007 funds from operations per share -- an adjusted measure of earnings that excludes special items -- to total $2.10 to $2.20, 17 percent higher than the current forecast for 2006. The projection for 2007 factors in the completion of the stock sale, growth in operating income from established properties of 4 percent to 5 percent and similar conditions for residential land sales and lot sales as seen in 2006.