content_image/268427.jpg content_image/268426.jpg
FFO from our private equity operations increased by $385 million to $612 million compared to $227 million in the prior year and included $316 million (2012 – $15 million) of realized disposition gains. Excluding realized disposition gains, FFO for 2013 was $296 million (2012 – $212 million). The increase of $84 million reflects improved pricing and volumes in businesses related to the U.S. housing market, particularly our panelboard manufacturing operations. 

Our residential development operations contributed $46 million of FFO (2012 – $34 million). The contribution from our North American operations increased by $53 million due to increased pricing and volumes within our U.S. operations. The contribution from our Brazil operations declined by $25 million, as these operations continue to be challenged by increased construction costs and slower economic growth. 

FFO from our services activities was $157 million (2012 – $229 million). The 2012 results included a $70 million realization gain on the partial disposition of our U.S. brokerage operations. FFO excluding realized disposition gains was relatively unchanged. Our construction operations increased over the prior year, as we continue to manage an increased volume of work which was offset by a reduced ownership level in our property services operations. 

FFO from corporate activities includes a $525 million gain on the settlement of a long-dated interest rate swap, which also resulted in reduced levels of borrowings and a lower interest rates following the settlement. Capital markets performed strongly in 2013 and we benefitted from an additional $61 million contribution from our financial asset portfolio, compared to the prior year. 

## Common Equity by Segment 

Property segment common equity increased by $0.4 billion during the year. We acquired an additional 51 million units of BPY for $995 million in the fourth quarter, offsetting the impact of the spin-off of a 7.6% interest in BPY ($906 million). The current year’s FFO and $851 million of fair value changes also increased property segment equity. Our renewable energy segment common equity decreased by $548 million, which included a $233 million sale of 8.1 million units of BREP in the first quarter of 2013, and the impact of lower foreign currency exchange rates and higher discount rates on asset valuations. We disposed our Pacific Northwest timberland operations in the third quarter of 2013, which reduced our infrastructure segment common equity by $600 million. 

## Reconciliation of Non-IFRS Measures 

The following table reconciles total operating segment FFO to net income: 

<img src='content_image/268427.jpg'>

## ASSET MANAGEMENT 

## Overview 

Our asset management operations consist of managing listed entities, private funds and public securities on behalf of ourselves and our clients. As at December 31, 2013, we managed approximately $80 billion of fee bearing capital, of which approximately $54 billion was from clients and the balance was from Brookfield. We also provide transaction and other advisory services. The following table disaggregates segment FFO into fee related earnings and carried interests to facilitate analysis. 

<img src='content_image/268426.jpg'>

Revenues in this segment include fees earned by us in respect of capital managed for clients as well as the capital provided by Brookfield, with the exception of carried interests and performance fees which exclude amounts earned on Brookfield capital. This is representative of how we manage the business and more appropriately measures the returns from our asset management activities 

