Brookfield Office Properties Inc T.BPO.PR.A

BN Group Results - More Saturday Morning Musings

[Carena]

Hi again,

I was hoping there would be some major announcement in the BN earnings relase on Thursday and there was in fact very little exciting stuff which we have all come used to but notheless, here are my musings:

(i) it is obvious to me now that the "Update" press release on December 23rd (?), the day after the BPY junk rating was announced, was purely issued to address the Junk rating issue.  

(ii) Bruce Flatt is streadfast in standing behind his real estate narrative and made 2 predictions.....interest rates are coming down 200bp (!) and the CRE market will be out if its doldrums in 24 months.  I hope he is right.

(iii) This guy, Dalyrmple who has an "Edper "substack is still hanging around and still negative.  He poked negative tweets at Connor Tesky (BAM) and Nick Goodman (BN) this week.  Interesting that Carson Block is trying to take a shot Prem Watsa and Fairfax.  He has criticized Brookfield in some tweets in the past for the same valuation stuff.

(iv) I was not surprised that Cyrus Madon (BBU) is stepping out of his CEO role.  He dropped some hints at the Brookfield investor day back in September.

(v) It has been a year and a bit since BAM was spun out from BN, and I am surprised it has not made a huge impact on the BN "discount" to NAV. Brookfield companies are becoming a "show me" story or so it seems.  Bruce Flatt is not used to this.

(vi) What the heck is DE (distribuable earnings) anyway....I am from a world that values net income and Brookfield has gone from NOI, to FFO, to AFFO to DE?  I spent a lot of time this week looking at Apple, Google, Mastercard and a bunch of other cash machines in the S&P 500 (and even Paypal) ....very easy to understand financials and cash flow is cash flow.

Looking forward to the BPY financials being filed soon!  Actually, not...lol!

Have a great weekend!
Carena