Brookfield Office Properties Inc. (
recently signed agreements with two renowned energy companies,
Rosetta Resources Operating LP and Chevron U.S.A. Inc., to lease
properties totaling 272,000 square feet of space in downtown
Brookfield leased 108,565 square feet of space at Heritage Plaza
to Rosetta Resources Operating LP. The property is located at 1111
Bagby St. spanning a total of 1.2 million square feet of office
space. In addition, Brookfield extended its lease agreement with
Chevron U.S.A. Inc by leasing 163,950 square feet at 1600 Smith
Street (formerly known as Continental Center I). The property
encompasses 1.1 million square feet of office space.
Rosetta Resources Operating LP., a subsidiary of
Rosetta Resources Inc., (
provides oil and gas exploration services in U.S. Founded in 2002,
the company is based in Houston, Texas.
Chevron U.S.A. Inc., a subsidiary of
Chevron Corp. (
explores, extracts and produces crude oil, natural gas, and natural
gas liquids in U.S. Founded in 1977; the company is based in San
We believe Brookfield will benefit from both the agreements as
it will drive the company's rental revenues in the coming quarters.
Moreover, as energy sector companies are very active in the Houston
office market, we are hopeful on the long-term prospects of the
Based in New York, Brookfield is a publicly owned real estate
investment firm (REIT). The company owns, develops and manages
premier office properties in the United States, Canada and
Australia. It also provides ancillary real estate business
services, such as tenant service and amenities. The company mainly
invests in high growth and high-barrier-to-entry markets with
sustainable cash flows.
Brookfield's portfolio consists of 108 properties spanning more
than 78 million square feet in the downtown cores of New York,
Washington, D.C., Houston, Los Angeles, Denver, Toronto, Calgary,
Ottawa, Sydney, Melbourne and Perth, making it the global leader in
the management of office assets.
The Zacks Consensus Estimate (FFO per share) for Brookfield for
2012 and 2013 currently stands at $1.11 and $1.15, respectively.
This represents year-over-year decline of 60.72% for 2012 and
growth of 3.45% for 2013.
Brookfield currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term Neutral recommendation on the stock.
BROOKFLD OFFICE (BPO): Free Stock Analysis
CHEVRON CORP (CVX): Free Stock Analysis Report
ROSETTA RESRCS (ROSE): Free Stock Analysis
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