Brookfield Office Properties (TSX:BPO.PR.C.PFD) Interest Coverage : 1.28 (As of Mar. 2016)

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What is Brookfield Office Properties Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Brookfield Office Properties's Operating Income for the three months ended in Mar. 2016 was C$302.88 Mil. Brookfield Office Properties's Interest Expense for the three months ended in Mar. 2016 was C$-236.75 Mil. Brookfield Office Properties's interest coverage for the quarter that ended in Mar. 2016 was 1.28. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Brookfield Office Properties Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

TSX:BPO.PR.C.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 0.23 Med: 0.56 Max: 0.92
Current: 0.49

TSX:BPO.PR.C.PFD's Interest Coverage is not ranked
in the Real Estate industry.
Industry Median: 3.96 vs TSX:BPO.PR.C.PFD: 0.49

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Brookfield Office Properties Interest Coverage Historical Data

The historical data trend for Brookfield Office Properties's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Brookfield Office Properties Interest Coverage Chart

Brookfield Office Properties Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Interest Coverage

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1.60

1.74

1.78

1.24

1.41

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
Interest Coverage	Get a 7-Day Free Trial															1.49	1.79	1.48	1.02	1.28

Competitive Comparison of Brookfield Office Properties's Interest Coverage

For the Real Estate Services subindustry, Brookfield Office Properties's Interest Coverage, along with its competitors' market caps and Interest Coverage 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's Interest Coverage Distribution in the Real Estate Industry

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

* The bar in red indicates where Brookfield Office Properties's Interest Coverage falls into.

Brookfield Office Properties Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2015, Brookfield Office Properties's Interest Expense was C$-964.02 Mil. Its Operating Income was C$1,358.96 Mil. And its Long-Term Debt & Capital Lease Obligation was C$12,947.82 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2015 )	/	Interest Expense (A: Dec. 2015 )
	=	-1	*	1358.958	/	-964.024
	=	1.41

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

Here, for the three months ended in Mar. 2016, Brookfield Office Properties's Interest Expense was C$-236.75 Mil. Its Operating Income was C$302.88 Mil. And its Long-Term Debt & Capital Lease Obligation was C$14,429.57 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2016 )	/	Interest Expense (Q: Mar. 2016 )
	=	-1	*	302.875	/	-236.745
	=	1.28

The higher the ratio, the stronger the company's Financial Strength is.

Brookfield Office Properties (TSX:BPO.PR.C.PFD) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Brookfield Office Properties Interest Coverage Related Terms

Thank you for viewing the detailed overview of Brookfield Office Properties's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

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

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Brookfield Office Properties Inc (TSX:BPO.PR.C.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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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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