Brookfield Office Properties Inc T.BPO.P.A

BPO.PR.I now in freefall

[HermannHaller]

$15...10.5% yield! Is this just a panic over office properties or is there any real news?

[BrainNugget]

RBC recently came out with a report stating all of BN real estate are worth zero. Most of their properties are non-recourse so BN could potentially  hand the banks the keys and then buy them back on the cheap. The only thing that is still holding all those BPO and BPY pref. up is Brookfields name and what it is worth for them on their other subsidiaries current and future issuance of pref. .

[HermannHaller]

You might want to reread that report. They were making the argument that BN is trading at an attractive valuation even if you assume no value for the real estate. They were not stating that the real estate is actually worth zero.

[timetolearn]

can u share that RBC report ? I know BPO has a lot of noise lately, such as the default of the 2 LA properties last month, and potentially more to come. Wondering under what circumstances will the BPO bonds and pref in Canada be wiped out too ? So the LA properties are under DTLA which is a separate entity is my understanding.

[HermannHaller]

Sorry about formating, I highlighted interesting part below: March 22, 2023 Brookfield Corporation “Real(ly)…Estate!?!” with Seth & Amy: BN’s share price implies zero value for Real Estate and 51% discount for non-Real Estate private investments Our View: Our BN note is inspired by the Saturday Night Live Weekend Update skit “Really!?! With Seth & Amy”. We’ve been asked by investors

[timetolearn]

Thanks for sharing. Yeah it certainly did not say anything about BN real estate's being worthless. So far BPO defaulted on 2 loans which is about 2% if its holdings. They did warned back around end of Feb that some other buildings may default pending discussions on renogiated terms etc. Even if there are a couple more defaults, based on my limited knowledge, still cant extrapolate what it

[BrainNugget]

It was implied, BPY/BPO trades at an insane 16X EBITDA with occupancy rate still going down and a recession looming.  60% of their mammoth debt is floating rate with over 40 billions $ due in the next 2 years.  If it wasnt for BN behind  them buying time this thing would already be bankrupt.  One thing I learned from my losses here is _ dont buy prefs from a company that

[timetolearn]

Its indeed odd that they privatized BPY but leave the BPO prefs out there. Thats the only reason why I own a few of these BPO prefs. The prefs are going down 2-5% daily for the past week with lowish volume. If I can only decipher the true story behind it.... sigh

[HermannHaller]

I think it is just going down along with all the office REITs. There is a lot of negative press these days. I am relying upon Brookfield to maintain its good name. They have a lot of pref shares, at various levels of the company, and have used the pref market as a source of financing for many years. They are not going to default on a pref issue in my opinion.

[timetolearn]

That's what I am hoping too. Letting DTLA fail is one thing, letting BPO fail is at a whole different level in my mind, since BPO represents most of BN's real estate arm if I understand it correctly.

[pierrelebel]

BrainNugget wrote "RBC recently came out with a report stating all of BN real estate are worth zero." Could you please provide a link to that report. All I could find from RBC is: Mar. 23, 2023, 03:05 PM RBC Capital analyst Geoffrey Kwan maintained a Buy rating on Brookfield Corporation (BN – Research Report) today and set a price target of C$51.00. The company’s shares closed today