- Brookfield Property Partners (BPY.UN) has reported a disappointing second quarter after COVID-19 caused upsets in the commercial real estate sector
- The company posted a net loss of more than C$2 billion, compared to a $30.6 million gain in the same period last year
- Funds from operations also dropped from over $445 million in 2019 to just $236 million this year
- The slide in performance was largely due to widespread closures among the company’s hospitality and retail assets
- Brookfield Property Partners (BPY.UN) is currently down 0.065 per cent and is trading at $15.43 per share
Brookfield Property Partners (BPY.UN) has reported a disappointing second quarter after COVID-19 caused upsets in the commercial real estate sector.
The company, which is the listed real estate arm of Brookfield Asset Management, posted a net loss of more than C$2 billion during the quarter, compared to a $30.6 million gain in the same period last year.
This was largely attributable to an unrealised reduction in asset values across its entire portfolio.
Likewise, Brookfield Property Partners’ funds from operations dropped from over $445 million in 2019 to just $236 million this year, primarily off the back of widespread closures among its hospitality and retail assets.
Any further slide in financial performance was largely propped up by contributions from the company’s core office business, which generated $167 million during the quarter. However, this amount still represents a decline compared to the $248 million reported last year.
While rent collection in its office portfolio remained largely interrupted, the drop was driven primarily by a decrease in funds from operations within its parking and retail operations.
Brian Kingston, CEO of Brookfield Property Partners, said the second quarter of 2020 brought unprecedented challenges to the commercial real estate industry and the broader economy as a whole.
“I am extremely proud of the thousands of dedicated Brookfield real estate employees around the globe who all played an integral role in preparing our properties for safe re-opening, and it’s gratifying to see our tenants return to their buildings and resume operations,” he added.
As of June 30, 2020, the company had almost $8 billion in group-wide liquidity, including approximately $2 billion in cash on hand, $3.7 billion in corporate and subsidiary credit facilities, and $2.3 billion in undrawn construction facilities.
Brookfield Property Partners (BPY.UN) is currently down 0.065 per cent and is trading at $15.43 per share at 1:17pm EDT.