Stockchase Opinions

Dennis Mitchell, CFA Brookfield Properties Corp. BPO-N TOP PICK Jul 15, 2010

Premier office portfolio, Toronto, Los Angeles, Manhattan and Ottawa. Great management, great balance sheet and low payout ratio.
$14.650

Stock price when the opinion was issued

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PAST TOP PICK
(Top Pick Jan 19/10, Up 39%) Core holding, great company, low leverage, sustainable payout ratio. It is reaching full value so he doesn’t add to it.
BUY
Brookfield Properties has done a lot of restructuring. It is a play on international, specifically in New York. The leasing market is now stable in New York and Chicago. Thinks BPO will outperform over the next few years.
PAST TOP PICK
(A Top Pick July 15/10. Up 22.32%.) Great quality portfolio. AAA luxury offices in Toronto, Ottawa, Calgary, Manhattan and Washington. This would be a strong Buy now.
TOP PICK
(A Top Pick Aug 20/10. Up 5.79%. ) Trading back at 2007 levels. Cash flow has done nothing but grow and cash flow is higher. Merrill Lynch is leaving their Manhattan offices giving them about 2 million square footage that they will have to lease. NAV is about $18.50. Very cheap and worth about $20.
TOP PICK
One of the few large cap blue-chip names that trades at a material discount to its NAV. Very volatile. Assets in Canada, US, Australia and London. (Although he is using the New York exchange, he suggests that viewers use the TSE instead.)
DON'T BUY

(Market Call Minute.) Stay away for the time being. Have to get some of their offices leased up in New York City right now.

TOP PICK

REIT space got crushed a bit when interest rates ticked up, so she avoided that space but this one is the one she owns. They had an overhang with vacancy in Manhattan. She expects an announcement from the company in the next while. They are trading at a discount for a temporary reason. A few years and people will look back on this saying they got through it.

TOP PICK

3.95% Bond Maturing Apr 9/19. Good relative yield compared to other bonds in the market. ‘A’ rated.

PAST TOP PICK

(A Top Pick Sept 20/13. Up 30.18%.) This has now been absorbed into the parent. She had actually sold her holdings. Hasn’t really had any exposure to the REIT sector, except for this one, over the last several years.

PAST TOP PICK

(A Top Pick June 6/14, Up 4.55%) Matures April 9, 2019. It is a credit that he always likes, they take advantage of the bond market, produce good returns and they have a strong balance sheet. Beats inflation and you earn your money back in a relatively small time. You earn something.