Brookfield Office Properties Inc T.BPO.PR.A

RE:Here's were the "Error" is.........

[pierrelebel]

Different strokes for different folks.

Looking at the "big picture" I see about 10% yield on all BPO 5 year reset preferred shares except for the "T" yielding 12.3%.

Shorting has little to do with the difference in yield at this time since over 41,000 BPO.PR.T shorts were covered in the first two weks of February.

I still maintain that the discrepancy in yield is due to investors not yet realizing that the dividend on the "T" will be increased to $1.70 annually with the March payment. I expect the "T" to move to the $16.00 to $17.00 range by late April, reflecting a yield of about 10%, in line with other BPO preferred shares.

The 10% yield on BPO preferred is justified in my opinion and in line with many other five year reset preferred shares on the Canadian market.

Yes I am aware that dividends may be increased in future years as reset time comes along but, historically in Canada, the future increases are not reflected in share prices until they get near the reset dates.

Other than credit rating, the most important factor remains interest rates and I still expect we will see a small decrease by the Bank of Canada in the second half of this year. Some of that is already discounted in the share prices.