- CEO of Brookfield Property Partners L.P. (TSX:BPY-UN), Brian Kingston has addressed shareholders today, to ease fears about COVID-19’s economic impact
- Brian believes that despite the current market volatility, the company is well positioned for the coming months
- However, he did concede that, barring government intervention, the COVID-19 crisis is likely to be difficult for the industry at large
- Due to the pandemic, Brookfields Property Partners’ share price has fallen by 48 per cent since late February
- Brookfields Property Partners L.P. (BPY.UN) is up 2.52 per cent, with shares trading for C$13.06 and a market cap of $3.29 billion.
Brian Kingston, CEO of Brookfield Property Partners (TSX:BPY.UN), has released a lengthy address regarding the COVID-19 pandemic.
In the letter, Brian assures shareholders that, while the full impact of the coronavirus is yet unknown, the company remains securely funded and well positioned.
However, COVID-19’s economic impact has hit the company’s financials considerably. Since the outbreak began to affect the market in late February, Brookfield’s share price has almost halved.
Brian was quick to point out that the company’s property leasing portfolio contains mainly long-term, well capitalised clients less likely to be impacted by the sudden market shift.
That being said, He did concede that the company expects new leasings and renewals to be impacted by the pandemic’s far reaching effects.
The company had previously noted a substantial increase in bankruptcies in 2019, due to a difficult retail market. These numbers are likely to be compounded further, as customers are forced to self-isolate and retail sales continue to fall.
Regardless of the company’s financial strength, Brian believes clients and customers face a difficult task ahead.
“There is no doubt that the impact of closing down large parts of the US economy over the next several weeks is going to have severe consequences for many of our tenants, in the absence of government intervention.
In the long run, the high-quality nature of our assets and the prime locations the centers enjoy give us an advantage and will allow us to recover. But this segment of our business will undoubtedly face a challenging year ahead,” he said.
Despite the economic downturn, the Brain stated the company’s C$6 billion credit facility and diverse investment portfolio is sufficient to weather the coming months.
Brookfields Property Partners L.P. (BPY.UN) is up 2.52 per cent, with shares trading for $13.06 at 11:15am EST.