BROOKFIELD RENEWABLE ENERGY PARTNERS L.P. $29.20 (Toronto symbol BEP.UN; Units outstanding: 265.2 million; Market cap: $7.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.0%; www.brpfund.com) owns 196 hydroelectric generating stations, 11 wind farms and two natural-gas-fired plants. In all, it has 5,900 megawatts of generating capacity.
Roughly 35% of Brookfield Renewable’s generating capacity is in Canada, with another 50% in the U.S. and 15% in Brazil.
In the three months ended March 31, 2013, Brookfield’s revenue rose 2.6%, to $437 million from $426 million a year earlier. Cash flow gained 4.3%, to $195 million, or $0.73 a share, from $187 million, or $0.71 a share.
To boost its power output, the company plans to keep acquiring or building hydroelectric plants and wind farms. But to cut risk, it sells virtually all of its electricity under long-term agreements that are an average of 24 years long.
The units trade at 12.7 times Brookfield’s forecast 2013 cash flow of $2.30 a share. The company recently raised its quarterly distribution by 5.1%, to $0.3625 from $0.345. The new annual rate of $1.45 gives the units a 5.0% yield.
Brookfield Renewable Power is still a buy.
