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Brookfield Office Properties (TSX:BPO.PR.C.PFD) ROE %

: 4.04% (As of Mar. 2016)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Brookfield Office Properties's annualized net income for the quarter that ended in Mar. 2016 was C$804.14 Mil. Brookfield Office Properties's average Total Stockholders Equity over the quarter that ended in Mar. 2016 was C$19,919.41 Mil. Therefore, Brookfield Office Properties's annualized ROE % for the quarter that ended in Mar. 2016 was 4.04%.

The historical rank and industry rank for Brookfield Office Properties's ROE % or its related term are showing as below:

TSX:BPO.PR.C.PFD' s ROE % Range Over the Past 10 Years
Min: 5.33   Med: 14.1   Max: 23.69
Current: 11.51

During the past 13 years, Brookfield Office Properties's highest ROE % was 23.69%. The lowest was 5.33%. And the median was 14.10%.

TSX:BPO.PR.C.PFD's ROE % is not ranked
in the Real Estate industry.
Industry Median: 2.95 vs TSX:BPO.PR.C.PFD: 11.51

Brookfield Office Properties ROE % Historical Data

The historical data trend for Brookfield Office Properties's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Brookfield Office Properties Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.93 11.73 9.50 20.99 16.47

Brookfield Office Properties Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.18 24.14 4.89 13.73 4.04

Competitive Comparison

For the Real Estate Services subindustry, Brookfield Office Properties's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Brookfield Office Properties ROE % Distribution

For the Real Estate industry and Real Estate sector, Brookfield Office Properties's ROE % distribution charts can be found below:

* The bar in red indicates where Brookfield Office Properties's ROE % falls into.



Brookfield Office Properties ROE % Calculation

Brookfield Office Properties's annualized ROE % for the fiscal year that ended in Dec. 2015 is calculated as

ROE %=Net Income (A: Dec. 2015 )/( (Total Stockholders Equity (A: Dec. 2014 )+Total Stockholders Equity (A: Dec. 2015 ))/ count )
=2952.409/( (15599.336+20244.502)/ 2 )
=2952.409/17921.919
=16.47 %

Brookfield Office Properties's annualized ROE % for the quarter that ended in Mar. 2016 is calculated as

ROE %=Net Income (Q: Mar. 2016 )/( (Total Stockholders Equity (Q: Dec. 2015 )+Total Stockholders Equity (Q: Mar. 2016 ))/ count )
=804.14/( (20244.502+19594.319)/ 2 )
=804.14/19919.4105
=4.04 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2016) net income data. ROE % is displayed in the 30-year financial page.


Brookfield Office Properties  (TSX:BPO.PR.C.PFD) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2016 )
=Net Income/Total Stockholders Equity
=804.14/19919.4105
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(804.14 / 2676.944)*(2676.944 / 46113.265)*(46113.265 / 19919.4105)
=Net Margin %*Asset Turnover*Equity Multiplier
=30.04 %*0.0581*2.315
=ROA %*Equity Multiplier
=1.75 %*2.315
=4.04 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2016 )
=Net Income/Total Stockholders Equity
=804.14/19919.4105
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (804.14 / 920.528) * (920.528 / 1211.5) * (1211.5 / 2676.944) * (2676.944 / 46113.265) * (46113.265 / 19919.4105)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8736 * 0.7598 * 45.26 % * 0.0581 * 2.315
=4.04 %

Note: The net income data used here is four times the quarterly (Mar. 2016) net income data. The Revenue data used here is four times the quarterly (Mar. 2016) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Brookfield Office Properties ROE % Related Terms

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Brookfield Office Properties (TSX:BPO.PR.C.PFD) Business Description

Address
181 Bay Street, Suite 330, Brookfield Place, Toronto, ON, CAN, M5J 2T3
Brookfield Office Properties Inc is a real estate investment firm. It acts as owner, operator, and developer of office and multifamily assets. The office property division defines the skylines of dynamic cities around the world, including gateway cities such as New York, London, Berlin, Toronto, and Sydney and the multifamily business owns, develops, renovates and manages approximately 40,000 high-quality rental apartment buildings in supply constrained markets of major cities such as New York and London, as well as high growth markets in the suburban U.S. In addition, it caters to tenants in financial services, government, and energy and resource sectors.

Brookfield Office Properties (TSX:BPO.PR.C.PFD) Headlines

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