Brookfield Properties

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How impaired are their earnings going forward and will they be buyers?

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Asked on May 9, 2020 11:33 pm
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There is no question that BPY's earnings will be impacted. In their latest release, they announced that rent collections in their office and retail portfolios were above 90%. A good sign - however, in retail it was only 20%. Revenue dipped by 27% YOY and it swing to a big net loss. Given retail weakness, the expectation is that losses will only accelerate next quarter.

Will they be buyers? Not sure. The company's cash is being highly impacted which is going to slow potential M&A activity. Last quarter, dispositions outpaced acquisitions in a bid to strengthen liquidity.

Mat

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Posted by Mathieu Litalien
Answered on May 10, 2020 2:26 pm