Recently, a member of Pat McKeough’s Inner Circle asked about a Canadian real estate firm with properties around the globe. Brookfield Property Partners was spun off in 2013 by Brookfield Asset Management, which still holds a large stake in the company. Brookfield Property has most of its assets in North America, Europe and Australia, but is adding to its presence in Brazil, China and India. A year ago, it formed an association with Qatar Investment Authority. This subsequently led to a joint venture to purchase London’s Canary Wharf and the sale of a stake in Brookfield’s $8.6-billion Manhattan project to the Qatar group. Pat examines Brookfield’s large portfolio of properties within the context of the complex structure of Brookfield companies and assesses the company’s outlook.

Q: Pat: May I please have your opinion on Brookfield Property Partners LP? Thanks

A: Brookfield Property Partners LP (symbol BPY.UN on Toronto; www.brookfieldpropertypartners.com) owns, operates and invests in commercial real estate worldwide. Its portfolio includes:

• 243 office properties totalling over 114 million square feet, mainly in leading commercial markets like New York, London, Los Angeles, Washington, D.C., Sydney, Toronto, Houston, Calgary and Perth;

• 172 regional malls and stand-alone stores containing 154 million square feet in the U.S. and Brazil. The company mainly holds its retail properties through its 29% interest in General Growth Properties, Inc. and its 33% stake in Rouse Properties, Inc.;

• Roughly 44 million square feet of industrial space across 164 properties, mainly consisting of warehouses in North America and Europe, with an additional 11 million square feet under construction;

• About 26,900 multi-family units across 89 properties in the U.S. and Canada;

• Eleven hotels with over 8,560 rooms across North America and Australia; and

• Over 300 properties leased to automotive dealerships in the U.S. and Canada.

The company’s assets are largely in North America, Europe and Australia, but it also has a growing presence in China, Brazil and India.

Growth stocks: Preferred-share deal ties Brookfield Property to Qatar Investment Authority

Brookfield Asset Management spun off Brookfield Property Partners in April 2013. The former parent still holds 68% of the company.

In December 2014, Brookfield Property Partners issued $1.8 billion of exchangeable preferred shares to Qatar Investment Authority. As a result, Qatar Investment Authority will own 9% of Brookfield Property Partners if it exchanges the preferred shares for common stock.

In April 2015, a 50/50 joint venture between Brookfield Property Partners and Qatar Investment Authority completed the purchase of 100% of London’s Canary Wharf Group. It did this by acquiring Songbird Estates plc for 2.6 billion pounds ($3.2 billion Canadian).

In October 2015, Brookfield sold a 44% stake in the mixed-use Manhattan West development project in New York City to the Qatar Investment Authority. When it’s finished, Manhattan West will be worth around $8.6 billion U.S.

Brookfield’s companies are tied together in complex ways, which makes them hard to value. But its outlook is positive, and its 4.7% yield adds appeal.

Brookfield Property Partners is okay to hold.

Inner Circle recommendation: HOLD

For our advice on making the most profitable selections in growth stocks, read How to make better growth stock picks.