This estimate was made in light of the company’s potential to gain R$5.9 billion from the sale of its nearly entire portfolio of corporate panels to Canada. Brookfield (BRK), approved by CADE Technical Committee. Final approval must be made within 15 days.
New estimates indicate a satisfactory recurring income (operating cash flow), at around 12% after sales and earnings‘,” says an extract from the report signed by Bruno Mendonca and Wellington Lourenço.
According to BBI, the company’s net cash position could reach R$10.90-12.00/BRPR3 (25-37% of the likely estimate), if Br Properties sells the rest of the portfolio – which is still trading – at a discount of 69% on NAV (Net Asset Value). ), he says.
Bank analysts say they see “a change in the history of Br Properties”, as the company should become a “revenue player, with a net cash position and low vacancy”.
BBI has a buy recommendation from Br Properties, with a target price of R$ 12.00 (compared to R$ 12.50 previously) for the end of 2022.
Why sell BR Properties
The sale of BR Properties’ assets is part of the company’s strategy to adopt a more conservative stance.
The operation is carried out mainly to prevent the Group from facing annual financial expenses calculated in the amount of 350 million Rls, resulting from the high impact of high interest rates in the country on debt.
President Martin Jaco said: At a conference with analysts.
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