Brookfield Property Partners - CEO, Brian Kingston
CEO, Brian Kingston
Source: Financial Times
  • Shares in Brookfield Property Partners (BPY) took a knock today, as the global real estate market continues to struggle under the pandemic
  • The company’s overall cash flow halved to US$161 million (approximately C$209.75 million) in the third quarter, compared to US$324 million (approximately C$422 million) in last year’s same period
  • The hit to cash flow has dragged the company’s net loss to US$135 million (approximately C$175.9 million), versus a net profit of around US$870 million (approximately C$1.13 billion) in 2019’s third quarter
  • The substantial drop in profits has largely been attributed to the lingering impact of this year’s pandemic-induced global economic shutdown, which has severely hit key property markets across the world
  • Brookfield Property Partners (BPY) is down 4.58 per cent and is trading at C$18.35 per share

Shares in Brookfield Property Partners (BPY) took a knock today, as the global real estate market continues to struggle under the pandemic.

The company’s overall cash flow halved to US$161 million (approximately C$209.75 million) in the third quarter, compared to US$324 million (approximately C$422 million) in last year’s same period.

The hit to cash flow has dragged the company’s bottom line into the red, plummeting to a net loss of US$135 million (approximately C$175.9 million), versus a net profit of around US$870 million (approximately C$1.13 billion) in 2019’s third quarter.

The substantial drop in profits has largely been attributed to the lingering impact of this year’s pandemic-induced global economic shutdown, which has severely hit key property markets across the world.

Unsurprisingly, the company’s cash flow and realised gains from its retail property segment bore the brunt of the downturn, dropping from US$201 million (roughly C$261 million) in 2019’s third quarter to just US$97 million (approximately C$113.3 million) this quarter.

Limit partnership investments also saw a substantial hit, with cash flow and realised gains falling almost two-thirds, to US$26 million (around C$33.9 million).

Brookfield’s core office segment, however, held relatively steady at US$141 million (approximately C$183.7 million), compared to US$150 million (approximately C$207.1 million) in 2019’s same quarter.

Commenting on Brookfield Property Partners’ difficult macro-environment, CEO Brian Kingston chose to focus on the company’s operating achievements.

“We saw consistent improvement in our operations over the course of the third quarter and, while there may be temporary setbacks as different regions reach different stages of recovery, we are confident that the worst of the economic shutdown is now behind us.

“Our staff has done an amazing job preparing our buildings for safe re-opening and each day it is gratifying to see more office workers, retailers, customers and visitors returning to our properties around the globe,” he said.

Brookfield Property Partners (BPY) is down 4.58 per cent and is trading at C$18.35 per share at 11:37am EST.

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