* FFO $0.25/shr vs FFO $0.27/shr last year
* Leased 2.3 mln sq feet in first quarter (In U.S. dollars unless noted)
May 6 (Reuters) - Brookfield Properties BPO.TO BPO.N said its first-quarter funds from operations rose 30 percent, helped by higher operating income from both commercial and residential property.
The company said funds from operations for the first quarter rose to $136 million from $105 million. On a per share basis, FFO dropped to 25 cents from 27 cents a year ago, partly because of dilution from the $1 billion of undeployed capital raised last summer.
Funds from operations is a property measure that strips out the distorting effects of depreciation and other factors from earnings.
In the latest quarter, Brookfield said it leased 2.3 million square feet of space, up from 1.8 million square feet a year ago. Its managed portfolio occupancy rate finished the quarter at 94.8 percent.
Brookfield operates in several high-profile U.S. markets, including Manhattan where it is one of the biggest landlords, at such buildings as the World Financial Center. A large chunk of its revenue comes from New York, one of the key cities in its 75 million-square-foot portfolio.
"With fundamentals in our largest markets -- New York, Washington DC, Toronto and Houston -- trending upward, we are beginning to see rental rate growth," Chief Executive Ric Clark said in a statement.
Brookfield's shares closed at C$16.45 on the Toronto Stock Exchange on Wednesday, and at $15.98 in New York. (Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair) ((email@example.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: firstname.lastname@example.org))