Brookfield Properties

[selkirk]

Brookfield properties BPO trades on the NYSE/TSE

target upside $35-$40 cdn. downside $25cdn.
trading at $30.50cdn. (1.59cdn=$1US)

here is some information more will be added later looking for returns in this stock of 10%+ which in this market is not bad.

NAV = $20US (approx)
div= .33 2001 .38-.40 2002 .44-.46 2003

37% is owned by institutions
BPO repurchased 2.4 million shares at an average price of $17.30 about 1.5% and stated that they plan to do the same this year.

FFO per share 2000 $1.75US, 2001 $2.03, 2002 $2.26-$2.35, 2003 $2.55-$2.68

leases life is at 10 years (12New York, 6 years boston, 5 years Toronto ). the leases have increases for the life of the lease. most of the customer are of high credit quality.

they have a small housing unit which they may sell or spinoff to shareholders, I believe they will sell if they get a good price. the unit generated $85 million pre-tax in profits.

Brookfield should be able to get higher rents if the current situation is maintained, their average lease end of 2001 was $21 per sq.ft. average market rent in their markets was $27-$30 per sq.ft.

more info later, not a bad stock, should get a return of over 10% for 2002, including div.

thanks
selkirk

 

[selkirk]

some earnings news on Brookfield
Brookfied reported 47 cents in earnings/share on net income $80 million. in the latest quarter. up from 33 cents/share on net income of $60 million.

1st Quarter revenue rose from $580 million compared to $480 million a year ago.

Brookfield FFO (funds from operations) rose to $125 million 74 cents/share compared to $105 million 61 cents/share

Brookfield increased earnings come from increases in rents, the results are in general good though I thought they would come in a few cents higher in earings. closed at $31.52, nothing exciting but like I said at the start 10%+ return in this market (counting div) is not a bad return.

using $30.50 (started buying it around $29.50) own a position in the stock.

 

[selkirk]

earnings update

earnings update

Brookfield is trading at $31.05, up from $30.50 when first posted 04-03-2002. so counting the div it is up only 2.31%. however the markets have been very difficult since April, so the stock has performed very well, outperforming the major markets.

I still believe the stock could hit $35 Cdn. stocks trades on NYSE, and TSX. here is an article on their recent earnings.


thanks
selkirk

Wednesday, July 31, 2002



Brookfield Properties Corp., one of the biggest landlords in Lower Manhattan, says its second-quarter share profit rose 10 per cent despite a general slowdown in office markets.

The vacancy rate in the Toronto-based company's portfolio of office buildings stood at 3.9 per cent as of June 30, compared with 2.6 per cent a year ago. Vacancies were up in all but one of the six cities where Brookfield owns buildings, as landlords contend with too little demand and too much space. The exception was Calgary, which remained flat.

Nearly one-third of Brookfield's portfolio of 50 buildings and development sites is in New York City. It also owns buildings in Toronto, Boston, Denver and Minneapolis.

"There's really no business expansion taking place in any of these markets," chief executive officer Richard Clark told analysts during a conference call yesterday.

But Mr. Clark and other Brookfield executives say they remain confident about the company's prospects because the vacancy rate in its buildings is almost 15 percentage points below the national average in the United States and no substantial leases expire until 2005.

Funds from operations, a key measure of a real estate company's performance, climbed 13 per cent "in spite of what we would call a challenging environment with [vacancies] and some rental pressure in some of our core markets," chief financial officer Steven Douglas told analysts during yesterday's call.

Brookfield's funds from operations climbed to $98-million (U.S.) or 57 cents a share for the three months ended June 30, from $87-million or 51 cents in the same period a year ago. (All figures are stated before income from lease terminations and gains on asset sales.)

Profit fell to $60-million from $74-million a year ago -- a period that included income from lease terminations and gains on asset sales. Excluding these gains, share profit rose to 33 cents from 30 cents.

The vacancy rate in Brookfield's New York portfolio rose to 2.1 per cent from less than 1 per cent a year ago.

Most of the increase came from the loss of one major tenant, investment dealer Gruntal & Co., in One Liberty Plaza.

Brookfield also owns three of the four buildings in the World Financial Center complex.

Brookfield also announced yesterday it has struck a deal to sell a half interest in the Bankers Hall twin towers in Calgary. No details were provided. But it follows the sale of a half interest in Fifth Avenue Place, also in Calgary.