Equity Office Reports 1Q Profits

Equity Office Properties Trust, Chicago, has reported net income of $45.6 million ($0.12 per share) for the first quarter, down from $100.9 million ($0.25 per share) in the first quarter of 2005.The real estate investment trust said net income for the first quarter of 2005 included $51.5 million from early lease terminations, compared with only $6.5 million from this source in the first quarter of 2006. The first-quarter 2005 results also reflect the impact of $2.7 billion of dispositions, EOPT said. "We continue to see office market fundamentals improve across virtually all of our markets," said Richard D. Kincaid, EOPT's president and chief executive officer. "This is leading to occupancy gains, rent increases, and a reduction in concessions in most of our portfolio." Funds from operations, a non-GAAP measure commonly used in the REIT sector, totaled $226.4 million ($0.55 per share) for the first quarter, EOPT said, down from $302 million ($0.66 per share) for the comparable period of last year. The REIT can be found online at http://www.equityoffice.com.