Q: The BPO pref shares, in my view, are trading at levels that indicate serious concern over credit risk.
A question put to you on Jan 30, 2023 was with respect to who held the liability for the BPO pre shares (the questioner was asking about BPO.PR.G specifically). You replied:
“While BPO is a separate legal entity, its preferred shares are under the obligation of BN.”
However, a similar question was posed Mar 20, 2023 with respect to BPO.PR.P and you seemed to reply that the obligation on those BPO pref shares was with something called Brookfield Property Preferred LP.
Forgive me if I have mischaracterized your answers, this is a bit confusing to me. It seems to be a very big difference though.
I am assuming that the Preferred LP is some sort of subsidiary?
If so, that would make the BPO prefs MUCH more risky, in my opinion.
I note that the Financial Post reported in Feb 2023 that yet another Brookfield subsidiary (Brookfield DTLA] has defaulted on loans on two major office towers in downtown Los Angeles. The loan amounts are staggering, by the way.
Can you please clarify all this?
A question put to you on Jan 30, 2023 was with respect to who held the liability for the BPO pre shares (the questioner was asking about BPO.PR.G specifically). You replied:
“While BPO is a separate legal entity, its preferred shares are under the obligation of BN.”
However, a similar question was posed Mar 20, 2023 with respect to BPO.PR.P and you seemed to reply that the obligation on those BPO pref shares was with something called Brookfield Property Preferred LP.
Forgive me if I have mischaracterized your answers, this is a bit confusing to me. It seems to be a very big difference though.
I am assuming that the Preferred LP is some sort of subsidiary?
If so, that would make the BPO prefs MUCH more risky, in my opinion.
I note that the Financial Post reported in Feb 2023 that yet another Brookfield subsidiary (Brookfield DTLA] has defaulted on loans on two major office towers in downtown Los Angeles. The loan amounts are staggering, by the way.
Can you please clarify all this?
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Brookfield Property Partners L.P. (BPY.UN)
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Canada Goose Holdings Inc. Subordinate Voting Shares (GOOS)
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Brookfield Office Properties Inc. Class AAA Preference Shares Series R (BPO.PR.R)
Q: Hello 5i, I have a small position in the above listed stocks. I am down about 10%. Would you suggest that I keep them or take my losses and move on.? I appreciate your comments.
Carlo
Carlo