##### 



(BROOKFIELD LOGO) NEWS RELEASE BROOKFIELD REPORTS
RECORD FUNDS FROM OPERATIONS,
STOCK SPLIT AND
70% COMMON SHARE DIVIDEND INCREASE NEW YORK, February 10, 2005 Brookfield Properties Corporation (BPO: NYSE, TSX) today
announced funds from operations of $501 million or $2.93 per share for the year ended December 31,
2004 compared to $460 million or $2.78 per share for 2003. Our strategy of investing in premier properties in high-growth markets and leasing on a long-term
basis to high-quality tenants continues to drive consistent, growing cash flow, said Ric Clark,
President and CEO of Brookfield. Our strong balance sheet and pro-active approach to asset
management position us well to continue delivering solid financial results in a recovering office
market. Funds from operations excluding accounting policy changes and lease termination income and gains
for the year ended December 31, 2004 increased 12% to $420 million or $2.41 per share compared to
$361 million or $2.15 per share for 2003. Net income excluding accounting policy changes and lease termination income and gains was $1.20 per
share for the year ended December 31, 2004, up from $1.19 per share in 2003. Excluding Accounting Policy
    
    
    Including Accounting PolicyChanges* and Lease
    
    
    Changes* and LeaseFor the year ended December 31
    
    Termination Income and Gains
    
    
    Termination Income and Gains(Millions, except per share amounts)
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Funds from operations
    
    $
    420
    
    
    $
    361
    
    
    $
    501
    
    
    $
    460- per share
    
    $
    2.41
    
    
    $
    2.15
    
    
    $
    2.93
    
    
    $
    2.78Net income
    
    $
    227
    
    
    $
    209
    
    
    $
    242
    
    
    $
    279- per share
    
    $
    1.20
    
    
    $
    1.19
    
    
    $
    1.28
    
    
    $
    1.63
 * Refer to Change in Accounting Policy in the last section of this press release for
explanation The 2004 results included $60 million of lease termination income in conjunction with the
commencement of a new lease and the termination of a previously-existing lease at One World
Financial Center, while the 2003 results included a $100 million gain on the sale of a 49% interest
in 245 Park Avenue in New York.




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For the three months ended December 31, 2004, Brookfields funds from operations excluding
accounting policy changes and lease termination income and gains totaled $105 million or $0.59 per
share compared to $94 million or $0.56 per share during the same period in 2003. Net income
excluding accounting policy changes and lease termination income and gains for the three months
ended December 31, 2004 totaled $61 million, or $0.32 per share, compared to $56 million or $0.31
per share during the same period in 2003. Excluding Accounting Policy
    
    
    Including Accounting PolicyChanges* and Lease
    
    
    Changes* and LeaseFor the Three Months Ended December 31
    
    Termination Income and Gains
    
    
    Termination Income and Gains(Millions, except per share amounts)
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Funds from operations
    
    $
    105
    
    
    $
    94
    
    
    $
    111
    
    
    $
    193- per share
    
    $
    0.59
    
    
    $
    0.56
    
    
    $
    0.63
    
    
    $
    1.19Net income
    
    $
    61
    
    
    $
    56
    
    
    $
    56
    
    
    $
    126- per share
    
    $
    0.32
    
    
    $
    0.31
    
    
    $
    0.28
    
    
    $
    0.75
 * Refer to Change in Accounting Policy in the last section of this press release for
explanation STOCK SPLIT On February 9, 2005, the Board of Directors approved a three-for-two stock split. The stock split
will be in the form of a stock dividend. Shareholders will receive one Brookfield common share for
each two common shares held. Fractional shares will be paid in cash at the prevailing market price.
The stock dividend will be payable on March 31, 2005 to shareholders of record at the close of
business on March 15, 2005. Brookfield is undertaking the stock split to ensure its shares remain accessible to individual
shareholders, and to further enhance the liquidity of the companys shares. The dividend will have
no unfavorable tax consequences in the United States or in Canada, and will not dilute
shareholders equity. 70% DIVIDEND INCREASE On February 9, 2005, the Board of Directors declared the regular March 31, 2005 dividend of $0.16
per share. The Board of Directors also announced a 70% increase to the companys June 30, 2005
common share dividend. Based upon this increase, on a post-split basis, the June 30, 2005 dividend
will be $0.18 per share. The 70% dividend increase is a reflection of our faith in the strength of Brookfields underlying
business as leasing markets recover across North America, commented Clark. Increasing the
dividend should widen the appeal of Brookfield shares to include investors looking for greater
yield as we increase the payout ratio to be more in line with our REIT industry peer group. 2




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MAJOR 2004 INITIATIVES During 2004, Brookfield undertook a number of initiatives to expand its portfolio, strengthen its
balance sheet and generate additional liquidity to position the company for continued growth.  
    Assembled 1.6 million square feet of high-quality Washington, D.C.
properties,successfully redeploying the proceeds from the sale of
other property interests. The three properties include Potomac
Tower, which was acquired in September 2004 for $106 million.
This 19-story office tower, located on the Potomac River in
Rosslyn, Virginia, offers unobstructed views of the Washington,
D.C. skyline and is 100% leased. The second property, 701 9th
St., N.W., was purchased in March of 2004 for $167 million. This
10-story office building was completed in 2001 and is fully
occupied by the Potomac Electric Power Company under a 25-year
master lease. The third property, 1625 Eye St., N.W., was
purchased in December 2003 with 50% vacancy and has been
successfully leased to 83% occupancy as of December 31, 2004.
    Acquired a $27 million, seven-year, 11.2% fixed rate mezzanine
debt investmenton the Bank of America Center, San Franciscos
premier office property. The investment comprises the junior-most
tier of a $750 million financing for the 1.78 million square foot
tower, giving the company a toehold in this attractive market.
    Financed three properties.Republic Plaza, Denver, was refinanced
at a 400 basis point reduction from the prior fixed-rate mortgage.
The company also financed two of its Washington properties, as
1625 Eye Street, N.W. was financed with a $130 million, ten-year,
6.0% fixed-rate mortgage and Potomac Tower was financed with a $75
million, seven-year, 4.7% fixed-rate mortgage.
    Sold the companys 20% interest in Gulf Canada Squarein Calgary,
marking the completion of the companys strategy to invest,
reposition and monetize unsurfaced value from the asset. This was
accomplished in a 14-month time frame.
    Sold non-core retail asset Chicago Placeon North Michigan Avenue,
Chicago for $39 million.
    Repurchased 1.4 million common shares of the companyat an average
price of $30.54 per share, bringing the total number of shares
repurchased since the inception of the companys normal course
issuer bid in 1999 to 12.2 million at an average price of $19.69
per share.
    Issued C$350 million of preferred sharesthrough two offerings
with dividend rates averaging 5.1%, further strengthening the
balance sheet and reducing the companys cost of capital. OPERATING HIGHLIGHTS During 2004, Brookfield benefited from an increase in leasing demand and a decrease in vacancy
rates in most of its markets. This resulted in increased cashflows, and a reduction in near-term
roll-over exposure. The companys portfolio-wide occupancy rate was 95.2%, a 110 basis point
improvement from 2003. In Brookfields core markets of New York, Boston, Washington, D.C., Toronto
and Calgary, the occupancy rate was 97.3%. Looking ahead, rollover exposure for 2005
across the portfolio was 4.5% at December 31, 2004, a 270 basis point decrease from 7.2% in 2003. 3




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Operating highlights for the year included:  
    Growth of $86 million in commercial property operating income for
the yearto $683 million from $597 million in 2003. This
continued strong performance was driven by the companys low
vacancy and the addition to the current property portfolio of 300
Madison Avenue in New York, and three office properties in
Washington, D.C.
    Leasing of 3.6 million square feetduring 2004, four times the
amount contractually expiring. This includes two million square
feet of new leases and 1.6 million square feet of renewals. In
2004, Brookfield signed the largest lease in Canada, a 331,000
square foot lease renewal with CIBC at Atrium on Bay in Toronto,
and participated in two of the six largest new office leases in
the United States, consisting of an 800,000 square foot sublease
to PricewaterhouseCoopers at 300 Madison Avenue and a 460,000
square foot new lease to Cadwalader, Wickersham & Taft at One
World Financial Center in New York.
    Operating income of $42 million from residential land development
operations, an increase of $11 million over 2003, as our
operations continue to produce record cash flow fueled by low
interest rates, strong overall housing demand and buoyant Western
Canadian economies due to high oil prices. OUTLOOK As we look to 2005, we are optimistic that the economy will continue to strengthen and businesses
will continue to expand, resulting in increased demand for office space. Backed by a strong
balance sheet, significant financial flexibility, premier quality assets and a long-term, low-risk
lease profile, we are well-positioned to grow internally as well as through selective development
and acquisition opportunities, concluded Clark. * * * IN MEMORIAM Brookfield Properties Corporation pays tribute to John R. Bud McCaig, a Brookfield director since
1995 who passed away last month after a remarkable life as an entrepreneur, business leader and
philanthropist. One of our great mentors, Bud was an inspiration to all of us, and will be deeply
missed. * * * Change in Accounting Policy Historically, Brookfields accounting policy has been to record revenues in accordance with the
actual payments received under the terms of the companys leases, which typically increase over
time, and to record depreciation on a sinking-fund basis. However, commencing January 1, 2004,
accounting standards required both straight-line rent recognition and straight-line depreciation.
This change resulted in additional revenue of $22 million and additional depreciation of $58
million before the effect of taxes for the year ended
December 31, 2004 ($6 million of additional revenue and $15 million of additional depreciation for the three months ended December 31, 2004).
A schedule reconciling funds from operations to a non straight-line rent basis can be found in the
supplemental information package to allow for comparability with prior periods. 4




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Dividend Declaration The Board of Directors of Brookfield declared the quarterly common share dividend of $0.16 per
share payable on March 31, 2005 to shareholders of record at the close of business on March 1,
2005. Shareholders resident in the United States will receive payment in U.S. dollars and
shareholders resident in Canada will receive their dividends in Canadian dollars at the exchange
rate on the record date, unless they elect otherwise. The quarterly dividends payable for the
Class AAA, Series F, G, H, I, J and K preferred shares were also declared payable on March 31, 2005
to shareholders of record at the close of business on March 15, 2005. Conference Call Brookfields year-end investor conference call can be accessed by teleconference on February 10,
2005 at 10:00 a.m. E.T. at 877-461-2816 or at 416-695-9757. The call will be archived through
March 10, 2005 and can be accessed by dialing toll free 888-509-0081 or 416-695-5275. The
conference call can also be accessed by Webcast on the Brookfield Web site at
www.brookfieldproperties.com. Supplemental Information Investors, analysts and other interested parties can access Brookfields Supplemental Information
Package on Brookfields Web site under the Investor Information/Financial Reports section. This
additional financial information should be read in conjunction with this press release. Brookfield Profile Brookfield Properties Corporation owns, develops and manages premier North American office
properties. The Brookfield portfolio comprises 46 commercial properties and development sites
totaling 46 million square feet, including landmark properties such as the World Financial Center
in New York and BCE Place in Toronto. Brookfield is inter-listed on the New York and Toronto Stock
Exchanges under the symbol BPO. Contact: Melissa Coley, Vice President, Investor Relations and Communications, telephone
(212) 417-7215, or via email at: mcoley@brookfieldproperties.com. *********** Note: This press release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. The words believe, expect, anticipate, intend, estimate, and other
expressions which are predictions of or indicate future events and trends and which do not relate
to historical matters, identify forward looking
statements. Reliance should not be placed on forward-looking statements because they involve known
and unknown risks, uncertainties and other factors, which may cause the actual results, performance
or achievements of the company to differ materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements. Factors that could cause
actual results to differ materially from those set forward in the forward-looking statements
include general economic conditions, local real estate conditions, timely re-leasing of occupied
square footage upon expiration, interest rates, availability of equity and debt financing and other
risks detailed from time to time in the documents filed by the company with the securities
regulators in Canada and the United States. The company undertakes no obligation to publicly update
or revise any forward looking statements, whether as a result of new information, future events or
otherwise. 5




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CONSOLIDATED STATEMENT OF INCOME Three months ended
    
    
    Year endedDecember 31
    
    
    December 31(US Millions, except per share amounts)
    
    2004
    
    
    2003
    
    
    2004
    
    
    2003Total revenue and gains
    
    $
    390
    
    
    $
    447
    
    
    $
    1,442
    
    
    $
    1,363Net operating incomeCommercial property operationsOperating income from properties
    
    $
    170
    
    
    $
    144
    
    
    $
    683
    
    
    $
    597Lease termination income and gains
    
    
    
    
    
    
    100
    
    
    
    60
    
    
    
    100Total commercial property operations
    
    
    170
    
    
    
    244
    
    
    
    743
    
    
    
    697Development and residential operations
    
    
    13
    
    
    
    10
    
    
    
    42
    
    
    
    31Interest and other
    
    
    11
    
    
    
    17
    
    
    
    47
    
    
    
    62194
    
    
    
    271
    
    
    
    832
    
    
    
    790ExpensesInterest
    
    
    69
    
    
    
    62
    
    
    
    270
    
    
    
    265Administrative and development
    
    
    10
    
    
    
    11
    
    
    
    41
    
    
    
    44Minority interests of others in properties
    
    
    4
    
    
    
    5
    
    
    
    20
    
    
    
    21Income before non-cash items
    
    
    111
    
    
    
    193
    
    
    
    501
    
    
    
    460Depreciation and amortization
    
    
    38
    
    
    
    21
    
    
    
    143
    
    
    
    79Taxes and other non-cash items
    
    
    17
    
    
    
    46
    
    
    
    116
    
    
    
    102Net income
    
    $
    56
    
    
    $
    126
    
    
    $
    242
    
    
    $
    279Funds
from operations per share  dilutedPrior to lease termination income and gains
    
    $
    0.63
    
    
    $
    0.56
    
    
    $
    2.55
    
    
    $
    2.15Lease termination income and gains
    
    
    
    
    
    
    0.63
    
    
    
    0.38
    
    
    
    0.63$
    0.63
    
    
    $
    1.19
    
    
    $
    2.93
    
    
    $
    2.78Net income per share  dilutedPrior to lease termination income and gains
    
    $
    0.28
    
    
    $
    0.31
    
    
    $
    1.06
    
    
    $
    1.19Lease termination income and gains
    
    
    
    
    
    
    0.44
    
    
    
    0.22
    
    
    
    0.44$
    0.28
    
    
    $
    0.75
    
    
    $
    1.28
    
    
    $
    1.63
 6




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CONSOLIDATED BALANCE SHEET (US Millions)
    
    December 31, 2004
    
    
    December 31, 2003AssetsCommercial properties
    
    $
    6,693
    
    
    $
    6,297Development properties
    
    
    716
    
    
    
    684Receivables and other
    
    
    685
    
    
    
    717Marketable securities
    
    
    285
    
    
    
    267Cash and cash equivalents
    
    
    112
    
    
    
    132$
    8,491
    
    
    $
    8,097LiabilitiesCommercial property debt
    
    $
    4,550
    
    
    $
    4,537Accounts payable and other liabilities
    
    
    591
    
    
    
    545Future income tax liability
    
    
    96
    
    
    
    18Shareholders interestsMinority interests of others in properties
    
    
    53
    
    
    
    81Preferred sharesSubsidiaries
    
    
    320
    
    
    
    415Corporate
    
    
    854
    
    
    
    586Common shares
    
    
    2,027
    
    
    
    1,915$
    8,491
    
    
    $
    8,097
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