Equity Office Reports Earnings Drop

Equity Office Properties Trust, Chicago, has reported net income of $65.3 million ($0.16 per share) for the first quarter, a 54% decline from $141.7 million ($0.35 per share) a year earlier.EOP, the largest office real estate investment trust by market capitalization, attributed the decline to asset sales and joint ventures totaling about $1.5 billion in 2003, a decline in occupancy, and a decline in rental rates on new and renewal leases. "At a macro level, we are encouraged by the second consecutive quarterly decline in office vacancy rates, in the quarter's broad-based positive net office space absorption, and in the positive office job growth that occurred in March," said Richard Kincaid, the REIT's president and chief executive officer. ".... While conditions in most markets continue to be challenging, and are likely to remain that way for the foreseeable future, we anticipate a gradual improvement in office fundamentals over the balance of 2004 and into 2005." The REIT can be found online at http://www.equityoffice.com.