Brookfield Property Partners L.P. BPY

Preferred shares

[Lacas24]

I don't understand why you guys sweating with the common shares really. Just grab BPO. PR.Y. preferred BPY shares. Yields 10% but you got a safety net. You got paid first and if the dividend gets trimmed on the common shares you are golden. Trades at 6.75 with a par at 25$. It's a fixed floating 70% prime rate. You got nothing to lose and gain tremendously in case sh$t hits the fan.

[NPCexe]

If they announce a div cut, don't all the shares including pref shares get a cut?

[CHECKMATE77]

No

[Lacas24]

No. Preferred gets cut the last. Rarely ever happens. Usually if a cut comes they just reduce the common share dividend.

[NPCexe]

I guess since it's close to 10% yield (pref y) it would make sense to switch. But as for capital gains, the preferred shares don't usually react the same way to news as the common shares, so I guess theres just a more gradual appreciation in sp with pref shares?

[rodbhar]

I like the BPO prefs a lot myself. One thing to note is that the divs are paid by Brookfield Office Properties, which is a corporation that is wholly owned by BPY and contains the core office properties. It's hard to imagine a scenario where BPY would suspend dividends on the BPO prefs becasue then they wouldn't be able to dividend cash from the office properties out to the rest of the

[Lacas24]

I agree. Those are great choices as well.