O Bradesco BBI says he sees the possibility of a dividend yield between 60% and 70% for the Br Properties (BRPR3) in the second half of this year.
The estimate is made in view of the prospect that the company will have R$ 5.9 billion from the sale of almost its entire portfolio of corporate slabs to the Canadian brookfield (BRK), approved by CADE’s technical committee. Final approval must occur within 15 days.
“New estimates point to a satisfactory recurring FFO (operating cash flow) income, at around 12% after the sale and the dividends“, says an excerpt from the report signed by Bruno Mendonça and Wellington Lourenço.
According to BBI, the company’s net cash position could reach R$ 10.90-12.00/BRPR3 (25-37% of potential appreciation), if Br Properties sells the rest of the portfolio – which is still traded with a 69% discount on NAV (net asset value), he says.
The bank’s analysts say they see a “change in the history of Br Properties”, in which the company should become a “income player, with a net cash position and a low vacancy”.
BBI has a buy recommendation from Br Properties, with a target price of R$12.00 (compared to R$12.50 previously) for the end of 2022.
Why BR Properties sells
The sale of BR Properties’ assets is part of the company’s strategy to adopt a more conservative stance.
The operation is mainly carried out to prevent the group from having to face annual financial expenses calculated at R$ 350 million, resulting from the high impact of high interest rates in the country on the debt.
The deal involved “100% of the vacancy” of tenants in offices that BR Properties operated in the segment, said president Martín Jaco, in a conference with analysts.
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