Brookfield Property Partners (Nasdaq: BPY) is a partnership under the giant Brookfield umbrella. Brookfield has several publicly traded subsidiaries. The parent company is involved with private equity, infrastructure, real estate and power.
Brookfield Property Partners owns 96 million square feet of office space and 120 million square feet of retail space, and it has 11 million square feet of office and multifamily projects in development.
Last year, the company reported funds from operations (FFO) per share of $1.48. FFO is similar to cash flow, and it is the metric used by real estate companies.
Brookfield Property Partners paid out $1.26 per share in distributions in 2018. (Partnerships pay distributions rather than dividends.)
So last year, Brookfield Property Partners easily afforded its distribution payment.
This year, FFO per share is expected to decline to $1.44. However, in 2020, that figure is projected to rise to $1.58.
Even at $1.44, the company can afford its distribution, and if it meets estimates in 2020, the declining FFO per share this year will be all but forgotten.
Brookfield Property Partners has raised its dividend every year since it began paying one in 2013.
Like a college kid with a gambling problem, Brookfield Property Partners knows that having a parent with deep pockets doesn’t hurt.
If the partnership ever needs to raise money in order to pay the distribution or fund new income-producing investments, it likely will be able to using the Brookfield name.
According to SafetyNet Pro, the only thing against Brookfield Property Partners is this year’s slight decline in FFO.
But if next year FFO is still expected to grow, the stock will achieve the highest rating available, which is impressive for a 7% yield.
In the meantime, the stock is considered low-risk for a dividend cut.
Dividend Safety Rating: B
If you have a stock whose dividend safety you’d like me to analyze, leave the ticker symbol in the comments section.
[adzerk-get-ad zone="245143" size="4"]About Marc Lichtenfeld
Marc Lichtenfeld is the Chief Income Strategist of Investment U’s publisher, The Oxford Club. He has more than three decades of experience in the market and a dedicated following of more than 500,000 investors.
After getting his start on the trading desk at Carlin Equities, he moved over to Avalon Research Group as a senior analyst. Over the years, Marc’s commentary has appeared in The Wall Street Journal, Barron’s and U.S. News & World Report, among other outlets. Prior to joining The Oxford Club, he was a senior columnist at Jim Cramer’s TheStreet. Today, he is a sought-after media guest who has appeared on CNBC, Fox Business and Yahoo Finance.
Marc shares his financial advice via The Oxford Club’s free daily e-letter called Wealthy Retirement and a monthly, income-focused newsletter called The Oxford Income Letter. He also runs four subscription-based trading services: Technical Pattern Profits, Lightning Trend Trader, Oxford Bond Advantage and Predictive Profits.
His first book, Get Rich with Dividends: A Proven System for Earning Double-Digit Returns, achieved bestseller status shortly after its release in 2012, and the second edition was named the 2018 Book of the Year by the Institute for Financial Literacy. It has been published in four languages. In early 2018, Marc released his second book, You Don’t Have to Drive an Uber in Retirement: How to Maintain Your Lifestyle without Getting a Job or Cutting Corners, which hit No. 1 on Amazon’s bestseller list. It was named the 2019 Book of the Year by the Institute for Financial Literacy.
