Brookfield Property Partners L.P. BPY

BAM Shareholder Letter - Q3

[Vette08]

Same gig as this time last year, Bruce Flatt touting the greatness of BPY in the BAM quarterly letter:

"Brookfield Property Partners has transformed itself over the past five years since its spin-off from BAM. In addition, NAV and cash flows have grown at a compound ±10% annually. For various reasons, similar to most real estate securities, this is not reflected (yet) in the stock price, enabling a buyer today to make an investment at an estimated 35% discount to the appraised IFRS value of its underlying assets and a going-in yield of over 6%. This is almost unprecedented for the quality of portfolio that this entity owns. As a result, BPY has been repurchasing units with extra cash while adding value through completion of its significant development program. The opportunities to redevelop retail centers into office, residential, hotel, and other uses are expected to continue for many years, and we have some incredible office projects coming online in the next few quarters. This should enable cash flows to grow at 7% to 9%, and NAV to compound at ±15% for years. At today’s trading price, this is a great opportunity to own this business at a 35% margin of safety to IFRS value"

I suggest the RBC analyst and Bruce Flatt spend some time together and compare each others' financial models....lol.  

Vette

[SargeX]

Hey Vette How long the BPY stock price has been lowish is certainly a surprise. I would have thought it'd be at least between $27-28 by now. I'm still quite confident it will get to $30 over the next number of years but it is definitely a "TOP" (Test Of Patience) Ciao   Sarge

[Vette08]

As a follow to the last post.....I would always take Bruce Flatt's view on value over some number crunching analyst but that would mean we LOYAL unitholders need to see managment step up and deliver NAV growth of 15%  ideally each and every single year. So that number in the quarterly Supplemental document BPY calls "Unitholder Equity Per Unit" needs to go up by like 15% per

[SargeX]

Hey Vette Being a Brookfield entity is definitely a bonus. I've held BEP.UN and BIP.UN since Mar, 2014 and have really enjoyed both the HUGE capital appreciation and terrific dividend. Ciao   Sarge

[Red_Deer]

Hey SARGE__guessing that you do NOT do your own Income Tax Returns??__as all the Brookfield Spin Offs over the decade have been Limited Partnerships__with their OWN VERY Complicated Tax Form__and trying to find where to plug in all those numbers into any online tax program IS a HUGE CHORE__NOT FOR THE INEXPERIENCED at all. Oh, and just like our Chemtrade, pretty much all of the annual income is

[SargeX]

Hey Red Derr I knew there might be complications so I have kept all 3 (BEP.BIP,BPY) in our RRSPs and TFSAs. We only keep regular Cdn eligible dividend payers in our non-reg. Taxes are a breeze for us with TurboTax. Ciao   Sarge PS - Looks like things will change for BEP and BIP with converting to a corporation.

[Red_Deer]

I have NOT been following them much after getting rid of them__and that WAS a VERY Hard decision as I suspected they would ALL be HUGE Winners__as they have been! So what NEWS and WHEN were these announcements to revert to a Regular Corporation made eh?__have any LINKS__I may just want to get back into them once they convert. Just can NOT go wrong with ANYTHING the Brookfield Boyz get into eh !!

[SargeX]

Hey red You can just do a google search for their news but here's the links for each to their respective websites. BIP is separate news release and BEP is ib earnings - just scroll down to "unit split" heading. https://bip.brookfield.com/press-releases/2019/09-25-2019-213435931 https://bep.brookfield.com/press-releases/2019/11-11-2019-114919758 Sounds like tax issues should

[Red_Deer]

SARGE__THNx for those Links.

[SargeX]

Hey Red You're welcome. Both BEP.UN & BIP>UN have had big runs since tha annoucement so looks like investors like it. I think it has something to do with certain funds only investing in corporations and not MLPs. Not sure if these lofty share prices can be maintained or not. BEP is up 75% YTD and BIP is up 47%. Definitely my 2019 heroes with 2500 shares of each. Sure has been a great