Brookfield Office Properties Inc T.BPS.PR.U

RE:RE:Brookfield Group Returns

[Carena]

Hi again,

So why do I write a long winded post on the Brookfield Group and their subs and their leadership etc ?

The BPO prefs are great instruments but they are buried within the BN structure and at the whims of the bigger Brookfield.  My thesis is the BPO prefs go the direction of Brookfield (ie BN).  I have said before, as long as the greater Brookfield is strong, then our BPO prefs are safe.  For example, I have read PrefBlog for years and I was always intrigued how the BPO prefs were always thrown in the "scrap index" and I initially thought that to be ridiculous.  I was wrong, BPO prefs have performed accordingly (eg junk rating).  Lol.

Following on this example, I noticed that PrefBlog is throwing the BEP prefs also in the "scraps index". Hhhmm.

So if we ever want our BPO prefs to migrate back toward Par Value then they need to fix their credit rating and the BN prefs will need to get back to Par Value first....the BPO prefs are never going to leap frog the BN prefs.

Furthemore, I think the risk is real that the next time the BPO prefs come under serious pressure (and it may never happen again) but I think it could be due to weakness at the BN level.  As I said, BN is a huge "show me" story.  As always, very happy to be proven very wrong!

Have a great day!
Carena