Brookfield Property Partners L.P. BPY

BPY Results

[Vette08]

BPY just released their results......my quick takeaways:

(i) As I noted in my last post...."retail" results are suffering as Q4 contribution was $217 million this quarter vs $270 in Q4 last year and good riddance to Sandeep Mathrani.  

(ii) NO dividend raise.

(iii) Not sure how NAV per share can increase to US$$29.73 per share from US$28.73 per share last year while results are declining and no dividend raise.

(iv) NO capital inititiatives announced similar to last years Substantial Issuer Bid.

Trading today will be interesting and lets see what Mr Kingston has to say on the conference call.  Lets hope I am missing something in the results.

Vette

[Jsboutin]

Regarding your NAV question, I believe currency helped there. The USD weakened in 2019, which raises the USD-denominated value of foreign properties. About 3% looking at the CAD/USD pair. Adding the realizations 9% above IFRS on a billion and the effect of buybacks, which raise NAV/share as long as they purchase them below NAV, the number seems to make sense. I agree with the rest your analysis.

[Vette08]

Hi there, You mention a number of factors to drive the NAV higher and I do not dispute your logic but the main driver of the increase in this quarter was what they call "Fair Value gains" of $869 million.....these Fair Value gains have zero impact on true cash flow and are SIMPLY the marking up of assets to "market" as determined BY THE management of BPY......and Brookfield is

[ChungasRevenge]

He also mentioned: NO capital inititiatives announced similar to last years Substantial Issuer Bid. Utilizing in-place normal course issuer bids (“NCIBs”), we purchased 3,740,558 of BPY units and BPR shares in the fourth quarter of 2019 at an average price of $18.84 per unit/share. In 2019, the total units purchased under the NCIB were 27,328,945 units at an average price of $20.27 per unit.

[Vette08]

Hi Chungas, I am aware of the existing NCIB and almost all companies have an NCIB and there is no question, BPY has made good use of its NCIB. In CEO Kingston's Q4 earnings release in Feb 2019, CEO Kingston came out guns ablazing (after the GGP acquisition) with a meaningful dividend raise and a US$500million SIB and aggressively stood behind the stock. In CEO Kingston Q4 earnings release

[Capharnaum]

Excluding LP Investments realized gains, the FFO per share increased in Q4 2019 vs Q4 2018 from $305 to $337, so I guess that's a positive, especially considering the lower number of shares outstanding.