Brookfield Office Properties Inc T.BPO.PR.A

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:What I NEED to hear and see from Brookfield is that they

[Carena]

Hi again,

I now see where you get your numbers in the BN supplemental.  Thank you.

My final comments would then be:

(i) I have not said Office is supposedly the huge problem for BPY.  I have said BPY's financials are a mess and things need to be clearer.  It is comforting to listen to the articulation at the BN level, however, I want to see it at the BPY level.  That is what BN had told us to do, absent a BN guarantee.

(ii) I do not agree that because there is just $3B of equity in the Transitional and Dev Portfolio with low occupancy,  that this makes BPO preferred shares safe.  YTD for BPY:  FFO is negative $372 million.  Cash flow from operations and investing activities is negative $2.5 billion.  As a comparison, Vornado, a $5 billion market cap has total YTD FFO of $383 million and cash flow from operations and investing activities of positive $500M. 

The management of BN and BPY had their chance to convince S&P that all is fine at BPY and they couldn't.  Even when BPY was put on credit watch in October, I figured there was no way BN would let that happen and they did.

Thanks for the back and forth,
Carena