Brookfield Office Properties Inc T.BPO.P.A

RE:BPO.PR.N

[pierrelebel]

"Why is BPO.PR.N Trading at a 39% Discount to BPO.PR.T?"

The answer is in timing. As you noted BPO.PR.T resets in December 2023 with the first payment at the higher rate paid March 31 2024. I project $1.80 annually based on current "Canada 5 year" yield of 4.06%

BPO.PR.N resets in June 2026 with first payment at new rate taking place on September 30th 2026.

To account for the "premium" the market places on "T" I suggest you calculate the actual amount of dividends received in the five year period from January 2024 to December 2028 and compare the total (over five years) to all other issues..

With the "T" a shareholder gets the extra value of the dividend almost immediately. while the holder of "N" has to wait almost three years for the extra benefits (if it still exists at that time). Should interest rates return to a lowel level within the next few years (say Canada 5 year at 2% to 3%), the "T" will look very good compared to the other issues.

I only own the "T" and I have been adding in recent weeks.  I expect the market to correct itself on the "T" by April 2024 once the new higher dividend has been paid and the higher yield is reflected in all financial media.

At some point in late 2024, I may reduce or eliminate our position on "T" and replace it with "A" scheduled for reset in December 2024.

Yes, I am trying to have my cake and it it too!

Good Luck.