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. 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. The following table reconciles total operating segment FFO to net income: 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. 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  2013 ANNUAL REPORT 37 AS AT AND FOR THE YEARS ENDED DECEMBER 31  (MILLIONS) 2013 2012 Funds from operations Fee related earnings  $ 300 $ 180 Carried interests  565 14 $ 865 $ 194 YEARS ENDED DECEMBER 31 (MILLIONS) 2013 2012 Total operating segment FFO  $ 3,376 $ 1,356 Gains not recorded in net income  (434) (183) Non-controlling interest in FFO  2,465 1,498 Financial statement components not included in FFO Equity accounted fair value changes and other non-FFO items  (85) 578 Fair value changes  663 1,153 Depreciation and amortization  (1,455) (1,263) Deferred income taxes  (686) (384) Net income  $ 3,844 $ 2,755 Common Equity by Segment Reconciliation of Non-IFRS Measures ASSET MANAGEMENT Overview