Biggest REIT Reports 1Q Earning Decline

Equity Office Properties Trust, the largest real estate investment trust by market capitalization, has reported net income of $141.7 million ($0.35 per share) for the first quarter, down from $201.4 million ($0.48 per share) for the first quarter of 2002.The Chicago-based office REIT attributed the decline to lower occupancy levels in its portfolio, lower lease termination fees, and asset sales of nearly $600 million since Jan. 1, 2002. "We are anticipating a slow recovery starting in the latter part of 2003," said Richard Kincaid, EOPT's president and chief executive officer. "We continue to take advantage of the very strong property market by selling assets and maintaining a high level of liquidity." Early lease terminations occurring during the first quarter affected approximately 1.8 million square feet in office portfolio occupancy, the REIT said. EOPT can be found online at http://www.equityoffice.com.