Brookfield Property Partners L.P. BPY

BPY trades at 70% discount to NAV - is dividend safe?

[OstrichINV]

I put together some updated thoughts on BPY (see link to video below). 

Management letter to unitholders in late March confirms the difficult situation it is facing on its retail assets (~40% of total) given COVID-19.    

Leverage was high, and dividend payout ratio was >100% coming in to 2020.  FFO was down 6% in 2019 vs 2018.

That said, BPY benefits from Brookfield sponsorship, and is the biggest reason, in my opinion why the dividend has not been cut yet.

Company has been buying back shares and I do believe that units trading at 70% discount to NAV is untenable for BAM in the long term.  Full thoughts in link below.

https://ostrichinvesting.com/what-the-heck-is-happening-to-brookfield-properties-share-price-bpy-down-50-since-february/

[Ohn00rt]

I read online that some US REITs may pay dividend in in stocks instead of cash. Has any Canadian REIT done this in the past? New REIT investor here. Thanks.

[Capharnaum]

A dividend in stock is useless. It basically just dilutes the value of each share.

[born2trade]

Managent has couple of options as you pointed out  - Reduce the dividend  - Buy back the shares - Roll up the BPY into parent BAM Even with option 3 - least favourable to BPY shareholders, my view is the current entry point has more upside than downside. Market is pricing significant dividend cut . If management can confirm the dividend would be intact, the share price should recover

[SNAKEYBOY]

Most retail reits are in the same boat. Issuing shares instead of cash at this price is diluting, why would they do that when they are NCIB.  Would just ooffset that

[argon12]

If they have to cut the dividend then it will show the world that Brookfield are poor managers of risk. So much for being the smartest guys in the room. 50% dividend cut- should result in 50% cut in income which includes salary and options for BPY CEO AND TOP EXECUTIVES. All board members of BAM should have their pay and perks eliminated by 50% as well. Watch to see if they grant BPY

[Broker49]

We believe it's more likely that the share price rises, being under valued do to Covid-19 than BPY cutting the dividend. With an enterprise value of 95.69B, a share price of $31 makes more sense just based on their assets than where the share price is today. BPY is trading at a P/E of 5.1 times, albeit this is before Corona. As of Friday April 17 Morningstar Quant report gives BPY.UN a 5/5

[argon12]

No real investor gives a $hit about Morning Star and their consensus. 5/5 for what?   --- missing the boat?

[Vette08]

Excellent video and thanks for sharing.  Anyone who invests in the stock market should understand your analysis of the CF statement and the Balance Sheet.  My comments: (1) I believe BAM would rather privatize rather cut the dividend on its "flagship" real estate asset.  I would predict a short term suspension of the dividend rather than a cut.  Will be interesting

[gashole]

After my analysis of this company a couple weeks ago I pulled the trigger on 30k shares as I believed it was severly undervalued and I have done well on it.... that being said, I dont know if there would be a bid on it, but could BAM take it over? Sort of like Enbridge did with Enbridge income fund.. 

[ChungasRevenge]

I don't think anybody here believes you have at least $300 000 to spend on 1 stock

[gashole]

oh please.... really?? there are people on here buying 100 shares, but thats more believable to you... ok well, ive been on here since 2007.. I am a business owner and have some significant assets, Im not 19 and just starting.. Im in my 50's .... I tend to overbuy, but let me put it this way, I had 100,000 shares of IPL before it tanked... and I lost 800k selling it on the way down..... I