MASTERING THE ART OF REAL ESTATE

Sotheby's International Realty Canada just celebrated its first anniversary in Toronto and the relative newcomer had a lot to celebrate - with a downtown penthouse for $2.6-million, a development site for $2.8-million, a single residence in the west end for $1.7-million, and other properties totalling more than $100-million in listings on the real-estate books.

As well, the company has 187 units, totalling $600-million, in the soon-to-be-built Four Seasons Private Residences; 872 units, totalling $300-million, in the upcoming Residences of Maple Leaf Square; and 450 units, totalling $150-million, in the Pantages Tower.

Among those who have used Sotheby's International to sell their luxurious abodes are comedian Ellen DeGeneres - a four-acre California property for $155-million (U.S.) - and Conrad and Barbara Amiel Black.

The couple were back in the news recently for refusing to pay Sotheby's the $557,500 (U.S.) commission owed on the sale of their New York apartment for $10.5-million.

But that, says Mark McLean, one of only 15 agents working in the brokerage's Annex location, is another story.

Sotheby's, known as a fine-art auction house, founded its real-estate division in 1976. A marketing and referral program, it gives independent brokerages access to a portfolio of high-end properties from around the world. The brokers share a clientele list that reads like a veritable who's who of Arab princes and Russian oligarchs, as well as the run-of-the-mill filthy rich.

Right now, Mr. McLean's main focus, as a partner in the Ontario office, is pushing the brand's prestige.

"We definitely break the mould of the traditional real-estate office," said Mr. McLean, a former sailboat builder. "We are not everything to everybody. ... Our model is that of private banking."

Sotheby's is planning to expand into markets with high-value properties outside Toronto, opening offices over the next five years, first in Oakville, Muskoka and Lake of Bays, then Port Hope and Niagara.

To commemorate its first anniversary, the Sotheby's Ontario office will sponsor the opening reception, in May, of Sotheby's Canadian art auction, and is looking to sponsor art projects around the city. Sotheby's will also market several "properties of distinction" in the catalogue.

"As the auction house is known to sell only the very best in art around the world, the realty arm wishes to do the same but with property," Mr. McLean said.

If it's a mansion for sale, think of it as going, going, gone.

H&R Real Estate boosts net income, cash from operations in fourth quarter

TORONTO — H&R Real Estate Investment Trust (TSX: HR.UN) says a larger portfolio of properties and rent increases for its tenants boosted the company's fortunes in the fourth quarter.

The trust, which focuses on commercial properties, announced Friday that its net income for the three months ended Dec. 31 rose to $48.7 million in the fourth quarter, up from $20.6 million a year earlier, mostly due to a tax benefit.

Total distributions paid increased to $46.3 million, or 34.3 cents per share, for the quarter. That's up from $40.8 million or 33.4 cents per share in the last three months of 2006.

For the three months ended Dec. 31, net earnings increased by $20.5 million due to a reversal of future income taxes.

Cash from operations rose to $63.4 million, up from $48.0 million in the fourth quarter of 2006 and distributable income was $54.1 million, up from $46.0 million.

Rentals from properties rose to $149.5 million from $142.9 million.

H&R trust units traded at $20.61, down 20 cents, at the Toronto Stock Exchange