Brookfield Office Properties Inc T.BPO.P.A

RE:Brookfield Office Properties Inc preferreds pay between 4.64

[pierrelebel]

Took an opening position in Brookfield Properties yesterday purchasing 1,000 BPO.PR.T at $21.05

With an annual dividend of $1.34, the current "tax advantaged" yield is 6.38%

The kicker is that these preferred shares are "five year reset" due to reset in December next year (21 months from now).  With interest rates on the rise, one can expect the Bank of Canada rates to be about 2% higher by December 2023 resulting in a substantial increase in the quarterly dividend payable on BPO.PR.T for the following five years.

Or Brookfield may decide to save on higher dividend payments by calling the shares at $25.00.

Either way, a fairly safe conservative investment with above average yield and capital appreciation potential.

[CanSiamCyp]

Hey Pierre! I have 4,000 of each of the G and I series. One resets 30 June and the second on 31 Dec. so watching and waiting to see what will happen. The aspect of BPO that continues to surprise me is that the prefs have not been re-rated to reflect that they are essentially part of the BAM juggernaut ... since BAM absorbed all real estate assets from former subsidiary BPY. Cheers!

[pierrelebel]

We have a few nervous nellies this week - selling ahead of the federal budget as if Ottawa could do anything to change the value of these preferred shares. Added 500 to hold 1,500 BPO.PR.T

[pierrelebel]

Added another 400 today to hold 1,900 BPO.PR.T Current quarterly dividend $0.3364 = 6.53 yield Reset next year at Canada 5 year + 3.14% Based on current Canada 5 year of 2.75%, we are looking at a substantial quarterly dividend increase to $0.3681 or a annual yield of 7.15% Assuming Canada 5 year goes up 1% between now and the end of next year, the yield would jump to 8.36% It beats keeping

[PileOfShit]

This post has been removed in accordance with Community Policy

[BrainNugget]

Yield nearly touched 8%  late today, that is almost 5% above the Canada 10 year bond, usually a very safe entry  point,,,,,thats as long as the parent (BAM) doesnt screw us in some way.

[pierrelebel]

The yield is extremely attractive for long term investors. At current $16.70, the yield is 8.06% (goes ex-dividend in a few days) Now for the best part of the story: BPO.PR.T shares reset at the end of this year at Canada 5 year + 3.16% Currently Canada 5 year trades at 3.2%.  Add 3.16% and you get 6.36% or $1.59 per preferred share.  That works out to 9.52% for the following five

[CanSiamCyp]

Hi Pierre: I also own BPO prefs like u .... but 2 issues that reset last year. Even though I added some shares at lower market prices, the surprising thing is that these prefs always seem to trade in the red ... despite resetting at very attractive yields and presumably being under the general Brookfield umbrella. Have considered liquidating for a tax loss, but decided to just hold forever

[BrainNugget]

I bought those 2 years ago hoping the credit agencies would upgrade them after BPY was bought out by the parent, it didnt work out . Now I am afraid those BPO issues will get stranded so I have been the other way you have and kept selling my holdings from 18.50 all the way down to 16.90. Still holding 1000 BPO.T , my cost on those is 19.25 so over $3000 loss not accounting for the dividend. Will