Trending Stock: Brookfield Property Partners L.P.’s (NASDAQ: BPY)

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Shares of Brookfield Property Partners L.P.’s (NASDAQ: BPY) closed with gain/decline of -0.28% to $ -0.05. Recent traded volume was 747,840 shares versus to it an average volume of 1,721,829 shares. The company holds 407.43M shares outstanding and market cap of 14.846B. The stock day range was recorded between a low of $17.54 and a high $17.79.

Brookfield Property Partners L.P. (BPY) recently reported financial results for the quarter ended September 30, 2018.

“The successful acquisition of GGP Inc. marks the culmination of a five-year effort to consolidate all of our real estate investments, giving us direct ownership of our assets and cash flows, and increasing the flexibility of our balance sheet,” stated Brian Kingston, chief executive officer.

Operating Highlights

Our Core Office operations generated Company FFO of $136M for the quarter ended September 30, 2018 contrast to $126M in the same period in 2017. This business generated 3% same-property growth, largely driven by leasing activity in Downtown New York and Washington, D.C.

Occupancy in our Core Office portfolio finished the quarter at 92.9% on 2.2M square feet of total leasing, contrast with 92.7% in the previous quarter and 91.8% in the prior-year period.  New leases were signed at average rents about 11% higher than leases that expired during the quarter.

Through a pre-let contract with Scotiabank, we released the third and final phase of the Bay Adelaide Centre complex in Toronto.  Scotiabank has signed a commitment to lease 420,000 square feet – about 51% of the building – for 15 years as the anchor tenant of Bay Adelaide Centre North.

Our Core Retail operations generated Company FFO of $146M for the quarter ended September 30, 2018, contrast to $128M in the previous year period.  This raise was largely attributable to the acquisition of the balance of GGP in late August, 2018.

Same-property Core Retail occupancy finished the third quarter of 2018 at 94.6%, contrast to 94.2% in the previous quarter and 95.4% in the prior-year period. On a trailing 12-month basis, suite-to-suite leasing spreads were up 11.6% and NOI-weighted tenant sales per square foot were $744, an raise of 5% over the previous year.

Our LP Investments generated Company FFO of $74M for the quarter ended September 30, 2018, contrast to $88M in the third quarter of the previous year.  The decrease is primarily attributable to the sale of our European logistics portfolio and of a hospitality asset, offset in part by acquisition activity.

New Investments

The proceeds raised from asset sales were used to invest in our active development pipeline and to fund new acquisitions, including:

  • Closed on the acquisition of GGP Inc. for about $15B.
  • Reached an contract to acquire Forest City Realty Trust, Inc. for $25.35 per share in an all-cash transaction valued at about $11.4B (about $2.9B at BPY’s share).
  • Purchased a mixed-use development site at Mott Haven in Bronx, NY for $165M.
  • Purchased a 90% interest in a multifamily property powered by Niido – an Airbnb-friendly apartment concept – in Nashville for $90M.
  • Purchased two class A logistics parks totaling 192,000 square feet in Sao Paulo, Brazil for $108M ($29M at BPY’s share).

Balance Sheet Update

During the quarter, we executed on the following transactions to raise our balance sheet flexibility, raise liquidity and extend the maturity of our debt:

  • Issued C$300M of medium-term unsecured notes at an interest rate of 4.346% maturing on July 3, 2023.
  • Stepped Down a corporate unsecured revolving credit facility following repayment of the remaining drawn amount of $653M.
  • Financed Bay Adelaide North, with a C$350M construction facility for a four-year term with a one-year extension option, at a rate of Banker’s Acceptance + 1.40%.
  • Subsequent to quarter-end, issued C$500M of medium-term unsecured notes at a weighted average interest rate of 4.166% and an average term to maturity of 3.3 years, with proceeds being used to retire other corporate debt.

A look on the firm performance, its monthly performance is 6.55% and a quarterly performance of -11.17%. The stock price is moving up from its 20 days moving average with 7.63% and isolated positively from 50 days moving average with 1.30%.

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