(Corrects percentage in headline and text to 12 from 14; Clarifies FFO fell on a per-share basis and removes reference to reasons for FFO/shr fall. The error first appeared in update 1)
* Q4 FFO $0.43 vs $0.49 year ago
* Analysts expected FFO of 32 cents per share
* Sees 2010 FFO of $1.25 to $1.33 per share. (In U.S. dollars, unless noted)
Feb 5 (Reuters) - Brookfield Properties BPO.TO said on Friday its funds from operations on a per-share basis fell 12 percent, but sees 2010 FFO above market estimates.
Brookfield, one of Manhattan's biggest landlords, expects full-year 2010 FFO, before lease termination income, special fees and gains, in the range of $1.25 to $1.33 per share.
Analysts expect FFO of $1.17 per share in 2010, according to Thomson Reuters I/B/E/S.
Funds from operations is a real estate benchmark that strips out the distorting effects of depreciation and other factors from earnings.
Brookfield's portfolio of 75 million square feet includes the World Financial Center in Manhattan, Brookfield Place in Toronto, Bank of America Plaza in Los Angeles, and Bankers Hall in Calgary, Alberta.
Brookfield said its FFO for the quarter ended Dec. 31 rose to $222 million from $191 million. On a per-share basis, FFO dropped to 43 cents from 49 cents a year ago.
Analysts had expected Brookfield's FFO to come in at 32 cents per share, according to Thomson Reuters I/B/E/S.
During the quarter, Brookfield leased 1.4 million sq ft of space, including long-term renewals with high-profile tenants such as Merrill Lynch at Newport Tower in New Jersey and Ernst & Young at Ernst & Young Plaza in Minneapolis
That is down from the 1.8 million sq ft of space it leased in the fourth quarter of last year.
Brookfield said its managed portfolio occupancy rate finished the year at 95 percent.
"We are beginning to see positive signs within the office industry," Chief Executive Ric Clark said in a statement. (Reporting by Ka Yan Ng in Canada and Isheeta Sanghi in Bangalore; Editing by Anil D'Silva)