Brookfield Office Properties Inc T.BPO.PR.A

RE:RE:Dividends are in the account.

[pierrelebel]

Carena asked "why you think the A and T spread will increase in next 60 days to $3 per share."

My expectation of a larger spread over the next few months is based on experience. While it does not always work that way, I noticed that investors who buy preferred shares after a reset with a much higher dividend payout often wait until they notice the higher yield in the financial media. It often takes a few months to show up.

For example, if you check the TSX website today it shows the correct dividend at $0.424 but a yield of 8.865% (based on old payout)  instead of the correct 11.18%.

LINK

As time goes by I expect more potential shareholders will notice the higher yield and purchase the "T" instead of others. 

I also take the large short position into account and expect additional buying from that angle.

All those expectations may be wrong but... it really does not matter since I have the dividend money in my account already based on current prices.  Should the spread expand to $2.50/$3.00 I may consider selling some "T" (and pay substantial capital gain tax) and replace them by "A" or other preferred shares that may offer potential higher yield at that time.

As far as higher price on the "A" because they reset at year end (effective with March 31 2025 payment) I do not expect any material increase until a few months before the reset. Again, based on experience.