Scotia Capital Has Sector Outperform on Brookfield Office Properties

Scotia Capital is out with a research report on Brookfield Office Properties BPO and it has a Sector Outperform rating and $20 price target on shares. In a note to clients, Scotia Capital writes, "Significant development pipeline emphasized. BPO discussed an 8.8M sf "high priority" development pipeline, which could add $0.27 to long-run FFOPS. BPO is targeting 11%-13% unlevered returns, well above existing cap rates on premier (stabilized) CBD office assets. Limited leasing update. Limited info was provided on the expiring BoA lease (NYC) and replacement tenants for expired Goldman Sachs (New York) and Wellington (Boston) space. " Shares of BPO closed at $14.98 yesterday.