Brookfield Property REIT Inc. (“BPR”) is a subsidiary of Brookfield Property Partners L.P., (NASDAQ: BPY; TSX: BPY.UN) (“BPY”) one of the world’s largest commercial real estate companies, with approximately $86 billion in total assets.
The last earnings update was 10 days ago.
Discounted Cash Flow Calculation for NasdaqGS:BPRA.P using 2 Stage Free Cash Flow to Equity using Funds From Operations Model
The calculations below outline how an intrinsic value for
Brookfield Property REIT
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Brookfield Property REIT is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.
NasdaqGS:BPRA.P DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
Brookfield Property REIT
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Brookfield Property REIT
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Brookfield Property REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).
Brookfield Property REIT's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Brookfield Property REIT's
is considered below, and whether this is a fair price.
Price based on past earnings
Brookfield Property REIT's earnings available for a low price, and how does
this compare to other companies in the same industry?
Brookfield Property REIT's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Unable to determine if Brookfield Property REIT is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Brookfield Property REIT's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Brookfield Property REIT
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Brookfield Property REIT's finances.
The net worth of a company is the difference between its assets and liabilities.
Brookfield Property REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Brookfield Property REIT's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Brookfield Property REIT's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Brian W. Kingston is the Chief Executive Officer of Brookfield Property Group LLC since August 28, 2018. Mr. Kingston has been the President and Global Chief Investment Officer at Brookfield Property Group LLC since January 1, 2013 and also serves as its Chief Executive Officer. Mr. Kingston has been the Chief Executive Officer and Senior Managing Partner at Brookfield Property Partners Limited, the General partner of Brookfield Property Partners L. P. since November 2015; and served as its Chief Investment Officer and President until November 5, 2015. He serves as Managing Partner at Brookfield Asset Management Inc. and served as its Senior Managing Partner since 2007. Mr. Kingston serves as Chief Executive Officer of Real Estate at Brookfield Asset Management Inc. Mr. Kingston has been Chief Executive Officer of Australian Commercial Operations and President of Australian Commercial Operations at Brookfield Canada Office Properties since February 2011. Previously, he served as the Chief Executive Officer and Managing Director at Prime Infrastructure Group and Prime Infrastructure Holdings Ltd. since March 2010. Before that, Mr. Kingston served as Chief Financial Officer at Brookfield Australia Investments Group since March 31, 2008 and also served as its Director since March 31, 2008. He has been a Director since 2013 and previously served as the Chief Executive Officer and President at Australian Commercial Operations at Brookfield Office Properties Inc. from January 2011 to January 1, 2013. Mr. Kingston also serves as an Executive Director of BHCA Pty Limited. He serves as a Director of Multiplex Limited. Mr. Kingston has been a Director of Canary Wharf Group Investment Holdings plc since March 18, 2015. He served as a Director of GGP Inc. since August 22, 2013 until August 28, 2018. Mr. Kingston has been a Director of Rouse Properties, Inc. since May 3, 2013. He has been a Director of China Xintiandi Co., Ltd. since February 17, 2014. Before that, Mr. Kingston served as the Chairman and Director of Prime Infrastructure Networks Limited from March 29, 2010 to December 31, 2012. Previously, he served as a Non-Executive Director of Prime Infrastructure RE Limited. Before that, Mr. Kingston served as an Executive Director at Brookfield Multiplex Capital Management Limited from August 27, 2008 to March 17, 2010. Prior to that, he served as an Executive Director of Brookfield Multiplex Funds Management Limited from March 31, 2008 to March 17, 2010. Mr. Kingston has over 15 years of real estate experience. He is a Chartered Accountant. Mr. Kingston received a Bachelor's Degree in Commerce from Queen's University.
Brian's compensation has increased by more than 20% in the past year.
Brian's remuneration is lower than average for companies of similar size in United States of America.
Chairman & Senior Managing Partner
Chief Executive Officer of Brookfield Property Group LLC
Chief Financial Officer of Brookfield Property Group LLC
Board of Directors Tenure
Average tenure and age of the
Brookfield Property REIT
board of directors in years:
The average tenure for the Brookfield Property REIT board of directors is less than 3 years, this suggests a new board.
Brookfield Property REIT Inc. (“BPR”) is a subsidiary of Brookfield Property Partners L.P., (NASDAQ: BPY; TSX: BPY.UN) (“BPY”) one of the world’s largest commercial real estate companies, with approximately $86 billion in total assets. BPR was created as a public security that is intended to offer economic equivalence to an investment in BPY in the form of a U.S. REIT stock. Brookfield Property Partners are leading owners, operators and investors in commercial real estate, with a diversified portfolio of premier office and retail assets, as well as interests in multifamily, triple net lease, industrial, hospitality, self-storage, student housing and manufactured housing assets.
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