Stock Idea…Brookfield Property
Partners L.P.
Symbol : BPY.UN
Exchange: TSX
Market Cap : 6.2
Billion
Revenue : 6.13
Billion
Three Year Revenue Growth : 11.1 %
Investment Type : Big Cap Value/Growth
Three Year Revenue Growth : 11.1 %
Investment Type : Big Cap Value/Growth
Price/Earnings : does
not apply to limited partnerships
Forward P/E : does
not apply to limited partnerships
Price/Book : 0.2
Price/Sales : 1.0
Price/Cash Flow :1.8
Price : 24.55
Investment Stem : My own investment portfolio
Investment Stem : My own investment portfolio
New 52 week low
list
Brookfield Property
Partners LP owns, operates, and invests in commercial properties in North
America, Europe, Australia, and Brazil.
Its operating segment includes Core Office, Core Retail, Opportunistic and
Corporate Segments.
Brookfield Property
Partners L.P. is a diversified global real estate company. The Company owns,
operates and develops a portfolio of office, retail, multifamily, industrial,
hospitality, triple net lease, self-storage and student housing assets. Its
partnership is Brookfield Asset Management Inc.'s public commercial property
entity and the primary vehicle through which it invests in real estate on a
global basis. It operates through four segments: Core Office, Core Retail,
Opportunistic and Corporate. As of December 31, 2016, its Core Office segment
consisted of interests in 142 office properties totaling 99 million square
feet. As of December 31, 2016, its Core Retail segment consisted of interests
in 127 regional malls and urban retail properties. As of December 31, 2016, its
Opportunistic segment consisted of 107 office properties comprising
approximately 29 million square feet of office space in the United States, United
Kingdom, Brazil
and Asia.
The dreaded metrics from Morningstar
http://quote.morningstar.ca/Quicktakes/stock/keyratios.aspx?t=BPY.UN®ion=CAN&culture=en-CA&ops=clear
The company’s website…
This investment idea is a limited partnership, not a
corporation. It is designed to have the money flow through the company
structure in the form of a distribution to the limited partners (shareholders).
It is a more tax efficient way of paying dividends to the stakeholders of the
company. The parent company owns huge amounts of the stock in this subsidiary
of the parent company. That is a good thing as it puts the managers of the
company on the same side of the fence as with their shareholders. The Brookfield management
team is simply in a class all of their own and are firm believers in the
Capital Cycle…see below…
It pays a dividend (distribution) of 6.54 percent. Rest
assured it is safe and will rise over time as it has in the past so the
investor will enjoy the advantage of ‘yield on cost’…see below…
To give you an example of yield on cost in action, I bought
the stock of this company in the summer of 2013. The annual dividend
(distribution) rate at that time was 1.04 per annum and in U.S funds. Its
dividend rate is now 1.26 per annum. So they have been raising their distribution over time. And even though the stock of this company is at a
52 week low, I am still up over 22 per cent on my original purchase price not even accounting for the rising dividend stream.
The stock is being punished because it is viewed as an
income stock and people are afraid that the rising interest rates will hurt it.
They are ignoring the fact that this company can raise their rents in tandem
with the rise in interest rates. I’ve talked a lot lately about buying quality
merchandise at bargain sale prices. You are looking at an example of that here.
This is a stock to buy and lock up. You are getting a great price and
partnering up with as good a management team as there is in the world. Needless
today I am a big fan of the Brookfield complex of companies.
The great thing about the Brookfield group of companies is their transparency of information and how they communicate the operations and developments of their business...below is BPY.UN's latest quarterly letter to its unitholders...
https://bpy.brookfield.com/~/media/Files/B/Brookfield-BPY-IR/letters-to-unitholders/2017/bpy-q417-ltu.pdf
One additional point, the Canadian dividend credit will not apply to this stock as it pays out a distribution, not a dividend. So if you are interested in buying it, it would be a better fit for your RRSP as the distribution payments will be shielded from the tax man..and as always, check things out for yourself before buying or discuss this idea with your investment advisor.
The great thing about the Brookfield group of companies is their transparency of information and how they communicate the operations and developments of their business...below is BPY.UN's latest quarterly letter to its unitholders...
https://bpy.brookfield.com/~/media/Files/B/Brookfield-BPY-IR/letters-to-unitholders/2017/bpy-q417-ltu.pdf
One additional point, the Canadian dividend credit will not apply to this stock as it pays out a distribution, not a dividend. So if you are interested in buying it, it would be a better fit for your RRSP as the distribution payments will be shielded from the tax man..and as always, check things out for yourself before buying or discuss this idea with your investment advisor.
No comments:
Post a Comment