Brookfield Posts Biggest Weekly Gain in Four Months on Sales
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.
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