TSX:BPO.PR.A - Post by User
Comment by
SONOFFERGUSon Jan 22, 2024 5:17pm
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Post# 35839776
RE:BPO Credit Risk
RE:BPO Credit RiskHi.
I agree with you but the issue for BN is far greater than reputation -- it is BN's continued access to capital across its businesses.
Bruce Flatt & co are smart as the come. They will not jeopardize their $85B machine unless they decide they have to hand their real estate assets (including those owned by BPY, which guarantees the BPO divs) over to lenders.
I am comforted by the thought that not paying divs -- 6% annually on $3B or whatever it is -- would cost BN many billions in market cap and wreck their business model, at least for a time.
The Q4 results calls are in a couple of weeks and I'm sure Bruce will have good news and comforting words about refinancing activity and the outlook for the portfolio. This may explain some of the bubble-up across the BPO prefs we've been enjoying.
Nothing to do but trust...and cash those dividend cheques!