Brookfield Property Partners L.P. BPY

Anyone know what to make of this from TD??

[gashole]

2:38 PM EDT, 08/24/2020 (MT Newswires) -- A group of large real estate investors skipped payments on commercial mortgage-backed securities, particularly for hotels and malls, even while raising billions of dollars to plow into new real estate opportunities growing out of the COVID-19 crisis, Bloomberg News reported Monday.

Colony Capital (CLNY), Blackstone Group (BX), Starwood Capital Group, and Brookfield Property Partners (BPY) are among the firms that missed payments on the commercial mortgage-backed securities (CMBS) debt for properties that are falling into default as the COVID crisis lingers, according to Bloomberg, though these companies continue to raise money for other investments.

Hotels and malls are the top CMBS losers during the pandemic, the report said, citing data from industry tracker Trepp.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

[Lacas24]

It is a bullying move from these juggernauts. Standard 101 economics. They skip payment which in turns the lender is forced to renegotiate the loan lower. Since most of the loans are non recourse Brookfield could walk away from the asset Lenders doesn't want to own the property therefore forced to lower the loan. Typical shark move from Blackstone and Brookfield. Very smart imo.

[CANCDN]

Or they don't have the money to pay... which is more likely as this is going to kill their credit rating which will make borrowing more expensive in the future for ALL of their debt.  are you ok with retail tenants not paying rent? 

[Lacas24]

I have heard a phrase that perfectly fits this situation. " If I owe you a 1000$ it is my problem. If I owe you a million that's your problem"

[gashole]

Ok thanks, i guess that would make sense when you are dealing with the kind of money they owe.. And interest rates where they are would make renegotiation a smart move. 

[Lacas24]

You got it. Brookfield and the rest of real estate monsters got the lenders by the balls due to the favorable no recourse loans. Now they all using all their weight to push them into the corner. Either you reneg orbwe walk. Lenders will shave of another 10% and everyone is happy.

[CANCDN]

Ok based on this post, I guess you are ok for BPY tenants to not pay rent. people like you are scum bags.  retail tenants will see this and now say they are not paying of BPY isn't paying.

[gashole]

Your a moron. Im a retail tenant... but you want us to feel sorry for the banks????? the biggest crooks out there and BPY being smart to get the rates lower to help the bottom line isnt ok with you? I own retail stores, several..... And I am paying my rent. But Im a scumbag??? Get real idiot. 

[CANCDN]

We will see what happens tomorrow morning. for those saying rei is same business as bpy are retarded. BPY has Enclosed malls in the USA vs power centres that RioCan owns. BPY collected little retail rent, RioCan collected 85%. riocan is Canadian, bpy is heavy USA. riocan paid divis through FFO, BPY borrowed money to pay divis riocan is current on all mortgage payments, BPY hasn't

[NPCexe]

You can differentiate it in your little head all you want, the two sp move on the same news. Again, if you don't like BPY why are you still here lecturing?

[CANCDN]

Because I'm going to get back in at 9.50 and I am entertained.

[Lacas24]

Buying back REI at 9.50$? Because you ain't getting BPY at that price. I would bet anything on that.

[CANCDN]

9.50 USD? You want to bet? 

[Lacas24]

Of course. Timeline?

[CANCDN]

Next earnings date unless BAM manipulates market again with an "offering".

[Oilspecs]

  I can not see $9.50 USD.  How did you figure that?  Some guidance please.  Could you possibly post a chart?   

[CANCDN]

Because it was 9.50 before the BAM "offering". 

[Lacas24]

It was over 10$ but that's a minor detail. Right? Good luck with your 9.50 limit order.

[CANCDN]

Might want to check that... is was 9.50 intraday a couple days before end of June if my memory service me correct.

[NPCexe]

Why buy at 9.50 if it's a ponzu scheme?! Bahaha

[gashole]

At least your honest...............

[Oilspecs]

I like objective views and always appreciate when people speak up about them.  I own plenty of both riocan and bpy.  TNT is also another good one.   They both have their positives and negatives, and I feel that BAM buying back 1/6th of the shares outstanding outweighs the risk.  I think that if it dips there will be another buy back, and share price will rise drastically.

[CANCDN]

BPY credit rating is going to tank which will make all borrowing more expensive in the future.

[Capharnaum]

Like they said in the last conference call, BPY's strategy is to get indivual mortgages for their properties. When a property they hold doesn't make sense in terms of cashflows, then they will skip payments and negociate with the bank (on better terms or otherwise letting the property go). Sounds like a shark strategy but I guess the banks know what they get into when they issue the