Barclays Maintains an 'Equalweight' on Brookfield Properties (BPO); Strong Imbedded Mark-to-Market
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Price: $20.52 --0%
Rating Summary:
1 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Brookfield Properties (NYSE: BPO) price target lowered by $2 to $20.
Barclays analyst says, "Second quarter FFO came in above expectations, but it was not a high-quality beat with SSNOI growth turning negative on a YOY basis and underperforming our modeled assumptions. That said, office occupancy remained at 93.3% and the estimated mark-to-market for the portfolio climbed to 21% from 11% a quarter ago, as market rents recover. The most notable risk (and perhaps source of upside for the stock) remains leasing in downtown Manhattan, where 4.5 million square feet is scheduled to expire in 2013. We generally remain believers in the long-term potential of downtown Manhattan and are projecting 15% annual operating FFO growth for BPO from 2011-2016. However, we also believe that growth (and risk) is adequately reflected in the stock's valuation relative to the rest of our coverage universe."
"We are increasing our FY2011 FFO estimate to $1.11 (from $1.10), driven by the 2Q11 beat. However, we are lowering our 2012 estimate to $1.20 (from $1.24) on more conservative growth assumptions, given increased macroeconomic uncertainty."
For more ratings news on Brookfield Properties click here and for the rating history of Brookfield Properties click here.
Shares of Brookfield Properties closed at $17.37 yesterday.
Barclays analyst says, "Second quarter FFO came in above expectations, but it was not a high-quality beat with SSNOI growth turning negative on a YOY basis and underperforming our modeled assumptions. That said, office occupancy remained at 93.3% and the estimated mark-to-market for the portfolio climbed to 21% from 11% a quarter ago, as market rents recover. The most notable risk (and perhaps source of upside for the stock) remains leasing in downtown Manhattan, where 4.5 million square feet is scheduled to expire in 2013. We generally remain believers in the long-term potential of downtown Manhattan and are projecting 15% annual operating FFO growth for BPO from 2011-2016. However, we also believe that growth (and risk) is adequately reflected in the stock's valuation relative to the rest of our coverage universe."
"We are increasing our FY2011 FFO estimate to $1.11 (from $1.10), driven by the 2Q11 beat. However, we are lowering our 2012 estimate to $1.20 (from $1.24) on more conservative growth assumptions, given increased macroeconomic uncertainty."
For more ratings news on Brookfield Properties click here and for the rating history of Brookfield Properties click here.
Shares of Brookfield Properties closed at $17.37 yesterday.
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