Brookfield Office Properties Inc T.BPO.P.A

BN's comment re: BPY

[alertmeipp]

The below is from BN's shareholder letter - Does this look like BN is going to abondon BPY to anyone? Clearly, they disagree with BPY's downgrade and have faith on BPY assets and think things will get better. Their business is built on trust.



"Despite this and the tailwind we expect from lower interest rates, our BPY rating was recently reduced to BB. However, as we look forward, we expect that the continued strong underlying performance of our assets, combined with improving credit markets and lower interest rates, sets us up well to grow cash flows and deal very comfortably with all debt maturities."

[Carena]

Good morning Alert, As office and retail real estate began its decline a number of years ago, Bruce Flatt has been consistently talking up BN's real estate.  During this same time, the analyst community that follows BN regularly reduced its estimated value of BN's real estate empire and now most, if not all the analysts, are assigning a value of zero to its real estate. Zero! 

[rodbhar]

Flatt may simple let the dividend do the talking. In other words, if the dividend continues to be paid as contracted there is a point at which people who think BPY is about to blow up will have to realize it's simply not happening.

[Carena]

Hi Rod, I don't disagree at all and I appreciate your perspective.  Also, I think that is exactly what Flatt has been doing for the last number of years. All I am saying is that I think the naysayers are growing and I don't know Brookfield to stand around for too long with egg on their face.  I know Brookfield to be pro-active and getting ahead of things.  BPY has been

[alertmeipp]

The RE market is going to turn. The # of new builds is very low. High quality assets will be rare and more valuable over time. It makes lots of sense for them to buy back as much as preferred as possible on the cheap before rate reset.