Brookfield Office Properties (TSX:BPO.PR.A.PFD) Gross Margin %

: 54.94% (As of Mar. 2016)

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Gross Margin % is calculated as gross profit divided by its revenue. Brookfield Office Properties's Gross Profit for the three months ended in Mar. 2016 was C$367.68 Mil. Brookfield Office Properties's Revenue for the three months ended in Mar. 2016 was C$669.24 Mil. Therefore, Brookfield Office Properties's Gross Margin % for the quarter that ended in Mar. 2016 was 54.94%.

Warning Sign:

Brookfield Office Properties Inc gross margin has been in long term decline. The average rate of decline per year is -2.6%.

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

TSX:BPO.PR.A.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 53.58 Med: 56.59 Max: 63.31
Current: 56.78

During the past 13 years, the highest Gross Margin % of Brookfield Office Properties was 63.31%. The lowest was 53.58%. And the median was 56.59%.

TSX:BPO.PR.A.PFD's Gross Margin % is not ranked
in the Real Estate industry.
Industry Median: 36.77 vs TSX:BPO.PR.A.PFD: 56.78

Brookfield Office Properties had a gross margin of 54.94% for the quarter that ended in Mar. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Brookfield Office Properties was -2.60% per year.

Brookfield Office Properties Gross Margin % Historical Data

The historical data trend for Brookfield Office Properties's Gross Margin % 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.

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Brookfield Office Properties Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Gross Margin %

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60.47

61.28

59.20

55.27

54.61

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
Gross Margin %	Get a 7-Day Free Trial															54.76	54.10	53.30	56.29	54.94

Competitive Comparison

For the Real Estate Services subindustry, Brookfield Office Properties's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

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

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

Brookfield Office Properties Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Brookfield Office Properties's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )	=	Gross Profit (A: Dec. 2015 )	/	Revenue (A: Dec. 2015 )
	=	1625	/	2975.721
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2975.721 - 1350.731)	/	2975.721
	=	54.61 %

Brookfield Office Properties's Gross Margin for the quarter that ended in Mar. 2016 is calculated as

Gross Margin % (Q: Mar. 2016 )	=	Gross Profit (Q: Mar. 2016 )	/	Revenue (Q: Mar. 2016 )
	=	367.7	/	669.236
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(669.236 - 301.553)	/	669.236
	=	54.94 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Brookfield Office Properties (TSX:BPO.PR.A.PFD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Brookfield Office Properties had a gross margin of 54.94% for the quarter that ended in Mar. 2016 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Brookfield Office Properties Gross Margin % Related Terms

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

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Brookfield Office Properties Inc (TSX:BPO.PR.A.PFD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

BPO.PR.Y.PFD:Canada BPO.PR.W.PFD:Canada BPO.PR.T.PFD:Canada BPO.PR.R.PFD:Canada BPO.PR.P.PFD:Canada BPO.PR.N.PFD:Canada BPO.PR.C.PFD:Canada

Address

181 Bay Street, Suite 330, Brookfield Place, Toronto, ON, CAN, M5J 2T3

Website

https://www.brookfieldproperties.com

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.

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