The Forbes Global 2000 list has recently been released, a who's who of companies that deal in real estate. This list covered finance, tech, and retail companies that have dominated the headlines through their famous deals. Forbes listed 35 companies that have dealt real estate as a business, with Brookfield Asset Management (118 overall in the main list) managing to take the top spot this year.
The Toronto-based firm is one of only two Canadian real estate companies to make it to 2000. The country's fourth largest company, it bested other companies from 'better' countries. 23 of the 35 companies in this sector are based in the U.S., with 6 in the top ten of the list. Rounding out the top ten are companies from France and Australia (three each) and the United Kingdom (two).
Asia's lone representative in the list was Hong Kong-based real estate investment trust Link, an REIT company that specializes in retail. It was also notable for besting Brookfield in the most recent months, with $5.7 billion in profit collected. However, American firms American Tower Corporation, Simon Property Group, and Prologis have higher market valuations.
With the domination being showed by Brookfield Asset Management, it's safe to assume that things won't always be this way. The Motley Fool reported on what state investors are thinking they'll eventually see Brookfield in. Undoubtedly, there will be better times and there will also be lean times, but generally, Brookfield is expected to do fine.
Brookfield, according to the report, isn't widely known in the United States. It's also said that this isn't an indication of its status; in fact, it's still regarded as a powerhouse in the finance industry. In the next 10 years, driven by its knowledge of its niche, it will continue to expand and analysts see more years of growth to follow up its previous one.
Its key niche is in the infrastructure sector, and analysts see that the company will generally do fine based on the number of its limited partnerships.
As it invests into these partnerships, these partnerships also do their job; namely, diversify the company's investments. Currently, the company has partnerships under the Brookfield Infrastructure Partners, the Brookfield Renewable Partners, the Brookfield Property Partners, and the Brookfield Business Partners.
The number is only expected to get higher as Brookfield currently maintains the largest asset investment ($256 billion) in the list. It also holds the record for highest revenues ($57.6 billion) and is second in profits ($3.5 billion). The sky is the limit for the company, and only time will tell whether this growth and expansion will slow down.
