UBS Maintains a 'Neutral' on Brookfield Properties (BPO); Discount to NAV, But What’s the Catalyst
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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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UBS maintains a 'Neutral' on Brookfield Properties (NYSE: BPO) price target lowered from $19 to $16.
UBS analyst says, "Trading at an implied 6.9% nominal cap rate and $390 PSF, we view BPO as attractively valued relative to NAV. However, the shares likely remain range bound continuing to trade at a discount to NAV as a near term catalyst is lacking and concerns around leasing in noncore markets persist. Primary markets for BPO (US CBD, Canada, and Australia) have stabilized, but we see limited upside in the shares near term as development opportunities are a 2015 story and beyond."
"Although some preleasing progress has been made on the expiring BAML leases at Wells Fargo (NYSE: WFC), the overhang from the 4.6M SF lease roll in 2013 will likely persist until measurable developments are announced. Concerns around the geographic diversification strategy as well as the subsidiary structure with BAM will also likely remain."
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 $14.74 yesterday.
UBS analyst says, "Trading at an implied 6.9% nominal cap rate and $390 PSF, we view BPO as attractively valued relative to NAV. However, the shares likely remain range bound continuing to trade at a discount to NAV as a near term catalyst is lacking and concerns around leasing in noncore markets persist. Primary markets for BPO (US CBD, Canada, and Australia) have stabilized, but we see limited upside in the shares near term as development opportunities are a 2015 story and beyond."
"Although some preleasing progress has been made on the expiring BAML leases at Wells Fargo (NYSE: WFC), the overhang from the 4.6M SF lease roll in 2013 will likely persist until measurable developments are announced. Concerns around the geographic diversification strategy as well as the subsidiary structure with BAM will also likely remain."
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 $14.74 yesterday.
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