Brookfield Office Properties invests in premier-quality office properties in high-growth, and high barrier-to-entry markets whose tenant base consists of some of the most dynamic and well-capitalized participants in the global economy. Whether it is through direct investment, investment with partners in individual assets, or leveraging our operating platforms through the creation of private-equity opportunities for the institutional market, our approach remains focused on the creation of sustainable, growing streams of cash flow.
Brookfield recognizes that the commercial property business is inherently cyclical, and mitigates earnings and cash flow volatility through acquiring and developing premium-quality office properties as defined by their location, physical qualities, and most importantly, their appeal to the highest quality tenants.
To maximize the sustainability of the cash flow from the assets, our asset management teams maintain strong tenant relationships to understand their needs and growth plans, and sign long-term leases with contractual rental increases for the duration of the lease. This focus on quality and cash flow sustainability in turn allows Brookfield to apply financing strategies which limit financial recourse to the corporation, and the potential impact of any cash flow erosion at the individual asset level.
When assets reach a level of maturity and capital redeployment is seen as a greater opportunity to enhance returns, Brookfield will sell or refinance the asset to generate capital for reallocation to higher-yielding opportunities, or return capital to shareholders to maximize returns on capital employed – a key metric which guides all of our investment activities.