Brookfield Office Properties Inc T.BPO.PR.A

Redemption of the "T"....... When do we find out if it's

[CrazyTrader]

going to happen or not?   

Too bad it isn't the C's that are reseting instead of the T's...... I think the company would redeem the C's if they were to reset next month, that would send all the other prefers up and send the shorts scrambling.   

I don't think the company will redeem the T's.  But you never know.   As I understand, they call the prefers "perpetual capital"..... so redeeming unlikely.   

But, Buying on the open market for investment (not cancelling) still qualifiies as "perpetual capital" since it can be sold back to the market.

It make no sense for the company not to buy in the open market.  


All just my opinion/view/thinking/wondering

[pierrelebel]

"When do we find out if it's going to happen or not?  " It will not. There are 10,000,000 BPO.PR.T shares outstanding. They reset at the end of next next week and will cost them about 7% starting with the dividend payable at the end of March 2024. Why would they spend $250,000,000.00 to redeem shares priced by the market at less than half that amount? It

[CrazyTrader]

At what point would it make sense?  The T's you say will cost them about 7%.    I agree, at 7% I don't see them redeeming.    Buying on the open market, now that's different.   Why they are not, makes NO SENSE.   The C's, that's a different story.   If they reset next month, it would cost them about 10%.   At 10%

[Carena]

Hi Crazy, You can wonder about your continued investment in Brookfield all you like, but questioning Brookfield's financial sense is a waste of your time....lol.    7% debt is cheap for BPY at this point.  So I agree, very unlikely the T's get redeemed.  The C's are 200 basis points more expensive than the T's....capital these days for real estate is way to

[CrazyTrader]

Carena, Atleast you agree, the C's are the most likely of all the BPO prefs to be redeemed. But, I'm still questioning Brookfield's Financial Sense for failure to buy the BPO prefers on the open market for investment.     Ok, redeeming may still not make sense, but buying on the open market does.     VERY MUCH SO. All just my opinion/view/thinking

[CrazyTrader]

Carena, Buying in the open market doesn't "cost anything", the capital still there!   It's just less liquid than CASH, but it's still there.      Company can sell the shares to get the Cash back.      Meanwhile they are saving/making 14% !!!! while holding their "pernament capital". All just my opinion/view/thinking

[pierrelebel]

"  Buying on the open market, now that's different.   Why they are not, makes NO SENSE." We have discussed that before.  Brookfield works on OPM (other people's money). There is no way they would take money from investors (mostly institutions and billionnaires) at $25 and buy it back from them for $12 making their original investors lose money in the process

[CrazyTrader]

Like I said, what you say make NO SENSE.     Yield is yield.... Be it buying property and making money from it, or buying shares and making money from it.      Only "original investors" that would lose money will be those who sell at $12.  Buying at $12 instead of $25  MAKES SENSE....   LOL...   Especially if you don't