Monday, November 24, 2008

Brookfield Properties 2

I was going today to look at some stocks on the Dividend Aristocrats List that I do not have. The first one was Brookfield Properties (TSX-BPO). However, since I had no spreadsheet on this, I had to start from scratch. The spreadsheet on this stock took longer than I expected. Note that this company is own 51% by Brookfield Asset Management Company (TSX-BAM.A).

Brookfield Properties is on the Dividend Aristocrats list. Both Brookfield Properties and Brookfield Asset Management are on the Dividend Achievers list. Brookfield Asset Management is on Mike Higgs’ list. I have not done a spreadsheet yet on Brookfield Asset Management. See the Dividend Achievers list at, The Dividend Aristocrats list at (see indices) and Mike Higgs' list at

The Last Annual Statement is dated 31 December 2007. First, the good news, the 5 and 10 years to the last annual statement has seen the Dividends grow by 14% and 19.8% per year respectively, and the Closing Price grow by 11.5% and 8% per year, respectively.

In the not too bad category, the 5 and 10 years to the last annual statement has seen the Revenue grow by 5.8% and 6.6% per year respectively, but this becomes worse if you look at the Revenue per Share that has grown by 4% and 3.8% per year respectively. The Return on Equity (ROE) is not bad at 7.9% and the Accrual Ratio at 2.9% at December 2007.

Now for the bits I do not like. The Earnings per Share (EPS) growth has been negative for the last 5 years and the Cash Flow from Operations has been steadily fall for the last 3 years, until in December 2007 it was negative. For December 2007, the Graham Price is $10.00 and the Stock price is $19.22. The Graham price is low because the Book Value per share is not growing. Also, the Asset/Liability ratio is low at 1.17.

This would not be my favorite stock, but I will look to see what others are saying about it tomorrow. Also, tomorrow I will look at the most recent quarterly report.

Brookfield Properties is a leading North American commercial real estate company that invests in premier-quality office properties in high-growth markets driven by financial service, government, and energy tenants. The portfolio is composed of office properties in 12 top U.S. and Canadian markets. Its web site is See my spreadsheet at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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