Barclays Maintains an 'Equalweight' on Brookfield Properties (BPO); Leasing / Financing Work Still To Be Done
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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 of $16.00.
Barclays analyst says, "Key Takeaway: Excluding one-time items not in our model, 3Q11 results were roughly in line with expectations. This has become a record leasing year for BPO, although we project flat average occupancy in 2012 and some downtime from significant rollover in 2013. However, the current +19% estimated mark-to-market for the portfolio, and improving market rents, suggest strong rent bumps on re-leasing in future periods. Near-term risks include sizable secured debt maturities and lease expirations over the next few years. We generally remain believers in the long-term potential of Downtown Manhattan (where 4.5 million sf is set to expire in 2013), but expect near-term results to be slowed by downtime between leases and higher capex (as well as higher interest expense). Still, we project 14% annual operating FFO growth from 2011-2016 (heavily back-end weighted and largely driven by external growth). We believe BPO's growth/ risk profile is adequately reflected in its valuation relative to the rest of our coverage."
Barclays adjusts FY11 EPS estimate from $1.11 to $1.13 and FY12 from $1.17 ti $1.11.
For an analyst ratings summary and ratings history on Brookfield Properties click here. For more ratings news on Brookfield Properties click here.
Shares of Brookfield Properties closed at $15.62 yesterday.
Barclays analyst says, "Key Takeaway: Excluding one-time items not in our model, 3Q11 results were roughly in line with expectations. This has become a record leasing year for BPO, although we project flat average occupancy in 2012 and some downtime from significant rollover in 2013. However, the current +19% estimated mark-to-market for the portfolio, and improving market rents, suggest strong rent bumps on re-leasing in future periods. Near-term risks include sizable secured debt maturities and lease expirations over the next few years. We generally remain believers in the long-term potential of Downtown Manhattan (where 4.5 million sf is set to expire in 2013), but expect near-term results to be slowed by downtime between leases and higher capex (as well as higher interest expense). Still, we project 14% annual operating FFO growth from 2011-2016 (heavily back-end weighted and largely driven by external growth). We believe BPO's growth/ risk profile is adequately reflected in its valuation relative to the rest of our coverage."
Barclays adjusts FY11 EPS estimate from $1.11 to $1.13 and FY12 from $1.17 ti $1.11.
For an analyst ratings summary and ratings history on Brookfield Properties click here. For more ratings news on Brookfield Properties click here.
Shares of Brookfield Properties closed at $15.62 yesterday.
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