Brookfield Office Properties Inc T.BPO.PR.A

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

[CrazyTrader]

are capable of RAISING RENTS/REVENUE to become PROFITABLE in the even interest rates remain higher for longer, or even go higher.   

Raising Billions in Capital/equity is positive, but it's only a tempoary solution/lifeline.  

All just my opinion/view/thinking/wanting to hear and see to make me feel better.

[Carena]

Good morning Crazy, If that is what you need to hear, I think you will be waiting for awhile and so I hope you have a lot of patience.   I am looking for the following: (i) Solid results from the Mothership (ie BN) and all its main subs (BAM, BNRE, BIP, BEP and BBU) (ii) Interest rates (10 years and beyond) to stay at least at current levels (iii) Any kind of dealmaking at the BPY

[rodbhar]

Have you looked at BN Supplental Reports? You can see more of the detail you want there.

[Carena]

Hi Rodbhar, Yes I do look at the BN supplemental information every quarter. And this is the problem....the BPY financials that get filed with the regulators (eg SEC) do not always reconcile nicely with what BN is saying in their Supplemental info and sometimes in public comments by BN officials like Bruce Flatt.  Hence the hit piece by the Financial Times on Bruce Flatt a few months ago

[rodbhar]

Carena, What exactly is the non-reconciliation? All I've seen is that BPY uses the term "Core" to refer to the assets that BN splits into "Core" and "Transitional & Developement". Not too confusing once you understand it. What else is creating confusion? Rod

[Carena]

Hi Rodbhar, Below is the link to the FT article I referred to.....which discusses specific "non-reconciliations" and which call into the credibility of what BN is saying relative to what BPY is saying.  For example, occupancy of 96% vs 86% is very material. https://www.ft.com/content/7e0c3f90-872c-4f7b-941b-db35a8499e12 Generally, journalists have not a clue how to intelligently

[rodbhar]

Yes I saw this and it shows nothing. The 96% office occupancy refers to Core, which is 2/3rds of the real estate equity. The 86% occupancy number includes "Transitional and Developmemt". But the 86% is an average calculated on square footage NOT equity. BPY has very little equity in the low occupancy buildings. If you took out all of the lower occupancy office for example you'd

[Carena]

Good morning Rodbhar, You might well be right that it is a nothing.  I understand the concept of occupancy by equity value.   I am not sure it matters, but I do not see where you got your equity figures from (ie the $30B and $3B).  My point was, BPO has a fiduciary responsibility to its preferred shareholders to report financial information to us.  However, because BPY

[Carena]

Hi again, Couple of additional comments: I said BPO has a fiduciary responsibility, this is true.  But also a legal responsibility. In regards to S&P rating BPY's debt, it only looks to the BPY financial statements and likely does not care at all what BN says at their level. And so, S&P downgrades BPY and the investors in BPO get smacked with more share price declines on their

[rodbhar]

"For example on pg 9 of the BPY's most recent 6-K, it says FFO was NEGATIVE $165 million for the most recent 3 months and on the BN supplemental it says on pg 20 that FFO for the most recent 3 months is POSITIVE $166 million (but which I think includes $59 million for the residential group which is outside BPY.) " I think the most likely reason for the difference is that BPY

[Carena]

Hi again, Thanks for the response. My main point is we either deserve better from BPY reporting or BN should just offer its guarantee and the BPY public securities could then look to BN for its covenant.  This would have avoided the junk rating and for some reason, BN did NOT step up and thus let BPY go to JUNK.  This is a big deal.  The best thing about the Canadian preferred

[rodbhar]

The LP amount is recorded under Asset Management even though it is part of BPY. On page 22: $1,831 equity in US office at occupancy of 77.5%, $1,272 equity in Canadian office at occupancy of 86.1%. The total equity in these two is $3.1B. Absent these there is NO office below 95% occupancy, either in the Core portfolio or the Transitional & Developement portfolio. Like I've said Office is

[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