Brookfield Office Properties Inc T.BPO.PR.T

BPO story progressing nicely

[Spiderdon]

Last quarter 1.471B of recourse debt was paid off and 1.9B YTD, this was done from direct support from BN as well as asset sales.  This is significant for two reasons, firstly it address one of S&P concerns for the credit down grade which was 2.3B in recourse debt maturities for 2025.  Secondly it shows explict support from BN corporation to provide liquidity for BPY debt maturities and that they are not going to strand BPY by sucking out all the cash flow and leaving the recourse debt.  As more assets are transferred to the insurance book the balance sheet will continue to normalize and the BPO preferreds should start to trade inline with other public entity prefs.  Still lots of room left in BPO's the other public entities that have recently re-set are all yielding <8% and some <7%.