Brookfield Renewable Energy Partners LP- Q1-2018 Earnings & Price Target Update
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Brookfield Renewable Energy LP (BEP.UN) owns $28B in power generating assets totalling 263 facilities comprising 15,000MW (10,500 BEP share). Generating capacity is comprised of hydro - 85% and 10% wind power with the balance from solar. By total assets, 80% are located in Canada and the US, 11% in Columba, 15% in Brazil/Columbia and 4% in Ireland and Portugal. The hydro generation facilities are diversified across 82 river systems and 15 power markets. The US contributes 50% of revenues, Canada-20%, Brazil-20%, the Republic of Ireland, Northern Ireland and Portugal-5%. Financial statements are issued in US dollars. Dividends are paid in either Canadian equivalent or US dollars.
The quarterly distributions payable on L.P. Units of Brookfield Renewable Energy Partners are declared in U.S. dollars. Unit holders can elect to receive the distributions in either US dollars or equivalent. Unless they request the Canadian dollar equivalent, shareholders will continue to receive distributions in U.S. dollars. Seven distributions increases have occurred since November 2011 from C$1.30 to US$1.96. By 2019 year end management guidance forecasts distributions to be approximately $2.20 per share. Distributions were most recently increased by 4.3% to $1.96 per unit effective Q1-2018.
In Nov-2011 power generation assets held in Brookfield Renewable Power Inc. and Brookfield Renewable Power Fund were combined to launch Brookfield Renewable Energy Partners LP (BEP.UN). Units of Brookfield Renewable Energy Fund (BRC.UN) were exchanged 1 for 1 for BEP.UN shares. Brookfield Renewable Power Inc. was a wholly owned subsidiary of Brookfield Asset Management Inc. (BAM) who prior to the transaction owned 34% of Brookfield Renewable Energy (BRC.UN.) BAM initially retained a 74% interest in the new entity until Jan-24-2012 when they reduced this to 68% by way of a secondary offering, and then to 62.5% with another secondary offering on Mar-13-2013. We do not expect Brookfield Asset Management to reduce their position below 60%.
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