LNR Property Corp. Reports Drop in Net Earnings

MIAMI-Locally based LNR Property Corp. had net earnings of $28.5 million for its first quarter ending Feb. 29, down from $34.8 million for the same quarter the year before. Net earnings for the period were also down, coming in at 94 cents per share diluted, compared with $1.06 per share diluted a year earlier. First quarter 2004 net earnings per share were $1.01 before a 7-cent-per-share charge for the early extinguishment of debt.But despite the decrease, Jeffrey P. Krasnoff, president and CEO of LNR, called the quarter’s results “strong.”

Total revenue and other operating income for the quarter ending this year was $119.9 million, down slightly from $122.5 million the year before. The $2.7 million, or 2%, decrease was a result of lower interest income because of a lower average level of CMBS investments, and lower rental income from a smaller stabilized property portfolio in much of the 2004 first quarter, the company states.

However, declines were offset in part by higher gains on sales of real estate securities and real estate property assets this past quarter. So far this year, the company has purchased or identified more than $800 million in new investments, including the recent closing with Lennar Corp. of the Newhall Land and Farming Co. acquisition.