Brookfield Posts Biggest Weekly Gain in Four Months on Sales

Brookfield Incorporacoes SA (BISA3), Brazil’s third-largest homebuilder by revenue, posted the biggest weekly gain in four months after saying contracted sales surpassed its target for 2011.

Shares added 1.8 percent to 5.55 reais today in Sao Paulo, extending the weekly gain to 12 percent, the biggest since the five days ended Sept. 2. The BM&FBovespa Real Estate (IMOBBV) Index was little changed today and added 3.1 percent this week.

Brookfield’s contracted sales rose 21 percent to 4.39 billion reais ($2.38 billion) in the year, while new projects increased 32 percent to 3.93 billion reais, according to a regulatory filing yesterday.

“Management did a good job of increasing efforts to speed up project approvals,” Credit Suisse analysts including Guilherme Rocha wrote in a note to clients today. The results “reduce the risks of another guidance revision, at least in the short term.”

Brookfield lowered its 2011 forecast for new projects to a range of 3.8 billion to 4.2 billion on Aug. 12, from a previous estimate of as much as 5.25 billion reais. Brookfield also cut its 2012 new projects guidance to a range of 4.25 billion reais to 4.75 billion reais.

To contact the reporter on this story: Katerina Petroff in Sao Paulo kpetroff@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.