TSX Commentary » Brookfield Properties Corp.

Brookfield Properties Corp. BPO Lots Of Possibilities For ‘10; Target Up To $15

admin — Mon, 08 Feb 2010 20:28:40 +0000

Brookfield Properties Corp. (BPO):$12.74 – Lots Of Possibilities For ‘10; Target Up To $15
Outperform, Average Risk, Price Target: $15.00 (prev. $14.00)
Q4/09 FFO/share of $0.43 was -12% vs. Q4/08’s $0.49, handily exceeding RBC CM’s $0.37E and consensus $0.32. Two-thirds (~$0.04/share) of the favourable variance vs. RBC CM’s estimate was from land and housing NOI. Initial 2010 FFO/share guidance is $1.25-$1.33 (midpoint of $1.28) on +1% same-property NOI and further growth in land/housing NOI. These figures are above consensus of ~$1.17. Effective Q1/10, the move to IFRS will “muddy” the numbers. RBC CM’s revised 2010E GAAP FFO of $1.29 equates to IFRS FFO of $1.18. Despite BPO’s $600MM+ of total tax pools, RBC CM believes the conversion of the Canadian commercial op’s to a TSX-listed REIT as a likely event.

CIBC top picks for 2010

admin — Wed, 13 Jan 2010 16:24:36 +0000

Top Picks Of 2010
Ticker Company Rating Price Target
VNP 5N Plus, Incorporated Sector Outperformer $7.50
BPP BPO Properties Ltd. Sector Outperformer $21.00
CNR Canadian National Railway Company Sector Outperformer $65.00
EGO Eldorado Gold Corporation Sector Outperformer US$20.00
EMP.A Empire Company Limited Sector Outperformer $59.00
FM First Quantum Minerals Ltd. Sector Outperformer $115.00
FNV Franco-Nevada Corporation Sector Outperformer $46.00
MIC Genworth MI Canada Inc. Sector Outperformer $30.00
HR.UN H&R REIT Sector Outperformer $19.00
MN March Networks Corp. Sector Outperformer $7.00
PAAS Pan American Silver Corp. Sector Outperformer US$41.00
SJR.B Shaw Communications Sector Outperformer $24.00
SU Suncor Energy Inc. Sector Outperformer $44.00
TKO Taseko Mines Limited Sector Outperformer–Speculative $5.90
TOT Total Energy Services Sector Outperformer $8.00
TRP TransCanada Corp. Sector Outperformer $42.00

Source: CIBC World Markets Inc.

Brookfield Properties Corp BPO 2010 Could Be An Active Yr Target Increased to 14

admin — Tue, 12 Jan 2010 21:41:41 +0000

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.