Brookfield Properties Corporation's (Brookfield) NYSE common stock achieved our target price on 20 July 2009 reflecting general improvement in US markets. Although Brookfield's performance has been better-than-expected, as the current stock price trades close to the NAV we downgrade the NYSE common stock from a BUY to a HOLD. We will reassess our target price and rating for Brookfield in the coming weeks. Although the target price does not support…

The real estate market in North America is reeling from the affects of the prevailing economic recession and financial crunch. Companies in North America are cutting staff and costs, which is impacting the demand for office space. Vacancy rates ended at 14.8% in 2008, increasing 50 bps y-oy in 4Q 08, and are forecast to rise to 16.5% in 2009 (Source: “2009 Real Estate Forecast”, Grubb and Ellis). As companies look to monetize empty space, the sub-lease market…

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Brookfield Properties Corporation’s (Brookfield) NYSE common stock price has declined significantly since our 3Q 08 update report, dated 23 December 2008, reflecting the ongoing weakness in the US real estate sector and volatility in global equity markets. Going forward, we remain cautious about the company’s prospects over the medium term in light of the ongoing downturn in the US real estate sector. As a result…