01.12
Brookfield Properties Corp. (BPO) – $12.41 – 2010 Could Be An Active Yr; Estimates Tweaked; Target Increased to $14
Outperform, Average Risk, Price Target: $14.00 (prev $12.75)
On Dec-30 BPO announced the sale of interests in 1625 Eye Street NW, Washington, D.C. and One Bethesda Center, MD. The sales should generate net proceeds of ~$103MM and RBC CM expects BPO will record a Q4/09 realization gain of ~$40MM (~$0.09/share). RBC CM has increased its Q4/09E NOI from residential op’s from $40MM (~$0.08/share) to $55MM (~$0.11/share). RBC CM believes Q4/09 results will include the sale of Cranston Market (a newly developed 83,000 sf Sobeys anchored strip retail centre) as well as several bulk lot closings. Potential activity could include: 1) Participation In The $5.5 Billion Turnaround Consortium; 2) U.S. Office Fund Restructuring; and, 3) Formation Of A Premier Canadian Office REIT From BPO Properties Ltd. RBC CM has increased its price target to $14 from $12.75. “Outperform” Reiterated.
No Comment.
Add Your Comment