EOP Reports Dive in Profits

Equity Office Properties Trust, Chicago, has reported net income of $98.2 million ($0.24 per share) for 2004, a major decline from $603.2 million ($1.50 per share) for 2003.For the fourth quarter, EOP reported net income of $61.3 million ($0.15 per share), compared with $201.4 million ($0.50 per share) in the fourth quarter of 2003. EOP, the largest office real estate investment trust by market capitalization, said the fourth-quarter 2003 results had included net gains on the sale of real estate of $115.7 million. The REIT's funds from operations for the fourth quarter were $283.3 million ($0.62 per share), compared with $320 million ($0.70 per share) for the comparable period of 2003. EPS and FFO for 2004 and the fourth quarter have been negatively affected by an impairment charge of about $229 million, lower rents on leases, an increase in real estate taxes, costs associated with redeeming some EOP securities, and reduced income from asset sales, the REIT said. Richard D. Kincaid, EOP's president and chief executive officer, noted that the company is "seeing indications that the economic recovery is translating into increased activity in the office market." The REIT can be found online at http://www.equityoffice.com.