Shares of Brookfield rise on analyst upgrade

Shares of Brookfield Properties rise on analyst upgrade pointing to positive developments

• On 2:34 pm EDT, Monday September 28, 2009

NEW YORK (AP) -- Shares of Brookfield Properties Corp. advanced Monday after a Stifel Nicolaus & Co. analyst upgraded its rating to "Buy" from "Hold," citing a spate of positive developments for the real estate developer and manager.

In a note to investors, analyst John Guinee said Brookfield stands to benefit from an early lease termination by Merrill Lynch from the World Financial Center. In addition to the termination fee, Guinee noted the building "is the best portfolio of buildings in the Downtown market" of New York City.

Guinee also noted that Brookfield's recent equity raise also provides funding for investment opportunities. A strong Canadian economy, and robust Toronto office market, should benefit the company as well, he wrote.

The company owns more than 100 American and Canadian commercial properties, primarily in Boston, Houston, Los Angeles, New York, Washington, D.C., Calgary and Toronto.

The analyst maintained his earnings forecast for the year at $1.39 per share. He holds a $12 target price on the company.

He expects funds from operations for 2010 of $1.24 per share. FFO, a key measure of a REIT's performance, is earnings with depreciation and amortization added back in.

Brookfield shares rose 69 cents, or 6.5 percent, to $11.32 in afternoon trading.