Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Brookfield Office Properties Inc (BPO-PT.TO)

Company Dividend Discount ModelIndustry: REIT - RetailSector: Real Estate

Valuation Snapshot

Stable Growth$22.57 - $32.17$27.28
Multi-Stage$35.44 - $38.89$37.13
Blended Fair Value$32.21
Current Price$12.98
Upside148.14%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2015201420132012
DPS0.00%0.00%0.951.000.75728.920.000.000.000.000.000.00
YoY Growth---4.75%32.97%-99.90%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--7.33%5.31%3.43%2,838.47%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1.62
(-) Cash Dividends Paid (M)0.56
(=) Cash Retained (M)1.06
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.320.200.12
Cash Retained (M)1.061.061.06
(-) Cash Required (M)-0.32-0.20-0.12
(=) Excess Retained (M)0.740.860.94
(/) Shares Outstanding (M)0.480.480.48
(=) Excess Retained per Share1.521.771.93
LTM Dividend per Share1.161.161.16
(+) Excess Retained per Share1.521.771.93
(=) Adjusted Dividend2.672.923.09
WACC / Discount Rate9.60%9.60%9.60%
Growth Rate-2.00%-1.00%0.00%
Fair Value$22.57$27.28$32.17
Upside / Downside73.85%110.21%147.84%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1.621.601.591.571.561.541.59
Payout Ratio34.59%45.67%56.75%67.84%78.92%90.00%92.50%
Projected Dividends (M)0.560.730.901.071.231.391.47

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.60%9.60%9.60%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)0.660.670.67
Year 2 PV (M)0.730.750.76
Year 3 PV (M)0.790.810.83
Year 4 PV (M)0.820.850.89
Year 5 PV (M)0.830.880.92
PV of Terminal Value (M)13.3514.0514.77
Equity Value (M)17.1818.0018.85
Shares Outstanding (M)0.480.480.48
Fair Value$35.44$37.13$38.89
Upside / Downside173.06%186.07%199.59%

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