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NEWS RELEASE
 BROOKFIELD ANNOUNCES
SECOND QUARTER 2005 RESULTS
 Reports FFO Per Share of $0.43,
Portfolio-Wide Occupancy of 94%, and
Strong Results from Development Operations
    INVESTMENT AND FINANCING ACTIVITY
 Bid for O&Y Properties and O&Y REIT.
 Refinanced One World Financial Center




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Increased the corporate credit facility by $200 million to $350 million,
 Repurchased 500,000 common shares of the company
 MANAGEMENT AND BOARD INITIATIVES
 Appointed a new director, Linda Rabbitt,
 Named Mark Brown as Senior Vice President, Finance.
 OPERATING HIGHLIGHTS
 Earned $165 million of net operating income from commercial property operations
  New York
 
    
    New 12-year lease of 52,000 square feet with McCarter & English at 245 Park Avenue
 Washington, D.C.
 
    
    10-year expansion for 42,000 square feet with Friedman Billings Ramsey at Potomac
Tower
 Toronto
 
    
    New leases averaging six years for 42,000 square feet with CIBC at Atrium on Bay
    
    Five-year renewal for 37,000 square feet with Baker & McKenzie at Bay Wellington
Tower
    
    Eleven-year renewal for 34,000 square feet with SCGM Management at Atrium on Bay
    
    Five-year expansion and renewal for 32,000 square feet with Liberty Mutual Insurance
at Bay Wellington Tower
 Calgary
 
    
    New eight-year lease for 23,000 square feet with Petro-Canada at Petro-Canada Centre
    
    New eight-year lease for 23,000 square feet with Enbridge Inc. at Fifth Avenue Place
    
    New seven-year lease for 23,000 square feet with Highpine Oil & Gas at Petro-Canada Centre
    
    Five-year renewal for 23,000 square feet with BMO Nesbitt Burns at Fifth Avenue Place




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Minneapolis and Denver
 
    
    10-year expansion for 67,000 square feet with Target at Minneapolis City Center
    
    10-year extension for 50,000 square feet with Meagher Geer at 33 South Sixth Street,
Minneapolis
    
    Five-year extension of 57,000 square feet with Nobel Energy at World Trade Center,
Denver
 DEVELOPMENT HIGHLIGHTS
    OUTLOOK
   Accounting Change




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Dividend Declaration
  Conference Call
 www.brookfieldproperties.com
 Supplemental Information
  Brookfield Profile
  Contact




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STATEMENT OF INCOME
 Three months ended June 30
    
    Six months ended June 30(US Millions, except per share amounts)
    
    2005
    
    
    2004
    
    
    
    2005
    
    
    2004Total revenue
    
    $
    362
    
    
    $
    381
    
    
    
    $
    697
    
    
    $
    707Net operating incomeCommercial property operations
    
    $
    165
    
    
    $
    166
    
    
    
    $
    334
    
    
    $
    345Lease termination income
    
    
    
    
    
    
    60
    
    
    
    
    
    
    
    
    60Total commercial property operations
    
    
    165
    
    
    
    226
    
    
    
    
    334
    
    
    
    405Development operations
    
    
    24
    
    
    
    10
    
    
    
    
    37
    
    
    
    18Interest and other
    
    
    10
    
    
    
    11
    
    
    
    
    21
    
    
    
    25199
    
    
    
    247
    
    
    
    
    392
    
    
    
    448ExpensesInterest
    
    
    82
    
    
    
    77
    
    
    
    
    162
    
    
    
    151Administrative and development
    
    
    11
    
    
    
    11
    
    
    
    
    22
    
    
    
    21Minority interests of others in properties
    
    
    5
    
    
    
    6
    
    
    
    
    8
    
    
    
    11101
    
    
    
    153
    
    
    
    
    200
    
    
    
    265Depreciation and amortization
    
    
    41
    
    
    
    35
    
    
    
    
    77
    
    
    
    69Unrealized foreign exchange on preferred
share restatement
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    
    (6
    )Future income taxes and other provisions
    
    
    19
    
    
    
    47
    
    
    
    
    39
    
    
    
    77Net income
    
    $
    41
    
    
    $
    73
    
    
    
    $
    84
    
    
    $
    125Funds from operations per share  dilutedPrior to lease termination income
    
    $
    0.43
    
    
    $
    0.40
    
    
    
    $
    0.85
    
    
    $
    0.87Lease termination income
    
    
    
    
    
    
    0.25
    
    
    
    
    
    
    
    
    0.25$
    0.43
    
    
    $
    0.65
    
    
    
    $
    0.85
    
    
    $
    1.12Net income per share  dilutedPrior to lease termination income
    
    $
    0.17
    
    
    $
    0.16
    
    
    
    $
    0.35
    
    
    $
    0.38Lease termination income
    
    
    
    
    
    
    0.15
    
    
    
    
    
    
    
    
    0.15$
    0.17
    
    
    $
    0.31
    
    
    
    $
    0.35
    
    
    $
    0.53
 Notes:
 (i) The 2004 results have been restated to reflect the impact of the reclassification of certain
preferred share dividends to interest expense and foreign exchange on the reclassification of
certain preferred shares to liabilities.
 (ii) Per share amounts include the effect of the three-for-two common stock split.
 (iii) The accompanying press release and financial information make reference to net operating
income and funds from operations (FFO) on a total and per share basis. Net operating income is
defined as income from property operations after operating expenses have been deducted, but prior
to deducting financing, administrative and income tax expenses. FFO is defined as net income prior
to extraordinary items, non-cash items and depreciation and amortization. The Company uses net
operating income and funds from operations to assess the operating results of the company as net
operating income is important in assessing operating performance and FFO is a relevant measure to
analyze real estate as commercial properties generally appreciate rather than depreciate. In the
companys quarterly Supplemental Information package, the company provides the components of net
operating income on page 17 and a full reconciliation from FFO to net income on the Cashflow
Statement on page 16. Net operating income and FFO are both non-GAAP measures which do not have
any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar
measures presented by other companies




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CONSOLIDATED BALANCE SHEET
 (US Millions)
    
    June 30, 2005
    
    
    December 31, 2004*AssetsCommercial properties
    
    $
    6,975
    
    
    $
    6,693Development properties
    
    
    487
    
    
    
    716Receivables and other
    
    
    758
    
    
    
    698Marketable securities
    
    
    250
    
    
    
    285Cash and cash equivalents
    
    
    113
    
    
    
    112$
    8,583
    
    
    $
    8,504LiabilitiesCommercial property debt
    
    $
    4,679
    
    
    $
    4,550Accounts payable and other liabilities
    
    
    382
    
    
    
    424Future income tax liability
    
    
    137
    
    
    
    96Capital securities
    
    
    1,045
    
    
    
    1,069Shareholders interestsMinority interests of others in properties
    
    
    55
    
    
    
    53Preferred sharesSubsidiaries
    
    
    312
    
    
    
    320Corporate
    
    
    45
    
    
    
    45Common shares
    
    
    1,928
    
    
    
    1,947$
    8,583
    
    
    $
    8,504
 *Note: The 2004 results include the restatement of certain of the corporations preferred
shares as liabilities under the caption Capital securities.
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