Brookfield Office Properties Inc T.BPO.PR.A

Brookfield Group Returns

[Carena]

Good morning,

I have been looking at the Brookfield group charts recently.  I do not think I am missing anything (eg stock splits etc) and since Dec 31, 2019, BN stock price is up 39%.  

I have not recently seen a sum of the parts valuation, but it is pretty incredible given the following:

(i) In 2021 it paid way up to bring "IN" BPY (buyout at $18 per share) and it is widely conceded that BPG is a big drag on BN at the moment.  IN 2019, BPY was a cornerstone asset of BN and it has all but collapsed.

(ii) In 2022 they distributed "OUT" BAM.  BAM is a $22 billion public company and I think they still own like 75%, so the value of the 25% that was distributed is valued at about $6 billion.  BAM stock has surged nicely in last 6 months.

(iii) In 2022 they distributed "OUT" BNRE.  BNRE is a $6 billion public company and I really don't know how it connects to BN, to be honest.  Lol. But I think they still own a vast %.

For the record, a distribution is effectively a form of a dividend.

(iv) And so that leaves us with their main operating subs  - BIP.UN down 6% since 2019, BEP.UN down 22% since 2019 and BBU.UN down 44% since 2019.  5 years have gone and all their current public all subs are down and BPY is way down.

So I think BN is a huge "show me" story over the next 24 months.

As you all know, my money is totally on Bruce Flatt but something is not ringing true to me.  BN's stock price is suggesting BN is stronger today than 5 years ago but it certainly doesn't feel stronger to me, if simply based only on the general acceptance that we are in a "higher for longer" interest rate environment.   

Very interesting times for us BPY/BPO pref holders.

Have a great day,
Carena