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Brookfield Properties (BPO) |
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WIKI ANALYSIS
Brookfield Properties Corporation (NYSE: BPO) is one of the biggest commercial real estate companies in North America. The company's two main segments are ownership, development and management of high-quality properties in the most exclusive and high-growth metropolitan hubs in Canada and the United States[1] and development of residential land.
The segment managing premier assets in exclusive cities is the main driver of BPO's net income earnings. The segment covers over 110 office properties in 75 million square feet (two thirds of which come from New York City alone) [2]
In the wake of the 2008 Financial Crisis which severely harmed the US real estate industry, Brookfield Properties Corporation has outperformed most competitors. The company's commercial property operations — buoyed by higher-than-industry occupancy rates and rent revenue, have increased net operating income and maintained solid, steady cash flows. BPO courts many first-grade clients (which have included Royal Bank Of Canada (RY) , Goldman Sachs Group (GS) and Chevron Corporation (CVX)) [3]
Corporate Overview
Incorporated in the 1920s and existing in various facets of the industry since the 1960s, Brookfield Properties Corporation eventually grew into a powerhouse real estate giant in North America after a series of high-value acquisitions of premier properties in Canada and the US since 1990. Currently, the company owns, develops, and operates premier assets in the downtown cores of mainly New York, Boston, Washington, D.C., Los Angeles, Houston, Toronto, and Calgary.
Brookfield Properties Corporation focuses on attracting diversified clients very high credit rating. The company acquires office spaces which are well-placed in the cores of high-growth North American metropolises, and manage them on a long-term basis to increase value to potential clients, while fostering demand at low costs to the company.
Another defining philosophy of BPO is active capital management and a market focus in supply-constrained / barrier-to-entry markets whose tenants are very well-capitalized.
Business Segments
BPO Commercial Property Operations covers 12 distinct (geographic) markets in the US and Canada: Houston, Toronto, Calgary, Denver, Washington, DC, Los Angeles, Midtown New York City, Downtown New York City, Boston, Ottawa and Vancouver / Edmonton.
The segment has 110 properties — covering 75 million square feet (9 million square feet of parking included). According to the company, the segment's primary markets are the financial, energy and government center cities in New York, Washington, D.C., Houston, Los Angeles, Boston, Toronto, Calgary and Ottawa.
In order to realize the value from properties, BPO focuses on proactive leasing of and selective redevelopment, monetizing the development assets (including refinancing of mature properties) and aiming for prudential capital management.
| Market | % of Net Oper. Income | Number of Properties | Area (millions of sq. ft.) |
|---|---|---|---|
| Downtown NYC | 33 | 8 | 13.9 |
| Toronto | 10 | 11 | 10.7 |
| Calgary | 6 | 9 | 6.9 |
| Denver | 3 | 1 | 1.8 |
| Washington DC | 11 | 30 | 7.3 |
| Los Angeles | 8 | 5 | 4.5 |
| Midtown NYC | 10 | 3 | 4.5 |
| Houston | 11 | 9 | 9.1 |
| Boston | 6 | 2 | 2.3 |
| Ottawa | 1 | 6 | 2.8 |
| Vancouver / Edmonton | 1 | 3 | 1.6 |
Companies under Brookfield Properties Corporation
- Brookfield Asset Management (BAM): owns approximately half of the outstanding common shares of BPO, manages US$95 billion of property, power and other infrastructure assets. '
- BPO Properties: a real estate investment company in which BPO owns 89% equity interest, focuses on ownership and and value enhancement of premier commercial real estate in Toronto, Calgary, Ottawa, Edmonton and Vancouver.
- Carma Corporation: fully owned by BPO and develops commercial areas and income properties for investment and sale and develops master planned communities in BPO's 12 markets in Canada and the US.
- 'Brookfield LePage Johnson Controls (BLJC): supplies facility management solutions for various private sector and governmental clients. BPO owns a 40% equity investment in BLJC
- Brookfield Residential Services Ltd.: fully owned by BPO and manages condominium corporations in the greater Toronto area.
Business and Financial Metrics
References
- ↑ Corporate Overview. Brookfield Properties Corporation Inc.
- ↑ BPO 2009 Annual Results
- ↑ Tom Hutchison (June 30, 2010). A Real Estate Gem Lost in the Rubble. Street Authrority.
- ↑ (Global Markets) BPO Portfolio. BPO Inc..
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