REIT Reports 4Q Profits

Equity Office Properties Trust, Chicago, has reported net income of $19 million ($0.02 per share) for the fourth quarter, compared with $61.3 million ($0.15 per share) in the fourth quarter of 2004.The real estate investment trust, the largest office REIT by market capitalization, said the decrease in net income stems mostly from losses related to Hurricane Katrina, as well as "rent roll-down, higher utility costs, increased spending on repairs and maintenance, as well as the dilutive impact of the net disposition activity." The REIT said it sold $2.7 billion of assets in 2005. "The leasing environment is improving across our markets, with positive trends in occupancy, net absorption, and rental rates," said Richard D. Kincaid, president and chief executive officer of the REIT. "Although we expect further rent roll-down, we believe a number of the challenges we faced in the past are behind us." The REIT can be found online at http://www.equityoffice.com.