BPYU

Brookfield Property REIT Inc.

Finance/Real Estate


Presented:03/19/2020
Price:$8.83
Cap:$0.53B
Current Price:$18.52
Cap:$0.71B

Presented

Date03/19/2020
Price$8.83
Market Cap$0.53B
Ent Value$50.38B
P/E RatioN/A
Book Value$25.30
Div Yield14.98%
Shares O/S60.08M
Ave Daily Vol1,531,899
Short Int19.02%

Current

Price$18.52
Market Cap$0.71B
Brookfield Property REIT, Inc. engages in operation, development and management of retail and other rental properties. The firm offers investors an economic equivalence to its parent company but in form of U.S. real estate investment security. It owns a property portfolio comprised primarily of Class A retail properties. The company was founded in July 2010 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Boston Properties Inc (BXP), Brookfield Property Partners LP (BPY), Brookfield Property REIT Inc (BPYU), Simon Property Group Inc (SPG)

Highlights

The presenter is negative on Brookfield Property REIT Inc (BPYU), the asset manager associated with the more liquid Brookfield Property Partners LP (BPY). Despite recent share price declines, he is confident that both BPY and BPYU are overvalued based on Brookfield’s unsustainable dividends, high operating leverage, and an asset base that is especially exposed to COVID-19 headwinds. BPYU currently trades at $8 per share; however, applying SPG’s current cap rate (~10%) to Brookfield’s retail business and BXP’s current cap rate (~6%) to Brookfield’s office business yields an implied value of ~$2 per share. 

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Idea Discussion

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