Brookfield Incorporacoes SA (BISA3), Brazil’s fourth-largest real-estate company by revenue, dropped in Sao Paulo after it said low profit margins on one of its commercial projects hurt third-quarter earnings.
Shares fell 4 percent to 6.05 reais at 4:10 p.m. local time, the worst performance on the benchmark Bovespa index, which slid 0.6 percent.
Brookfield said it sold its BCP Corporate project, which consisted of two office buildings and a shopping mall, for 95.7 million reais ($54.2 million) in the third quarter for a profit margin of “only” 0.7 percent. The company reported Nov. 11 that third-quarter net income was 108 million reais, trailing the 135.3 million reais average estimate of four analysts surveyed by Bloomberg.
“The BCP corporate project is to blame for the poor results,” Bradesco Corretora analysts including Luiz Mauricio Garcia wrote in a note to clients today. It was “clearly a bad deal for the company,” according to Bradesco’s analysts.
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