Sunday, September 10, 2017

Brookfield Property Partners - A Strong Development Pipeline to Drive Growth

Brookfield Property Partners (BPY) has a strong Development Pipeline that will bring online cash generating assets between 2017 and 2022 that should meaningfully contribute to cash flow growth. The key factor is that this growth is funded organically with retained cash generated from existing assets and through cash proceeds from capital recycling and no new units are being issues. More than 10 million square feet of office and multifamily projects currently in development and include the following:

  1. Manhattan West, New York City
  2. Bay Adelaide North, Toronto
  3. 100 Bishopsgate. London
  4. Brookfield Place Calgary
  5. London Wall Place
  6. ICD Brookfield Place Dubai
  7. 655 New York AvenueWashington, D.C.
  8. Canary Wharf's New District, London
  9. Wynyard Place
  10. Greenpoint Landing, Brooklyn, New York
  11. Principal Place London
BPY trading at $23.50 per unit and at a 5% distribution yield should produce strong risk adjusted returns over the next 10 years. 

Insurance Disasters Harvey & Irma - Short Term Pain & Long Term Gain

Insurance Disasters like Harvey and Irma may cause Short Term Pain but will produce Long Term Gain for well capitalized Insurers and Re-Insurers like Munich Re (MURGY) and Berkshire Hathaway (BRK-B) companies like Geico, General Re and Berkshire Hathaway Reinsurance Group.

The payouts from these disasters will flush out the smaller companies and companies that insured aggressively over last few years with improper risk underwriting. The rise in rates should allow the well capitalized companies to move in now and gain market share with less risk on a going forward basis.